June 29, 2026 — The Port of San Diego Board of Port Commissioners has approved an Option to Lease Agreement and authorized a Coastal Development Permit (CDP) that aims to bring a new bulk sugar facility to the Tenth Avenue Marine Terminal (TAMT). California Sugar Equipment, LLC proposes to build a Zucarmex sugar-handling and storage facility that would allow for up to 280,000 metric tons of raw sugar to be imported into San Diego each year. The proposed project supports both the Port’s economic development efforts and its clean air goals.
“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.”
Project Details and Environmental Commitments
Zucarmex has been importing raw sugar at TAMT since 2018 without any on-terminal equipment or storage. Currently, sugar is offloaded directly from vessels to trucks and transported to the company’s existing Otay Mesa processing facilities. Discharging directly from ship to trucks requires many truck units to enable the ship to be unloaded and freed up as soon as possible. With the proposed project, Zucarmex would be able to spread out its truck delivery schedule, needing less truck units, which would make the deployment of zero-emissions trucks economically feasible. The project would include construction of an approximately 50,000-square-foot warehouse in the southeastern portion of TAMT. Upon project completion, Zucarmex would use a bulk discharge unloader and conveyor system to move raw, bulk sugar from vessels to the warehouse storage facility on the terminal. Then, electric trucks, instead of diesel trucks, would transport the sugar from the terminal to the Otay Mesa facility. The environmental commitments contained in the proposed Lease that align with the Port’s Maritime Clean Air Strategy and other clean air efforts include:
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The use of Class 8 ZEV (electric) semi-trucks to transport raw sugar from the terminal to the company’s existing Otay Mesa processing facilities. This will eliminate approximately 1,000 diesel truck loads per month from terminal operations.
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A rooftop solar system on the warehouse to provide a renewable power source for onsite truck charging.
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Best available control technologies for the conveyor system and bulk discharge unloader with features to ensure, at minimum, 95 percent particulate emission control.
The project’s dry-bulk facility and operation improvements also support the Port’s TAMT Redevelopment Plan. In addition to the Option and CDP, the Board adopted a third addendum to the plan’s Final Environmental Impact Report.
Lease Structure and Timeline
In order to execute the Lease, California Sugar Equipment must satisfy deliverables listed in the Option to Lease Agreement within 18 months. Once complete, a Lease with a ten-year term and two five-year options to extend will be executed between the Port and California Sugar Equipment, a subsidiary of Zucarmex, and construction can begin.
