The Port of Los Angeles’ budget for capital improvement projects has increased by 42.5% year-on-year (YoY) after the Los Angeles Board of Harbor Commissioners approved a $1.7 billion Fiscal Year (FY) annual budget.
In a statement, the Port said $188.7 million has been set aside for signature capital improvement projects. These include $46.6 million for Wilmington Waterfront projects, $32.3 million for repairs and upgrades at liquid bulk terminals and $15.1 million for the Harbor Department facilities and computer software system upgrades.
It also includes $13.6 million for the Alameda Corridor Southern Terminus Gap Closure project, $13 million for the Everport Container Terminal Improvements, $9.2 million for the San Pedro Waterfront projects and $7.4 million for various environmental programmes.
The new FY budget comes after the Port broke its FY cargo volume record during 2020/2021, which was caused by an unprecedented surge in demand for goods in the US.
Jaime Lee, President of the Los Angeles Harbor Commission, said the budget will allow the Port to “continue building” on its revenue growth and make “important capital investments in port infrastructure”.
Port of Los Angeles Executive Director Gene Seroka said, ““This budget puts us in a solid position to keep operating expenses in check and manage through any market uncertainties, particularly if consumer demand shifts from goods to more services and activities as the economy opens up.”
The approved budget forecasts cargo volumes for FY 2021/22 of 9.7 million TEUs a 6.7% or 0.7 million TEU decrease over the previous year’s forecast, the Port said.
Accompanying operating revenues are projected to come in at $533.3 million, a decrease of $11.7 million or 2.2 % over FY 2020/21.