Port of Hueneme’s Decas plots growth in containers and Ag exports

The Southern California Port of Hueneme is projecting a $3 million increase in revenues for Fiscal Year 2026 and a year-over-year increase in tonnage rising to 2.32 million tons compared to 2.27 million tons in 2025, according to the Port’s CEO, Kristin Decas.

In an interview with Decas at the Agriculture Transportation Coalition (AgTC) conference in Tacoma, Washington, on May 19^th, Decas described how the Port has built up its trade in refrigerated container imports of bananas and blueberries that stimulated an investment in container cranes, including four hybrid electric mobile cranes with another on the way. Additional investments include electrical cargo handling equipment, expanded short-distance rail real estate acquisition, which cumulatively support a bold plan for initiating a new U.S. ag export service, possibly using U.S. flag Jones Act carriers.

Tariffs’ Impact on Ro/Ro Auto Business

Decas said the Port’s automotive import business has seen declines in recent years from 46% of revenues in 2024 to a projected 34% in 2026. One factor is the Trump administration tariffs and the US Trade Representative’s fees on Chinese-built ships that temporarily reduced RoRo vessels arriving at the Port. Decas is hoping that in the future, a defined administration tariff policy will emerge that eliminates uncertainty: “I think there's still a lot to unpack in terms of what the final tariff and USTR rule will really look like. Once we have clarity on that, I think the supply chain will recalibrate, and our customers will be able to make informed decisions, understand how to set pricing to align with consumer demand, and what the market will bear. We're in a little bit of turbulence when it comes to forecasting where the market will land on automotive cargo until we understand what the true costs of moving cars are, ultimately from an import standpoint. That said, our ocean carriers are very innovative, and they find ways to fill ships. And as such, we're seeing a nice increase in high and heavy cargo, with that business up 65%. The bright spot, our auto customers continue to invest in the Port of Hueneme.”

Batteries — The Lithium Safety Challenge

The high and heavy cargo includes lithium-ion batteries and casings for batteries that have challenged the Port to implement safety protocols to reduce fire exposure: “Some lithium batteries and their casings are building AI computer centers around the country and are going to places including Tennessee. Batteries are also supporting the storage of electricity to reduce pressure on the grid in California. We're working very closely with our fire department because this is new freight and these lithium-ion batteries are quite large,” and pose a fire hazard. And so, “the Port has actually led the way in coming up with the right safety protocols to land this cargo, and it's actually been written into the international standard according to our local fire department.”

Reefer Containers

This fiscal year, the decline in cars is being more than offset by an increase in refrigerated containers: “Containers are now climbing. In 2012, there were virtually none as cargo came on break-bulk-reefer ships. All of our refrigerated freight comes from the south, from Latin America, and today it is all containerized. A lot of that cargo includes the banana trade with Chiquita and Delmonte, and Dole shipments also find their way to us on container vessels. In 2016, we started a liner of service with Maersk, also supporting this trade lane.”

Blueberries and More

While historically the Ports had a thriving business in bananas, it is now also developing a thriving business in the import of blueberries from Peru: “We've seen explosive growth in the blueberry market and blueberry production. According to growers, blueberry volumes increased by 17% this year and may increase as much as 30% next year. As a result, we're handling a lot of these blueberries through the Port of Hueneme.”

One of the Port’s partners is Driscoll's Inc., “one of our priority customers, and they're now a big sponsor of our banana festival. They import a significant volume of the blueberries.”

Driscoll's, Inc., a Watsonville, California-based company, is a fourth-generation distributor of fresh strawberries and other berries. According to reports, Driscoll’s is the world’s largest berry company, controlling 33% of the global berry market share with utilizing 750 “independent” contract growers in 20 countries. In the And in the US, Driscoll’s is estimated to have over a 66% market share of the berry business.

As a result, Decas said, “It's just interesting to see, in a given month, we might even move more blueberries by value than bananas.”

Both the bananas and the blueberries are transported in reefer containers, and “the cumulative impact is that Port Hueneme is number five in the country for handling refrigerated cargo.”

Container Business Up

Decas is hopeful for a banner year for containers: “We're forecasting to be up 3% over last year, and we're toying with a forecast of around 265,000 TEUs … we could have a benchmark year for refrigerated cargo. The result of the growing containerization at the Port is a major investment in container handling equipment, including new cranes:” Now that our banana customers have gone to containers and we have the equipment to handle it productively and efficiently, we have $250 million in modernization projects at the Port to support continued growth, like an Ag export service.”

The investment requires that the $250 million in infrastructure program projects “support electrification, port deepening, demolishing buildings to allow for more reefer plugs and staging areas. We're laying down more concrete for high and heavy, and engineering a parking structure. Our terminal is really transforming into a modern facility to support the needs of the supply chain. We're coupling this investment with real-estate development projects outside the gate to complement our cargo handling inside the gate.”

Electrification

The Port welcomed its first hybrid electric mobile harbor crane a few years back, now having four. The Port has completed the electrical Infrastructure to power the hybrid electric cranes during operation. As part of the ZANZEFF (Zero & Near Zero Emissions Freight Facilities) grant, the Port is piloting two electric UTRs (cargo moving trucks) as well. Also completed was a $4 million repaving project covering most of the Port, thanks to a $1.4 million grant to improve traffic circulation and safety. “Most recently, we received a $43 million grant to convert 95% of our handling equipment to electric and procure electric drayage trucks.

Expanded Shore Power

Committed to creating a better environment for crews, dockworkers, and residents, “the Port has installed its state-of-the-art shore power infrastructure system at the South Terminal to provide shore power to vessels regulated under the California Air Resources Board (CARB) At Berth Regulation. The Port has effectively reduced air emissions by about 85% since 2015. This system was destroyed by a storm in December of 2023, and the rebuild is in process. In the interim, the Port is using STAX emission capture control barges to make vessels near-zero emission at berth. A $15 million Congestion Mitigation Air Quality grant will build shore power for container and auto ships at our North Terminal.”

Improving Freight Mobility

The Port is expanding its intermodal freight capability.

As owner of the Ventura County Railroad that connects with the ports’ on and near-dock infrastructure, planned improvements will maximize the structural integrity and efficiency of the intermodal network. New surfacing will optimize freight mobility and improve traffic flow along the Port’s intermodal corridor.

Decas explained that the Port’s Intermodal Corridor Improvement Project provides long-term infrastructure enhancements that facilitate the efficient movement of cargo in the most environmentally responsible manner possible. The Project provides critical road and rail corridor upgrades, ensuring increased intermodal velocity and the long-term competitiveness of the Port.

The Port is working in partnership with the Ventura County Transportation Commission to widen Port Hueneme Road to increase traffic flow.

More Box Ships

Decas said the Port’s focus is not on attracting the mega 19,000 TEU ship but the smaller 2,600 TEU ship that can be supported by the Port’s infrastructure while expanding the export of value-added US agricultural exports. The Port’s harbor deepening project was completed in 2020 and represents a $19.5 million investment in the Port’s infrastructure. This project includes deepening Berths 1 and 2 from 35 feet to 40 feet, and, in partnership with the US Army Corps of Engineers, dredging our main channel to 40 feet. The sand from the dredge will nourish local beaches to guard against erosion issues—a win-win for the community and the Port. Deepening the harbor will allow for increased capacity and efficiencies.”

New Ag Exports

Decas says the new investments building up the Port’s reefer and container handling have created interest in a new agricultural export effort. In Tacoma, Decas has been attending AgTC meetings to market the Port with potential ag exporters: “We really have emerged as a true player in containerization. Now, we are looking into how we can support American exporters with a premium service ... Right in our own backyard is Sunkist. I've talked to Jim Phillips, the CEO. We are networking with Wonderful Company and all the various growers in our region to start and build that base cargo.”

To accelerate marketing, the Port held a world trade event in May, “where we had an export panel, and we were talking to the California Milk Association, the California Table Grape Association, to learn how we can support those growers and those producers and build this unique export network. The trick is going to be how to fill up a ship year-round and enough ships to do a viable service. You'd have to put six ships in a network to have a weekly service … We’re optimistic that there's enough cargo in our hinterland and that could stretch all the way to the Midwest if you're talking about poultry and meat and other commodities moving in that direction and towards markets in Asia.”

Developing US Ocean Carrier Support

At a time when US domestic carriers are being challenged by outsourcing of shipping to foreign carriers by Trump administration waivers of the Jones Act, which mandates US carriers between US ports, Decas and her team at Port Hueneme are looking to US flag carriers to support the new export business: “We've actually talking to carriers that are Jones Act compliant in this country that are very eager to explore this with us. They would entertain chartering vessels for this particular network should the economics be there. If we can prove the economics, I think there will be an opportunity…We have to work with players that have the appetite, outside-the-box thinking, and that would be eager to launch this type of venture on smaller container ships.”