Stockton Port Suspending Marine Highway Ops

By Mark Edward Nero

The Port of Stockton says it’s transitioning its M-580 Marine Highway demonstration project from a weekly offering to an “as-needed” service effective Sept. 1, due to difficulties in making the project work financially.

During the past several months, port officials met with “numerous state and federal agencies” to identify possible financial partners to assist in keeping the current level of service but thus far, no state or federal agency has made a financial commitment toward the weekly operation of the project.

“Challenges remain as the Port of Stockton is the only operating underwriter of this regional project,” Port Director Richard Aschieris said. “During this initial period, we learned that the time it takes to build sustainable volumes was longer than anticipated.”

For the past 14 months, the M-580 has been operating as an alternative to trucking containers to and from the Central Valley and the Bay Area. The M-580 roughly parallels the I-580 corridor between California’s Central Valley and Oakland, one of the most heavily congested highways in the country. It is estimated that about 1,600 containers move per day between the Stockton and Oakland ports along I-580.

When the Marine Highway launched in June 2013, port officials anticipated annual revenues of $15 million, based on handling nearly 900 containers per week, but the financial returns have not lived up to projections.

The project’s total cost was about $30 million, with the majority of funding coming from a federal grant, the port itself spending $8 million, and another $5 million coming from local and regional sources, such as air pollution management agencies.

One of the main priorities of the project was eliminating truck traffic and air pollution, and Aschieris touted the environmental benefits it achieved.

“This project has demonstrated tremendous air quality benefits, reducing air emissions by 80 percent and truck trips by nearly 25,000, making highways safer,” Aschieris said. “The M-580 has significantly reduced associated maintenance costs as well.”

Port Commission Chair Victor Mow also commented on the value of the M-580.

“This project needs to be a part of the goods movement system in California,” Mow said. “With the congestion we experience on I-580, as well as the air quality and safety benefits of the M-580, we look forward to the day we can bring the weekly service back to benefit our communities.”

According to the Port of Stockton, the project has created 45 new jobs in the maritime terminal, and has led to 116 voyages between the ports of Oakland and Stockton so far. A total of 24,629 truck trips have been eliminated and 7,259 containers transported over the past 14 months, for a total emission reduction of 5,977 tons.

SSA Marine to Operate Stockton Barge Service

Stevedoring and terminal operations company SSA Marine has been chosen by the Port of Stockton to manage the terminal for a new barge service that will operate between Stockton and the Port of Oakland.

The barge service, which is called the M-580 Marine Highway, is so named because it would be parallel to Interstate 580, the corridor that many truckers use to transport goods to and from the ports.

The $30 million project, which is partially funded by the US Transportation Dept., is aimed at moving ocean shipping containers by barge instead of trucking between the Port of Oakland and the Central Valley.

The service was initially projected to open in the fall of 2012, but was delayed by issues regarding how much union labor would be used. The barge service is now expected to debut later this spring, according to Stockton officials.

Under its contract with the port, SSA Marine is expected to provide terminal services, including terminal management, marketing and logistical support for the Marine Highway, while port officials provide management oversight for the project.

SSA already operates a terminal in Oakland, something port Director Richard Aschieris has said is an added advantage for the company.

It’s estimated that about 1,600 containers per day move between the Stockton and Oakland ports along I-580, which is one of California’s most congested freeways. Stockton says the barge service could potentially save shippers time as well as money in transport costs, since it would allow containers to be loaded in excess of California’s highway weight limit of 22 metric tons.

Port of Stockton to Launch Barge Service

The Port of Stockton is starting a barge service to move containers along the Sacramento River that are too heavy for highway transit. The project is due to launch in in February 2012.

The M-580 Marine Highway, as the port is calling it, would travel between the port and Oakland. It is so named because it would be parallel to Interstate 580, the corridor that many truckers use to transport goods to and from the ports.

The barge service could potentially save shippers money in transport costs, since it would allow containers to be loaded in excess of California’s highway weight limit of 22 metric tons.

Funding for the project comes partially from the U.S. Department of Transportation. In February 2010, the port received a $13 million federal grant to buy two 140-ton mobile harbor cranes and to make needed infrastructure improvements to support the container-on-barge project.

The port has already purchased two cranes and two barges for the project; the cranes are scheduled for January delivery and the barges are scheduled to undergo modifications in early 2012 to enable them to handle cargo containers.

The port has hired Savage Companies, a Salt Lake City-based supply chain solutions business, to provide various support functions, including management, logistics, marketing and operating services. Savage says it has already begun marketing the barge service to potential customers.

The port says it also expects the route to reduce freeway traffic and help improve regional air quality. It’s estimated that about 1,600 containers per day move between the Stockton and Oakland ports along I-580, which is one of the state’s most congested freeways.