Port of Los Angeles Greenlights $52 Million Rail Expansion

September 9, 2024

(Photo: Port of Los Angeles)
(Photo: Port of Los Angeles)

The Los Angeles Harbor Commission has approved a pivotal lease amendment that clears the way for a major $52 million infrastructure enhancement at the Port of Los Angeles’ Pier 300 terminal, managed by Fenix Marine Services. The ambitious project aims to significantly boost on-dock rail capacity and reduce emissions, with construction slated to commence next year.

“This project enhances cargo capacity and efficiency while improving the sustainability of port operations,” said Los Angeles Harbor Commission President Lucille Roybal-Allard. “It’s yet another step forward toward both our productivity and clean air goals.”

Port of Los Angeles Executive Director Gene Seroca emphasized the benefits of the project. ““Fewer transfers of cargo results in cleaner operations and more fluidity on our container terminals,” he said. “This project will make us more competitive and add to our ability to pursue more discretionary cargo headed for the interior of the United States.”

George Goldman, President & CEO of CMA CGM (America), said, “This investment ensures that there is adequate on-dock intermodal capacity to accommodate future volume growth, enabling POLA and FMS to further compete for discretionary cargo in an environmentally and community responsible way.”

The project will introduce five new loading and unloading tracks in the Pier 300 intermodal yard. This expansion will significantly increase the terminal’s on-dock railyard capacity, facilitating more direct cargo loading onto trains. Rail transport is recognized as the most energy-efficient and fuel-efficient method for long-haul freight movement across the continental U.S.

Additional improvements planned for the project include grading and paving, fire protection upgrades, electrical enhancements, as well as new striping, signage, and storm drain designs compliant with Low Impact Development (LID) standards.

Funding for the project is supported by approximately $18 million from the U.S. Department of Transportation Maritime Administration and $19 million from California’s Trade Corridor Enhancement Program. The remaining funds will be provided by the Port of Los Angeles.

In January 2022, CMA CGM completed the reacquisition of Fenix Marine Services (FMS), securing full ownership of one of the largest and strategically important container terminals in the U.S. With its deep-water capabilities and top-tier infrastructure, FMS continues to be a key player in the terminal’s development and investment strategy.

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