$909.6 Million Budget, A Nearly 20-Percent Decrease From Current Budget, Focuses on Project Advancement, Marketing and Organizational Priorities

SAN PEDRO, Calif. — May 20, 2010 — The Los Angeles Harbor Commission today adopted a 2010-2011 fiscal year (FY) budget of approximately $909.6 million for the Port of Los Angeles, a 19.7-percent decrease from the current fiscal year adopted budget.  Effective July 1, 2010, the Port’s 2010-2011 budget anticipates lower operating revenues (a 5.3-percent decline) and, in turn, targets a 15 percent drop in operating expenditures during the coming year. 

“This budget represents a balanced, fiscally responsible plan with resources dedicated to our primary goals for the year ahead,” said Port Executive Director Geraldine Knatz, Ph.D.  “In addition to internal communications and workforce development improvements, our priorities are focused on keeping revenue-generating capital projects on schedule; retaining and attracting new business; and seeking new sources of public and private funding for our construction, security, transportation, community and environmental initiatives.”

Harbor Commission President Cindy Miscikowski praised the Harbor Department for its ability to remain fiscally strong and competitive during the economic downturn.   The Port maintains an “AA” bond rating -- the highest rating of any U.S. port without taxing authority ­– and has maintained its national and west coast market share (20 percent and 35 to 36 percent, respectively) during the global recession.

“I’m pleased that over the past fiscal year we’ve been able to retain market share, build infrastructure that’s critical to our future success, offer incentives to help our customers and continue to reduce air pollution through various initiatives,” Miscikowski said. “The 2010-2011 budget will, once again, require discipline and focus in terms of using our resources wisely.”

The newly approved budget includes a capital budget of $266.3 million and operating expenses of $221.3 million. Total operating revenues are projected to be $373.4 million. Construction and other project-related initiatives in the upcoming fiscal year will create approximately 5,704 jobs in the five-county Southern California region.

Capital Improvement projects for the upcoming year include $40 million for the development and expansion of the TraPac Container Terminal, which includes a 60-acre terminal expansion and construction of an on-dock rail facility, a new wharf and Alternative Maritime Power (AMP) infrastructure so ships can plug into shore-side electric power while at berth. Approximately $33 million is allocated for China Shipping terminal project, which includes a 35-acre expansion, a new wharf and AMP facilities.

The budget also includes $13 million in funding for completing AMP infrastructure at the World Cruise Center, as well as other facility improvements that include lighting, signage, rooftop solar power generation, and audio-video system improvements. Other budget highlights include $25 million for the Port’s Channel Deepening Program, $25 million for surface transportation projects, and more than $23.6 million for a variety of Port security projects.

With customer retention and attraction a top priority, the budget includes approximately $5 million for customer discounts, incentives and efforts aimed at highlighting the Port’s competitive advantages, strengthening relations with existing customers and securing new customers and business segments.

Stepping up efforts to obtain alternative sources of revenue, the Port estimates it will receive approximately $45.3 million federal and state grants in the upcoming fiscal year to help fund its security, transportation and environmental projects.

More than $17 million is allocated for environmental initiatives, including the Clean Truck Program, the Vessel Speed Reduction Program, the Technology Advancement Program as well as water quality and Climate Action Plan projects.

The Port of Los Angeles is America’s premier port and has a strong commitment to developing innovative strategic and sustainable operations that benefit the economy as well as the quality of life for the region and the nation it serves.  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.