Port of San Diego Announces First Cargo Operation to Use Only Electric Trucks

In June 2026, the Port of San Diego Board of Port Commissioners announced it has approved an Option to Lease Agreement and authorized a Coastal Development Permit (CDP) for a new bulk sugar import and storage facility at the Tenth Avenue Marine Terminal (TAMT). The project, proposed by California Sugar Equipment, LLC, a subsidiary of Zucarmex, would enable the import of up to 280,000 metric tons of raw sugar annually while supporting the Port’s economic development objectives and long-term clean air initiatives.

Zucarmex has imported raw sugar through TAMT since 2018, but without dedicated on-terminal storage or handling infrastructure. Currently, raw sugar is unloaded directly from vessels into trucks and transported to the company’s processing facility in Otay Mesa. This process requires a large number of trucks to quickly clear cargo from arriving vessels.

The proposed project would significantly modernize those operations through the construction of an approximately 50,000-square-foot warehouse in the southeastern area of TAMT. A bulk discharge unloader and conveyor system would transfer raw sugar directly from ships into the storage facility. From there, electric Class 8 trucks would transport the sugar to Otay Mesa, replacing diesel-powered vehicles and creating a more efficient and environmentally responsible logistics process.

“This proposed project is another Port first! Zucarmex would be the first to use only electric trucks in its operations, making our terminal not only more efficient, but also more modern and sustainable. It is exactly what we want from our maritime business partners,” said Chair Ann Moore, Port of San Diego Board of Port Commissioners. “Our neighboring communities deserve projects like this that align with our priorities to improve air quality while also supporting our economy. It’s what we envisioned when we developed our Maritime Clean Air Strategy, and this is proof that it can be done.”

“This lease agreement marks a transformative milestone for Zucarmex and the Port of San Diego,” said Richard Eastment, owners representative, Zucarmex, LLC / California Sugar Equipment LLC. “We are proud to lead by example as early adopters of clean energy and zero-emission technologies, delivering a facility that not only serves our business goals but also meaningfully contributes to a cleaner, more sustainable future for the San Diego community.”

Key environmental commitments associated with the project include the use of zero-emission electric semi-trucks, eliminating roughly 1,000 diesel truck trips per month from terminal operations. The warehouse will also feature a rooftop solar power system to support onsite EV charging infrastructure. In addition, the conveyor system and bulk discharge equipment will utilize best available control technologies designed to achieve at least 95 percent particulate emission control.

The facility aligns with the Port’s Maritime Clean Air Strategy and supports broader goals outlined in the TAMT Redevelopment Plan. Alongside approval of the lease option and development permit, the Board also adopted a third addendum to the redevelopment plan’s Final Environmental Impact Report.

Under the agreement, California Sugar Equipment has 18 months to satisfy specific requirements outlined in the Option to Lease. Once completed, the Port will execute a lease with an initial 10-year term and two optional five-year extensions, allowing construction of the facility to move forward.

The Port of San Diego manages 34 miles of waterfront along San Diego Bay across five cities. Operating without tax revenue, the Port oversees a diverse portfolio of maritime, commercial, environmental, and public assets that support regional economic growth, public access, and sustainability initiatives throughout the waterfront.