LA Harbour Commission greenlights US$ 2.6 billion budget for FY 2024/25

News

Port Executive Director Gene Seroka said the FY 2024/25 budget leaves room for unanticipated changes in the global trade market or other uncertainties that may arise.

The Los Angeles Harbour Commission has approved a US$2.6 billion budget for the City of Los Angeles Harbour Department for fiscal year 2024/25, aiming to support the Port of Los Angeles’ priorities, including community investment, decarbonisation of port operations, workforce development, and cargo infrastructure modernisation.

The approved budget forecasts a total of 9.1 million TEU, a modest 2% increase over the previous fiscal year’s adopted budget. The boost in cargo is expected to result in a 4.9% increase in FY 2024/25 operating revenues, forecast at US$684.7 million, with shipping services comprising about 75% of those revenues.

“With a healthy economy, continued consumer spending and a strong U.S. labour market, we are optimistic about cargo volumes for the next fiscal year,” said Port Executive Director Gene Seroka. “We’ve prepared a budget that leaves room for unanticipated changes in the global trade market or other uncertainties that may arise.”

Read more: Seroka: Shippers ‘fractionally’ shifting to West Coast amid ILA talks

Proposed operating expenses in the FY 2024/25 budget are forecast at US$403.7 million, up by 8.4% compared to the previous fiscal year largely driven by increased staffing needs and the filling of open positions at the Harbour Department.

The port’s capital improvement programme (CIP) has received US$257.7 million, a 19% increase over the previous fiscal year’s adopted budget. Major CIP appropriations include US$44.3 million for the State Route 47/Vincent Thomas Bridge & Front Street/Harbour Boulevard Interchange Reconfiguration; US$15.3 million for the Zero-Emission Port Electrification and Operation programme; US$14.2 million for restoration and improvements at the Pasha Terminal; and US$12.5 million for Marine Oil Terminals Maintenance Standards (MOTEMS) projects, among several other initiatives.

Another US$28.5 million in CIP funds will go toward LA Waterfront public access improvements in both Wilmington and San Pedro.

The CIP budget also includes US$4 million toward planning for the Port of Los Angeles and Port of Long Beach Good Movement Workforce Training Facility. The US$150 million facility will be the first workforce training facility in the U.S. dedicated to the goods movement sector and career training in longshore work, trucking and warehousing. The project’s environmental review process kicked off earlier this year.

In 2023, the Port of Los Angeles generated US$292 billion in trade and handled a total of 8.6 million container units.

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