The Long Beach Board of Harbor Commissioners has given preliminary approval to a package of incentives designed to keep business and jobs at the Port of Long Beach in the face of declining cargo volume.
On February 23, the board voted unanimously to create a tariff amendment that would lower certain fees by 10 percent on all rail-connected cargo containers, and offer $20 per twenty-foot-equivalent unit (TEU) for new rail-hauled cargo coming through the port. The new incentives could begin as early as April 1 and last for one year.
"I believe that we have an obligation at this moment in history to demonstrate to our customers, partners and clients that we are actively engaged in the business of trade, that we understand the pressures they are under and that we are responding as best we can," said James C. Hankla, board president.
The first incentive would offer terminal operators a 10 percent rate reduction on wharfage fees for all rail-hauled cargo coming through the port. This would be at $4 to $6 per container and would cost the port about #11 million for the one year life of the program.
A second proposed incentive would offer $20 to ocean carriers for each additional rail-hauled 20-foot-long cargo container that they send through the port. The financial incentive would be $40 for every container longer than 20 feet. Because this would be new cargo, the proposal would not add costs for the port.
Cargo volume at the port was down by 11 percent in 2008 and January 2009 showed drops of about 25 percent compared with the same time last year.
Long Beach Business Journal
