Port of San Francisco leases Pier 80 to Pasha Automotive Services
The Pasha Group, based in San Rafael, is a family-owned global logistics company that focuses on the automotive and shipping trade and movement of goods. The business was started in the 1940s by George W. Pasha, Jr., when he purchased a gas station at Van Ness Avenue and Bay Street near Fort Mason. Over the decades, the company has grown and diversified, now comprising automotive service branches, distribution centers and offices on three continents, including the ports of San Diego, Los Angeles and Oakland.
The Pasha Group’s newest location, at Pier 80, opened in August, when 500 automobiles and 30 boats were unloaded from the company’s ship, the Jean Anne, before being trucked to dealerships in the north. from California. “A presence in the Bay Area supports our overall strategy of offering our customers a network of locations to support their supply chains,” said Maureen Pasha Larson, General Manager of Pier 80 Pasha Automotive Services. . “Our commitment to our people and our service has provided us with many opportunities for expansion through loyal customers who rely on us to keep their products reaching their destination. Having a physical operation in San Francisco widens our bond with a community that has given so much to our family. We are very happy to welcome new partners to the family business. When it comes to new locations, we are always looking for strategic locations nationwide to grow our network. ”
The inaugural expedition marked the start of a 15-year lease, with two five-year extensions, between the Port of San Francisco and Pasha Automotive Services, a subsidiary of The Pasha Group. Pasha will use the 69-acre freight terminal, adjacent to Cesar Chavez Street, to import and export vehicles. The lease was unanimously approved by the San Francisco Harbor Commission, a five-member board of directors appointed by the mayor, made up of President Willie Adams, Vice President Kimberly Brandon and Commissioners Leslie Katz, Doreen Woo Ho and Eleni Kounalakis.
Pasha Larson predicts that Pier 80 will continue to thrive as a seaport long after his company’s lease expires. “It is essential to preserve the little maritime real estate that is left in California; so much has been developed for commercial and recreational purposes, ”she said. “Marine terminals are economic engines that bring living wages to families in urban areas and facilitate business far from the docks where goods are processed. Pier 80 is well positioned to handle a wide variety of products depending on its location and available infrastructure, and will remain a valuable resource for the community for decades to come.
As part of its lease, Pasha will improve the port’s infrastructure and work with the Office of Economic Development and Workforce to train and hire workers from adjacent neighborhoods, including Bayview. The company plans to employ 50 longshoremen and create 150 additional jobs as operations ramp up. CityBuild, an OEWD program, is offering an 18-week pre-apprenticeship training program for 26 different occupations and will focus on recruiting District 10 workers for employment with Pasha.
“After working through the details of a successful business plan over the past two years with a remarkably talented cadre of maritime champions, including Monique Moyer, Elaine Forbes and Peter Dailey, we are extremely optimistic about our partnership with the port. of San Francisco, ”said John Pasha, senior vice president, Pasha Automotive Services. “We are able to bring our experience and expertise in automotive services to create new jobs, serve existing and new customers, reinvigorate an underutilized asset, and bring long-term viable marine use of Pier 80.”
Before the arrival of Pasha Automotive Services, the largely underused Pier 80 served as a temporary shelter for the homeless. Accommodation, a joint initiative of the Harbor Commission and the Social Services Agency, provided accommodation services during the El Niño winter storms, although the opening also coincided with the events of Super Bowl 50 in the city, during which many homeless people were reportedly displaced from tourist areas. by officials. The interim setup consisted of a large tent with around 180 sleeping mats and basic amenities, such as a toilet, storage space and a basketball court. It operated from February to July.
It is estimated that 96 ships are expected to arrive at the port each year, carrying vehicles imported from Mexico, Asia and Europe. After unloading, the facility will clean and detail the automobiles and in some cases provide factory services, such as installing components, before delivering them to dealerships. According to Pasha Larson, the company markets to all car manufacturers. The export of vehicles to Pacific countries is also a possibility.
“This agreement supports many objectives of the port’s strategic plan,” said Elaine Forbes, interim executive director of the Port of San Francisco. “It promotes our maritime industries; increases the volume of freight forwarding; improve and effectively manage port property; increases incomes and, above all, creates jobs and vocational training opportunities. We are looking forward to the long term partnership.
According to John Pasha, auto sales in the United States reached an all-time high of 17.5 million vehicles purchased in 2015. Although he expects the upward trend to continue, industry experts generally expect auto sales to decline in the future. Pier 80 is strategically located to meet demand and supply vehicles for the Northern California market. Pasha hopes the transportation hub will reduce emissions from trucks carrying goods hundreds of miles north of Los Angeles.
“We are not increasing car sales locally, but we will be delivering cars by water that would otherwise travel to the Bay Area on highways several hundred miles away today. Our San Diego site, for example, now manages tens of thousands of cars destined for the Bay Area. We plan to significantly reduce the kilometers traveled by trucks by providing a port terminal so close to a large automotive market, ”explained Pasha Larson.
Recent research by CBRE Group Inc., a global commercial real estate services company, indicates that the demand for premier logistics spaces in global trade hubs has increased as the e-commerce market grows and locations adapted to the development of logistics hubs remain limited. The increased demand for space similar to Pier 80 has led to an increase in rents for these industrial sites by 2.8% globally and 5.6% for the US coastal hubs. Among the global logistics centers studied, industrial spaces in Oakland showed the fastest growth in 2015, with a 29.8% increase in rents.