The City of Oakland may owe up to US$670 million in damages after a federal court ruled it interfered with plans to build a coal export terminal, reports Fort Lauderdale's Maritime Executive.

Developer Phil Tagami began work in 2009 to repurpose the Oakland Army Base into the Oakland Bulk and Oversized Terminal. By 2015, the project's coal terminal component, operated by Insight Terminal Solutions, drew opposition from city officials and environmental groups.

Under Mayor Barbara Lee, the city allegedly used a "pattern of interference" to block the project, leading to ITS' bankruptcy. Judge Joan A Lloyd ruled in favour of ITS, citing tortious interference.

Damages could range from $230 million to $670 million, representing 10-30 per cent of Oakland's annual budget. The city is already grappling with a nine-digit deficit.

In September, the California Supreme Court declined to hear an appeal, clearing the way for construction. Mr Tagami said the terminal could be operational by 2028.

Wyoming coal producers view the terminal as a critical link to Asian markets. Travis Deti of the Wyoming Mining Association said demand remains strong and the project offers rare