Common use of PURPOSE AND NEED Purpose Clause in Contracts

PURPOSE AND NEED Purpose. Project improvements provided by the Fourth Track at Ocean project will provide the freight rail capacity, reliability, and operational efficiency required to support current and future demand for on-dock rail service at the Middle Harbor, Pier G, and Pier J marine terminals, while also minimizing impacts of freight movement on surrounding communities. Current track capacity at Ocean Boulevard is insufficient to meet the growing demand for on-dock rail through POLB East Basin marine terminals at Middle Harbor, Pier G, and Pier J. High train volumes and insufficient rail capacity will cause a freight rail bottleneck at Ocean Boulevard that hinders on-time delivery of U.S. goods, reduces efficiency through the nation’s second-busiest seaport, and contributes to truck congestion, diminished air quality, and higher shipper costs. More than 9,200 freight trains move through the Project site each year – including 6,900 switching moves and 2,300 transcontinental freight trains carrying approximately 1.1 million TEUs of containerized cargo and nearly 1.8 million metric tons of bulk cargo. These goods, handled by the Middle Harbor, Pier G, and Pier J marine terminals are valued at a combined total of more than $108 billion, or 55 percent of the total POLB throughput. The Middle Harbor terminal is the nation’s first fully zero-emissions terminal, and upon full-build out, could move enough cargo alone to rank as the nation’s sixth busiest seaport. Increasing on-dock rail moves at Middle Harbor is key to realizing the goals of the San ▇▇▇▇▇ Bay Ports Clean Air Action Plan (CAAP) and the POLB Green Port Policy. The CAAP, which was developed in partnership with the Port of Los Angeles in 2006, outlines the strategies to achieving emission reductions and public health benefits to local disadvantaged communities surrounding the ports. In support of these goals, the POLB is working to increase freight rail volume through the port from 23.5 percent to 35 percent by 2040, with intermodal rail moves through the Project site projected to grow to 1.7 million TEU in that same period. This goal is not achievable with the current track condition. Additional freight rail capacity and fluid rail operations are needed to meet the throughput demands of East Basin complex.