Project Description
Long Beach, Calif.
For more than 20 years, the Port of Long Beach experienced congestion at its Pier T Rail Terminal, restricting the efficient movement of high-priority cargo. The Terminal Island (TI) Wye Track Realignment project addressed this bottleneck by constructing a second lead track and two storage tracks on Pier S—expanding on-dock rail capacity by over 400,000 containers annually.
The $19.7-million project scope included 5,000 linear feet of new rail construction, 3,500 feet of storm drains, a 300-linear-foot retaining wall, grading, drainage, landscaping, and new signal systems. The project was especially complex due to ongoing live rail operations, tightly restricted 12-hour outage windows, and the need to coordinate with multiple stakeholders, including adjacent tenants, utility companies, state agencies, and the neighboring Port of Los Angeles.
To manage the limited shutdown windows, the team held weekly outage coordination meetings with all stakeholders, ensuring each closure was executed safely and efficiently. The project achieved Envision certification for sustainability and was completed seven days early, with less than 5% in change orders and over $2 million under budget. The Port and contractor’s shared commitment to innovation, planning and collaboration was key to delivering this vital infrastructure project.
Partnering Approach
The TI Wye project integrated formal partnering from kickoff to closeout, facilitated by VELO Group. The team participated in six in-person facilitated sessions—beginning with a charter-building kickoff and concluding with a lessons-learned workshop. In between, bi-monthly and ad hoc meetings between the Port of Long Beach and general contractor Herzog & Stacy Witbeck, A Joint Venture, kept communication clear and alignment strong.
A structured “issue resolution ladder” helped resolve conflicts at the field level, with only one item requiring escalation. Sixteen project surveys enabled ongoing feedback and early identification of concerns, which were addressed collaboratively during partnering sessions.
At project kickoff, the team set 27 “Big, Hairy, Audacious Goals” (BHAGs) spanning safety, budget, schedule, quality, labor compliance, RFIs, change orders, stakeholder satisfaction, and environmental performance. By project closeout, 23 of the 27 stretch goals had been met—an outstanding result reflecting the strength of the team’s collaboration.
An early recommendation from VELO Group led to daily end-of-day calls between the Port, contractor, and tenant to coordinate next-day activities. This simple practice helped prevent surprises, resolve issues quickly, and maintain smooth operations in a live rail environment. A shared “no-surprises” communication culture further fostered trust and accelerated issue resolution, ultimately contributing to zero safety incidents, a seamless construction process, and strong relationships that set a precedent for future Port projects.
Partnering Results
- Completed 7 days ahead of schedule and $2.17 million under budget
- Zero OSHA-recordable safety incidents with over 40,974 work hours
- $200,000 in estimated savings attributed to partnering
- Zero claims filed—a clear result of strong collaboration and effective issue resolution.
- 23 of 27 stretch goals achieved
- Streamlined communication and daily coordination reduced delays
- Strong stakeholder trust and collaboration, with positive tenant feedback
Project Notes
- Project Cost: $19.7 Million
- Project Duration: 548 Workdays
- Delivery Method: Design-Bid-Build
- Construction Start Date: May 2023
- Construction Completion Date: November 2024
Awards
2025 IPI John L. Martin Partnered Project of the Year – Gold Level
