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Flow of goods through the ports has surged by 246% over the past 13 years

LOS ANGELES – 03/24/07 – The adjoining ports of Los Angeles and Long Beach handle more than 40% of the nation’s total containerized cargo import traffic and 24% of the nation’s total exports.

Since 1994, when the trade impact study was first conducted, the growth in the national impact of trade for goods being transported at the San Pedro Bay ports increased 246%, from $74 billion to $256 billion, with $62.5 billion of that trade in California.

The number of direct and indirect jobs associated with the trade activity generated by the San Pedro Bay ports increased by 200%, from 1.1 million jobs nationally in 1994 to 3.3 million jobs in 2005.

In addition, the study conservatively estimates that more than 886,000 jobs in California are directly and indirectly related to international trade activities conducted through the two mega-ports.

The study also assessed the economic impact of the San Pedro Bay ports in terms of state and local tax revenues and full-time jobs created. State and local taxes generated throughout the nation from this trade activity grew from an estimated $6 billion in 1994 to more than $28 billion in 2005.

Southern California has become the primary gateway for trade between the US and the Pacific Rim with both ports seeing dramatic increases in trade volumes since the last study conducted in 2000.

The surge in trade volume is due to the increase in consumer demand in the region and nationally.  A majority of the distribution centers that rely solely on the ports to transport toys, clothing, shoes, computers, televisions, furniture, stereo equipment and many other goods to market points across the nation are located in the region.

California, Arizona, Colorado, Nevada, and Utah handled the highest volume of containerized trade in the US in 2005, generating more than $82 billion of the $256 billion of the trade chalked-up nationally that year.

Contrary to conventional wisdom, while immediately adjacent to one another, the ports of Los Angeles and Long Beach are, in fact, totally separate entities with each of the two ports operating independently of one another as a non-taxpayer supported department of their respective cities.

The ports rank as the top two container seaports in America while their combined throughput currently ranks them as the third busiest container “load center” in the world.

Together, the ports occupy about 7,400 acres of land, 7,900 acres of water and 78 miles of waterfront with about 60 cargo terminals serving container, automobile, break bulk, liquid bulk, and dry bulk customers.

Much of the national impact of the two ports is due to the Alameda Corridor – the 20-mile long dedicated rail line that serves as the first link in the transcontinental rail system connecting the San Pedro Bay ports with major market and distribution points throughout the country.

With more than 60% of the cargo arriving at the ports of Los Angeles and Long Beach ultimately consigned to shippers outside the Southern California region, the Alameda Corridor has seen 106% growth in cargo movement over the last four years.

Last year, according to the report, the Alameda Corridor had 19,924 trains – or an average of 55 trains per day – move from the ports’ container terminal to the Union Pacific and Burlington Northern Santa Fe intermodal rail yards, a few miles from downtown Los Angeles.

This represents a 15% increase over the number of trains that used the Corridor in 2005 with an average 14,000 TEUs – 20-foot equivalent units – moving along its tracks every day.

In addition, nearly 5 million TEUs were transported via the dedicated rail line in 2006, a 32% increase from the 3.75 million TEUs moved on the corridor the previous year.

On another front, last November, the two ports held a first-ever joint meeting of their respective Harbor Commissions to adopt the San Pedro Bay Ports Clean Air Action Plan.

The landmark plan is the first in the maritime industry and outlines a strategy for reducing air emissions at both ports by roughly 50% over a five year period, the report said.

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