Ports of Los Angeles and Long Beach Secure $112 Million in Federal Funding
The ports of Los Angeles and Long Beach have secured $112 million in federal funding from the U.S. Army Corps of Engineers, marking a significant achievement in equitable funding for these critical infrastructures.
The funding, sourced from the Harbor Maintenance Tax, is earmarked for essential maintenance and repair projects at these ports. Additionally, part of the funds will support a project at the Salton Sea, aimed at addressing public health and environmental issues.
U.S. Senator Alex Padilla of California announced this funding, which is part of the fiscal year 2024 Army Corps of Engineers Work Plan. Approximately $4 million will be allocated to a feasibility study for the Salton Sea to tackle the severe public health crises affecting the nearby communities. The Salton Sea is recognized as California's most polluted inland lake.
Senator Padilla emphasized the importance of the Ports of Los Angeles and Long Beach, which handle 40% of the nation’s container imports, playing a crucial role in the U.S. economy. He expressed satisfaction that the Army Corps responded to his call for funding these vital upgrades, which will enhance global supply chains and address overdue repairs.
The infrastructure repairs at the San Pedro Bay port complex, comprising the Ports of Los Angeles and Long Beach, will include seismic safety upgrades, wharf and fender repairs, pile replacements, sediment removal and remediation, and improvements to slips and channels.
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The Harbor Maintenance Tax, established in 1986 and managed by the Army Corps of Engineers, generates revenue from the value of imports, some domestic cargo, and cruise passengers. Historically, ports like Long Beach did not receive a fair share of these funds. However, the Water Resources Development Act of 2020 expanded the use of these funds, making them more accessible to such ports.
Long Beach Mayor Rex Richardson highlighted that these funds will support ongoing infrastructure investments, reinforcing the port's status as a primary gateway for trans-Pacific trade. He noted that making the Harbor Maintenance Tax more equitable will enhance the port's competitiveness and improve the harbor, leading to increased job creation and economic growth for Long Beach.
The Port of Los Angeles, the top container port in the U.S., received a record $58 million in funding this year—nearly ten times more than the previous year. The Port of Los Angeles noted that although a few ports, including Los Angeles and Long Beach, contribute half of the harbor tax revenue, they previously received only 3% of the funding.
An Army Corps of Engineers spokesperson explained to FreightWaves that port funding comes from two sections of the Water Resources Development Act of 2022: Section 104 and Section 102. While ports have been receiving money from the smaller Section 104 for about six years, this year marks the first time they are receiving funds from the larger Section 102.
Los Angeles Harbor Commission President Lucille Roybal-Allard stated that addressing this funding disparity has been a long-term effort. The Port of Los Angeles estimates that its navigation maintenance and repair projects will require a total of $6.7 billion.