GLDPartners has helped to craft a unique partnership agreement between the Port of Los Angeles (portoflosangeles.org) and the Mid-California International Trade District (MCITD, midcalitd.com). This an extremely unique project in the United States, with a formal partnership linkage between the busiest seaport in North America and a major industrial manufacturing and logistics hub, both in California. Both parties believe that collaboration will benefit each individually and also the wider economy in the State, which represents the 6th largest economy in the world.  This project reflects the Port’s vision for a larger “Connecting California” strategy and the partnership engineers a structured intersection between industrial policy, real asset development, public/private investment, transport infrastructure and global logistics connectivity.

The MCITD is owned by Merced County and is strategically located at the geographic center of California with easy road and rail connections to the Los Angeles metropolitan region, the San Francisco Bay Area and to onward domestic points. The project is being built as a 2,000 acre multimodal logistics and manufacturing hub and is collocated with the heavy infrastructure of Castle Airport, an important former Strategic Air Command US Air Force bomber base.  The MCITD is a $3-5B  project that will house over 8 million square feet of industrial development and will support 10,000 jobs onsite.

Representing the investment potential of the interior of California, the project’s main manufacturing markets are: automotive, industrial machinery, food production, specialty chemicals, commercial space systems and medical product and supplies. Due to its strategic location and direct connectivity to extensive transport infrastructure, the MCITD also is envisioned to be a sizable inbound/outbound distribution and transport hub for consumer and agricultural products.  With direct access to the major CA-99 commercial highway corridor and proximate and onsite access to two continental rail lines (BNSF and UP) and port connections, the project will enable sizable overseas trade between the Central Valley of California and important global markets in Asia, Europe and South America.

The Port of Los Angeles is the largest and busiest seaport in the Western Hemisphere and is a major global logistics center and an extremely important player in supporting North America-Asian trade. Due to the importance of the Port to the larger US economy, the Port refers to itself as America’s Port® and not only sustains its competitive edge with record-setting cargo operations, but is also known for groundbreaking environmental initiatives, progressive security measures, diverse recreational and educational facilities. The Port encompasses 7,500 acres of land and water along 43 miles of waterfront and features 27 passenger and cargo terminals, including automobile, breakbulk, container, dry and liquid bulk, multi-use, and warehouse facilities.  The Port is a leader in its field in managing resources and conducting developments and operations in an environmentally responsible manner and is working on a 10-year, $2.6 billion infrastructure investment program as it continues to increase its operating efficiency.

The MCITD site is also home to the California AutoTech Testing and Development Center, which is a world-class facility that supports automotive OEM and technology supplier requirements for specialized testing and development environments. The CATDC is designed to support development and product manufacturing in the areas of propulsion and energy storage, autonomy and connected vehicle technologies.  This aligns well with the large and very fast growing automotive and related technology innovation presence in both Silicon Valley and the Los Angeles regions.  The CATDC project sits on approximately 300 acres with special testing areas for high-speed, urban grid, asymmetrical intersections, wet weather, parking lot and high speed merge testing. Google (Waymo) has built their off road test complex on 91 acres adjacent to the larger shared-user CATDC facility. Inside Waymo’s Secret World for Training Self-Driving Cars

In terms of this agreement, both parties believe that this agreement will support port growth by increasing the investment and trade competitiveness of the interior of the state, including the areas that are east of both the San Francisco Bay Area and Los Angeles.  This is a vast area and includes both the Central Valley and the Imperial Valley, which represent areas of large population and significant economic base including one of the most significant agricultural regions in the world.  The project is also expected to fuel significant economic development, investment attraction and job growth in Merced County and the wider region.

GLDPartners sees this agreement as groundbreaking as it represents a new model for extending the reach and influence of an important global seaport with a large and uniquely positioned and highly competitive region.

In a press statement Gene Seroka, Executive Director of the Port of Los Angeles said: ” “We are honored and excited to enter into this agreement and strengthen our trade connection with Merced County, the Mid-California International Trade District and the greater Central Valley,” said Port of Los Angeles Executive Director Gene Seroka. “This MOA not only paves the way for collaboration, it will give Central Valley shippers more awareness, support and access to global markets through a broad network of high frequency shipping line services”

Merced County Board Chairman, Daron McDaniel said: “This is an unprecedented opportunity for Merced County. This is a long-term vision and another step in our continued effort to develop the Mid-California International Trade District, it has the potential to bring substantial economic activity and jobs to this County and our region.”

Merced County Director of Economic and Community Development, Mark Hendrickson added “This agreement has the potential to expand local participation in the movement of goods not only statewide, but also nationally and globally.  We’re excited of the future prospects this action could bring.”

Please see a video about the Port of Los Angeles: Port of Los Angeles video

See a television news clip from ABC30 Action News (Fresno):  Merced County Partnership with Port of Los Angeles

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GLDPartners is consulting advisor to Merced County and managing developer for the MCITD. The firm 1) advises global shippers/manufacturers on supply chain strategy and facility site location, and 2) develops revenue expansion and property+infrastructure projects on behalf of its clients at and around seaports, airports an strategic inland trade and logistics hub. The firm is based in the US, with offices in Mexico, Canada and in the UKGLDPartners | Global Logistics Development Partners