en.Wedoany.com Reported - The Los Angeles Board of Harbor Commissioners has approved a $3.4 billion annual budget for the Port of Los Angeles for fiscal year 2026/27. This financial blueprint plans for additional investment in port operations and community public access infrastructure, and supports a range of sustainability and technology projects.
The adopted budget for the Port's fiscal year 2026/27 is based on a forecast of stable but slightly lower cargo demand of 9.3 million container units, which is 7% lower than the current forecast for fiscal year 2025/26. Ongoing global trade volatility and uncertainty in trade policy are factors contributing to a more cautious outlook for cargo volumes in the coming year.
The $3.4 billion budget represents a 25% increase, or $665 million, over the Port's adopted budget for fiscal year 2025/26. The year-over-year increase is primarily driven by a significant rise in the port's capital improvement expenditure plan, which is up 31% from the previous fiscal year. The budget also reflects an increase in Clean Truck Fund Rate subsidies, cost-of-living increases for employee salaries and benefits, and external inflationary pressures.
The budget plan includes $826 million in total operating revenue, a 26% increase over the adopted budget for fiscal year 2025/26. Shipping services will account for 65% of expected total operating revenue, while operating expenses are projected to increase by approximately 6% to $452 million, primarily due to a significant expected increase in spending on Clean Truck Fund Rate subsidies over the next 12 months.
Capital improvement expenditures in the coming year will reach $302 million, the highest level in over a decade. Project priorities include container terminal modernization, improving public access infrastructure, and enhancing traffic flow within and outside the port. Signature projects include the $154 million Avalon Pedestrian Bridge and Promenade Gateway Project, set to break ground in March 2026; the $74 million Berths 302-305 Rail Expansion Project (ongoing); and the ongoing $130 million SR 47/Vincent Thomas Bridge Interchange Improvement Project.
Lucille Roybal-Allard, President of the Los Angeles Board of Harbor Commissioners, stated that this budget reflects rigorous and forward-looking planning, enabling the port to navigate uncertainty while continuing to invest in its most important priorities. By carefully balancing revenue and expenditures, the port can remain focused, execute its strategic priorities, and continue advancing key initiatives in the coming year.
The Port of Los Angeles is the leading trade gateway in North America and has ranked first among U.S. container ports for 26 consecutive years. In 2025, the port generated $301 billion in trade and handled a total of 10.2 million container units, maintaining its top ranking among U.S. ports. The port remains focused on community investment, commitments to sustainability and environmental leadership, workforce development, and infrastructure improvements. Operations and commerce at the San Pedro Bay port complex support one in nine jobs across the Southern California counties of Los Angeles, Orange, Riverside, San Bernardino, and Ventura.
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