Oakland's port has a new strategy to improve its docks and boost revenue: Find deep-pocketed investors willing to foot the bill for what could be millions of dollars worth of upgrades to its shipping terminals. Officials last week began to solicit financiers willing to operate as many as seven of the port's 20 shipping berths and pay for improvements as part of a long-term concession deal. The main attraction for private investors is expectations that cargo shipments through Oakland are expected to increase more than 60 percent in the next nine years to 3.9 million containers, providing a steadily rising revenue stream.
The port, which usually pays for terminal improvements itself by selling bonds, sees the deal as a way to grow its capacity while keeping its debt in check. Port officials said that some of the infrastructure changes to the berths might include repaving, rerouting trucking lanes and possibly removing some buildings - work that likely will cost several million dollars.
"What we're doing is we're pushing those costs over to the concession (holder)," said Jean Banker, who manages administration and finance for the port.
The port, which usually pays for terminal improvements itself by selling bonds, sees the deal as a way to grow its capacity while keeping its debt in check. Port officials said that some of the infrastructure changes to the berths might include repaving, rerouting trucking lanes and possibly removing some buildings - work that likely will cost several million dollars.
"What we're doing is we're pushing those costs over to the concession (holder)," said Jean Banker, who manages administration and finance for the port.