Long Beach Harbor Commissioners Delay Fee Collection

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By FRANCISCO VARA-ORTA Staff Reporter

The Long Beach Board of Harbor Commissioners voted Monday to once again delay the collection of a cargo container fee that would help fund road, rail and bridge improvements in the harbor area.

Port officials delayed the Infrastructure Cargo Fee implementation for another year until July 1, 2010 because of the international trade slump that has pushed cargo shipments down at Long Beach by as much as 40 percent in February compared to last year.

“In light of the economic realities and the shipping industry’s need to establish their rates for their coming fiscal year, it makes sense to consider pushing back the Infrastructure Cargo Fee,” said Richard D. Steinke, Executive Director of the Port of Long Beach, in a statement.

The fee, expected to be up to $15 per 20-foot container, could generate more than $1.4 billion that would improve the ports’ rail network and replacement of the Gerald Desmond Bridge, among other projects.

The harbor commission previously delayed the fee implementation from Jan. 1 to July 1, citing the same reason: economic downturn. Industry groups have said they feared the fee would encourage shippers to divert business to other ports, a phenomenon already confirmed by local port officials.

Matching funds from the statewide transportation measure Proposition 1B would enable about $3 billion worth of projects in the harbor area, but officials have said those funds are in limbo because of the state budget crisis.

The fee proposal will be revisited again sometime before July 2010, Port of Long Beach spokesman John Pope said.

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