Port of Los Angeles and Long Beach budgets target waterfront development and infrastructure upgrades – Daily Breeze
The Port of Los Angeles will have a budget of $ 1.7 billion for the 2021-2022 fiscal year that will include significant investments in the San Pedro and Wilmington waterfront projects.
The spending plan, which the port commission approved on Thursday, June 3, follows a year of dramatic changes as the global coronavirus pandemic crushed the volume of cargo in the first months of 2020 only to reverse itself ‘in summer, when a record number of containers flooded the twin. ports of Los Angeles and Long Beach.
“Last year around this time the world was very different,” said Marla Bleavins, deputy executive director of finance and administration and chief financial officer of the Port of Los Angeles. “Things seemed to be falling off the edge of a cliff.”
The budget projects freight volumes for the next fiscal year, which starts in July, to be around 9.7 million TEUs – the universal measure of freight – which would represent a 6.7% drop from 2020. -2021; by the end of this fiscal year, the port is expected to reach 10.4 million TEUs.
Revenue is expected to be $ 533.3 million, down $ 11.7 million from 2020-21.
Still, the port is in good condition, said executive director Gene Seroka.
“This budget puts us in a strong position to control and manage operating expenses despite market uncertainties,” he said, “particularly if consumer demand shifts from goods to more services and more. ‘activities as the economy opens up “.
Major infrastructure investments target $ 188.7 million in capital improvements, up 42.5% from previous years.
- $ 46.6 million for the Wilmington Waterfront projects;
- $ 32.3 million for repairs and upgrades to liquid bulk terminals;
- $ 15.1 million for improvements and repairs to Port Department facilities and computer software upgrades;
- $ 13.6 million for the Alameda Corridor South Terminal Gap Closure Project on Port Lands, along Harry Bridges Boulevard and adjacent to the TraPac Terminal;
- $ 13 million for upgrades to the Everport container terminal;
- $ 9.2 million for the San Pedro waterfront projects; and
- $ 7.4 million for various environmental programs.
The port’s public access investment plan, which uses 10% of operating revenue minus expenses for tourist attraction development projects along the waterfront, now brings in around $ 22 million per year . This money is deposited into an account but is not always spent in the same year, as projects can take several years.
“Previously we weren’t spending that much,” Bleavins said, “but now with projects under construction we’ll see more spending over the next two years.”
The Port of Long Beach, meanwhile, approved its 2021-22 budget last week. The $ 622.4 million budget spends more than half of its spending on capital improvement projects, including upgrading terminals, roads and other infrastructure. This port’s operating revenues are expected to be 8.7% higher due to the influx of containers.
The B-Dock marshalling yard and the demolition of the old Gerald Desmond Bridge will exceed the capital expenditures of the Port of Long Beach.
The Port of Long Beach’s fiscal year begins in October.