Project would bring electric trucks, a new warehouse, and expanded cargo operations to the Port of San Diego.
The Port of San Diego has approved agreements that pave the way for a new bulk sugar import facility at the Tenth Avenue Marine Terminal, a project officials say will strengthen maritime commerce while advancing the port’s clean air initiatives.
The Port of San Diego Board of Port Commissioners recently approved an Option to Lease Agreement and authorized a Coastal Development Permit for California Sugar Equipment, LLC, a subsidiary of Mexican sugar producer Zucarmex. The project would allow the company to import up to 280,000 metric tons of raw sugar annually through the terminal.
If completed, the operation would become the first cargo-handling business at the Port of San Diego to rely exclusively on Class-8, zero-emission electric trucks to transport cargo from the terminal.
Port officials say the project supports both the region’s maritime economy and long-term environmental goals.
“This proposed project is another Port first,” said Port of San Diego Board Chair Ann Moore. “Zucarmex would be the first to use only electric trucks in its operations, making our terminal not only more efficient, but also more modern and sustainable.”
Zucarmex has imported raw sugar through the Tenth Avenue Marine Terminal since 2018. Currently, sugar is unloaded directly from cargo vessels into diesel trucks, which immediately transport the product to the company’s processing facility in Otay Mesa.
The proposed project would significantly change that process.
Plans call for construction of an approximately 50,000-square-foot warehouse on the southeastern portion of the terminal. Instead of loading trucks directly from ships, raw sugar would be transferred using a new bulk cargo unloader and enclosed conveyor system into the storage warehouse. From there, electric trucks would transport the sugar to Otay Mesa on a more flexible schedule.
According to the Port, the new system would eliminate approximately 1,000 diesel truck trips per month associated with terminal operations.
Additional environmental features include a rooftop solar array designed to help power electric truck charging stations and equipment capable of capturing at least 95% of particulate emissions generated during cargo handling.
The project also supports the Port’s Maritime Clean Air Strategy and aligns with the ongoing redevelopment of the Tenth Avenue Marine Terminal, one of Southern California’s primary cargo facilities.
Before construction can begin, California Sugar Equipment must satisfy several conditions outlined in the Option to Lease Agreement within 18 months, including securing permits and meeting other project milestones.
If those requirements are met, the company will enter into a 10-year lease with the Port, including two optional five-year extensions, allowing construction of the new facility to move forward.
