Port of Los Angeles Adopts $2 Billion Fiscal Year 2023/24 Budget

SAN PEDRO — The Los Angeles Board of Harbor Commissioners has approved a $2 billion Fiscal Year or FY 2023/24 annual budget for the Port of Los Angeles. The financial blueprint calls for increased investment in port operational and public-access infrastructure, as well as support for a range of sustainability and decarbonization initiatives.

After experiencing sharp declines in cargo volumes in FY 2022/23 the port forecasts modest gains in the fiscal year starting July 1. As a result, the approved budget predicts a 5.1% year-over-year increase to 8.9 million TEUs (Twenty-Foot Equivalent Units) in FY 2023/24.

“Bottom line, our strategic, long-term priorities remain the same: Modernize our physical and digital infrastructure to keep us competitive, and invest in community and environmental projects important to our surrounding communities, our region and industry overall,” said Port of Los Angeles Executive Director Gene Seroka. 

The budget includes total operating revenues of $652.9 million, an 8.6% increase over the FY 2022/23 forecast. Shipping services are expected to make up the bulk of operating revenues at 73.3%, followed by rentals at 15.1%.

Supporting daily operations of the port, the plan’s FY 2023/24 operating expenses are estimated at $372.4 million. Expenses include funding for supply chain efficiency enhancements; facility and infrastructure maintenance; public safety related to goods movement; property and tenant services and management; cruise center operations; and environmental and sustainability programs, among other activities.

Major environmental and decarbonization projects supported in the plan include the Clean Truck Fund Rate or CTFR program, created to incentivize and support cleaner trucks that serve the port. The plan also supports a wide range of zero- and near-zero emission equipment demonstration projects underway throughout the port complex. 

The plan’s capital budget totals $252.3 million, a 40.6% increase over the previous fiscal year’s forecast. Funds focus on container and cruise terminal modernization, improving transportation in and out of the port, and public access infrastructure at the LA Waterfront. Through the port’s public access investment plan created in 2015, the port has invested nearly $253.1 million in public-serving infrastructure improvements. Community projects on tap include the Wilmington Waterfront Promenade, West Harbor in San Pedro, the Front Street beautification project, and the Avalon Pedestrian Bridge and Promenade Gateway in Wilmington.

The budget plan is projected to create about 4,100 direct and indirect jobs (not including port employees), of which 3,100 are attributable to capital spending.