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 budget plan increases investment in port operations and community public access infrastructure, and supports a series of industry-leading sustainability and technology projects.

Los Angeles Mayor Karen Bass stated that this budget reflects the strength and forward-looking vision of the Port of Los Angeles, as the port is strengthening infrastructure construction, advancing sustainability initiatives, and ensuring its competitiveness in the global economy. She also thanked Executive Director Gene Seroka and Commission President Lucille Roybal-Allard for maintaining the Port of Los Angeles' status as the most important trade gateway for the nation and the entire Los Angeles region.

The port's fiscal year 2026/27 budget is based on a cargo demand forecast of 9.3 million container units, a 7% decrease from the current forecast for fiscal year 2025/26. Ongoing volatility in global trade and uncertainty in trade policies are the main factors leading to a more cautious cargo volume outlook for the next year.

The $3.4 billion budget represents a 25% increase, or $665 million, over the port's approved 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 grew by 31% compared to the previous fiscal year. The budget increase also reflects higher Clean Truck Fund rate subsidies, cost-of-living increases in employee compensation and benefits, and external inflationary pressures.

The budget plan includes $826 million in total operating revenue, a 26% increase over the approved budget for fiscal year 2025/26. Shipping services will account for 65% of expected operating revenue. Operating expenses are projected at approximately $452 million, an increase of about 6%, primarily due to an expected significant rise in Clean Truck Fund rate subsidy expenditures over the next 12 months.

Capital improvement expenditures for the next fiscal year will reach $302 million, the highest level in over a decade. Projects will focus on 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 and the $130 million SR 47/Vincent Thomas Bridge Interchange Improvement project are currently under construction.

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