The Port of Oakland penned an agreement Thursday with the U.S. Army Corps of Engineers that advances a $640 million plan to bring larger, more modern ships to the city’s commercial docks.

The freshly minted design agreement allows the port’s Turning Basins Widening Project to move out of the study phase, with construction scheduled to start sometime in 2028 and to wrap up in 2030.

“Investing in critical infrastructure today ensures Oakland remains a competitive port city for generations to come,” said Kristi McKenney, the port’s executive director. “Larger vessels and taller cranes are the lifeline to our regional economy, and we’re grateful our partners at the Army Corps of Engineers share our vision for a more prosperous, efficient, and safer future.”

The project will increase the width of existing basins to accommodate ships up to 1,310 feet long and that are rated to carry 19,000 20-foot shipping containers, or an equivalent amount of cargo.

Turning basins are where ships are turned around in the harbor by tugboats and Oakland has two, one in the Inner Harbor west of Jack London Square and one in the Outer Harbor, south of the Bay Bridge toll plaza.

A map of the Port of Oakland’s Turning Basin Widening Project shows the areas port officials plan to expand after the port signed a design agreement with the U.S. Army Corps of Engineers in Oakland on Thursday, Aug. 27, 2026. The project is aimed to accommodate larger, modern ships. (Port of Oakland via Bay City News)

The port and federal officials began studying the feasibility of the project in 2020 and the environmental review process was wrapped up last year, according to the project website.

Thursday’s signing, which took place aboard the historic USS Potomac, was a key step in moving the project forward.

As a side benefit, dredging from the project will be reused for the Montezuma Wetlands restoration project in Solano County, according to port officials.

The project will be funded using federal infrastructure money that’s been budgeted by the U.S. Congress, said port spokesperson Justin Berton.

“I was proud to advocate for this project through the Congressional appropriations process and look forward to this project modernizing our port, supporting thousands of local jobs, and ensuring Oakland remains competitive on the global stage,” U.S. Rep. Lateefah Simon, D-Oakland, said in a news release Thursday.

Kiley Russell writes primarily for Local News Matters on issues related to equity and the environment. A Bay Area native, he has lived most of his life in Oakland. He studied journalism at San Francisco State University, worked for the Associated Press and the former Contra Costa Times, among other outlets. He has covered everything from state legislatures, local governments, federal and state courts, crime, growth and development, political campaigns of various stripes, wildfires and the aftermath of Hurricane Katrina.