Ports of Oakland and Sacramento closer to forging a strategic alliance

By: | at 07:00 PM | Maritime  

Oakland Board of Port Commissioners authorizes plan to negotiate and execute a Memorandum of Understanding regarding management and operations of Sacramento port.

On Dec. 20 the Oakland Board of Port Commissioners unanimously gave the Port of Oakland’s Executive Director the authority to negotiate and execute a Memorandum of Understanding (MOU) with the Port of Sacramento. The MOU will outline the goals of the strategic alliance and the Port of Oakland’s role and responsibilities relative to managing and operating the Port of Sacramento.

Commissioner Kenneth S. Katzoff, President of the Oakland Port Board, said, ‘International cargo moving through US ports is expected to double by 2020 if not sooner. The strategic alliance with the Port of Sacramento is one of a number of opportunities and innovative ideas that we believe could support our efforts to handle our growing business.’ Katzoff added, ‘We are also taking an aggressive look at how to improve air quality and relieve congestion from trucks in and out of the Bay Area to the Port of Oakland. The alliance with Sacramento may offer us another way to assist those efforts through a barging operation between the two ports.’

The volume of cargo through the Oakland seaport has steadily grown this year. The Port of Oakland expects that new record numbers will be set for the maritime operations as the final figures for 2005 are calculated next month. Oakland Port Board Commissioner David Kramer, who chairs the Port of Oakland Maritime Committee, expressed his support and enthusiasm for an agreement between the two ports, ‘This strategic alliance with the Port of Sacramento will help the Port of Oakland maintain its standing as the fourth busiest containerport in the United States. We’re very excited about the potential here for creating jobs and economic benefits for Northern California.’

The next step is for the West Sacramento Port Commission to consider and approve the Memorandum of Understanding between the two ports. The interim CEO for the Port of Sacramento, Andrew Belknap, attended the Port of Oakland board meeting and said, ‘There is untapped potential for ports to cooperate as well as compete. The strategic alliance makes good business sense for both ports.’

This strategic partnership could transform the Port of Sacramento into a bustling port creating hundreds of jobs in that region and creating greater economic stability for the area.

Chair of the Port of Oakland’s Commercial Real Estate Committee John Protopappas endorsed the alliance, ‘We’re excited about the partnership with the Port of Sacramento. As a part of our overall maritime and goods movement and logistics analysis, we are looking at all possible alternatives and operational locations that might improve our efficiency and increase our capacity. The Port of Sacramento provides the opportunity for a satellite port that could improve goods movement in the state as well as improve distribution of cargo destined for America’s heartland.’

At the invitation of the Port of Sacramento, the Port of Oakland submitted a proposal for an alliance in response to Sacramento’s RFQ (Request for Qualifications). As a result of the RFQ process, the Port of Oakland was asked to develop and execute a MOU (Memorandum of Understanding) to establish an alliance with the Port of Sacramento.

A three-phased approach has been developed for a long-term strategic alliance -

Phase I (Jan. 1, 2006 - June 30, 2006) includes: Oakland will work with Sacramento to secure a terminal operator to provide a broad range of maritime services in Sacramento by June 30, 2006; Oakland will work with Sacramento to prepare a strategic plan including marketing and operations for consideration by Sacramento; Oakland and Sacramento will develop the details of the exclusive Terminal Operations Franchise covering phases II and III of the alliance including the scope, responsibilities and financial terms; Oakland will establish the appropriate legal entity to carry out the terms of the agreements of the


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