Sims Proposes California Port Investment

Sims Metal Management says it may invest up to $10 million at California's Redwood City Port.

New York-based Sims Metal Management (SMM) has announced a proposal to expand and upgrade its facility at the Port of Redwood City, Calif. The project is being designed to increase SMM’s export and processing capacity, “improve efficiency and strengthen its environmental sustainability,” according to the company.

Sims is proposing to invest up to $10 million dollars to upgrade the location to become “a full-service shredding, processing, and export facility.” According to an SMM news release, the company already has invested more than $10 million in the last two years at the location to improve operational efficiencies and reduce its environmental footprint.

According to SMM, the proposed expansion would help reinvigorate port infrastructure and potentially double the number of jobs at the facility, from 60 to about 120, while also providing numerous construction, engineering and supporting function jobs. The investment would include both improvements to existing equipment and the addition of new types of scrap processing equipment.

The potential investment also would bring significant benefits to the Port of Redwood City, the only working deep-water port in the South San Francisco Bay and one of the few bulk cargo ports in the Bay Area, according to SMM. The port, which is accessible by ship, rail and truck, has been in operation for more than 160 years.

“Due to its mid-peninsula location, the port of Redwood City has shown that it is an ideal location for a major recycling operation, as evidenced by the success of our current operations,” says Steve Shinn, president of the west region of SMM North America Metals. “The enhancements we propose to make could double the number of well-paying ‘green-collar’ recycling jobs, while also increasing environmental safeguards and protecting the Bay. “

Shinn continues, “We share the belief of the port, the city of Redwood City and the county that it is important for the region to sustain a mix of industries that offer Bay Area residents a variety of well-paying jobs, while maintaining the critical jobs/housing/open space balance. We are committed to being part of that working waterfront and will continue to responsibly deploy our public shareholders precious capital with respect to this commitment.”

“Sims’ plan to expand its operations in Redwood City would amplify the benefits that the port already provides to the community and region,” says Greg Greenway, executive director of Seaport Industrial Association. “Redwood City can be proud of the fact that its port is one of the largest centers of recycling in Northern California, and greater capacity for metal recycling would certainly enhance this environmental asset. It would also advance the city’s vision of job diversity and a thriving industrial sector as part of the long-term growth of the local economy. The New General Plan embraces the value of a working waterfront and the need to plan for a healthy Port long into the future. Sims’ proposal is forward looking and directly in line with that goal.”

In addition to the improvements proposed for its recycling facility, Sims says it is supporting and it will assist with other improvements to enhance the value of the port and its utility for all users. One of the improvements slated to take place is the dredging plan to deepen the port channel and provide access to larger draft vessels. Additional priorities are the installation or improvement of other port infrastructure and the establishment of a buffer zone through the siting of additional industrial businesses such as warehouses and light industry or through the restoration of wetlands that would separate the heavy industrial operations near the Port from other land uses located to the east of Seaport Blvd.

Last year, Sims Metal Management shipped more than 300,000 tons of recycled steel out of the Port of Redwood City. The proposed improvements at the Port of Redwood City have been designed to increase the export tonnage from the port considerably, says the company.