$1.3 billion budget supports strategic priorities of world-class infrastructure, security, supply chain efficiency, financial performance and stakeholder engagement

SAN PEDRO, CA – The Los Angeles Board of Harbor Commissioners has approved a $1.3 billion fiscal year (FY) 2018/19 annual budget for the Port of Los Angeles. The budget focuses on priorities set out earlier this year in the Port’s revised 2018-2022 Strategic Plan, which calls for a focus on growth-supporting infrastructure; security, supply chain efficiency and sustainability; improved financial performance of port assets; and building strong relationships with Port stakeholders.

“Our strategic priorities continue to guide all that we do at the Port, including the budgeting process,” said Marla Bleavins, Deputy Executive Director and Chief Financial Officer of the Port of Los Angeles. “This budget lays the foundation for investing in and maintaining our critical role in the nation’s transportation network and economy, as well as serving as a catalyst for job growth in the region.”

Operating receipts represent the principal mechanism used by the Port to fund its day-to-day operations. In the approved budget, operating revenues are estimated at $509.5 million, an increase of 7.2% over FY 2017/18. This is largely due to anticipated growth in cargo volumes and shipping services revenues and higher land rental returns, with shipping services revenues comprising approximately 83.1% of total anticipated operating revenues. Operating expenses over the next fiscal year are budgeted at $280.2 million.

In the approved budget, $91.0 million is dedicated to Capital Improvement Projects (CIP), a 6.9% decrease over the previous fiscal year. Of that amount, $31.6 million will go toward terminal improvements, primarily focused on upgrades to better accommodate larger vessels and facilitate more efficient cargo-handling processes. Key CIP terminal improvements are targeted for liquid bulk facilities, and at the Everport, WWL Vehicle Services, YTI and the World Cruise Center terminals.

Another $13.6 million of the CIP budget will go toward public access and environmental enhancements, including $10.3 million for LA Waterfront projects. Among these projects will be design work for the downtown Promenade and Town Square, as well as $3.6 million for continuation of work on the Wilmington Waterfront.

For FY 2018/19, transportation improvements are funded at $10.0 million to improve rail and roadways for faster, safer operations that promote more efficient goods movement. Another $4.7 million of the CIP budget will go toward funding various security projects, including the installation of a new radio system and an integrated Computer Aided Dispatch and Records Management System (CAD/RMS).

In conjunction with the budget submittal, the Port released a five-year capital expenditure plan, including estimated total project costs. The plan calls for spending approximately $550.5 million on capital projects throughout the Port over the five-year period extending through FY 2022/23.

The approved budget is projected to create approximately 1,900 direct and indirect jobs (not including Harbor Department employees), of which 1,080 are attributable to capital spending