The ports of Los Angeles and Long Beach have been granted $112 million in federal funds from the U.S. Army Corps of Engineers. Local and state officials heralded this as a significant step toward equitable funding.
The funds, derived from the Harbor Maintenance Tax, will support maintenance and repair projects at these ports. U.S. Senator Alex Padilla, D-Calif., announced the funding, which is part of the fiscal year 2024 Army Corps of Engineers Work Plan.
“The Ports of Los Angeles and Long Beach handle 40 percent of the nation’s container imports, crucial for our economy,” Padilla said. “I am pleased that the Army Corps responded to my call for funding these essential upgrades, which will enhance global supply chains and address long-overdue port repairs.”
The San Pedro Bay port complex, comprising these ports, will undergo infrastructure repairs for piers and wharfs. Projects will include seismic safety upgrades, wharf and fender repairs, pile replacements, sediment removal and remediation, and improvements to slips and channels.
The Port of Long Beach, the leading U.S. seaport for exports, plans to invest $2.3 billion over the next decade in capital improvements to increase capacity, primarily focusing on rail enhancements.
Established in 1986, the Harbor Maintenance Tax is administered by the Army Corps of Engineers, collecting money from ports based on the value of imports and some domestic cargo, and is also assessed on cruise passengers. Traditionally, ports like Long Beach did not receive significant funds, but the Water Resources Development Act of 2020 expanded the use of these funds.
“These funds will bolster our ongoing infrastructure investments and solidify our position as the premier trans-Pacific trade gateway,” Long Beach Mayor Rex Richardson said. “Making the Harbor Maintenance Tax more equitable will enhance the port's competitiveness and improve our harbor, leading to more jobs and economic growth for Long Beach.”
The Port of Los Angeles, the top U.S. container port, received a record $58 million in funding, nearly ten times what it received last year. Despite contributing half of the harbor tax revenue, ports like Los Angeles and Long Beach historically received only 3% of the funding, according to a Port of Los Angeles news release.
The Port of Los Angeles estimates that navigation maintenance and repair projects will cost $6.7 billion in total.
Source: www.freightwaves.com
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