China Shipping Seeks Added Damages in Port Battle

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China Shipping Seeks Added Damages in Port Battle

By DAVID GREENBERG

Staff Reporter

China Shipping Holding Co., designated to operate a terminal delayed by a landmark environmental lawsuit at the Port of Los Angeles, is placing pressure on the city to pony up $42 million before it opens.

Sheila Gonzales, a spokeswoman for the port, confirmed that China Shipping had recently made the demand for lost opportunity costs during a 16-month delay while the city battled, and ultimately settled, a lawsuit brought by the Natural Resources Defense Council.

Any amount paid to China Shipping could be reduced through negotiations with the port. The shipping company’s demands would add to the $60 million that the city already agreed to pay for environmental mitigation at the site.

In addition, China Shipping asked the Board of Harbor Commissioners in mid-April to expedite negotiations so they could be resolved by April 30, sufficiently in advance of the steamship M/V Xin Yangzhou’s planned arrival from China on May 17, for the terminal’s first call.

The vessel is equipped to utilize alternative marine power, or cold-ironing, which will allow it to turn off its diesel generators and plug into electrical power at the dock.

Although the letter was brief and contained no ultimatums, NRDC Senior Attorney Gail Ruderman Feuer said she feared China Shipping would break ties with L.A. if delays in negotiations extend into the summer or fall.

“China Shipping will walk away if they have to wait another six months,” Feuer said. “They told me and told the port (two weeks ago) that they wanted to wrap up the deal in April.”

Officials at Marine Terminals Corp., the terminal operator serving the steamship line, could not be reached for comment. Erich Wise, a partner in Long Beach-based Flynn Delich & Wise representing China Shipping, did not return calls.

Nicholas Tonsich, the commission’s president, said last week that negotiations were near completion. The delays started in October 2002 when the NRDC won a 2nd District Court of Appeal ruling to stop construction of the terminal because a proper environmental review had not been conducted. A March 2003 settlement called for the city to invest $60 million in environmental upgrades, although some place the costs at closer to $100 million.

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