CBFANC Signatory to Industry Letter to Board of Port Commissioners. ALL FUNDS MUST GO TO CARGO HANDLING AND PASSENGER ACCESS ONLY

Board of Port Commissioners
530 Water St,
Oakland, CA 94607

RE: State Funding for the Port of Oakland

To the Port of Oakland Board of Commissioners:

As the key maritime, transportation, and logistics stakeholders who are essential to cargo movement at the Port of Oakland, our role is to ensure the Port remains a critical economic engine and supply-chain link serving Northern California. Currently, the Oakland seaport loads and discharges more than 99% of the containerized goods moving through the region.

As the Port continues to grow and thrive, we must stress the critical importance of investing in the additional infrastructure that is integral to handling increased cargo, serving more customers, and providing economic benefits to the regional economy. In a recent story in the East Bay Times, it was reported that because of its role in the global movement of goods, current congestion at the Port of Oakland is having wide-reaching effects, causing shipping delays and increased prices across the world.

To achieve future growth, and ensure the long-term competitiveness of the Port, $279.5 million was recently allocated for the Port of Oakland in the state budget with the following language:

Funds appropriated in this item shall be for the Port of Oakland for improvements that facilitate enhanced freight and passenger access and to promote the efficient and safe movement of goods and people.

During an Oakland City Council meeting related to the Oakland A’s proposal to build a ballpark, retail, offices, and luxury condos at the Port of Oakland, it was suggested that this budget allocation could be used to finance infrastructure for the A’s development. It was also referenced for this use in a letter sent to the City Council by Port of Oakland Executive Director Danny Wan.

However, as Director Wan himself stated in an interview in 2019, it is essential that the Port “is preserved as an industrial sanctuary,” and that commercial and residential development “doesn’t encroach on our operations, inhibit the ability of transportation partners to access the Port, or limit our ability to grow.”

As the individuals appointed to manage the Port of Oakland – including its income, the distribution of funding, and the setting of the Port’s budget priorities – your responsibility is to

ensure that the businesses and organizations that make the Port of Oakland successful have the financial, administrative, and infrastructure support to continue operating safely and efficiently.

In a recent meeting with Port of Oakland stakeholders, the Secretary of the California State Transportation Agency – the agency responsible for distributing these recently allocated funds – indicated that the Board of Port Commissioners would have a strong voice in determining and defining the specific port projects that this recent funding will be allocated for.

Given the ongoing and critical need for the projects identified in previous Port of Oakland budgets, it is crucial that the Board of Port Commissioners ensures that this $279.5 million in transportation funding is not diverted improperly to projects unrelated to enhanced freight and passenger access – namely, the proposed A’s Howard Terminal stadium and adjacent commercial and residential development. Port-related projects that would never receive priority state funding if not for the proposed A’s stadium cannot jump the line over other maritime improvements that were identified in prior budget requests and are still desperately needed.

Projects previously identified by the Port of Oakland in the 2022 budget summary that still require funding include:

GoPort Program, including grade-separated 7th Street ($320 million)
Seaport Logistics Complex ($11.1 million)
Terminal Improvements and Crane Upgrades ( $27.2 million)
Two 115kV Main Substation Replacements ($29 million)
One 12kV Substation Replacement ($6.35 million)
Powerline Capacity Upgrade ($2.8 million)
Electric Vehicle Charging Stations ($9 million)
Reconstruction of 14th St ($9.3 million)

In addition to these needed improvements, the Port of Oakland and its tenants have been preparing for years to expand the Inner Harbor Turning Basin, in particular evaluating the mechanisms for funding this crucial expansion, like this state funding. This project is necessary if the Port of Oakland is to not only keep up with the growing size of cargo ships, but to take advantage of future opportunities to expand its capacity.
The recent $279.5 million state budget allocation should not be used as a subsidy for a private, non-industrial real estate development that is inherently at odds with the Port’s core functions. We urge you to engage with key port stakeholders, Port of Oakland customers, tenants, workers, and freight and industrial businesses to ensure that this funding is appropriately utilized to finance the Port of Oakland’s ongoing priority infrastructure and facilities needs at a time when it is needed most.

Sincerely,


CBFANC Signatory to Industry Letter to Board of Port Commissioners. ALL FUNDS MUST GO TO CARGO HANDLING AND PASSENGER ACCESS ONLY Board of Port Commissioners 530 Water St, Oakland, CA 94607 RE: State Funding for the Port of Oakland To the Port of Oakland Board of Commissioners: As the key maritime, transportation, and logistics stakeholders who are essential to cargo movement at the Port of Oakland, our role is to ensure the Port remains a critical economic engine and supply-chain link serving Northern California. Currently, the Oakland seaport loads and discharges more than 99% of the containerized goods moving through the region. As the Port continues to grow and thrive, we must stress the critical importance of investing in the additional infrastructure that is integral to handling increased cargo, serving more customers, and providing economic benefits to the regional economy. In a recent story in the East Bay Times, it was reported that because of its role in the global movement of goods, current congestion at the Port of Oakland is having wide-reaching effects, causing shipping delays and increased prices across the world. To achieve future growth, and ensure the long-term competitiveness of the Port, $279.5 million was recently allocated for the Port of Oakland in the state budget with the following language: Funds appropriated in this item shall be for the Port of Oakland for improvements that facilitate enhanced freight and passenger access and to promote the efficient and safe movement of goods and people. During an Oakland City Council meeting related to the Oakland A’s proposal to build a ballpark, retail, offices, and luxury condos at the Port of Oakland, it was suggested that this budget allocation could be used to finance infrastructure for the A’s development. It was also referenced for this use in a letter sent to the City Council by Port of Oakland Executive Director Danny Wan. However, as Director Wan himself stated in an interview in 2019, it is essential that the Port “is preserved as an industrial sanctuary,” and that commercial and residential development “doesn’t encroach on our operations, inhibit the ability of transportation partners to access the Port, or limit our ability to grow.” As the individuals appointed to manage the Port of Oakland – including its income, the distribution of funding, and the setting of the Port’s budget priorities – your responsibility is to ensure that the businesses and organizations that make the Port of Oakland successful have the financial, administrative, and infrastructure support to continue operating safely and efficiently. In a recent meeting with Port of Oakland stakeholders, the Secretary of the California State Transportation Agency – the agency responsible for distributing these recently allocated funds – indicated that the Board of Port Commissioners would have a strong voice in determining and defining the specific port projects that this recent funding will be allocated for. Given the ongoing and critical need for the projects identified in previous Port of Oakland budgets, it is crucial that the Board of Port Commissioners ensures that this $279.5 million in transportation funding is not diverted improperly to projects unrelated to enhanced freight and passenger access – namely, the proposed A’s Howard Terminal stadium and adjacent commercial and residential development. Port-related projects that would never receive priority state funding if not for the proposed A’s stadium cannot jump the line over other maritime improvements that were identified in prior budget requests and are still desperately needed. Projects previously identified by the Port of Oakland in the 2022 budget summary that still require funding include: GoPort Program, including grade-separated 7th Street ($320 million) Seaport Logistics Complex ($11.1 million) Terminal Improvements and Crane Upgrades ( $27.2 million) Two 115kV Main Substation Replacements ($29 million) One 12kV Substation Replacement ($6.35 million) Powerline Capacity Upgrade ($2.8 million) Electric Vehicle Charging Stations ($9 million) Reconstruction of 14th St ($9.3 million) In addition to these needed improvements, the Port of Oakland and its tenants have been preparing for years to expand the Inner Harbor Turning Basin, in particular evaluating the mechanisms for funding this crucial expansion, like this state funding. This project is necessary if the Port of Oakland is to not only keep up with the growing size of cargo ships, but to take advantage of future opportunities to expand its capacity. The recent $279.5 million state budget allocation should not be used as a subsidy for a private, non-industrial real estate development that is inherently at odds with the Port’s core functions. We urge you to engage with key port stakeholders, Port of Oakland customers, tenants, workers, and freight and industrial businesses to ensure that this funding is appropriately utilized to finance the Port of Oakland’s ongoing priority infrastructure and facilities needs at a time when it is needed most. Sincerely,
CBFANC Newsletter - copy of October 2021 - Info Expeditor