L.A. port tightens belt
Port of Los Angeles officials, predicting a dramatic 20 percent to 30 percent decline in shipments during the first quarter of 2009, have slashed more than more than $20 million from their current spending budget.
The cuts come less than six months after port officials approved a $1.15 billion budget, a 15 percent increase over the previous budget.
The cuts, mostly operating budget expenses such as the elimination of vacant positions and cuts in travel expenses, represent about 1.7 percent of the total budget.
The port continues to move forward, however, with 18 multi-year construction projects worth $148 million. The port has also either approved or will approve by the end of the year an estimated $383 million in future spending on construction contracts.
Executive Director Geraldine Knatz told the Long Beach Press-Telegram that the port's best course of action is to 'hunker down and plan for possible significant reductions in revenue in the coming year.
“We are tightening hiring and have asked divisions to hold vacancies,” Knatz told the paper. “We have asked divisions to take a critical look at their budgets and to cut spending.”
The port has seen monthly declines in container volumes for 17 of the past 20 months. The August 5.9 percent increase in container volume was the first monthly increase above 1 percent for the port since February 2007.
As of the end of November, the last month for which numbers are available, the port had handled nearly 7.3 million TEUs, a 5.3 percent decline over the first 11 months of 2007.
L.A. port tightens belt
