Posted on April 27, 2020
Much of the nation’s business activity has been scaled back or put on hold amid the COVID-19 pandemic, but improvementsare still moving forward at the Port of Los Angeles, according to Executive Director Gene Seroka.
In a recent video message, Seroka said port leaders are focused on $367 million in long-term infrastructure investments that will boost competitiveness, expand markets and create more than 3,000 construction jobs.
“All of our terminals are open and cargo is flowing,” he said. “While our nation battles with this global pandemic and the economic headwinds of these challenging times still exist, there is a strong desire among many of us to look toward the future.”
Despite Seroka’s optimism, cargo volumes at the port are down significantly.
Statistics on the Port of Los Angeles website show 449,568 containers moved through the port in March, a decline of nearly 31% from the same month a year earlier. Imports for the month were down nearly 26% year-over-year, while exports were off 23.7%.
Viewed through a wider lens, overall cargo traffic for the first quarter was off about 18.5%, according to port spokesman Phillip Sanfield.
Last year, $276 billion in merchandise moved through the port, down from $297 billion in 2018. Top exports include paper, animal food, fabrics and scrap metal, and top imports include furniture, auto parts, apparel and electronics.
Realigning the budget
Seroka said the 7,500-acre facility (including water and land) is aligning its budget with the significant drop it’s seen in cargo volumes and revenue amid the U.S./China trade war and the coronavirus outbreak. The port continues to invest in its cargo and public waterfront operations.
Along the waterfront, the Everport container terminal is undergoing upgrades that will enable the facility to service larger classes of ships, and several marine-oil terminals are being upgraded for safer and more efficient operations.
Substantial investments in rail operations are also underway to expand the port’s on-dock rail capacity and improve rail transit along the 20-mile, Alameda Corridor. The Alameda line connects the national rail system near downtown Los Angeles to the ports of Los Angeles and Long Beach.
Seroka noted additional waterfront projects that continue to move forward, including a downtown promenade and town square in San Pedro that will be part of the San Pedro Public Market development.
Seroka said the port is working with supply chain stakeholders on increasing exports and planning for increased trade with Vietnam and other Southeast Asian countries.
Trade with China
“We have an opportunity to capitalize on the recent Phase 1 trade deal with China where we can help exporters of U.S. goods and agricultural products regain and expand their presence overseas,” he said.
Under the Phase 1 agreement, the Trump administration agreed to drop plans to impose tariffs on an additional $160 billion in Chinese imports and the U.S. cut in half existing tariffs on $110 billion of goods from China.
Beijing, in turn, agreed to significantly boost its purchases of U.S. products. China has agreed to buy $40 billion a year in U.S. farm products, a significant target for a country that has never imported more than $26 billion a year in U.S. agricultural goods.
China is far and away the port’s biggest trading partner. Trade between China/Hong Kong and the Port of Los Angeles amounted to $128 billion in 2019. Japan ranked second with $38 billion in trade, followed by Vietnam ($21 billion) and South Korea and Taiwan ($15 billion each) to round out the top five.
“We have the technology to elevate the competitiveness of this trade gateway,” Seroka said. “And we’re ready to help position America’s industries for future success.”
Source: dailynews
