California's Port Truck-Charging Plan Gets a Jolt From Big Investors

By Lisa Baertlein, Reuters

California's bustling seaports, dominated by massive container vessels and soaring cranes, may seem an unlikely setting for investors seeking to capitalize on the "green" revolution.

But thanks to the state's plan to phase out by 2035 heavy-duty diesel trucks that haul containers to ships and warehouses, the ports have become ground zero for forward-looking investors who are lining up to build charging stations for the electric semis that will eventually serve those trade gateways.

Among the companies pouring in money are real estate firm CBRE Group Group, warehouse giant Prologis Inc, and investment manager BlackRock Inc, who are eying a payday when replacement trucks are in wider use.

The California Energy Commission (CEC) estimates the state will need 157,000 medium and heavy-duty chargers by 2030 to support a range of trucks - including some 30,000 drayage rigs that ferry cargo from ports. It has dedicated $1.7 billion to build those chargers and estimates there are 1,000 already in use by semis and buses.

The United States has been slower to embrace electric vehicles, including electric semi trucks, than Europe and Asia. Drayage, or the transport of freight from an ocean port to a destination, is the sector best suited to begin closing that gap. That is because the shorter, more predictable round trips in this type of transport match the battery capacity of existing rigs or hauling trucks, which can be charged overnight in company yards rather than with fast highway chargers that require more energy and infrastructure.

"The challenge is land and power," said Rob Shaw, managing director of private infrastructure at CBRE Investment Management.

Oakland, California-based startup Forum Mobility in January announced a $400 million joint venture with CBRE Investment Management and Homecoming Capital to build electric charging infrastructure to support the drayage industry. Meanwhile, BlackRock is part of another group investing $650 million to build chargers along freight routes.

The nation's busiest port complex at Los Angeles and Long Beach has a smattering of heavy- and medium-duty chargers for truck drivers. Because port real estate is at a premium, most early drayage charging projects will be "behind the fence" on trucking company property, experts said.

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