Marshlands considered for port
RICHMOND: Officials to weigh financial benefits, environmental hazards for project estimated at $5 billion


By John Geluardi
CONTRA COSTA TIMES
Sunday, September 3, 2006


A dramatic surge in the lucrative shipping trade has Richmond officials eyeing an undeveloped stretch of marshlands for a possible container ship port.

California's major ports are already operating at full capacity, and as trade between the Pacific Rim and the United States grows, there is increasing economic pressure to build more ports along the state's shoreline.

With potentially millions in revenue, thousands of new jobs and a gaggle of well-heeled investors lining up at city hall, Richmond city officials are planning a port feasibility study. The possible site is north of the Chevron refinery on about 500 acres of marshland. If approved, the port, which would require a major dredging operation, would cost an estimated $5 billion in private and public investment.

While there are many environmental challenges, city officials say the marshlands around the mouth of Wildcat Creek, on the northern shoreline, are an almost ideal location for a port because of available land, two existing railways and easy access to major freeways.

"This is in the very early stages and there is no specific site planned yet," said City Manager Bill Lindsay. "It may be impossible for a number of reasons, but a port could bring thousands of jobs and increase city revenue, so it would be irresponsible not to fully evaluate the possibility."

One huge obstacle is the need to dredge out a massive amount of the bay's floor that is likely to be contaminated by decades of refinery operations. Also, port activities are associated with elevated levels of diesel emissions, which could create a health hazard in nearby residential districts such as unincorporated North Richmond, a low-income community that is already impacted by pollution from the area's industrial operations.

The city is negotiating with Moffat and Nichol Engineers, a Long Beach based company that designs ports, to conduct the study. Moffat and Nichol will examine site characteristics, environmental obstacles and potential financial benefits. The council is to consider approving the study in September.

If the port is developed, JP Morgan Chase would probably take the lead in putting together the investment group for the project, which could take 15 years to complete.

The potential for another container port in the Bay Area is considerable.

Exports to the United States are expected to nearly triple by 2010, according to a 2005 study by the California Business, Transportation and Housing Agency. However, there is currently not enough port capacity to accommodate the expected trade boom. The state's major ports at Long Beach, Los Angeles and Oakland are already operating at capacity and have little or no room to expand.

Local governments from the tiny fishing village of Prince Rupert in British Columbia down to Lazaro Carenas in southern Mexico are looking at their waterfront property as potential sites for container ports.

Richmond has a number of competitive advantages, according to Finance Director Jim Goins. There is enough available land to build roads, docks, and warehouse space that a port would require. The area is especially attractive because two major railroads, the Union Pacific and Burlington North & Santa Fe, are easily accessible for transporting goods inland. And trucks would be able to use the Richmond Parkway to access interstates 580 and 80.

But there are also major challenges. Water depth off the shore is shallow, between two and 10 feet deep, so the project would require a major dredging operation to reach the deep water channel in the middle of San Pablo Bay. In addition to a lane to the channel, a large area just offshore would have to be dredged to provide enough maneuvering room for multiple container ships, some of which are 1,200 feet long.

The dredging could cost more than a billion dollars, Goins said. There is also concern that dredging activity could awaken an environmental monster, adding to the cost. The Chevron refinery, immediately adjacent to the site, has been operating for more than 100 years, and layers of pollutants have settled on the bay's bottom.

If there are significant toxic materials buried in the sediment, silt and mud, the dredged material would have to be disposed of in a place where there is no chance toxics would leach back into the environment.

There are also issues related to diesel fumes from boats, port equipment and trucks. West Contra Costa County is already heavily impacted by diesel fumes, according to a 2005 study by the Pacific Institute.

The study concluded that the air in Richmond, North Richmond, San Pablo and Parchester Village has six times more diesel particulates than the rest of the county.

"The city of Richmond needs to be very careful when talking about expanding its port," said Pacific Institute Program Director Meena Palaniappan. "There are enormous health impacts associated with increased levels of diesel emissions including cancers, heart disease, and they may actually cause asthma."

Balancing the potential for city revenue and jobs for Richmond residents, City Manager Bill Lindsay is cautiously optimistic about the development of a major container ship port in Richmond. The feasibility study may quickly determine a port is a fatally flawed idea.

"The city is interested in job development and that would be an important objective of having a port here, to create jobs for the community," he said. "But you don't do that at any cost."



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