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San Francisco Bay Railroad outlines rail growth, sustainability and Pier 96 export plans
Summary
San Francisco Bay Railroad told the port commission it handled 2,000 railcars in 2012, has shifted to biodiesel and sustainable operations, and is pursuing a bulk export facility at Pier 96 for commodities such as iron ore pending market demand and rail connectivity.
San Francisco Bay Railroad and port staff briefed commissioners on March 26 about the port's commercial rail activities, recent volume increases and development plans that could support a bulk export facility at Pier 96.
"In that 20 years, we've shipped over 3,000,000 tons of this kind of material from the Bay Area," David Gavridge, president and CEO of San Francisco Bay Railroad, said in the presentation. He described a 64% increase in railcar traffic over 2011 and roughly 2,000 railcars handled in 2012, which generated direct revenue to the port.
Gavridge and port staff highlighted sustainability measures including converting locomotives to run on biodiesel, participating in emissions testing with the California Air Resources Board, and using a herd of goats for vegetation control. They said local hiring and a focus on training have supported employment opportunities for the waterfront neighborhood.
Port staff and San Francisco Bay Railroad also described a design concept for additional trackage and a loop at Pier 96 to accommodate bulk exports, including iron ore, subject to market demand and agreements with Union Pacific. Commissioners and the public asked about potential carbon-offset revenue under California cap-and-trade and whether such environmental programs could generate funds or offset costs.
San Francisco Bay Railroad said transportation-sector inclusion in cap-and-trade is pending but could improve economics for rail over trucking. No formal action was requested at the meeting; staff said they would report back with updates on rail infrastructure planning and any negotiated agreements.
