OAKLAND — Land developer Phil Tagami has a new ally in his long war to build a large marine terminal at the city’s harbor: President Donald Trump.
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Trump supports it for the same reason West Oakland environmentalists have long loathed it — when constructed, the 34-acre shipping site would likely count coal as one of its prime commodities.
On Thursday, Tagami’s terminal — whose construction had previously been stalled by multiple city lawsuits — appeared on a list of projects lauded by Trump as key to energy production that would bolster the country’s defense.
The project will receive $75 million from the Trump administration, part of a larger $700 million package of funding made available by the Department of Energy.
“By facilitating access to international markets for U.S. coal, the project helps prevent the closure of domestic coal mines by growing demand,” states a DOE news release states, adding that investment in the coal industry is “paramount to national security.”
The newfound funding could buoy Tagami’s efforts to finally construct the terminal that would store goods shipped to Oakland by rail before shipping them overseas.
Tagami, who did not immediately respond to an interview request, has maintained in recent years that coal would only emerge as a product shipped from the terminal if his tenant, Insight Terminal Solutions, deemed it a viable commodity based on market demands.
The Trump administration, by contrast, seems convinced that coal would be central to the terminal’s operations, calling the development “essential for the longevity and resilience of the U.S. coal industry.”
“The reality is Tagami has been engaged with the coal industry from the very start,” said Ted Franklin, an activist with No Coal in Oakland.
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Indeed, Tagami won a major legal case against Oakland in 2018 when a federal court judge questioned whether coal storage at the terminal would actually threaten the health of West Oakland residents.
Environmentalists have long raised concerns that errant coal dust blown into the environment upon arrival to town would worsen the neighborhood’s air quality. Hospitalizations due to asthma are higher in West Oakland than anywhere else in Alameda County.
Tagami won another lawsuit in 2023 against city officials who unsuccessfully tried to end his lease at the harbor. Since then, the city has relented. Last December, officials confirmed to this news organization that Tagami had been granted permits to resume the project.
Meanwhile, Tagami’s business partner Insight Terminal Solutions has sought hundreds of millions of dollars from the city in bankruptcy proceedings playing out in the Kentucky court system.
In April, federal Judge Benjamin Beaton appeared very skeptical about ITS’ claims to Oakland’s public money, telling company officials that they may have waited too long to file for damages from the city. He has not yet issued a formal ruling.
“I feel like I’m in ‘crazy town’ here,” said Beaton, a Trump appointee, before quipping, “Not making an Oakland joke.”
Shomik Mukherjee is a reporter covering Oakland. Call or text him at 510-905-5495 or email him at [email protected].
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