UP Closes Land Deal With Oakland

OAKLAND, Calif. — Union Pacific Railroad sold nearly 125 acres of its land at the Port of Oakland to port authorities for $70 million. It is believed to be the largest property transaction in port history, according to a news release.

The deal was completed in December and included real property owned the UP and the buy-back of property owned by the port and under lease to the rail company until 2010. The Port also paid to replace rail and intermodal operations for Union Pacific.

The land, located on the Oakland Alameda Estuary, will be added to 400 nearby acres the port received after the closing of the Navy Fleet and Industrial Supply Center in Oakland. It will be used for the Vision 2000 Program, in which the port will develop new marine terminals, roadways, a joint sea-rail intermodal terminal rail facility and a 33-acre shoreline park.

Union Pacific will move its operations to the former Southern Pacific railyard nearby in two phases, one ending in June, the other in April 2000. It has already made improvements to the former rival’s yard facility, and the sales agreement provides for up to $40 million more in improvements and capacity enhancements.

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