The Los Angeles Harbor Commission today adopted a 2008-2009 fiscal year (FY) budget for the Port of Los Angeles. Holding operating expenses at current fiscal year levels in line with anticipated revenue declines, the adopted budget for the fiscal year beginning July 1, 2008, recognizes the current trend of decreased import trade while remaining steadfast in support of the Port’s core priorities for the coming year.

The Port estimates that construction and other project-related initiatives that it will pursue in FY 2008-2009 will create approximately 5,414 jobs in the five-county Southern California region.

Port priorities in the coming year include: advancing capital improvement projects for terminal operations; advancing environmental initiatives under the San Pedro Bay Ports Clean Air Action Plan; continuing to develop and enhance safety and security assets for the benefit of the Port community; pursuing “green” technology enhancements; and actively engaging with the community in conjunction with advancing various Los Angeles Waterfront initiatives in San Pedro and Wilmington.

“The directive to our managers in creating this year’s budget was simple: shift expenditures to focus on capital and environmental priorities,” said Port of Los Angeles Executive Director Geraldine Knatz, Ph.D. “The national economy is sluggish, demand for goods is weaker, so we are anticipating a decline in operating revenues. Because of these realities, we need to maintain a disciplined focus on critical Port priorities.”

The FY 2008-2009 budget reflects anticipated Operating Revenues of $403.3 million, a 12.1 percent decrease over the current year budget, due chiefly to lower than expected cargo volume, tariff/inflation adjustments and compensation renegotiations. Operating Expenses are anticipated at $208.5 million, a 0.3 percent decrease from the current year budget of $209.3 million. Priorities in Operating Expenses include increased Port Police and Construction and Maintenance Division staffing, Clean Air Action Plan initiatives, maintenance contracts for Port facilities, and “green” technology improvements.

The Capital Budget increased 29.2 percent over the FY 2007-2008 budget to $308.7 million, reflecting planned expenditures for various Los Angeles Waterfront projects, enhanced security projects, installation of shore-to-ship Alternative Maritime Power (AMP) stations at the World Cruise Center, equipment purchases, and land/property acquisitions. More than $10 million in transportation improvement projects earmarked for FY 2008-2009 include widening Harry Bridges Blvd. and design work related to the West Basin Transportation Improvement Program, which will improve traffic flow along the northwest parameter of the Port. The West Basin Transportation Improvement Program includes the South Wilmington Grade Separation (enhancing TraPac cargo flow); access ramp and intersection improvements along the I-110 Freeway at C Street and John S. Gibson Road; the addition of a second highway transition lane west-bound between the Vincent Thomas Bridge and the northbound I-110 Freeway; and design for the relocation of the Pacific Harbor Line rail yard as part of the recently approved TraPac container terminal expansion project.