September 7, 2026 | Page 45

SPECIAL ADVERTISING SECTION
CALIFORNIA GATEWAY

Charting the course

Upgrades at California ports impact local, global trade landscape

By Mark Nero

Management consultant and author Peter Drucker once said,“ the best way to predict the future is to create it.”

Ports across California are doing just that through infrastructure projects, cargo diversification, inland connectivity expansion, and other business moves that are expected to shape the types and volume of cargo moving across port docks for many years to come.
These efforts will impact not only California and its regions, but the broader trade environment across the United States and globally.
California is an international trade powerhouse, handling more than $ 675 billion in annual imports and exports. It is not only the primary US gateway for trans-Pacific commerce, but also a driver of major agricultural and high-tech global markets, supporting millions of domestic and international jobs.
The state, which accounts for 14 % of US GDP, is home to 12 deep-sea ports, 5,000 miles of rail lines, 50,000 miles of highways and 15 airports— all of which make it a preferred gateway for both domestic and international trade.
Although other ports along the East and Gulf coasts have increased their market share in recent years, California remains vital to the maritime trade industry. Many of its ports are taking steps not only to keep pace, but also to increase cargo volumes and ensure that freight moves smoothly through their docks.
Inland port upgrades At the Port of Stockton, California’ s only inland port, core business is the handling and storage of dry bulk, liquid bulk and breakbulk cargo, along with its 7.7 million square feet of warehousing and storage space. The port handles up to 3.5 million metric tons of bulk and breakbulk cargo annually and works with more than 55 countries.
Located 83 miles east of San Francisco and 45 miles south of Sacramento, the Port of Stockton is moving forward with multiple development and modernization projects and is actively executing several critical infrastructure investments. These include expanded storage capacity for dry bulk cement, increased rail storage and operating capacity, additional liquid bulk storage capacity, and a general cargo dock maintenance program.
Notably, the port also holds active permits and a design concept for an export facility with a capacity of 5 million tons.“ CEQA [ California Environmental Quality Act ] review and permitting have already been completed, and anyone who has tried to build in California knows this is a significant accomplishment in both time and cost,” said Joe Vezzali, commercial manager at the Port of Stockton.
“ We are hopeful we can attract the investment needed to grow the port’ s business and support local high-wage jobs in the transportation sector.”
State and regional transportation officials have recently discussed building a rail link for containers between the Port of Stockton and Port of Oakland. It’ s something that the inland port sees as viable.
“ Stockton is dual-served by the BNSF and Union Pacific railroads. We offer efficient switching through our short line, Central California Traction Co., and many of our shippers and receivers benefit from these economies of scale,” Vezzali said.
“ In addition, we are located on Interstate 5, the primary north-south highway connecting Mexico and Canada. The port serves as a key gateway for North America, not just Northern California. Our workforce is highly skilled in breakbulk and project cargo operations, and we offer an abundance of space with favorable storage terms.”
Dredging work is also underway at the port. In May, the Stockton Port District issued an FY 2026 contract covering 150,000 cubic yards of maintenance dredging of the San Joaquin / Port of Stockton River Deepwater Ship Channel to 35 feet of depth. The six-month dredging window is open through Nov. 30, 2026.
Capacity enhancements The Port of Long Beach is also working on a number of infrastructure projects, most notably its Pier B on-dock rail support facility, a nearly $ 2 billion undertaking that was launched in August 2024 and is expected to be completed in 2032.
“ Pier B is about building a faster, cleaner and more resilient gateway for the future,” said Noel Hacegaba, CEO of the Port of Long Beach.
The project involves more than tripling the volume of on-dock rail cargo the port can handle annually, from 1.5 million TEUs to 4.7 million TEUs. This includes reconfiguring existing tracks and adding new tracks to allow five arrival / departure tracks up to 10,000 feet long with direct connection to on-dock rail facilities and the Alameda Corridor railroad, totaling 52,000 additional track-feet.
Other components of the project include a new locomotive staging and refueling facility with capacity for 30 trains; expansion of inbound-outbound staging tracks to accommodate up to five 10,000-foot trains; and expansion of existing railcar storage and staging with 38 storage tracks, totaling 93,000 track-feet.
This is part of a larger goal of doubling container throughput to 20 million TEUs by 2050.
“ Guided by our 2050 vision to double container throughput … we’ re going to have to shift container moves from local truck delivery to intermodal,” Hacegaba said.“ We can’ t double our throughput by doubling our real estate— it would take too long [ and ] be too expensive. So, we have to think more www. joc. com September 7, 2026 | Journal of Commerce 45