Thanks to $322 million in federal grants for zero-emission equipment and nearly $100 million for Port infrastructure, Port of Oakland Executive Director Danny Wan says the Port is: “doing a whole lot of work in putting the basic building blocks (for) a very successful, bright future for the Port of Oakland.”

Wan and Maritime Director Bryan Brandes provided their 2024 Annual Review to the Propeller Club of Northern California on December 3rd, 2024.

Wan thanked Port of Oakland maritime stakeholders, including truckers, shippers, terminal operators, and longshore workers represented by the International Longshore and Warehouse Union (ILWU): “We have a partnership with you, and we are making great strides … in our infrastructure that is being set in place …under the great leadership of our Maritime Director, Bryan Brandes. We are focused on making sure that the Seaport does what it's supposed to do ... that is making it … easy to get in and get out and … transparent in terms of where you are in terms of every step of the way. We are putting technology in to make sure … that's what we're doing.”

The big news, Wan said is: “The big news this year is our big success, again with the partnership, (of) many of you in this room … to make sure that the Port can get its fair share of ... infrastructure money because we know that we need lots of infrastructure work. We are very proud and very happy that we got the $322 million of federal grants for … zero-emission equipment set in place. We also got close to about a hundred million dollars … got $50 million added to some previous grants for port improvement and port infrastructure development … to improve our wharves and to strengthen our wharves… I know that SSA is seeing some of that work and TraPac.”

In October, the Port of Oakland’s container volume rose 10% over recorded volumes for the same period in 2023. Loaded imports grew for the 12th straight month. Import volume rose 11.2% in October 2024, compared to October 2023. Port operators processed 81,498 TEUs (twenty-foot containers) versus 73,281 TEUs in 2023.

“Overall, the Port’s loaded import cargo is trending towards its pre-pandemic level,” said Port of Oakland Maritime Director Bryan Brandes. “This steady increase in import volume in 2024 is an encouraging trend. We are also seeing a rise in U.S. agricultural exports through Oakland. Thanks to refrigerated warehousing on Port property near the maritime terminals and convenient truck and rail access, we are well-positioned to continue to grow ag export cargo volume through the Oakland Seaport.”

Rail Link to Nevada

In his presentation, Brandes reported that a new rail service between Oakland and warehouses in Reno, Nevada has opened that replaces what was an all-truck service on I-80: “The rail option is now up and working … it's a service … that runs as much as there is volume.”

Other short-distance rail services may open up, linking the Port to the San Joaquin Valley and linking cities and warehouses in Sacramento, Stockton, and Modesto, he said.

A key obstacle to increasing volumes is obtaining the first ‘port of call’ from major ocean carrier services. Currently, Oakland relies on services calling at Los Angeles and Long Beach first. The change cannot happen until Oakland develops on-dock rail services at its terminals: “A lot of people have asked … about bringing in new volume … what is going to trigger our first port of call. What is going to trigger our first port of call into the Port of Oakland is the on-dock rail service. So, I want to say the conversations are healthy … more promising now than it's ever been.”

Turning Basin Expansion

Another key issue for the Port is widening the Harbor Turning Basins: “I would ask that we can have as much as your support ... attending the Board of Port Commissioners meeting to show your support for moving forward with the Turning Basins. This … expansion of the Turning Basin just … allows for ... a vessel to come in and do a U-turn at a much (safer) way … and anytime throughout the day. Right now, our current Turning Basins are restricted to … daylight hours and restricted to certain size vessels. Expanding them makes it … much safer for the vessel and for the pilots to … operate them … in and out of the Port.

The proposed project includes widening both turning basins to accommodate vessels up to 1,310 feet in length. The benefits of widening the turning basins include:

• Safer navigation for large vessels already calling Oakland

• Improved waterways resulting in more efficient goods movement;

• Reduced delays and vessel wait times;

• Improved flexibility for vessels to connect to shore power; and

• Reduced total vessel emissions.

The Port’s Board of Commissioners will consider the EIR (Environmental Impact Report) and determine if it was prepared in compliance with CEQA (California Environmental Quality Act).

Proposed Tariff Impact

Brandes was asked about the impact of tariffs, including on Chinese goods, proposed by President-elect Donald Trump: “If you break down the numbers today, the sheer volume of the cargo coming in directly from China into the U.S. … no other country can handle it. So, if those tariffs went in and our buying habits changed, it would impact everything.”

Brandes was asked about the expansion of container shipping from China to Mexican ports such as Manzanillo and Lazaro Cardenas and plans by the Mexican government to increase investments in container handling at its ports. The expansion has hurt U.S. West Coast ports and decreased shipping volumes from China. For example, the Port of Los Angeles has reported a nearly 20% decline in its China shipping volumes.

Brandes said he expects feeder ship services from Mexican ports to U.S. West Coast ports: “I think we're going to see more … short haul vessels from some of the Mexican ports coming up the coast, and then most likely stop in LA, Long Beach … Oakland and Seattle as well. So do I think it's ... long-term. I think Mexico will and should continue … to improve their infrastructure.”

Finally, Brandes and Wan were asked about whether the incoming Trump Administration might rescind federal grants for zero-emission equipment and Port infrastructure.

Wan responded: “There's nothing we can do to absolutely a hundred proof … that we keep the money … My understanding is that money is already being appropriated by Congress, meaning the money's already sort of given to … these purposes. So, it makes it a little bit more difficult for the Trump Administration to then call that back. Now, we know ... Mr. Trump is unpredictable … So, what we are doing is we are going to the Board of Port Commissioners on Thursday and the Board will … be approving the receipt of the grant funding. … Hopefully, that establishes a … contractual relationship between us and the federal government on these grants.”