The Port of San Diego has cleared the way for a bulk sugar warehouse at the Tenth Avenue Marine Terminal that backers say will eliminate roughly 1,000 diesel truckloads a month from terminal operations. The project, tied to Mexico-based sugar importer Zucarmex, is expected to bring in up to 280,000 metric tons of raw sugar annually while relying entirely on electric trucks to move it inland to Otay Mesa processing facilities.
According to Times of San Diego, the roughly 50,000-square-foot warehouse would sit in the southeastern portion of the terminal, allowing Zucarmex to store sugar on-site rather than rushing it straight from ship to truck. The project would use zero-emission Class 8 trucks to move the sugar out on a flexible schedule, according to the Environmental Health Coalition.
From Spot Shipments to a Decade-Long Lease
Zucarmex has brought bulk raw sugar through the Tenth Avenue terminal since 2018. The arrangement is set to change: California Sugar Equipment, LLC, has an 18-month option-to-lease agreement. Port Technology International has reported that the company will move into a 10-year primary lease with options for two five-year extensions. Construction must begin within one year after that lease takes effect, per the agreement terms.
The San Diego Unified Port District Board of Commissioners approved the project in June. Port officials said the Zucarmex project aligns with the broader redevelopment plan for the terminal, and board member Ann Moore called the proposed project a “port first,” per Times of San Diego. Zucarmex, which imports sugar from Mexico, Central America and Brazil, and California Sugar Equipment expect the project to cost approximately $6.2 million.
Air Quality Stakes for Portside Neighborhoods
The Portside Environmental Justice Neighborhoods — including Barrio Logan, Logan Heights, Sherman Heights and West National City — are identified as an Assembly Bill 617 community. The neighborhoods have faced concerns about industrial diesel pollution. Community groups have organized for years against port and freeway truck emissions.
The project also calls for zero-emission trucking. Richard Eastment said the companies behind the project are early adopters of clean energy and zero-emission technologies, calling the project a “milestone,” per Times of San Diego's reporting. The unloading technology planned for the site is expected to reduce emissions by at least 95%, and the Class 8 zero-emission trucks will be charged using renewable energy from solar panels installed on the warehouse roof.
Plugging Into an Already-Electrified Terminal
The warehouse would be part of the terminal's broader infrastructure plans.
The broader push for zero-emission trucking near the port is expanding, too. The port has proposed a zero-emission truck charging hub on Tidelands Avenue in National City, with the Board expected to vote on certification of its Environmental Impact Report on August 11, 2026. The Environmental Health Coalition noted that only about 1% of trucks serving port terminals were actually zero-emission at that time — a gap that makes Zucarmex's all-electric commitment stand out as a pilot for the rest of the waterfront.
Part of a Larger Terminal Overhaul
The terminal is also undergoing additional modernization.
The sugar project is expected to support annual growth in dry bulk and break bulk activity at a port that already imported almost 660,000 metric tons of dry bulk cargo — including sand, soda ash, fertilizer and cement — in fiscal year 2024, out of roughly 2.36 million metric tons of cargo overall. Beyond sugar, the port's top imports include vehicles, break bulk goods, liquid bulk cargo and produce, and it ranks as the fourth-largest port in California. Port officials say the facility is expected to create more than 100 jobs between the Otay Mesa and Tenth Avenue sites, adding to a port system that already supports an estimated one in 30 San Diego County jobs — more than 71,000 positions — and has seen 10% job growth since 2019.
