The Port of Long Beach has approved a revised budget of $1.815 billion for the Pier B On-Dock Rail Support Facility (ODRSF) to address increased costs and enhance cargo efficiency, according to the Long Beach Business Journal.
The adjustment raises the project’s funding from the previously estimated $1.567 billion, reflecting rising construction costs, labor expenses, and supply chain challenges.
The ODRSF aims to more than double the size of the existing Pier B rail yard from 82 acres to 171 acres and triple the port’s on-dock rail capacity from 1.5 million twenty-foot equivalent units (TEUs) to 4.7 million TEUs annually.
Construction, initiated in July 2024 with a groundbreaking attended by U.S. Transportation Secretary Pete Buttigieg, is set for completion in 2032. The facility will add 130,000 feet of new tracks, increasing the number of tracks from 12 to 48, and support up to 17 trains per day, each up to 10,000 feet long, as reported by Progressive Railroading. The budget increase of $248 million accounts for a 20% rise in steel prices and a 15% increase in labor costs since 2023.
The project will reduce truck traffic by 15% and cut greenhouse gas emissions by 20,000 metric tons annually, per a 2023 environmental impact report. The port secured $643 million in federal, state, and local grants for the project, including $283 million from the U.S. Department of Transportation’s Mega Grant Program in December 2023, as announced by U.S. Senator Alex Padilla.
Additional funding includes $52.3 million from the U.S. Maritime Administration’s Port Infrastructure Development Program and $158.4 million from California’s Port Freight and Infrastructure Program.
The ODRSF will boost on-dock rail usage from 20% to 35% of cargo, aligning with the port’s goal to reduce emissions to 40% below 1990 levels by 2030 and 80% by 2050, as outlined in the San Pedro Bay Ports 2017 Clean Air Action Plan Update.
BNSF Railway and Union Pacific, the primary rail operators, invested US$250 million and US$180 million respectively in 2024 to upgrade Southern California rail infrastructure, supporting the project’s integration, per their annual reports. The project faces challenges, including utility coordination with over 40 owners and agencies managing 700 utility lines.
Port of Long Beach is a major U.S. port on the West Coast, established in 1911, handling over 9 million TEUs annually.
U.S. Department of Transportation is a federal agency founded in 1966, responsible for transportation policies and funding.
U.S. Maritime Administration (MARAD) is a division of the U.S. Department of Transportation, established in 1950, overseeing maritime programs.