Wilmington, Calif.-based Trapac disclosed its plans to lease an additional 57 acres and two vessel berths at the port during a meeting of Oakland’s Board of Port Commissioners last night.
TraPac, LLC has reached an agreement to nearly double its marine terminal size at the Port of Oakland.
Wilmington, Calif.-based TraPac plans to lease an additional 57 acres and two vessel berths on the Port’s Outer Harbor. Currently the terminal operator handles 20 percent of the containerized cargo moving through
the Port of Oakland with it two existing berths and 66 acres of land.
The land TraPac is expanding into was formerly occupied by Outer Harbor Terminal LLC, which was a joint venture between Ports America and Terminal Investment Ltd., the stevedoring affiliate of Mediterranean Shipping Co.
Outer Harbor Terminal ceased operations earlier this year and filed for protection under Chapter 11 of U.S. bankruptcy law.
The Port of Oakland said if the deal is approved, it would greatly strengthen TraPac’s position as the second-largest terminal operator in Oakland. The largest is SSA Marine.
TraPac disclosed its plans at a meeting of Oakland’s Board of Port Commissioners last night. The proposed 14-year lease agreement with the port becomes final if the Board approves it at a meeting Oct. 27.
“This is a significant step forward for TraPac and the port,” Port of Oakland Maritime Director John Driscoll said.“TraPac gets room to expand its thriving business and the port gets to revitalize valuable property with a highly respected tenant.”
The port said that with more acreage, the terminal can implement new procedures to improve efficiency and get containers in-and-out of Oakland faster.
“Our business is growing and placing new demands on our operations,” TraPac Oakland General Manager Mike Porte said. “With this new agreement, we can meet the demands and the service expectations of our customers.”
The Port of Oakland said current TraPac customers include APL, CMA CGM, COSCO, Evergreen, Hapag-Lloyd, Hyundai, “K” Line, MOL, NYK, OOCL and Yang Ming.
TraPac also has operations in Los Angeles and Jacksonville, Fla. The terminal operator has been operating in Oakland since 1991.
According to the port, TraPac will invest in upgrading and modernizing the new terminal acreage under its control in Oakland. Among other things, TraPac plans to construct a new gate to give harbor truckers better access to the terminal.
TraPac is automating it terminal in Los Angeles, making it one of the most sophisticated in the United States, featuring automated stacking cranes, automated straddle carriers, and other sophisticated technology. That modernization was the subject of a story in the August 2015 issue of American Shipper.
“With this expansion, we’re demonstrating our long-term commitment to Oakland,” said Mr. Porte. “TraPac and the port share a common value – good customer service – so we see this partnership growing even stronger over time.”
Founded in 1987 in Los Angeles, TraPac is a subsidiary of the Japanese shipping
company Mitsui O.S.K. Lines. In 2014, Toronto-based
Brookfield Asset Management Inc. acquired a 49 percent stake in TraPac’s
operations in Los Angeles and Oakland (The investment does not include
other TraPac assets, such as the terminal operations in Jacksonville).
TraPac to nearly double the size of its Oakland terminal
