May 27, 2025
Economic Development
Port Division
DATE: May 27, 2025
TO: Mayor Martinez and Members of the City Council
FROM:
Charles Gerard, Port Director
Subject:
Port of Richmond Federal Maritime Commission (FMC)
Tariff No.3 Amendment
FINANCIAL IMPACT: The Port will generate additional vessel dockage, wharfage, storage, and other revenue, which will
increase the Port’s overall operating revenues. This
year’s proposed two and half percent (2.5%) general rate increase will keep the Port competitive with other ports in the Bay Area.
PREVIOUS COUNCIL
ACTION:
November 7, 2023
STATEMENT OF THE
ISSUE:
The Port of Richmond is seeking a two and half percent
(2.5%) general rate increase (GRI) to the Port of Richmond Federal Maritime Commission (FMC) Tariff No. 3 and an
annual Consumer Price Index (CPI) rate adjustment. The
effective date for the adjustment shall be July 1, 2025. The Port of Richmond will maintain a competitive position in relation to the othe r California West Coast ports, while maximizing revenues and staying competitive.
RECOMMENDED ACTION: ADOPT a resolution to amend the Port of Richmond FMC Tariff No. 3 reflecting a two and half percent (2.5%)
general rate increase (GRI) to the Port of Richmond
Federal Maritime Commission (FMC) Tariff No. 3 and an
annual Consumer Price Index (CPI) rate adjustment as
approved by the Executive Committee of the California
Association of Port Authorities (CAPA) – Economic
AGENDA
REPORT
May 27, 2025
Development Department (Charles Gerard 510-620
6792).
DISCUSSION:
Background
Since 2015, the Executive Director of California Association of Port Authorities (CAPA) has drafted a Letter of Memorandum (Attachment 4) each year to the Committee on Tariffs and Practices (Executive Committee), requesting consideration of a General Rate Increase (GRI). This policy allows all ports in the State of California to apply a Consumer Price Index for All Urban Consumers (CPI-U) change for the twelve-month period ending in December of each year. Th e policy ensures that ports remain competitive. Member ports of CAPA include: the ports of Humbolt, Los Angeles, Long Beach, San Diego, Hueneme, Redwood City, West Sacramento, San Francisco, Oakland, S tockton, and Richmond.
Ports in the Executive Committee approved the port s’ Federal Maritime Commission (FMC) Tariffs and the annual Consumer Price Index (CPI) rate adjustment. The GRI is applied on July 1 of each year, or in accordance with fiscal calendars.
The Port of Richmond submitted a docket proposal (Attachment 2) to the CAPA Executive Committee on May 20, 2025 . The docket proposal include d a two-and-a-half percent (2.5%) GRI to the Port’s Federal Maritime Commission (FMC) tariff number three (Attachment 1) and an annual CPI rate adjustment. The Port of Richmond’s docket was unanimously approved by CAPA members on the same date.
NEXT STEPS:
The City Council is to approve a resolution (Attachment 3) amending the annual 202 5 tariff increase. The Port will generate additional vessel dockage revenue, wharfage revenue, storage revenue, and other revenue, which will increase the Port’s overall operating revenues. Last year, the Port did not increase the tariff, but this year’s proposed two-and-a-half percent (2.5%) general rate increase will keep the Port competitive with other ports in the Bay Area. If approved, any tariffs due on or after July 1, 2025, will be charged the two-and-a-half percent (2.5%) GRI.
DOCUMENTS ATTACHED:
Attachment 1 - 2025 Port of Richmond Tariff FMC No. 3
Attachment 2 - California Association of Port Authorities Docket Proposal Attachment 3 - Resolution 2025
Attachment 4 - CAPA CPI-U 2025 Memo