Jacobs to Support Rail Expansion for Major LA-Area Port Facility

Rhea-AI Summary

Jacobs (NYSE: J) has secured a construction management contract for the Port of Long Beach's Pier B On-Dock Rail Support Facility program, part of a $2.2 billion port enhancement initiative. The transformative project will double the rail yard size from 82 to 171 acres and triple on-dock rail capacity to handle 4.7 million twenty-foot shipping containers annually.

Set for completion in 2032, the project aims to improve cargo movement efficiency, reduce environmental impact, and boost regional economic development. The expansion will create over 1,000 local jobs while significantly reducing truck traffic and emissions in surrounding areas.

Positive

• Project will triple the Port's on-dock rail capacity to handle 4.7 million containers annually
• Creation of over 1,000 local jobs through the expansion project
• Significant environmental benefits through reduced truck traffic and lower emissions
• Strategic expansion doubles rail yard size from 82 to 171 acres

Negative

• Extended project timeline with completion set for 2032
• Complex management of ten separate construction contracts
• Substantial capital investment required ($2.2 billion program)

Insights

Infrastructure & Construction Analyst

Jacobs secured a construction management contract for Port of Long Beach's $2.2B rail expansion, strengthening its infrastructure portfolio through 2032.

Jacobs has secured a strategic construction management contract for the Port of Long Beach's Pier B On-Dock Rail Support Facility, positioning the company to capture value from a cornerstone project within the port's $2.2 billion infrastructure expansion program. The long-term nature of this contract—extending to 2032—provides Jacobs with significant revenue visibility in its infrastructure segment.

The scale of this project is substantial: expanding the rail yard from 82 to 171 acres (a 108% increase) and more than tripling on-dock rail capacity to handle up to 4.7 million shipping containers annually. This presents considerable technical complexity that aligns with Jacobs' core competencies in managing large-scale infrastructure projects.

This contract strengthens Jacobs' already robust position in port infrastructure, building on their successful track record with previous Port of Long Beach projects and other major maritime facilities. Their #2 ranking in Program Management by Engineering News-Record likely provided competitive advantage in securing this award.

The project's extended timeline through 2032 offers long-term stability for a portion of Jacobs' $12 billion annual revenue base. While the specific contract value wasn't disclosed, managing components of a $2.2 billion program represents material potential upside. The win also reinforces Jacobs' strategic focus on critical infrastructure projects with sustainability elements—including emissions reduction and environmental improvements—which aligns with increasing infrastructure investment trends in modernizing America's supply chain capabilities.

08/07/2025 - 07:45 AM

Doubling rail capacity will position Port of Long Beach for significant productivity and economic development

DALLAS, Aug. 7, 2025 /PRNewswire/ -- Jacobs (NYSE: J) has been awarded a contract to provide construction management for the Port of Long Beach's Pier B On-Dock Rail Support Facility program. This project is a cornerstone of the port's $2.2 billion program to enhance cargo movement efficiency, reduce environmental impacts and support regional economic development.

The Pier B rail program will transform the existing rail yard into a state-of-the-art facility, doubling its size from 82 to 171 acres. The project will more than triple the Port's on-dock rail capacity, enabling it to handle up to 4.7 million twenty-foot shipping containers annually. The expansion is expected to significantly reduce truck traffic, lower emissions and improve air quality in the surrounding areas.

"As one of the busiest ports in the United States and a major entry point for goods, the Port of Long Beach plays a significant role in international trade and the economy," said Jacobs Executive Vice President Eva Wood. "Jacobs' experience in managing large-scale infrastructure projects will deliver enhancements at the port that will expedite cargo movement, reduce shipping costs and contribute to a more resilient supply chain."

Expected to be complete in 2032, the Pier B On-Dock Rail Support Facility is also set to provide substantial community benefits, including creating more than 1,000 local jobs and contributing to local health and environmental initiatives. By enhancing on-dock rail capacity, the project will help the port further its efforts to reduce the environmental footprint of cargo movement.

Ranked as No. 2 in Program Management by Engineering News-Record, Jacobs delivers today's most complex, challenging infrastructure and recovery projects. Jacobs has supported efforts like the Port of San Francisco Waterfront Resilience Program, which is adapting 7.5 miles of the city's waterfront to be resilient to earthquakes, coastal storms and sea level rise; the award-winning Amrun Chith Export Facility in Queensland; and several recent efforts at the Port of Long Beach, including designing and building the port's multi-award winning Fireboat Station 20.

"The Pier B On-Dock Rail Support Facility embodies the core values of the Port of Long Beach, allowing more cargo to move through our marine terminals with greater efficiency and less impacts on the community," said Port of Long Beach CEO Mario Cordero. "It is also an enormous undertaking with ten construction contracts to manage. Jacobs has demonstrated its qualifications to help us accommodate this peak workflow, and we're pleased to work with the company to build this new gateway for the nation's container cargo."

At Jacobs, we're challenging today to reinvent tomorrow – delivering outcomes and solutions for the world's most complex challenges. With approximately $12 billion in annual revenue and a team of almost 45,000, we provide end-to-end services in advanced manufacturing, cities & places, energy, environmental, life sciences, transportation and water. From advisory and consulting, feasibility, planning, design, program and lifecycle management, we're creating a more connected and sustainable world. See how at jacobs.com and connect with us on LinkedIn, Instagram, X and Facebook.  

Certain statements contained in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that do not directly relate to any historical or current fact. When used herein, words such as "expects," "anticipates," "believes," "seeks," "estimates," "plans," "intends," "future," "will," "would," "could," "can," "may," and similar words are intended to identify forward-looking statements. We base these forward-looking statements on management's current estimates and expectations, as well as currently available competitive, financial and economic data. Forward-looking statements, however, are inherently uncertain. There are a variety of factors that could cause business results to differ materially from our forward-looking statements including, but not limited to, uncertainties as to, the timing of the award of projects and funding and potential changes to the amounts provided for under the Infrastructure Investment and Jobs Act and other legislation and executive orders related to governmental spending, including any directive to federal agencies to reduce federal spending or the size of the federal workforce, and changes in U.S. or foreign tax laws, statutes, rules, regulations or ordinances, including the impact of, and changes to tariffs and retaliatory tariffs or trade policies, that may adversely impact our future financial positions or results of operations, as well as general economic conditions, including inflation and the actions taken by monetary authorities in response to inflation, changes in interest rates and foreign currency exchange rates, changes in capital markets, the possibility of a recession or economic downturn, and increased uncertainty and risks, including policy risks and potential civil unrest, relating to the outcome of elections across our key markets and elevated geopolitical tension and conflicts, among others. For a description of these and additional factors that may occur that could cause actual results to differ from our forward-looking statements, see our filings with the U.S. Securities and Exchange Commission. The company is not under any duty to update any of the forward-looking statements after the date of this press release to conform to actual results, except as required by applicable law.

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FAQ

What is the value of the Port of Long Beach's rail expansion program that Jacobs will manage?

The Pier B On-Dock Rail Support Facility program is part of a $2.2 billion initiative to enhance cargo movement efficiency at the Port of Long Beach.

How much will the Port of Long Beach's rail capacity increase after the Jacobs-managed expansion?

The project will triple the Port's on-dock rail capacity, enabling it to handle up to 4.7 million twenty-foot shipping containers annually.

When will the Port of Long Beach Pier B rail expansion project be completed?

The Pier B On-Dock Rail Support Facility project is expected to be complete in 2032.

How many jobs will the Port of Long Beach rail expansion create?

The project will create more than 1,000 local jobs while contributing to local health and environmental initiatives.

How much will the Port of Long Beach rail yard size increase under the Jacobs project?

The rail yard size will double from 82 to 171 acres, significantly expanding the facility's capacity.