Tuesday, June 11, 2013

LA Port Adopts Billion Dollar Budget

The Los Angeles Harbor Commission has adopted a 2013-14 fiscal year budget of about $1.1 billion for the Port of Los Angeles, including one of the largest annual capital improvement programs in port history.

About $400 million -- or 37% of the total budget – is allotted for capital improvement. Over 8,500 jobs, 6,870 of which are attributable to construction project spending in the coming fiscal year are also supported by the budget.

The Port of Los Angeles’ new fiscal year begins July 1.

“Developing and maintaining a world-class infrastructure is, and continues to be, the overarching strategic priority for the Port of Los Angeles,” Harbor Commission President Cindy Miscikowski said. “Capital improvements and improved efficiency are essential if we’re to maximize cargo flow as well as maintain our position as the nation’s number one container port.”

The capital spending budget earmarks more than $380 million for container terminal and transportation upgrades, including over $99 million at the TraPac container terminal for backland improvements to support future terminal automation as well as construction of a facility to provide on-dock rail capabilities, which will result in all Port of L.A. container terminals equipped with on-dock rail.

Also included is almost $96 million for the installation of electrical power stations at major container terminals including APMT, APL, Evergreen, Yang Ming and China Shipping. The stations reduce emissions from container vessels by using shore side power instead of running on diesel power.

The budget also calls for $41.5 million in construction at China Shipping Terminal, which includes completion of 375 linear feet of expanded wharf and backland improvements; and about $78 million related to construction at the Berth 200 rail yard, a piece of the port’s overall goods movement plan to facilitate more fuel-efficient, faster and safer rail operations throughout the complex.

The newly adopted budget also includes operating revenues of $413 million, an increase of just 3.1 % over the previous fiscal year. Also, proposed operating expenses are slightly lower by 1.9% to $209.1 million.