The Long Beach Board of Harbor Commissioners is taking major steps with a $1.05 billion budget plan that aligns with a 10-year, $3.3 billion capital improvement plan, described by the port as the largest of its kind in the nation. The plan aims to help the Port of Long Beach handle growing cargo volumes while moving toward a zero-emissions future.
Only four years ago, the country was experiencing major supply chain disruptions along the West Coast, exposing vulnerabilities in how quickly goods could move through the nation’s busiest gateways. Following lessons learned, port officials identified the need for more efficient ways to move cargo after it leaves a ship, including greater reliance on rail.
About 55% of this year’s budget would go toward capital infrastructure projects, including completion of the Pier B On-Dock Rail Support Facility. The project is designed to reduce reliance on trucks by moving more cargo directly from ships to trains. When completed in 2032, it is expected to triple on-dock rail capacity and could reduce container dwell times from about four days to 24 hours.
The budget also includes $58.2 million for the acquisition of zero-emission human-operated cargo-handling equipment and charging infrastructure, along with harbor craft and a locomotive. The expenditure is funded through California’s System-Wide Investment in Freight Transport (SWIFT) program, which supports the deployment of human-operated zero-emission equipment and other clean freight infrastructure.
Although projected revenue is only 0.6% higher than last year, projected expenditures are expected to rise 53.7%, driven largely by capital investments. The Port of Long Beach maintains strong credit ratings, including AA+ from S&P Global Ratings and AA ratings from Fitch Ratings and Moody’s Ratings, supporting its ability to finance major infrastructure projects.
The budget will go before the Long Beach City Council for final approval later this summer.
Photo by Todd Huffman, CC BY 2.0 https://creativecommons.org/licenses/by/2.0, from Wikimedia Commons
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