The Los Angeles Harbor Commission on June 4 adopted a budget of $1.1 billion for the Port of Los Angeles’ fiscal year 2009/10.
Only 1.8-percent lower than the current budget, the plan for the year beginning July 1 includes a 6 percent reduction in operating expenses and a 22 percent increase in capital spending.
“Our approved budget reflects the harsh realities of the global economic recession and the financial challenges facing the Port of Los Angeles and our tenants,” said Geraldine Knatz, the port’s executive director. “With container volumes expected to fall again in the next fiscal year, we are continuing to advance projects that will produce economic and environmental benefits while preparing us for the eventual economic recovery and the return of higher trade volumes.”
The FY 2009/10 budget anticipates total receipts of $435 million. The port projects the largest share of that -- from shipping -- to be approximately $311 million, a decrease of 12.9 percent from the current fiscal year’s adopted budget as a result of declines in import and export volumes.
The port plans to spend $260.4 on operations, down $15.6 million or 6 percent. The budget also includes $377 million for capital expenditures, up $68 million from the previous year.
The cut in operating expenses is in part due to a $2.6 million reduction in employee salaries and benefits through attrition and managed hiring. The city’s Mayor Villaraigosa has asked for a 10 percent reduction in personnel costs which are approximately $100.5 million.
Much of the capital funding will go toward the “green” expansion of the TraPac ($64.3 million) and China Shipping ($17.5 million) container terminals, as well as the World Cruise Center ($15.9 million), security projects that include a new Port Police Headquarters ($21.9 million) and transportation projects ($27.7 million). The budget also includes $105 million for the continuation of previously approved projects to develop the LA Waterfront.
The port’s environmental initiatives will receive $62.7 million, three-quarters of which will fund the controversial clean trucks program. The budget includes funding for incentives for cargo ship operators to utilize low-sulfur fuel and reduce engine speeds when transiting near the harbor complex, as well as the technology advancement program.
The Port of Los Angeles, the largest port in the country, handled 7.8 million twenty-foot-equivalent units in 2008. Container volume in FY 2009/10 is projected to reach 6.1 million TEUs, down nearly 15.5 percent.
Only 1.8-percent lower than the current budget, the plan for the year beginning July 1 includes a 6 percent reduction in operating expenses and a 22 percent increase in capital spending.
“Our approved budget reflects the harsh realities of the global economic recession and the financial challenges facing the Port of Los Angeles and our tenants,” said Geraldine Knatz, the port’s executive director. “With container volumes expected to fall again in the next fiscal year, we are continuing to advance projects that will produce economic and environmental benefits while preparing us for the eventual economic recovery and the return of higher trade volumes.”
The FY 2009/10 budget anticipates total receipts of $435 million. The port projects the largest share of that -- from shipping -- to be approximately $311 million, a decrease of 12.9 percent from the current fiscal year’s adopted budget as a result of declines in import and export volumes.
The port plans to spend $260.4 on operations, down $15.6 million or 6 percent. The budget also includes $377 million for capital expenditures, up $68 million from the previous year.
The cut in operating expenses is in part due to a $2.6 million reduction in employee salaries and benefits through attrition and managed hiring. The city’s Mayor Villaraigosa has asked for a 10 percent reduction in personnel costs which are approximately $100.5 million.
Much of the capital funding will go toward the “green” expansion of the TraPac ($64.3 million) and China Shipping ($17.5 million) container terminals, as well as the World Cruise Center ($15.9 million), security projects that include a new Port Police Headquarters ($21.9 million) and transportation projects ($27.7 million). The budget also includes $105 million for the continuation of previously approved projects to develop the LA Waterfront.
The port’s environmental initiatives will receive $62.7 million, three-quarters of which will fund the controversial clean trucks program. The budget includes funding for incentives for cargo ship operators to utilize low-sulfur fuel and reduce engine speeds when transiting near the harbor complex, as well as the technology advancement program.
The Port of Los Angeles, the largest port in the country, handled 7.8 million twenty-foot-equivalent units in 2008. Container volume in FY 2009/10 is projected to reach 6.1 million TEUs, down nearly 15.5 percent.