Los Angeles port to consider bounty on new container services
The Port of Los Angeles' governing board on Thursday will consider a plan to pay tenants $10 per TEU on new service brought to the port.
The port's marketing incentive program would cover any new service, or diversion of an existing service from another West Coast port, that brings in new container volumes during a consecutive 12-month period that begins before Dec. 31, 2009.
The one-time payments will be paid for each new TEU brought in during the 12-month period and will only be paid to the tenant after the conclusion of the 12-month period and after documentary evidence is produced to the port.
Container volumes at the Los Angeles port have slipped nearly 5 percent during the first nine months of the year compared to the same period in 2007. The port moved 8.4 million TEUs in 2007 down from 2006 volumes of 8.5 million TEUs.
September marked the 16th monthly decline in total container volume for Los Angeles in the past 19 months. A 5.9 percent increase in total volume during August was the first monthly increase over 1 percent for the port since February 2007.
According to a staff report to be presented to the port commissioners, 'it may be possible for tenants to attract approximately 350,000 TEUs of new container volumes,' to the port.
Staff estimates this amount of new volume would pay out $3.5 million to tenants and generate an additional $9.5 million in revenue for the port each year. ' Keith Higginbotham