A USD 1.17 billion fiscal year 2016/17 annual budget has been approved for the Port of Los Angeles by the LA Board of Harbor Commissioners.
The budget allocation supports the four key objectives of the port’s 2012-2017 Strategic Plan that include the development of infrastructure, the implementation of an efficient, secure and environmentally sustainable supply chain, improved financial performance of port assets and strengthened relationship with port stakeholders, the port said.
“The budget allocations approved today allow us to stay the course and continue building a healthy, strong and vibrant Port that is ready to compete globally in the years ahead,” Ambassador Vilma Martinez, Harbor Commission President said.
The budget includes USD 452.8 million in operating receipts, a principal mechanism for funding day-to-day port operations. This represents a 5.7 percent increase over the prior year budget, largely due to anticipated growth in cargo volumes and related shipping service revenues, according to the Port of Los Angeles Authority.
The port authority notes that cargo volumes have been on the upswing since service levels returned to normal during the first half of 2015. With its supply chain initiatives, the port anticipates its cargo volumes to grow by 1.9 percent in 2016 over the previous year budget to approximately 8.5 million TEUs annually.
“We’ve worked extremely hard to optimize the supply chain at both the national and international levels,” Port Executive Director Gene Seroka says.
In addition, the port’s newly approved USD 146.1 million capital improvement plan (CIP) anticipates a 24 percent decrease relative to the prior year budget.
Completed CIP projects in FY 2015/16 included the TraPac intermodal container transfer facility, TraPac terminal buildings and main gate, the John S. Gibson Intersection/Northbound Interstate-110 ramp access improvements, as well as Interstate-110/State Route 47 connector improvements.
Key terminal projects budgeted to continue in 2016/17 include TraPac backland improvements, Yusen Terminals, Inc. berth redevelopment, electrical infrastructure at the World Cruise Center, wharf rehabilitation at the WWL Vehicle Services terminal, as well as wharf improvements at the port’s liquid bulk terminals.