The Port of Los Angeles has agreed a $39 million deal with environmental groups in a bid to allow expansion projects, which have been facing delays due to environmental concerns, to go forward.
The port has agreed to put the money into a Port Community Mitigation Fund over the next five years, a move it hopes will clear the way for the approval of “most of the 13 additional expansion projects planned by the port”.
The agreement, signed this month, should allow for a go-ahead for an expansion of Los Angeles' TraPac container terminal.
"The fund is only for five years. If no projects are approved, no money goes into the account,” the port's executive director, Geraldine Knatz, was quoted as saying.
Environmental objections have delayed or blocked a series expansion projects at the Californian ports over the past seven years.
A joint Clean Air Action Plan by the Los Angeles and Long Beach ports - started nearly two years ago to cut pollution from trucks by more than 80% and pollution from harbour sources by 45% in five years - was expected to help secure full support from environmental groups for port infrastructure programmes.
The plan, however, proved insufficient for environmental groups to drop opposition to projects such as the TraPac expansion.
The Natural Resources Defense Council (NRDC) and 16 other organisations appealed an initial approval early this year by the Los Angeles Harbour Commision for TraPac's Environmental Impact Report. As a result, the Los Angeles City Council refused its approval.
The new agreement allows the TraPac project to proceed without further litigation, although the organisations reserved their right to challenge other expansion projects the port has proposed, reported the Pacific Shipper.
The latest agreement calls for the port to start a non-profit organisation to oversee grants to the Port Community Mitigation Trust Fund, which will execute environmental-mitigation work in the port's adjacent communities.
Port officials hope the Fund will dissuade environmental groups from “frivolous challenges”.
The port will pay $3.50 per TEU into the Fund, based on growth associated with 13 expansion projects listed in the port’s agreement with the environmental groups.
These projects include expansion of terminals for Evergreen Marine Corporation (Taiwan) Ltd., China Shipping Container Lines Co. Ltd, APL Ltd, Yusen Terminals and Yang Ming, and construction of a large on-dock railyard on Terminal Island.
Completion of these projects is expected to boost container throughput at Los Angeles by millions of TEUs.
The port has agreed to put the money into a Port Community Mitigation Fund over the next five years, a move it hopes will clear the way for the approval of “most of the 13 additional expansion projects planned by the port”.
The agreement, signed this month, should allow for a go-ahead for an expansion of Los Angeles' TraPac container terminal.
"The fund is only for five years. If no projects are approved, no money goes into the account,” the port's executive director, Geraldine Knatz, was quoted as saying.
Environmental objections have delayed or blocked a series expansion projects at the Californian ports over the past seven years.
A joint Clean Air Action Plan by the Los Angeles and Long Beach ports - started nearly two years ago to cut pollution from trucks by more than 80% and pollution from harbour sources by 45% in five years - was expected to help secure full support from environmental groups for port infrastructure programmes.
The plan, however, proved insufficient for environmental groups to drop opposition to projects such as the TraPac expansion.
The Natural Resources Defense Council (NRDC) and 16 other organisations appealed an initial approval early this year by the Los Angeles Harbour Commision for TraPac's Environmental Impact Report. As a result, the Los Angeles City Council refused its approval.
The new agreement allows the TraPac project to proceed without further litigation, although the organisations reserved their right to challenge other expansion projects the port has proposed, reported the Pacific Shipper.
The latest agreement calls for the port to start a non-profit organisation to oversee grants to the Port Community Mitigation Trust Fund, which will execute environmental-mitigation work in the port's adjacent communities.
Port officials hope the Fund will dissuade environmental groups from “frivolous challenges”.
The port will pay $3.50 per TEU into the Fund, based on growth associated with 13 expansion projects listed in the port’s agreement with the environmental groups.
These projects include expansion of terminals for Evergreen Marine Corporation (Taiwan) Ltd., China Shipping Container Lines Co. Ltd, APL Ltd, Yusen Terminals and Yang Ming, and construction of a large on-dock railyard on Terminal Island.
Completion of these projects is expected to boost container throughput at Los Angeles by millions of TEUs.