Los Angeles Harbor Department Approves $2.6 Billion Budget for FY 2024/25

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The Los Angeles Harbor Commission has given the green light to a $2.6 billion budget for the City of Los Angeles Harbor Department for the fiscal year 2024/25. This financial plan supports key priorities of the Port of Los Angeles, including community investment, decarbonization efforts, workforce development, and cargo infrastructure modernization.

Commission President’s Statement

Lucille Roybal-Allard, President of the Los Angeles Harbor Commission, expressed confidence in the budget, highlighting its careful balance between revenues and expenses. She emphasized the importance of this plan in advancing strategic priorities and industry-leading initiatives in the upcoming year.

Revenue Forecast

The approved budget anticipates a modest 2% increase in cargo volumes, totaling 9.1 million TEUs (Twenty-Foot Equivalent Units). Operating revenues for FY 2024/25 are projected to reach $684.7 million, with shipping services contributing around 75% of the total revenue.

Executive Director’s Outlook

Gene Seroka, Port Executive Director, conveyed optimism regarding cargo volumes in the next fiscal year, citing a robust economy, sustained consumer spending, and a strong U.S. labor market. The budget aims to accommodate unforeseen changes in the global trade market or other uncertainties.

Operating Expenses and Staffing Needs

Operating expenses for FY 2024/25 are expected to increase by 8.4% compared to the previous fiscal year, mainly due to heightened staffing requirements and filling open positions within the Harbor Department.

Capital Improvement Program (CIP)

A significant portion of the budget, $257.7 million, is allocated to the Port’s CIP, marking a 19% increase from the previous fiscal year. Major initiatives include infrastructure upgrades, environmental programs, and public access enhancements.

Notable CIP appropriations include funding for the State Route 47/Vincent Thomas Bridge & Front Street/Harbor Boulevard Interchange Reconfiguration, Zero-Emission Port Electrification and Operation program, Pasha Terminal restoration, and Marine Oil Terminals Maintenance Standards (MOTEMS) projects.

LA Waterfront Improvements

An allocation of $28.5 million in CIP funds is designated for LA Waterfront public access improvements in Wilmington and San Pedro, supporting projects like the San Pedro Waterfront Promenade – Phase II and the Wilmington Waterfront Avalon Pedestrian Bridge & Promenade Gateway.

The CIP budget includes $4 million for planning the Port of Los Angeles and Port of Long Beach Good Movement Workforce Training Facility. This groundbreaking $150 million project aims to provide career training in longshore work, trucking, and warehousing, with the environmental review process already underway.

Conclusion

The approved budget reflects the commitment of the Los Angeles Harbor Department to enhance infrastructure, promote sustainability, and foster economic growth in the region. By prioritizing strategic investments and addressing evolving industry needs, the Port of Los Angeles is poised for continued success in the years ahead.

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Source: Port of Los Angeles

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