Ocean cargo/ global logistics: Port of Richmond and BNSF team to bring more business to California
This signals a return of cargo business to U.S. West Coast “niche” gateways
Patrick Burnson -- Logistics Management, 11/6/2009
SAN FRANCISCO—The Port of Richmond has broken ground to kick off a $40-million rail infrastructure development that will allow the port to handle more than 145,000 imported American Honda vehicles per year.
This news, which broke just before the Association of Pacific Ports met here yesterday, signals a return of cargo business to U.S. West Coast “niche” gateways. It also coincides with the announcement that BNSF is being revitalized with fresh investment.
The construction project in Richmond will dramatically increase BNSF Railroad service to the port. The existing rail line serving industrial tenants along the port entrance roadway will be upgraded and a second, dedicated, rail line will be added exclusively to serve the Honda account and other automotive tenants. A seven-track railcar loading and unloading facility will be built at the Point Potrero Marine Terminal.
TransDevelopment Group, a specialized developer of transportation facilities, has handled project planning, environmental permitting and design and will serve as the construction manager for the $40-million project. The company is under contract with Auto Warehousing, which will handle imported Honda vehicles before they are delivered to local dealers or shipped via rail to dealerships in Southwestern states.
Winning the new Honda account will provide a new revenue and employment boost for the City and Port of Richmond. The port expects to handle 150,000 – 180,000 Honda vehicles per year once the business ramps up. Port revenue will be bolstered through the 15-year contract.
The rail infrastructure project and related operating activities are expected to add more than 100 construction jobs and another 200 long-term jobs to support additional logistics activities related to expanded facility and automotive operations.
TransDevelopment and developer Auto Warehousing are working under a Richmond First Source Agreement to provide incentives and employment targets for Richmond-area contractors, subcontractors and operations workers.
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