Oakland Bulk and Oversized Terminal Spells Great Potential for Carbon County

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The California Capital & Investment Group (CCIG) owns a large parcel that was previously a bulk terminal on the Oakland army base. Currently, 30 acres of this parcel has been subleased to Insight Terminal Solutions (ITS), LLC to create an Oakland Bulk and Oversized Terminal (OBOT).

This project has been in the works for eight to 10 years. All the permits have been obtained and around 500 million has been spent already preparing the port. This long-term documented project was recently believed to be scrapped when the city of Oakland pulled the lease from the California developer. The city’s reasoning pertained to their reports of the developer not meeting benchmarks.

However, with the project having been tied up in court for three years, it was difficult for a number of benchmarks to be reached. This project and the OBOT would be prudent to the citizens of Carbon County due to the state of Utah claiming 50% of the port for the price of 53 million dollars. Coal producing counties in Utah would then have 50% of the through-put and the OBOT would be a Utah priority for the whole capacity.

Carbon County Commissioner Jae Potter, who has been working on the project for the greater part of four years, stated that it is a great investment opportunity to have a west coast port for Utah product. The county is interested because coal could be a commodity; however, a list of other materials may also pass through the port. Coal is currently being sought after by the Japanese market as well as the Central and South American market.

What this really means for the county is an increase and expansion of mining activities and associated jobs within the coal business. The amount put toward the port would not be a loan to the company, it would mean ownership for the state of Utah and participating counties. The purchase would also be a return, meaning monies would be paid back to the state and leave a return to the counties.

The project and opportunities has multiple layers all the way from the state to individual counties benefiting. The lease would be a 60-year lease for the county. The pulling of the lease is viewed as an attempt by the Oakland council and portrayed in California media to put a finality to the project because they want to export coal, commissioner Potter stated.

The federal court ruled against the city of Oakland, which opened the door for forward momentum. A quick resolution is the goal of many that are part of the project. While taking the project and issue through the legal system is not desired, the developers are prepared if need be. Commissioner Potter stated that the developers have spent untold amounts of dollars defending their position and the OBOT is not finalized or going away.

More information on the OBOT and ITS may be found by clicking here.

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