THE Port of Los Angeles has a budget of US$1
THE Port of Los Angeles has a budget of US$1.7 billion for fiscal year 2021-22 and includes a large investment in the San Pedro and Wilmington waterfront projects. The spending plan approved by the Waterfront Commission followed a year of dramatic change as the global coronavirus pandemic crushed cargo volumes in the first few months of 2020.
'At this point last year, the world looked very different,' said Mara Blevins, vice president of financial management and CFO of the Port of Los Angeles. 'Something is about to fall off the edge of the cliff.'
The budget forecasts cargo volumes for the next fiscal year beginning in July to be approximately 9.7 million TEU, a 6.7 per cent decrease compared to 2020-21. By the end of this fiscal year, the port is expected to reach 10.4 million TEU.
Revenue is projected to be US$533.3 million, a decrease of $11.7 million from 2020 to 21, reports the California News Times.
Still, the harbour is in good condition, said executive director Jean Seloka.
'This budget puts us in a strong position to control operating costs and manage market uncertainty,' he said.
The expenditures include $46.6 million for Wilmington Waterfront Project; $32.3 million for repairs and upgrades of liquid bulk terminals; $15.1 million for port sector facility improvements and repairs, and computer software system upgrades; $13 million to improve Everport Container Terminal and $9.2 million for the San Pedro Waterfront Project.
Meanwhile, the Port of Long Beach recently approved the 2021-22 budget. The $ 622.4 million budget is devoted to more than half of spending on equipment improvement projects, including modernisation of terminals, roads and other infrastructure. The port's operating revenues are projected to increase by 8.7 per cent due to the surge in containers.
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