PORT OF LOS ANGELES HARBOR COMMISSION APPROVES AN INTERMODAL CONTAINER DISCOUNT PROGRAM
SAN PEDRO, Calif. – February 19, 2009 – Port of Los Angeles Harbor Commissioners today approved an Intermodal Container Discount Program that Port officials hope will help sustain intermodal cargo volumes during the current economic downturn and, in the process, retain jobs connected to the Port’s intermodal business.
“Intermodal cargo is an important segment of our customers’ business, and we don’t want the economic climate to erode that business and impact the thousands of jobs connected to it,” said Port Executive Director Geraldine Knatz, Ph.D. “In the coming weeks, we’ll be looking at other ways we can assist our customers and help keep our port workforce busy.”
“With this board action, we are putting our money where our mouth is,” added Los Angeles Harbor Commission President S. David Freeman. “We’re cutting our rates and cutting our internal operating expenses to weather this recession, fight back on competitive forces, and fight for those jobs that our intermodal business helps support.”
Retroactive to January 1, 2009, the year-long program will provide the Port’s seven container terminal operators with a 10-percent discount per Twenty-foot Equivalent Unit (TEU, or 20-foot container) of revenues due to the Port, for every imported or exported container that moves by rail to or from locations outside of California.
Intermodal cargo presently accounts for roughly 41 percent of the Port’s total containerized cargo volume. In 2008, 7,849,985 TEUs (Twenty-foot Equivalent Units) moved through the Port of Los Angeles.
About the Port of Los Angeles
The Port of Los Angeles, also known as “America’s Port,” has a strong commitment to developing innovative strategic and sustainable operations that benefit the economy and the quality of life for the region and the nation it serves. A recipient of numerous environmental awards, including the U.S. Environmental Protection Agency's 2007 Clean Air Excellence Award, the Port of Los Angeles is committed to innovating cleaner, greener ways of doing business. As the leading seaport in North America in terms of shipping container volume and cargo value, the Port generates 919,000 regional jobs and $39.1 billion in annual wages and tax revenues. A proprietary department of the City of Los Angeles, the Port is self-supporting and does not receive taxpayer dollars. The Port of Los Angeles - A cleaner port. A brighter future.