PORT OF LOS ANGELES ADOPTS 2011-2012 FISCAL BUDGET

$976.6 Million Budget Represents Port’s Forward Focus on Competitive Operations, Customer and Community Relationships, Financial Strength

SAN PEDRO, Calif. — June 2, 2011 — The Los Angeles Harbor Commission today adopted a 2011-2012 fiscal year (FY) budget of approximately $976.6 million for the Port of Los Angeles, a 7.4 percent or $67 million increase from the current FY adopted budget effective from July 1, 2011. The growth reflects higher total receipts from both operations and grants activity which in turn allowed greater appropriations for both operations and capital projects in comparison to the current fiscal year budget.

“Local, national and global economies have regained stability and forward momentum,” said Harbor Commission President Cindy Miscikowski. “This year’s Port-approved budget strikes the right balance between ensuring competitiveness and financial strength, but with a disciplined use of resources to achieve these objectives.”

“Our budget plan supports the long-term vision for the Port, with priorities based on collaborative input from our divisions and board members,” said Port Executive Director Geraldine Knatz, Ph.D. “Together, we have developed a fiscally responsible plan that will establish and maintain competitive operations, build stronger customer and community relationships, and enhance our organization’s financial strength for the future.”  

During the 2010-2011 fiscal year, the Port continued its strong competitive position as the nation’s busiest container gateway, with a 16 percent increase in containerized cargo in Calendar Year (CY) 2010 compared to the prior year. The Port also maintained its AA Bond rating.

The Port’s 2011-2012 FY budget anticipates operating revenues of $405.4 million, about the same level when compared to the current fiscal year.  It also projects a $23.2 million or 2.3% decrease in total estimated expenditures from the current fiscal year. Pivotal to maintaining competitive operations, a capital budget of $291 million has been approved.

Port capital investments for FY 2011-2012 will include $10.7 million in terminal improvements at the TraPac Container Terminal and $5.6 million at the APL facility at Berths 301-306. Another $45 million is allocated for L.A. Waterfront project construction, and $44 million for surface transportation infrastructure to improve goods movement for both commercial and noncommercial users of Port-owned and non-Port-owned roads. 

Planned capital improvements are projected to generate an estimated 3,352 jobs during FY 2011-2012, while the operational budget is expected to support approximately 727 jobs. 

Continuing its commitment to environmental stewardship, the Port anticipates spending approximately $7.2 million in FY 2011-2012 for Clean Air Action Plan initiatives, including $2.7 million for the Clean Truck Program, $2.5 million for the Vessel Speed Reduction Program, $1.5 million for the Technology Advancement Program, and $.5 million for the TraPac AMP demonstration project.   

For FY 2011-2012, $24 million has been allocated to enhance Port security and protection, including projects for Port Police surveillance, threat detection, and criminal activity detection, deterrence and apprehension.

Click here for an overview and details of the FY 2011-2012 budget.

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 more than 830,000 regional jobs and $35 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.