The Los Angeles Board of Harbor Commissioners has approved a US$2 billion Fiscal Year (FY) 2023/24 annual budget for the Port of Los Angeles.

In a statement, the busiest seaport in the Western Hemisphere noted that the financial blueprint calls for increased investment in Port operational and public-access infrastructure, as well as support for a range of industry-leading sustainability and decarbonization initiatives.

"After experiencing sharp declines in cargo volumes in FY 2022/23 due to inflationary pressures and an overall slowdown in global cargo, the Port forecasts modest gains in the fiscal year starting July 1," the announcement said.

"As a result, the approved budget predicts a 5.1% year-over-year increase to 8.9 million TEUs (Twenty-Foot Equivalent Units) in FY 2023/24," it added.

Edward Renwick, vice president of the Los Angeles Harbor Commission, said the budget lays out a "path forward" that balances anticipated cargo revenues with important Port priorities.

"By responsibly and prudently managing our budgets during the pandemic and during last year’s global cargo slowdown, we are now in a strong position to continue delivering on critical Port investments and initiatives," Renwick said.

Gene Seroka, executive director of Port of Los Angeles, noted that while economic uncertainties still linger, "this plan will help guide us for whatever might come our way, now and in the future."

"Bottom line, our strategic, long-term priorities remain the same: Modernize our physical and digital infrastructure to keep us competitive and invest in community and environmental projects important to our surrounding communities, our region and industry overall," Seroka said.

The Port of LA executive said the budget includes total operating revenues of US$652.9 million, an 8.6% increase over the FY 2022/23 forecast.

Shipping services are expected to make up the bulk of operating revenues at 73.3%, followed by rentals at 15.1%.

Supporting daily operations of the Port, the plan's FY 2023/24 operating expenses are estimated at US$372.4 million.

The announcement noted that expenses include funding for supply chain efficiency enhancements; facility and infrastructure maintenance; public safety related to goods movement; property and tenant services and management; cruise centre operations; and environmental and sustainability programs, among other activities.

Major environmental and decarbonization projects supported in the plan include the Clean Truck Fund Rate (CTFR) program, created to incentivize and support cleaner trucks that serve the Port.

The plan also supports a wide range of zero- and near-zero emission equipment demonstration projects currently underway throughout the Port complex. 

Meanwhile, Port of LA said the plan's capital budget totals US$252.3 million, a 40.6% increase over the previous fiscal year's forecast, with the funds focused on container and cruise terminal modernization, improving transportation in and out of the Port, and public access infrastructure at the LA Waterfront, among others.