Los Angeles Harbor Commission approves US$2.6 billion budget
11/06/2024
The Los Angeles Harbor Commission has approved a US$2.6 billion budget for the City of Los Angeles Harbor Department for the fiscal year 2024/25.
“This year’s budget takes a prudent approach that carefully balances revenues and expenses and sets up the Port well for the future. Most importantly, the plan will allow us to stay the course and follow through on many strategic priorities and industry-leading initiatives in the coming year,” stated Lucille Roybal-Allard, president of the Los Angeles Harbor Commission.
This revenue and spending plan aligns with the Port of Los Angeles’ priorities, which include community investment, decarbonizing port-related operations, workforce development, and modernizing cargo infrastructure.
With steady cargo volumes over the past nine months, the FY 2024/25 budget anticipates handling 9.1 million TEUs, marking a modest 2% increase from the previous fiscal year’s budget.
This cargo increase is expected to generate a 4.9% rise in operating revenues for FY 2024/25, projected at US$684.7 million, with shipping services contributing approximately 75% of this revenue.
“With a healthy economy, continued consumer spending and a strong U.S. labour market, we are optimistic about cargo volumes for the next fiscal year. We’ve prepared a budget that leaves room for unanticipated changes in the global trade market or other uncertainties that may arise,” stated Gene Seroka, port executive director.
Operating expenses for FY 2024/25 are projected at US$403.7 million, reflecting an 8.4% increase over the previous fiscal year’s budget, driven largely by increased staffing needs and the filling of open positions at the Harbor Department.
The budget allocates US$257.7 million to the Port’s capital improvement program (CIP), a 19% increase from the previous fiscal year.
Significant CIP allocations include US$44.3 million for the reconfiguration of the State Route 47/Vincent Thomas Bridge & Front Street/Harbor Boulevard Interchange; US$15.3 million for the Zero-Emission Port Electrification and Operation program; US$14.2 million for restoration and improvements at the Pasha Terminal; and US$12.5 million for Marine Oil Terminals Maintenance Standards (MOTEMS) projects, among other initiatives.
An additional US$28.5 million in CIP funds is earmarked for LA Waterfront public access improvements in Wilmington and San Pedro. Key projects for FY 2024/25 include Phase II of the San Pedro Waterfront Promenade and the Wilmington Waterfront Avalon Pedestrian Bridge & Promenade Gateway.
Furthermore, the CIP budget includes US$4 million for planning the Port of Los Angeles and Port of Long Beach Goods Movement Workforce Training Facility. This US$150 million facility will be the first in the U.S. dedicated to goods movement sector training, including longshore work, trucking, and warehousing. The environmental review process for this project began earlier this year.
Source: Container News
