Long Beach and LA ports give green light to projects

LA and Long Beach port officials are giving the green light to US$2 billion plus valued-projects in the belief that it will result in economic stimulus despite cargo slowdown and unemployment increases, reports Los Angeles Times.
"After years of robust growth, we have a chance to take a breath and concentrate on some infrastructure projects," said Richard Steinke, executive director of the Port of Long Beach. "We can stimulate economic growth, put people back to work and position ourselves for the turnaround."
There is high resistance to Geraldine Knatz the executive director of the Port of LA's plan for a new cruise terminal at its Outer Harbour said to create 7,300 direct jobs and 17,700 indirect construction-related ones, and 438 permanent jobs over the five to seven year building period.
With union dockworkers scrabbling about for work as many cargo ships go idle and more join the unemployment queue the timing is a point of contention. Latest figures for eleven months of 2008 show a drop of 5 per cent to 7.3 million TEU at Port of LA, and 6 million TEU at Long Beach, a 10 per cent decrease. Rate cuts to less than $600 per FEU from highs of $3,400 in 2007 shows a picture of an industry in retrenchment.
The tourist sector say that the location of the 1960s facility makes for entrance only in reverse and an unglamorous arrival with its view of an industrial port scene and its attendant grime and fumes. Latest figures from Cruise Lines International Association rank Los Angeles fourth with a meek 6 per cent in cruise embarkations share.
"People have this image of how their ship will arrive in port, the wind in your hair, streamers flying, maybe a bottle of champagne, and here in Los Angeles you arrive creeping along in reverse. It's pretty hard to put your best face forward that way," said Judy Parker, VP for Worldview Travel, a travel agency based in California, Florida and New York.
Long Beach plan to combine its two existing terminals in a 10 year, US$750-million investment plan with green initiatives to combat the pollution problems by electric grids for vessels and a switch-off rule for diesel engines.
Port officials long term vision is in light of the ports ability to be prepared for an upturn and to avoid a 2004 'boom' situation when vessels were queuing up and unable to unload cargo, added the report.