News & Events

Community, Environment, Cargo and Workforce Development Among Priorities for Coming Year

LOS ANGELES – June 6, 2024 – The Los Angeles Harbor Commission has approved a $2.6 billion dollar budget for the City of Los Angeles Harbor Department for fiscal year (FY) 2024/25. The revenue and spending plan supports the Port of Los Angeles’ priorities of community investment, decarbonization of port-related operations, workforce development and cargo infrastructure modernization. 

“This year’s budget takes a prudent approach that carefully balances revenues and expenses, and sets up the Port well for the future,” said Los Angeles Harbor Commission President Lucille Roybal-Allard. “Most importantly, the plan will allow us to stay the course and follow through on many strategic priorities and industry leading initiatives in the coming year.” 

Buoyed by steady cargo volumes over the last nine months, the approved FY 2024/25 budget forecasts a total of 9.1 million TEUs (Twenty-Foot Equivalent Units), a modest 2% increase over the previous fiscal year’s adopted budget. The boost in cargo is expected to result in a 4.9% increase in FY 2024/25 operating revenues, forecast at $684.7 million, with shipping services comprising about 75% of those revenues. 

“With a healthy economy, continued consumer spending and a strong U.S. labor market, we are optimistic about cargo volumes for the next fiscal year,” said Port Executive Director Gene Seroka. “We’ve prepared a budget that leaves room for unanticipated changes in the global trade market or other uncertainties that may arise.” 

Proposed operating expenses in the FY 2024/25 budget are forecast at $403.7 million, representing an 8.4% increase compared to the previous fiscal year’s adopted budget. The increase is largely driven by increased staffing needs and the filling of open positions at the Harbor Department. 

In the approved budget, $257.7 million is dedicated to the Port’s capital improvement program (CIP), a 19% increase over the previous fiscal year’s adopted budget. Major CIP appropriations include $44.3 million for the State Route 47/Vincent Thomas Bridge & Front Street/Harbor Boulevard Interchange Reconfiguration; $15.3 million for the Zero-Emission Port Electrification and Operation program; $14.2 million for restoration and improvements at the Pasha Terminal; and $12.5 million for Marine Oil Terminals Maintenance Standards (MOTEMS) projects, among several other initiatives.  

Another $28.5 million in CIP funds will go toward LA Waterfront public access improvements in both Wilmington and San Pedro. The major projects to be funded in FY 2024/25 include the San Pedro Waterfront Promenade – Phase II, and the Wilmington Waterfront Avalon Pedestrian Bridge & Promenade Gateway. 

The CIP budget also includes $4 million toward planning for the Port of Los Angeles and Port of Long Beach Good Movement Workforce Training Facility. The $150 million facility will be the first workforce training facility in the U.S. dedicated to the goods movement sector and career training in longshore work, trucking and warehousing. The project’s environmental review process kicked off earlier this year.

Southern California Association of Governments Recognizes Innovative Clean Truck Fund for Helping to Promote Cleaner Air at Port Complex

Plan development was supported by C40 Cities, the global network of mayors working to deliver the urgent action needed to confront the climate crisis. Carrier partners supporting this plan have set goals to begin deploying reduced or zero lifecycle carbon capable ships on the corridor by 2025.

Port of Los Angeles achieved nearly 10 million TEUs in 2022, the second highest in the Port’s 115-year history.

The Port of Los Angeles has awarded a total of $6 million to two trucking companies and their truck manufacturer partners to speed up the transition to zero-emission (ZE) drayage trucks serving the nation’s busiest container port.

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Center Enables Port Stakeholders to Enhance Cyber Threat Information Sharing and Recovery Measures to Reduce Risk of Disruption Flow

The Port of Los Angeles has debuted its Cyber Resilience Center (CRC), a state-of-the-art port community cyber defense solution created to improve the cybersecurity readiness of the Port and enhance its threat-sharing and recovery capabilities among supply chain stakeholders.  The CRC was designed through a collaborative process with participating stakeholders and will be operated by International Business Machines (IBM).

“We must take every precaution against potential cyber incidents, particularly those that could threaten or disrupt the flow of cargo,” said Port of Los Angeles Executive Director Gene Seroka. “This new Cyber Resilience Center provides a new level of awareness for our stakeholders by providing enhanced intelligence, better collective knowledge sharing and heightened protection against cyber threats within our supply chain community.”  

“The past year has proven the vital role that ports hold to our nation’s critical infrastructure, supply chains and economy, underscoring that it’s paramount we secure this ecosystem,” said Christopher McCurdy, General Manager, IBM Security Services. “The Port of Los Angeles is setting a new industry standard with a first-of-its-kind initiative to increase cyber readiness across the maritime community. With IBM’s cutting-edge technologies in cloud and AI fueling the CRC, we’re able to provide the maritime ecosystem with the threat insights necessary to stay ahead of cyber threats and improve response time.”

Envisioned as a “system of systems,” the CRC enables participating stakeholders to automatically share cyber threat indicators and potential defensive measures with each other. This collaborative approach centralizes threat information for the Port’s stakeholders and helps prevent cyber disruption of the supply chain. The platform serves as a hub for the Port to receive, analyze and share information among its stakeholders who handle cargo, such as terminal operators, shipping lines, truck, rail and others, among its cross-sector stakeholders who provide essential support services, and from external intelligence sources. The CRC is also available to participating stakeholders as an advisory resource to assist with recovery.

The first group of approximately 20 participating stakeholders are now using the new system and gaining access to IBM X-Force Threat Intelligence and more groups are expected to join every six months. As part of its operations, the CRC will be conducting tabletop exercises with participating stakeholders and providing them with annual cybersecurity training.

In 2014, the Port of Los Angeles set the maritime industry standard for cyber security when it established a Cyber Security Operations Center designed to help protect the Port’s internal networks. The newly-designed CRC builds upon that technology infrastructure by improving the quality, quantity and speed of cyber information sharing among Port stakeholders and leveraging the CRC’s security model to creating a more inclusive maritime community.

North America’s leading seaport by container volume and cargo value, the Port of Los Angeles facilitated $259 billion in trade during 2020. San Pedro Bay port complex operations and commerce facilitate one in nine jobs across the counties of Los Angeles, Orange, Riverside, San Bernardino and Ventura. The Port of Los Angeles has remained open with all terminals operational throughout the COVID-19 pandemic.

Executive Director Seroka’s Annual Address Highlights Supply Chain, Worforce Development, Cybersecurity and Environment

Breaking its previous calendar year record by 13%, the Port of Los Angeles processed about 10.7 million Twenty-Foot Equivalent Units (TEUs) during 2021. The milestone, a Western Hemisphere record, was announced by Port Executive Director Gene Seroka in his address at the Pacific Merchant Shipping Association’s seventh annual “State of the Port” event, held virtually this year.

“Decades of development provided the berth space, backland and rail infrastructure to process more cargo than ever before,” Seroka said. “In 2021, our marine terminal operators and workforce gave us the ability to move that cargo — from the ships to railcars or out the gates on trucks — and for that we are forever grateful to them.” 

Recapping the year, Seroka reiterated the importance of industry coming together to address challenges of the global supply chain, and highlighted the Port’s unprecedented engagement with stakeholders at all levels of industry and government to find solutions, including the Biden-Harris Administration and the office of California Gov. Gavin Newsom. Seroka applauded the renewed attention and government investments being made in ports nationwide, including the $17 billion earmarked in the recently passed national Infrastructure Investment and Jobs Act, and the $2.3 billion Newsom has earmarked in his California state budget for the upcoming year. 

“This level of funding represents a monumental opportunity for ports,” said Seroka. “Beyond freight system improvements, it will fund much-needed digital and cybersecurity infrastructure. It supports our creation of a future-ready goods movement workforce, and it aligns with our mission to lead the nation in the development of zero-emissions port drayage.”   

Looking ahead, Seroka outlined key Port initiatives and priorities on tap for 2022 and beyond, including: 

• Supply Chain Efficiency – Initiatives to further digitize the supply chain and deliver digital solutions to Port users will continue to be a top priority. Last year, the Port unveiled the Control Tower suite of data tools, expanding the Port Optimizer system developed by the Port in conjunction with Wabtec. The Control Tower aids cargo owners and service providers by delivering precise shipping intelligence and real-time insights on Port of Los Angeles cargo. In 2022, the Port will add further enhancements to the Port Optimizer and work with the Biden Administration to support a national Port data initiative to improve supply chain efficiency and global competitiveness. 

• Workforce Development and Job Creation - Seroka emphasized the importance of workforce development and its critical contributions to the goods movement industry – from longshore labor to truck drivers and warehouse workers. The Port’s planned Goods Movement Training Campus, which will focus on worker skill development, up-skilling and re-skilling to address the rapidly changing needs of the industry, received a huge boost this month with a three-year,  $110 million commitment from California Gov. Newsom in his proposed budget. The first in the U.S. specifically dedicated to the goods movement industry, the campus will also serve as a state resource for training workers on greener and zero-emission technologies.  Further plans for the Training Campus will be announced later this year.

• Cybersecurity – Guarding against potential malicious cyber incidents that could threaten or disrupt the flow of cargo remains a continual focus for the Port. Seroka revealed that a first-of-its-kind port cyber defense system co-developed with IBM is now in full operation. This new Cyber Resilience Center serves as an early warning system and information sharing network for Port stakeholders.  The Port has had an award-winning Cyber Security Operations Center for its internal systems since 2014, monitoring network traffic to prevent and detect cyber incidents under Port control. The Port has also maintained its ISO 27001 certification for cybersecurity, the only port to have this certification.

• Environment - Reducing Port environmental impacts continues to be a primary focus. The Port is currently testing 107 zero-emission and 27 near-zero emission units in the areas of cargo handling, drayage, harbor craft and ocean-going vessel operations, a number that will grow to more than 200 units over the next 18 months. This year, more than a half-dozen manufacturers will deploy next-generation drayage trucks in and around the Port. Seroka also announced that in April the Port will begin collecting the Clean Truck Fund Rate, which is expected to raise $130 million over the next three years. Those funds will be used to fund zero-emission trucks and fueling infrastructure development.

North America’s leading seaport by container volume and cargo value, the Port of Los Angeles facilitated $259 billion in trade during 2020. San Pedro Bay port complex operations and commerce facilitate one in nine jobs across the counties of Los Angeles, Orange, Riverside, San Bernardino and Ventura. The Port of Los Angeles has remained open with all terminals operational throughout the COVID-19 pandemic.

Cargo volume year-to-date growth has increased by 22% and is on pace for a record year.

The Port of Los Angeles’ export educational outreach program Trade Connect has been named the recipient of the “Global Trade Leader of the Year” award by the Los Angeles Business Journal. The inaugural award recognizes outstanding leaders at the forefront of global trade, investment, technology and innovation.

Port of Los Angeles Executive Director Gene Seroka today met with President Biden. The President announced initiatives to address current supply challenges, including moving to 24/7 operations at the Port of Los Angeles.

Port of Los Angeles Sets Western Hemisphere Record for Annual Volume