$30 million in stimulus funds set for inland port plan

By WES SANDER
Capital Press

With a container-cargo barge system set to connect the coast with California's Central Valley ports by year's end, observers and product handlers say the potential for new shipping efficiency depends on the details.

The inland ports of West Sacramento and Stockton, partnering with the Port of Oakland, hope to bite off a chunk of the container traffic that currently travels to the coast by truck.

In February, the U.S. Department of Transportation awarded $30 million in stimulus grants to the partnership.

"Right now there are about 1.5 million containers going in and out of the valley, and we want to get a share of that," said Mike Luken, manager of the Port of West Sacramento.

It wouldn't be the first time Sacramento has seen container traffic, Luken said. The port serviced container barges in the 1960s, until the country's highway system offered a better alternative.

But these days, air quality regulations are a factor, with California's truck-emission rules threatening to drive up costs. There are also weight limits on roadways that prevent trucks from traveling with a full load.

Luken said agriculture players have consistently expressed the most interest in the project since planning began in 2005. Several large commodity handlers have offered input, he said, among them almond handler and marketer Blue Diamond Growers.

Blue Diamond spokeswoman Susan Brauner said the company is interested in the service but has yet to hash out how much new efficiency the barge service might offer.

"There are a lot of questions and a lot of considerations that need to be spelled out and we don't have the particulars at the moment," Brauner said.

Among other factors, the outcome depends on how many of the several ocean carriers used by Blue Diamond might sign on with the barge service, Brauner said. Infrastructure will also be a factor, including the inland ports' capacity for handling containers.

"The big question is, how is this going to work and how does the bottom line show that we're going to save funds by doing this?" Brauner said.

Fred Klose, executive director of the California Agricultural Export Council, said part of the challenge lies in controlling costs, including any buildup of cargo-loading and port fees.

"There are going to be a lot of costs that come up that nobody really was expecting," Klose said.

Luken said the ports will soon contract an operator to run the barges and intends to streamline the schedule by which producers and handlers would pay shipping fees, Luken said.

"You wouldn't pay a wharfage fee here and one in Oakland," he said. "You would pay one wharfage fee."

In the long run, any improvement of the state's transportation infrastructure will benefit agriculture, Klose said.

"Particularly with the congestion around Oakland, anything that improves the ability to move goods is going to have a positive effect in the long run," he said.