Calif. coalition urges competitive ports

The California Trade Coalition has asked Gov. Arnold Schwarzenegger to improve the competitiveness of the state’s ports by standardizing state port regulations, increasing private sector investment in port development, and forgoing cargo container taxes.

      The move by CTC, an association of international trade and freight-related industry groups, comes as rumors swirled in the state capitol that the governor may be considering imposing a statewide container tax similar to the $30-per-TEU tax he vetoed last year.   

Authored by State. Sen. Alan Lowenthal, D-Long Beach, the container tax was projected to generate nearly $500 million a year to support statewide goods movement infrastructure projects.

      In a 60-page letter delivered Wednesday, the CTC warned the governor that, “California is simply becoming less competitive as a global trade gateway because our state continues to take future trade- related industry growth for granted, fails to conform to a consistent regulatory environment, and falls short of creating new trade- supporting infrastructure.”

      The coalition said the recent decline in international cargo through the state’s major ports is not simply due to the downturn in the national and global economy, as many have suggested.

      Instead the CTC, pointing to an 11.4 percent drop in container cargo at the port of Long Beach, and a nearly 5 percent drop off in volumes at both Los Angeles and Oakland in 2008, said, “it is the unfortunate result of myriad antitrade policies, attitudes and politics.”

      The group asked Schwarzenegger to “take a stand for international trade” throughout the state and “re-establish California’s competitiveness as the lead gateway for international trade.”

      The CTC asks the governor to work with the group on “three fronts” in 2009 to improve the state’s competitiveness:

      • “Balance California’s regulatory environment so it is reasonable, fair and workable in light of port competitiveness issues.

      • “Allow the private sector to pursue infrastructure investment in our trade infrastructure immediately, encourage partnerships that accelerate real development of infrastructure, and put an end to the policy of elevating the goal of leveraging resources out of the trade community over the development of trade itself.

      • “Stop the damaging debate over state-imposed container fees by proactively working to stop any such impositions, taxes or ‘fees’ on trade now.”

      The CTC said the economic benefits that port-related international trade adds to the state economy -- nearly 100,000 jobs and more than $3.6 billion in generated tax revenue -- would be seriously impacted without action.

      “Given the current economy and state’s fiscal situation, our California trade community should be emulated, praised and encouraged to grow, instead of being punished, demonized, and driven out of state,” the letter added.

Source: American Shipper