PORT OF LOS ANGELES LAUNCHES RAIL CARGO INCENTIVE


PORT OF LOS ANGELES LAUNCHES RAIL CARGO INCENTIVE

SAN PEDRO, Calif. — March 20, 2009 — The Port of Los Angeles is launching an Intermodal Container Incentive Program that will pay shipping companies $20 per TEU for each additional container they bring into the Port by rail that exceeds their 2008 level.  Intermodal cargo accounts for just over 40% of the total container volume at the nation’s largest container port.  The new incremental incentive program begins on May 1, 2009, and is expected to cost $900,000.

“Given the nation’s current economic climate, we need to help our steamship lines,” said Port Executive Director Geraldine Knatz, Ph.D.  “Coupled with the recent rate reduction for our terminal operators, this new program will help the Port remain competitive.”

The Intermodal Container Incentive Program is the second of two year-long cost reduction programs initiated by the Port this year.  The Intermodal Discount Program took effect last month, and gave terminal operators a 10% discount on each container they transported to or from the Port by rail.  That program is retroactive to January 1, 2009, and is expected to cost $13 million dollars.

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.