SoCal ports' container tax collection delayed

Monday's startup of collection of the Southern California ports' $35-per-TEU container tax has been delayed while officials from the ports of Long Beach and Los Angeles await resolution of outstanding regulatory issues, according to a statement issued Thursday by the agency set up to collect the tax.

   The container tax, to be collected by the non-profit PortCheck organization, was devised to be the primary fund raising device for the two ports' truck re-regulation program that began on Oct. 1.

   Collection of the container tax was to have begun with the rest of the truck program, however, technical issues caused the governing boards of the two ports to delay its implementation until Nov. 17. The two ports acknowledged Thursday that some technical aspects of implementing the container tax collection system still require additional work. Meanwhile, truckers will continue to rely on a sticker system that identifies which trucks can and cannot enter the ports' terminals.

   According to the PortCheck statement, a start-up date for the collection of the tax is not clear, and is not likely to begin until the technical issues are resolved and after a regulatory filing by the ports with the Federal Maritime Commission regarding the creation of the PortCheck organization is reviewed by the agency.

   The terminal operators and ports continue to work with the FMC to resolve remaining questions about the program, said Bruce Wargo, president and chief executive officer of PortCheck. We hope to resolve the issues as quickly as possible.

   The ports' truck program seeks to replace more than 19,000 trucks in the local drayage fleet with 2007 or newer model year trucks. To accomplish this, the ports have adopted, in conjunction with the container tax, a progressively expanding ban on older trucks and a concession-style plan requiring trucking firms serving the ports to obtain and access license from the ports.

   The goal of the truck program is to cut diesel pollution generated by operations at Long Beach and Los Angeles port terminals.

   The FMC has raised concerns that the ports' truck program violates the Shipping Act of 1984 and has asked a federal court in Washington, D.C. to block certain portions of the program. However, the commission's concerns have not included, to date, the container tax component of the program.

   Port of Long Beach Executive Director Richard Steinke said Thursday, we hope to start fee collection soon.

   Both ports refer to the $35-per-TEU charge as a fee, although according to state and federal definitions, it is more properly defined as a tax.

   Any delay in the fee collection process slows our progress on reducing emissions and places those companies at a competitive disadvantage in this already tough economic climate; so we are doing our best to expedite the implementation of the fee, said Port of Los Angeles Executive Director Geraldine Knatz. 

Source: American Shipper