Port of LA shares city's pain with cost-cutting budget

DESPITE an uptick in container volumes, the Port of Los Angeles have cut back US$223.2 million from its fiscal year 2010-11 budget, down 20 per cent to $909.6 million against the expectation of an overall profit decline of 5.3 per cent.

The income deficit is in lieu of the expiry in 2012 of clean truck compliancy and in an aim to retain customers by forging ahead with capital projects costing $266.3 million, albeit down from last fiscal year's 25 per cent allocation.

This includes the earmarking of $77 million towards the TraPac and China Shipping terminal expansions, with new wharfs opening at next fiscal year beginning, July 2011, reported the Daily Breeze.

"There are a lot of customers out there saying things are going to be better, but we kept it at a very conservative forecast," said Port of LA chief executive Geraldine Knatz.

The port is shouldering the city's budget troubles by offsetting its own staff workforce which were culled 970 and 949 employees in 2009 and 2010 respectively. The port authority will now increase LA city workers entry into posts within the port, according to The Cunningham Report.

(Source: www.schednet.com )