The Los Angeles Harbor Commission has approved a $2.6 billion budget for The City of Los Angeles Harbor Department for the 2024/25 fiscal year. This capital will help support The Port of Los Angeles, one of the world’s busiest seaports and a hub for international trade.
The revenue and spending plan for the 2024/25 fiscal year will be designated to uphold the Port of Los Angeles’ priorities including community investment, decarbonization of port-related operations, workforce development, and cargo infrastructure modernization. “This year’s budget takes a prudent approach that carefully balances revenues and expenses, and sets up the Port well for the future,” said Los Angeles Harbor Commission President Lucille Roybal-Allard. “Most importantly, the plan will allow us to stay the course and follow through on many strategic priorities and industry-leading initiatives in the coming year.”
This year’s budget is a 2% increase over last year’s. The approved budget forecasts a total of 9.1 million Twenty-Foot Equivalent Units (TEUs). This boost in cargo is expected to generate a 4.9% increase in operating revenues, which are estimated at $684.7 million. Shipping services comprise approximately 75% of those revenues.
“With a healthy economy, continued consumer spending, and a strong U.S. labor market, we are optimistic about cargo volumes for the next fiscal year,” said Port Executive Director Gene Seroka. “We’ve prepared a budget that leaves room for unanticipated changes in the global trade market or other uncertainties that may arise.”
Operating expenses have increased significantly over last year, at $403.7 million. This 8.4% increase will be put toward hiring and filling open positions at the Harbor Department. The budget for the Port’s capital improvement program (CIP) is getting an even higher boost. With a 19% increase over the previous fiscal year’s budget, the CIP budget comes out to $257.7 million for 2024/25. The CIP’s biggest projects include the State Route 47/Vincent Thomas Bridge & Front Street/Harbor Boulevard Interchange Reconfiguration which will be allocated $44.3 million, the Zero-Emission Port Electrification and Operation program which will be allocated $15.3 million, the restoration and improvements of the Pasha Terminal which will be allocated $14.2 million, and Marine Oil Terminals Maintenance Standards (MOTEMS) projects which will be allocated $12.5 million.
$28.5 million in Capital Improvement Project funds will also go toward LA Waterfront public access improvement projects in Wilmington and San Pedro. The San Pedro Waterfront Promenade – Phase II and the Wilmington Waterfront Avalon Pedestrian Bridge & Promenade Gateway are among the major projects the organization will fund in 2024/25. $4 million of the CIP budget will go into planning for the Port of Los Angeles and Port of Long Beach Good Movement Workforce Training Facility. The facility will be the first workforce training facility in the country dedicated to the goods movement sector and career training in longshore work, trucking, and warehousing. The $150 million project is currently in the environmental impact review process, which began earlier this year.
