Funding will support the Marina Way Realignment and a new rail connection as the Port of San Diego moves forward with the National City Balanced Plan.
NATIONAL CITY — The Port of San Diego is moving forward with plans to direct $15.5 million in state grant funding toward two projects intended to reshape the National City Bayfront, improve access and prepare the waterfront for future commercial recreation and maritime development.
At its Aug. 11 meeting, the Port of San Diego Board of Port Commissioners directed staff to notify Caltrans that it intends to allocate $8.8 million toward the Marina Way Realignment project and $6.7 million toward the Connector Rail Track project proposed by Pasha Automotive Services and Burlington Northern Santa Fe Corporation (BNSF).
The funding comes from $35.5 million awarded to the Port in 2023 through California’s Port and Freight Infrastructure Program, administered by Caltrans. The Board approved Coastal Development Permits for both projects in July.
“This grant funding is an important investment in the future of the National City Bayfront and in the Port’s continued work to bring the Balanced Plan to life,” Board Chair Ann Moore said.
For boaters and waterfront visitors, the Marina Way project is particularly relevant because it is designed to help improve connections within the Marina District, which includes Pier 32 Marina, Pepper Park, the Bayshore Bikeway and other public waterfront amenities.
The project will realign approximately 1,200 feet of Marina Way between the eastern side of the National Distribution Center and the eastern entrance to Pepper Park. Plans call for a curved, 38-foot-wide roadway with one travel lane in each direction, on-street parking, lighting, landscaping and stormwater treatment.
New sewer, water, storm drain and other underground utilities also will be installed to support future commercial recreation envisioned under the National City Balanced Plan.
The Marina Way project is estimated to cost $9.8 million, with $8.8 million covered by the state grant and the remaining cost funded by the Port. Port staff anticipates bringing a construction contract to the Board for consideration by December. Construction is expected to begin in early 2027 and continue into early 2028.
Alongside the roadway, Pasha Automotive Services and BNSF are proposing the Connector Rail Track to improve freight operations at the National City Marine Terminal.
The new track would connect existing terminal rail infrastructure more directly with the BNSF National City Yard, reducing unnecessary train movements and improving rail storage capacity near the terminal. BNSF will lead construction, while the Port will act as the pass-through agency for the $6.7 million in state funding.
Placing the rail connection parallel to the realigned Marina Way also is intended to create a clearer separation between maritime industrial activity and future commercial areas.
The two projects are components of the broader National City Balanced Plan, which establishes a long-term vision for the city’s 273-acre bayfront and adjacent waters.
The waterfront already includes Pepper Park and its public boat launch and fishing pier, Pier 32 Marina, portions of the Bayshore Bikeway, an aquatic center and the National City Marine Terminal.
Future plans include a 2.5-acre expansion of Pepper Park and additional commercial recreation development. A proposal from Pier 32 Marina owner GB Capital calls for an RV park, cabins, tents, dry boat storage and an expanded marina during an initial phase, followed by as many as two hotels in a later phase.
The Balanced Plan reached a significant regulatory milestone in December 2025 when the California Coastal Commission unanimously certified the Port Master Plan Amendment incorporating the plan. The Board of Port Commissioners accepted that certification in February.
As the individual projects now move toward construction, the larger objective is to balance a working maritime waterfront with additional recreation, commercial activity and public access to San Diego Bay.
