Port Could Skirt Revised Leasing Policy for Tenant

0

The Port of Los Angeles is considering leasing additional acreage to one of its major tenants without offering the property to other operators a move opposed by City Controller Laura Chick, who has criticized the facility for not putting available space out to bid.


Trans Pacific Container Service Corp. has expressed interest in a 25-year lease that could double the terminal space it now uses. Port officials say they may proceed with the deal after an environmental impact report is complete.


For years, the port had leased terminal space without opening the process to public view through an RFP, or request for proposals. This has raised concerns that qualified parties might not have access to the process and that the port might not be receiving the best deal possible. Those concerns were at the heart of overhauls proposed by Chick in an audit her office released in 2003.


“Right now it’s too early to tell if it’s going to go out for an RFP,” said Arley Baker, the port’s spokesman. “By and large, the rationale would be that we have a tenant in place.”


TraPac has been operating at Berths 136-147 on a month-to-month basis since its 15-year lease expired on Sept. 30, 2002. If the expansion is granted, its terminal space would increase to 250 acres.


“How dare they remotely even consider awarding any lease without an open competitive process?” said Chick. “Open competition is a step forward. Without competition, it’s a step backwards and I’m not going to let them do it.”


Frank Pasiano, general manager of the TraPac terminal, did not return calls.


The terminal operator has been interested in renewing its lease since it lapsed in 2002, but delays were caused in part by an October 2002 ruling by a panel in the 2nd District Court of Appeal that halted construction of the China Shipping Holding Co. terminal due to an insufficient EIR.

No posts to display