Operating expenses have been shaved by 12 percent, even as the port has witnessed resurgence in cargo volumes in the last six months after 18 straight months of declining volume.
'The port is taking a deliberate, conservative approach to spending as cargo volumes recover from the global economic recession,' the port said in a statement. 'Revenues from container terminals, which make up three quarters of the port's overall revenues, are expected to rise 4 percent in fiscal year 2011 over the fiscal year 2010 estimate, but other sources of income, such as interest and oil operations, will be lower. As a result, with moderate revenue increases and a larger capital outlay, the port will draw $323 million from its reserve funds.'
Major projects the port is undertaking include the conversion of a series of smaller container and bulk terminals into a mega-container terminal, the Middle Harbor Redevelopment Project.
