The Port of Oakland’s redevelopment zone is highlighted in blue; the City of Oakland’s is highlighted in green. Phase One of the army base renovation is expected to be completed by the end of 2015. Due to the port’s shortfall, things look dicey for the finance of Phase Two, which includes a new intermodal rail terminal, a bulk marine terminal, thirty acres of truck parking and service areas, two million square feet of warehousing space, and a new recycling center, according to this report. Currently, the port has no timeline for when it will be able to begin Phase Two.
As the City of Oakland plans to start the overhaul of a 400-acre former army base this year, lack of money threatens the completion of the project because the Port of Oakland is $1.3 billion in debt. This funding deficit will likely delay the second phase of the project, and the potential of thousands of new jobs in West Oakland.
The port’s fiscal problems might hurt Oakland’s ability to remain competitive with port rivals for container business. For example, the Port of Los Angeles has an annual capital improvement program of $400 million, and the Port of Long Beach has $700 million. The Port of Oakland, has only $31 million a year for its capital needs through 2017.
Professor Alan Erera of Georgia Institute of Technology, an expert in transportation and logistics systems, said the planned expansion of the Port of Oakland is key for its continued competitiveness. “It’s important for Oakland to begin to upgrade its facilities now if it wants to continue to be a major player,” he said.