INDUSTRY INSIGHT
and seaport tenants. That’s especially important as we work with our part- ners to transition to zero-emission oper- ations. We’re asking a lot of our tenants in terms of electrification, and we’re also helping fund many of those efforts. The more attractive we can make the busi- ness case — and the more affordable we can make the power — the better it is for everyone involved. PP: Let’s talk about your current pri- orities. In your recent “State of the Port” speech you emphasized the importance of partnerships as you laid out the Port’s progress, challenges and opportunities. In that context, what are the key priorities for the port over the next few years? KM: Partnerships really are the foundation. Ports don’t own cargo, and we don’t operate ships. We also don’t run the terminals ourselves. Instead, we provide the infrastructure and part- ner with terminal operators, shipping lines, logistics companies, and many others in the supply chain. Success depends on building strong relation- ships with those partners and under- standing their needs. We want our partners to see Oakland as a place where opportunities can grow. When they’re thinking about expanding operations or solving chal- lenges in their supply chains, we want them to think about Oakland as part of the solution. On the maritime side, one of our major priorities right now is negotiat- ing modernized leases with our ter- minal operators. Several leases have about four to six years remaining, and we want to begin planning now for the next generation of agreements. Those leases will incorporate investments in modernization, expansion, and ter- minal improvements that will shape the Port’s operations for decades. Infrastructure decisions at ports have timelines measured in decades, not years and one advantage we have at Oakland is that we still have expansion
The Port of Oakland received two new electric container cranes at its TraPac terminal in early January this year. The new ship-to-shore Liebherr cranes demonstrate a commitment to long-term environ- mental goals while modernizing operations.
facilities, including facilities operated by tenants. PP: Let’s talk about that for a minute. Not many ports have their own utilities division. Could you describe more about it? KM: PG&E is our primary power provider. As an investor-owned util- ity serving Northern California, they operate a significant portion of the region’s electrical grid. We purchase power from PG&E at wholesale rates and then distribute it ourselves, paying transmission fees to move that power across their system. In that sense, the Port operates as a wholesale customer of PG&E while providing retail elec- tricity service to many of our facilities. Today, we serve 100 percent of the airport’s electricity needs. At the sea- port, we supply power to large por- tions of the facilities, though not all of it. The seaport has developed over more than a century, and that long history means there is a mix of legacy infrastructure. Some areas were once military installations, and older equip- ment and systems remain in place. As a result, PG&E still has pockets of ser- vice within the seaport. One of my priorities when I was COO was to strengthen and
modernize the Port’s utility operations. Modernization is really the key word here. Historically, the Port hadn’t fully leveraged the advantages of operating a publicly owned electric utility. One of my first steps was to separate the utility financially, bring our regulatory com- pliance up to modern standards, and begin conducting regular rate studies so that we could update our rates more consistently. Those updates hadn’t been done in quite some time. The goal was to treat the utility as a true public power provider and to develop a stronger working relation- ship with PG&E. That partnership is critical, because we will need sig- nificantly more power to support our electrification and zero-emission goals. Both the airport and the seaport are deeply committed to those initiatives here in Oakland. Over the past five years, it’s been exciting to see the utility really grow and mature. About a year ago, we hired our first Director of Utilities, which has brought a new level of profession- alism and structure to the department. Another important factor is cost. Our electricity rates are considerably lower than PG&E’s, which allows us to offer better pricing to both airport
14 — PACIFIC PORTS — March 2026
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