Maritime Economic Development: San Francisco

The San Francisco Port Commission has executed a new 20-year lease agreement with BAE Systems for maritime ship repair. The agreement includes a provision that could extend shipyard operations through 2045.

BAE Systems San Francisco Ship Repair currently leases the port’s Pier 70 shipyard and two floating drydocks under a 30-year lease that is set to expire in December 2017. The San Francisco Port Commission at its March 24 meeting unanimously approved a new long-term lease agreement with BAE that will:

Establish a 20-year lease term beginning April 1, 2015, with two five-year extension options
Institute rent credits that will incentivize investments in the port-owned equipment and buildings, revitalize these assets, and eliminate or reduce port liability
Establish a shared dredging fund between the port, BAE Systems, and the Army Corps of Engineers that will deepen the publicly accessible channel at the entrance to the shipyard and lead the way for future federal maintenance dredging.
Forge an agreement between the port and BAE Systems for pursuing possible funding opportunities for the replacement of the port’s post-Panamax capable Drydock #2

BAE Systems employs an average of 250 skilled craft workers year-round, representing 10 local trade unions, plus additional jobs during peak periods, where employment levels can rise to over 1,000. According to the port, San Francisco’s most marketable features in the ship repair business are its two floating drydocks and its central-coast location, which makes it ideal for both northbound and southbound migratory cruise and tanker fleets.

"Today we proudly continue one of San Francisco’s oldest maritime traditions, a tradition that has been creating and maintaining quality maritime jobs for more than a century," said Port Executive Director Monique Moyer. "BAE Systems and the port have collaborated to expanded West Coast dry-docking capabilities, servicing post-Panamax ships, providing emission-free electrical power to the ships, and deepening the shipyard’s channel entrance to accommodate large ships. This agreement fortifies our alliance to sustain this industry for decades to come."