Port Cargo Fee Postponed

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Citing the poor economy, the Long Beach Board of Harbor Commissioners voted to delay for at least six months the collection of a cargo container fee that would help fund road, rail and bridge improvements in the harbor area.

The Infrastructure Cargo Fee was expected to generate more than $1.4 billion, with money going toward improving the ports’ rail network and replacement of the Gerald Desmond Bridge, among other projects. Matching funds from the statewide transportation measure Proposition 1B would enable about $3 billion worth of projects in the harbor area.

The Los Angeles Board of Harbor Commissioners is expected to eventually approve a similar six-month delay.

A likely slow pace of approvals for infrastructure projects was a factor in the Long Beach board’s decision, the port said in a statement.

“Because of the extra time needed to complete the planning and approval process for these many projects, the ports felt it was sensible to delay the implementation of the fee,” Long Beach Port Executive Director J. Christopher Lytle said Monday. “We’ll reassess the situation in six months to see it if makes sense to start the fee then.”

The fee is expected to be $10 to $18 per 20-foot container. Industry groups have said they feared the fee would encourage shippers to divert business to other ports. Both area ports have seen sluggish activity because of the global economic slowdown.

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