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Business Jun 08, 2023
Port of Los Angeles | Photo courtesy of Edsel Little/Flickr (CC BY-SA 2.0)
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The Board of Harbor Commissioners approved a $2 billion Port of Los Angeles budget Wednesday for the 2023-24 fiscal year, including investments in infrastructure and decarbonization initiatives.
The budget was laid out in the final version of the city’s $13 billion spending plan for 2023-24.
Port officials noted that cargo volumes declined in the past year due to inflation and slow global trade, but they forecast modest gains in the fiscal year starting July 1. The budget estimates a 5.1% year-over-year increase to 8.9 billion twenty-foot equivalent units in 2023-24.
“This plan lays out a path forward that strategically balances anticipated cargo revenues with important port priorities,” Commission Vice President Edward Renwick said in a statement. “By responsibly and prudently managing our budget during the pandemic and during last year’s global cargo slowdown, we are now in a strong position to continue delivering on critical port investments and initiatives.”
Gene Seroka, executive director of the Port of LA, added that the port’s long-term priorities remain the same, which include modernization of “physical and digital infrastructure, and investment in community and environmental projects.”
The budget includes operating revenues of $652.9 million, an 8.6% increase over last year’s estimates. Shipping services are expected to make up a majority of operating revenues at 73.3%, followed by rental services at 15.1%
Officials said approximately $342.4 million will be allocated for operating expenses, such as supply chain improvements, facility and infrastructure maintenance, public safety related to goods movement, property and tenant services and other activities.
The spending plan also supports environmental and decarbonization initiatives such as the Clean Truck Fund Rate program and zero- and near-zero emission projects.
Port officials noted the plan includes $252.3 million, a 40.6% increase over last year’s estimates, to fund capital projects. Funds will focus on container and cruise terminal modernization, improving transportation in and out of the port, and public access at the LA Waterfront.
Port officials projected that the spending plan will create more than 4,000 jobs directly at the port and indirectly via infrastructure projects and other capital spending.
