Long Beach, Canadian ports trade accusations

Complaints from Port of Long Beach officials that Canadian ports are unfairly competing with U.S. ports are untrue, said Gary LeRoux, executive director of the Association of Canadian Port Authorities
 

Speaking on Fox News earlier this week, Port of Long Beach Executive Director Richard Steinke said, "some of the Canadian ports are taking advantage of some of the fees that the United States charges like the Harbor Maintenance Tax that is assessed on imported goods, they are very aggressive in marketing, the rail rates in Canada are lower than some of the U.S. rail rates. So they are taking advantage and taking some of the discretionary cargo from U.S. West Coast ports."

The port reported this week that it moved 419,555 TEUs of empty and loaded containers in May, down 20.7 percent from the same 2008 period. That is slightly better than the port's performance for the first five months of the year date during which it has moved 1.9 million TEUs, down 27.1 percent.

Steinke mirrored remarks quoted by the Bloomberg news service from Port of Long Beach Commission President Jim Hankla and a memorandum by Alex Cherin, Long Beach's managing director of trade relations and port operations, singling out investments to upgrade the port of Prince Rupert and rail route.

Bloomberg said the memo argued the investments may violate WTO rules.

A spokesman for the port said Thursday the port had no plans to seek a complaint before the trade body, and said the port was just trying to argue its case in Washington about how hard hit it has been by the economic downturn and the need for investment in port infrastructure such as the Gerald Desmond Bridge, and highway and rail improvements to end congestion and increase capacity.

LeRoux said the complaints from Long Beach allegations were unfair, saying the U.S. ports receive far more aid from federal and local governments and taxpayers than those in Canada. He noted that it wasn't until last year that the Canada Marine Act was amended to allow increased access to federal funding by Canadian ports.
 

He added that Canadian ports have felt so disadvantaged in funding when compared to U.S. ports that they have mulled filing complaints under the North American Free Trade Agreement, but never have.

Source: American Shipper