Incoming cargo vessels will no longer have to pay fees at The Port of Long Beach in California, under new plans being devised by the port, according to Platts McGraw Hill Financial.
The move aims to reduce pollution while boosting cargo loadings, and therefore business for the port authority.
The port aims to cut costs for incoming vessels in two ways: first, by relinquishing the parking fee for a vessel, and second, to encourage cargo to be loaded onto rail instead of trucks.
Port spokesman Art Wong said: “It's competition – industry is still struggling to get past the recession and we're trying to hang on and grow our business.”
Wong added: “Other ports have been trimming their rates so we had to respond, but we wanted to tailor ours to encourage green practices.”
He concluded: “We invest a little bit and, potentially, we can gain a lot
With 75% participation, it would cost the port “close to US$5 million” but could bring in an additional 250,000 TEUs and US$20 million in revenue.
Port board members will vote on June 23 on a plan that already has preliminary approval to eliminate fees for cargo ships.
