Local Briefs

The commission authorized the marine transportation consulting team of Tioga/HPA to perform an economic analysis of dredging issues at the port.

The port's ability to bring cement and other construction materials into the port is in serious jeopardy because the federal budget for the U.S. Army Corps of Engineers' Civil Works projects provided only $500,000 of the nearly $5 million needed for the routine maintenance dredging required at the port so that ships can continue to navigate Redwood City Channel. The Bush administration's proposed budget includes $4.9 million for the port project, which would fully fund the maintenance dredging of the channel back to its full authorized depth of 30 feet.

We still need support from our city, customers, and congressional delegation to make sure the funding stays in the final appropriations bill, which Congress should pass in the fall, Port Commission Chairman Dick Dodge said in a prepared statement.

The primary commodities that move through the port are cement, bauxite, aggregates and gypsum imports and scrap metal exports.

The consultants surveyed port customers and potential customers to find out what coping strategies they employ to deal with the current depth of the channel, which at 27.7 feet, is significantly less than the 30-foot authorized depth. Examples of coping strategies include waiting for high tide, light-loading or topping off at other ports.

Deep-draft shipping is the only efficient way to move the bulk materials handled at the port. The region's drive to maintain and upgrade its infrastructure and sustain manageable growth will be thwarted if the supply of essential inputs is constricted by inadequate draft in the Redwood City channel, the report said.

Annual maintenance dredging to maintain the federally authorized 30-foot channel depth will be critical for the future viability of the port and its tenants, the report states.

Gas prices decline 29¢

Bay Area drivers are getting more relief at the gas pump, with average gas prices down 23 cents per gallon since May, according to a new report by AAA of Northern California.

The average price of regular unleaded gasoline is currently $2.36 per gallon in the Bay Area and statewide.

The price has come down, but it's important to keep this in perspective, Sean Comey, spokesman for AAA of Northern California, said Tuesday.

The price of gas is still at least 40 cents higher in most places than it was in January, Comey said.

According to the California Energy Commission, profit margins for companies operating California refineries are dropping, which explains the recent drop in consumer gas prices.

Undermining the downward trend in prices is the rising cost of crude oil, which plummeted by $7 per barrel between April and May but is now rising to prices comparable to April's record highs.

Typically, every dollar per barrel increase is matched by a 2.5 cents per gallon increase in the retail price of gas, according to Comey.

While AAA hopes the trend will continue, it warns rising demand for gas in the coming summer months often leads to higher prices.