Car-Import Facility Approved by Port : Venture to Hold, Process Autos at Terminal Would Bring Revenue of $1 Million a Year

If there’s one area where the otherwise financially successful Port of San Diego is weak, it’s the lack of cargo business, the lifeblood of most other ports.

So it’s not surprising that the Board of Port Commissioners on Tuesday jumped at the chance to open a holding and processing facility for imported cars and trucks at the National City Marine Terminal.

The commissioners gave unanimous conceptual approval to such a venture and directed its staff to negotiate an agreement with Pasha Properties Inc., a San Francisco-area based company that operates several such facilities that handled 250,000 foreign-made vehicles last year.

If everything goes according to plan, the company will process 50,000 to 70,000 cars a year at the bayside terminal, the majority of which would be shipped to other western states.

More Money for Port

That kind of business would bring in one to two cargo ships a week, and each boat would carry about 1,000 cars and trucks. This translates into more money for the port, which receives the bulk of its dollars from lucrative shoreline leases held by tourist-oriented businesses, such as hotels and restaurants, and from the airport.

Under the proposal unveiled Tuesday, total revenue from Port District-imposed tariffs, such as dockage, wharf-storage and other fees, would amount to between $1 million and $1.4 million a year. The Port District would receive 75% of that amount, according to a Port District staff report.

Pasha Properties, a closely held corporation controlled by George W. Pasha III and headquartered in the Bay Area community of Corte Madera, contracts with car manufacturers to supply a variety of services, ranging from the installation of air conditioners, radios and roof racks to fixing cars damaged in transit, distribution and helping gain Customs releases.

According to a staff report, Pasha, in business for more than 25 years, operates “motor vehicle terminals” in the California cities of Long Beach and Richmond, and in Philadelphia. Stan Gabara, the firm’s general manager, said the company handles imports at its facilities of Hondas, Acuras, Isuzus, Volvos, Volkswagens, Porsches, Range Rovers and Saabs.

Market to Current, New Clients

If the Port District and the firm can complete an agreement, the firm would then market its San Diego facility to both its current clients as well as to new ones, said Glenn S. Yamaguchi, Pasha’s general counsel and chief financial officer.

Representatives of the Port District and Pasha have been discussing the proposal for several months, and the outlines of a preliminary agreement were presented to the Board of Port Commissioners on Tuesday. This isn’t the first time such a proposal has been raised at the Port District but none of the others turned into reality.

As currently outlined, Pasha would take over about 37 acres of land at the National City terminal, including a 100,000-square-foot warehouse, inside of which it would build an auto body shop, an auto parts storage and assembly area, and offices. If needed, a dewaxing facility would be built and two, 10,000-gallon underground gasoline tanks would be installed. The car and truck yard would employ 50 to 70 people full time.

The Port District has estimated the cost of the improvements to be paid by Pasha at about $2.3 million. In return, Pasha would be given a 50% credit against what it pays the Port District under its operator’s agreement.

Average 50,000 Cars a Year

The proposed agreement, which would be for 10 years with one 5-year option, would require that Pasha handle an average of 50,000 cars a year at the National City terminal.

Company officials told reporters that many details have yet to be negotiated, and that opening of the facility could be anywhere from four to six months at the earliest to a year and a half at the latest.

“We want to sell the benefits of San Diego to our customers,” Yamaguchi said. “We’re very positive.”

Some commissioners raised questions about the amount of truck traffic that the facility would attract, noting that the company has estimated that the car and truck yard would generate about 7,000 truckload shipments yearly.

In addition, the Port District will probably have to make some changes to the terminal, such as putting in new paving and accommodating lumber now shipped and stored there. “We’ve never been faced with the problem of too much cargo,” said a chagrined Don Nay, the Port District’s executive director.

Old Ferry Landing Project

In other action, the commissioners gave conceptual approval to a partial redevelopment of the Old Ferry Landing project in Coronado, a complex of restaurants and shops that is only three-quarters leased and has sustained “major financial losses,” according to a staff report.

Commissioners’ chairman Louis Wolfsheimer said of the bayside facility, at which ferry passengers disembark: “It’s the only Port District project I know of that isn’t a success.” Arthur E. Engel, the well-known shipyard owner, head of the Star & Crescent ferry service and developer of Old Ferry Landing, told commissioners that business is great in July, August and September, the prime tourist season, but is miserable the rest of the year.

However, some businesses, such as Peohe’s restaurant, are doing well.