Terminal Build-Out to 2025 will Apply Unprecedented Environmental Measures as First EIR Under San Pedro Bay Ports Clean Air Action Plan

SAN PEDRO, Calif. - Dec. 6, 2007 - Los Angeles Harbor Commissioners Thursday evening approved the Berth 136-147 TraPac container terminal expansion project - first major capital improvement project in the San Pedro Bay Port in seven years. The TraPac container terminal project is also the first major project in the nation’s leading seaport complex to apply groundbreaking emissions mitigation measures outlined in the San Pedro Bay Ports Clean Air Action Plan (CAAP) which was approved a year ago by Los Angeles and Long Beach port commissioners.

“Today we move from talking about how we’re going to “grow green” at the Port of Los Angeles to actually doing it out on the terminals,” said S. David Freeman, president of the Los Angeles Harbor Commission. “This project sets the new industry standard for responsible and environmentally sustainable cargo terminal expansion.”

Port of Los Angeles Executive Director Geraldine Knatz, Ph.D., added: “Our main goal for 2007 was to bring a major construction project to our Board with an environmental document that everyone could feel good about, and we’ve done it. For the first time ever, we’ve addressed the health risks associated with a terminal expansion project and we’ve found ways to significantly reduce pollutants – all while addressing increased trade, adding a rail yard and creating hundreds of jobs at TraPac.”

The TraPac Terminal expansion, between Berths 136 and 147 on the northwest perimeter of the Port, will allow TraPac to expand cargo handling in an efficient manner from 900,000 TEUs (baseline year 2003) to 2.4 million TEUs by 2025. At the same time, particulate matter of less than 2.5 microns will be reduced by 75 percent and nitrogen oxides (NOx) will drop by 55 precent below baseline levels as a result of mitigation measures applied during project operations. By 2015, total project emissions of volatile organic compounds (VOC), nitrogen oxides (NOx), sulphur oxides (SOx), and particulate matter (PM10 and PM2.5) will be reduced approximately 50 percent. The health risks associated with the modernized terminal operations will be well below regulatory standards of significance and will reduce the estimated cancer risk associated with terminal operations to below baseline levels in large parts of Wilmington and San Pedro.

A variety of environmental mitigation measures are included in the project: requirements of vessel speed reductions when ships are transiting within the South Coast Air Basin; use of lower-sulfur fuel in ships; plugging ships into shore-side electric power while at berth (AMP or Alternative Maritime Power); use of clean container handling terminal equipment; construction of a new on-dock rail facility; traffic-relieving surface road and terminal entry improvements; clean trucks meeting EPA 2007 standards; and energy-efficient “Gold” LEED standard terminal offices.

Benefits to the local community incorporated in the project include an open, 30-acre buffer area between the TraPac container terminal and the Wilmington community, 300 new terminal jobs and a total net employment of as many as 5,433 regional jobs annually connected directly or indirectly to terminal operations at build out, and 2,800 construction jobs at peak construction. The Berth 136-147 container terminal operation will generate approximately $1.5 billion to $1.8 billion in revenues. Annual tax revenues associated with construction jobs for the peak year of build-out activity could be as much as $24.1 million in federal taxes, $5.6 million in state taxes and $2.4 million in local taxes.

Celebrating its Centennial in 2007, the Port of Los Angeles is America's premier port. As the leading seaport in the nation 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. At the Port of Los Angeles, high priority is placed on responsible and sustainable growth initiatives, combined with high security, environmental stewardship and community outreach. For its industry leading environmental initiatives, the Port received two Environmental Protection Agency awards in 2006. The Port of Los Angeles - A cleaner port. A brighter future.