'Balanced budget' approved by LA port

The Los Angeles Harbour Commission today adopted a 2011-2012 fiscal year budget of approximately US$976.6 million for the Port of Los Angeles, a 7.4 percent increase effective from July 1.


The growth reflects higher total receipts from both operations and grants activity, which in turn allowed greater appropriations for both operations and capital projects in comparison to the current fiscal year budget.


"Local, national and global economies have regained stability and forward momentum," said Harbor Commission president Cindy Miscikowski.


"This year's port-approved budget strikes the right balance between ensuring competitiveness and financial strength, but with a disciplined use of resources to achieve these objectives."


Port Executive Director Geraldine Knatz said the budget plan supported the long-term vision for the port.


"Together, we have developed a fiscally responsible plan that will establish and maintain competitive operations, build stronger customer and community relationships, and enhance our organisation's financial strength for the future," she said.


During the 2010-2011 fiscal year, the port continued its strong competitive position as the nation's busiest container gateway, with a 16 percent increase in containerised cargo compared to the previous year. The port also maintained its AA Bond rating.


The new budget anticipates operating revenues of $405.4 million, about the same level when compared to the current fiscal year. It also projects a $23.2 million or 2.3 percent decrease in total estimated expenditures from the current fiscal year. Pivotal to maintaining competitive operations, a capital budget of $291 million has been approved.


Port capital investments for the next year will include $10.7 million in terminal improvements at the TraPac Container Terminal and $5.6 million at the APL facility at Berths 301-306. Another $45 million is allocated for LA Waterfront project construction, and $44 million for surface transportation infrastructure to improve goods movement for both commercial and noncommercial users of port-owned and non-port-owned roads.


Planned capital improvements are projected to generate an estimated 3,352 jobs during the financial year, while the operational budget is expected to support approximately 727 jobs.


Continuing its commitment to environmental stewardship, the port anticipates spending approximately $7.2 million in for Clean Air Action Plan initiatives, including $2.7 million for the Clean Truck Programme, $2.5 million for the Vessel Speed Reduction Programme, $1.5 million for the Technology Advancement Programme, and $.5 million for the TraPac AMP demonstration project.


For the financial year, $24 million has been allocated to enhance port security and protection, including projects for Port Police surveillance, threat detection, and criminal activity detection, deterrence and apprehension.
(Source:http://www.cargonewsasia.com)