LA, Long Beach To Hike Port Tariffs

Los Angeles, CA (AHN) - Plans are underway to increase tariffs at the country's largest port system, the ports of Los Angeles and Long Beach, to fund infrastructure projects worth $1.4 billion. The planned hike comes less than a month after Long Beach approved a separate cargo fee to generate $1.6 billion to replace some 17,000 tractors used in the port.

The Long Beach and Los Angeles harbor boards met last Monday to discuss a proposed fee of $15 per TEU (foot equivalent unit) to pay for upgrading bridges, roads and rail networks. Commissioners from both ports unanimously approved the measure.

Authorities said the fee is needed to improve the flow of goods through the nation's largest seaports. "This fee is essential to the ports' progress," the Long Beach Press-Telegram quoted Los Angeles Mayor Antonio Villaraigosa. The LA mayor estimated the ports handles more than $300 billion worth of cargo annually.

The tariff would only be placed on loaded containers and is expected to be implemented in seven years. The money would be used to replace the Gerald Desmond and Heim bridges.

The fees will be charged to cargo owners and collected by marine terminal operators.

Funds raised will supplement federal, state and local money for several long-overdue infrastructure projects in San Pedro Bay. Among the state subsidies, the twin ports is expected to receive $3 billion from California's Proposition 1B, which voters approved in 2006 for air-quality projects.

Long Beach Harbor Commissioner James Hankla said the fee, which is effective January 1, 2009, is needed to ensure the ports remain a viable international gateway. "We are all taking a bitter pill now so future generations won't have to," the Press-Telegram quoted Hankla saying.