With cargo volumes moving through the Alameda Corridor in Southern California still recovering from the 2008-09 recession, the ports of Los Angeles and Long Beach have been called upon to cover the corridor’s shortfall in revenue for the current fiscal year, the Journal of Commerce reports.
The Alameda Corridor Transportation Authority notified Los Angeles and Long Beach that under the agreed-upon formula, each port was requested to pay $2.95 million to cover the shortfall.
The port contributions were actually less than what they expected to pay. On March 15, ACTA notified the ports that each would have to contribute $9 million, but due to increased traffic on the corridor so far this year, the payments were significantly reduced.
If traffic volumes in subsequent years do not pick up to meet earlier projections, the ports could be called upon to make additional contributions. However, ACTA has applied to the Federal Railroad Administration for a Railroad Rehabilitation and Improvement Financing loan to help mitigate the amounts that will be needed from the ports.
The Alameda Corridor Transportation Authority notified Los Angeles and Long Beach that under the agreed-upon formula, each port was requested to pay $2.95 million to cover the shortfall.
The port contributions were actually less than what they expected to pay. On March 15, ACTA notified the ports that each would have to contribute $9 million, but due to increased traffic on the corridor so far this year, the payments were significantly reduced.
If traffic volumes in subsequent years do not pick up to meet earlier projections, the ports could be called upon to make additional contributions. However, ACTA has applied to the Federal Railroad Administration for a Railroad Rehabilitation and Improvement Financing loan to help mitigate the amounts that will be needed from the ports.
Also, ACTA’s board on July 27 authorized a bond call that could eliminate the need for a shortfall advance in fiscal years 2012 and 2013.