Federal, State, and Port Funding for Upgrade Project
The competition among U.S. container ports is shifting to rail enhancements. On Thursday, the Los Angeles Harbor Commission announced the approval of a lease amendment that secures $52 million for upgrades to the on-dock rail capacity at the Port of Los Angeles Pier 300.
Owned by CMA CGM Group of Marseille and operated by its subsidiary Fenix Marine Services (FMS), Pier 300 is the second-largest terminal at the Port of Los Angeles. Construction is slated to commence in 2025 and will introduce five new loading/unloading tracks in the intermodal yard.
“This project not only enhances cargo capacity and operational efficiency but also promotes the sustainability of port practices,” stated Lucille Roybal-Allard, President of the Los Angeles Harbor Commission, in the announcement. “It represents another significant advancement towards our productivity and clean air objectives.”
Currently, Pier 300 features eight on-dock rail tracks with a combined capacity for 64 five-well double-stack railcars, along with space for 74 additional railcars. The terminal has access to both BNSF and Union Pacific railroads, with an annual capacity exceeding 1 million lifts.
“Reducing cargo transfers leads to cleaner operations and greater efficiency at our container terminals,” remarked Gene Seroka, Executive Director of the Port of Los Angeles. “This initiative will enhance our competitiveness and bolster our capability to attract more discretionary cargo destined for interior U.S. markets.”
Additional improvements planned for the project include grading and paving, fire protection upgrades, electrical enhancements, along with new striping and signage, as well as design elements for storm drains to comply with Low Impact Development standards.
“This investment guarantees that sufficient on-dock intermodal capacity is available to support future growth, allowing POLA and FMS to further compete for discretionary cargo in a manner that is environmentally responsible and beneficial to the community,” explained George Goldman, President and CEO of CMA CGM (America).
Pier 300 is part of a series of rail improvement initiatives designed to maintain the Los Angeles-Long Beach port complex as the leading gateway for containerized imports bound for the U.S. Recently, the port completed a $73 million on-dock expansion at LA’s Pier 400, while Long Beach initiated a $1.56 billion upgrade expected to triple its on-dock TEU capacity and significantly increase daily double-stack train departures.
Funding for this project includes approximately $18 million from the U.S. Department of Transportation Maritime Administration and $19 million from California’s Trade Corridor Enhancement Program, with the port covering the remaining costs.
In January 2022, CMA CGM reacquired Fenix Marine Services for $2.3 billion, and Pier 300 accounts for over 2.5 million twenty-foot equivalent units (TEUs), representing 20% of the port’s total volume.
