Record state grant will go to rail, clean air projects

Multiple zero-emissions projects at the Port of Long Beach will proceed at a faster clip thanks to nearly $225 million in grant funding awarded to the Port by the state of California in July. The state is also investing more than $158 million to advance the Port’s rail support facility at Pier B, which will shift more cargo from trucks to on-dock rail.

The total, more than $383 million, is the largest grant ever awarded to the Port by the state of California. The funding will support the creation of more than 22,000 jobs and advance projects expected to eliminate more than 12% of all carbon dioxide emissions and more than 5% of nitrogen oxide emissions associated with Port-related operations annually by 2028.

“This game-changing grant will make a tremendous difference in our efforts to bring more business and jobs to the harbor, enhance the efficiency of cargo movement and accelerate the Port’s ongoing transformation to zero-emission operations,” said Port of Long Beach CEO Mario Cordero. “I would like to thank Gov. Gavin Newsom, state Transportation Secretary Toks Omishakin and the state Legislature for having the foresight to invest in California’s seaports and to secure our spot as an economic engine for the state and the nation.”

“Thank you to the California State Transportation Agency for funding projects to enhance cargo efficiency at the Port of Long Beach and make the air healthier for our surrounding communities,” said Long Beach Harbor Commission President Sharon L. Weissman. “These critical projects will make the Port stronger, more competitive and a better neighbor well into the future.”

The Port’s share alone represents about 25% of more than $1.5 billion California is investing in its ports statewide to build a more efficient, sustainable and resilient supply chain. The Port is the single largest recipient of the one-time-only Port and Freight Infrastructure Program (PFIP) grants administered by the California State Transportation Agency (CalSTA).

California Transportation Secretary Omishakin announced the awards July 6 at the Port’s Joint Command and Control Center. “CalSTA’s ‘Core Four’ priorities are safety, climate action, equity and economic prosperity, and the strategic investments announced today shine in all those areas,” Omishakin said. “These awards – a direct result of Gov. Newsom’s visionary leadership – will help maintain our state’s competitive edge in our nation-leading supply chain infrastructure and will create a cleaner, safer and more efficient goods movement system that will have a lasting positive impact for the people of California.”

The historic level of state funding positions the projects to compete for significant federal infrastructure dollars from the Biden-Harris Administration, he added. The grant money also strengthens the Port’s ability to secure favorable financing through federal credit programs.

WHERE THE MONEY GOES

The Port’s share of PFIP grant money will defray about 18% of more than $2.1 billion the Port is spending on the following projects. All aim to accelerate port modernization, improve goods movement efficiency and reduce harmful environmental effects of the Port’s operations on neighboring communities and those along the I-710/Alameda Corridor.

The following Port of Long Beach projects are receiving PFIP funding. All cargo handling equipment being tested is manually operated.

Zero-Emission Locomotive Incentive Program: The Port and its rail partners are demonstrating zero-emissions locomotives in long-haul and local switching operations. The project is estimated to fund up to 12 locomotives. The state is contributing $50 million.

Long Beach Container Terminal Equipment Replacement and Charging Infrastructure Installation – total project cost $44.9 million: This project involves replacing diesel equipment with 44 pieces of zero-emissions yard tractors, top handlers, reach stackers, forklifts, and intermediate bulk container carts at LBCT, as well as 62 charging units. The state is contributing $35.9 million.

SSA Fuel Cell Top Handlers Demonstration – total project cost $36 million: SSA Terminals will develop and demonstrate nine hydrogen fuel-cell top handlers and fueling infrastructure capable of serving up to 11 fuel-cell top handlers at its Pier C terminal. The state is contributing $28.8 million.

SSA Heavy Forklifts Demonstration – total project cost $10.3 million: SSA Pacific will deploy and demonstrate 10 zero-emission electric forklifts at SSA’s Pier F breakbulk terminal and install the associated charging infrastructure to replace diesel forklifts. The state is contributing $8.2 million.

Crowley Battery Plug-In Hybrid Tugboat – total project cost $31.9 million: Crowley Marine will develop a battery plug-in hybrid propulsion tugboat capable of ship assist and harbor work. The state is contributing $10 million.

Tesoro T121 Shore Power Enhancement System – total project cost $14.3 million: Tesoro Logistics will enhance the capabilities of an existing shore power system to serve more tanker vessels by adding a cable management crane and 480-volt cable management system to Berth T121. The state is contributing $7 million.

Tesoro LBT and T2 Shore Power Demonstrations – total project cost $56.1 million: Tesoro will design, build, and demonstrate shore power at the Tesoro LBT and T2 terminals to eliminate nearly all emissions from tanker vessels while at berth and assess the feasibility of shore power for tankers at the largest scale to date. The state is contributing $27.5 million.

Zero-Emission Terminal Transformation Program: The Port is developing infrastructure master plans for all container terminals and its major bulk terminal to support 100% deployment of zero-emission equipment. The program also allows terminals with completed master plans to apply for funding to implement the plans. The state is contributing $28.7 million.

Harbor Craft Business Continuity and Emission Reduction Program: The project supports the design of a competitive grant for repowering or replacing harbor craft throughout the Long Beach and Los Angeles ports complex. Tugboats are a priority to prevent a potential shortage that could cripple vessel operations. The state is contributing $28.7 million.

The Port’s Pier B On-Dock Rail Support Facility is receiving $158.4 million from the state toward the cost of the $1.57 billion program to reconfigure and expand the existing yard to streamline rail service throughout the harbor complex. The funding will support three of the 10 construction packages that constitute the Pier B program. Construction is slated to begin in 2025 and be completed in 2032.

THE BIG PICTURE

The massive clean air gains associated with these projects are based on the current emissions levels reported in the Port’s 2021 Air Emissions Inventory and the projects’ collective zero-emissions estimated benefits. Carbon dioxide is the main component of greenhouse gases, whose emissions the Port is aggressively seeking to reduce 40% by 2030 and 80% by 2050. Transitioning cargo handling equipment and the drayage truck fleet to zero-emissions by 2030 and 2035 respectively through the San Pedro Bay ports complex is crucial to achieving these gains.

Likewise, improvements to the rail network significantly advance the Port’s clean air goals. One double-stacked train eliminates an estimated 750 truck trips, reducing both emissions and congestion. A modern, expanded Pier B rail facility positions the Port to achieve its longstanding goal of moving 35% of cargo by on-dock rail. Currently, about 20% of all cargo moving in and out of the Port is handled by on-dock rail.

Additional PFIP funding will go to improving freight infrastructure that supports the movement of cargo through the San Pedro Bay ports, the nation’s busiest container port complex. The Port of Los Angeles was awarded more than $223 million to help pay for facility, roadway and rail improvements, and the South Coast Air Quality Management District was awarded more than $76 million toward building a network of charging and hydrogen fueling stations near the ports and throughout the region.
Source: Port of Long Beach