L.A., Long Beach Harbors Report Strong Earnings : Booming Pacific Trade Cited for Healthy Results

A boom in Pacific Rim trade and the growing popularity of so-called intermodalism helped the Port of Los Angeles remain the most profitable port in the nation last year, while preserving the Port of Long Beach’s distinction as the West Coast leader in the handling of cargo.

According to statistics released by the ports last week, the Los Angeles port posted record earnings of $58 million during the 12 months ending June 30--a 19% increase over the year before. At the same time, operating revenue at the port increased 24.4% to $115.4 million.

Earnings in Long Beach increased 28% during the same period to $40.2 million, and operating revenue increased 15% to $73.6 million.

Officials at both ports credited a healthy trade environment among countries touching the Pacific Ocean and growing intermodal traffic in Southern California for much of the increases. Intermodalism--the use of several modes of transportation to move cargo--has grown in recent years, transforming the Los Angeles and Long Beach harbors from regional ports into major entryways to national markets, officials said.

Growth of Containerized Freight

The trend is largely attributable to the growing use of 40-foot containers that can be stacked on specially designed rail cars and economically transported to markets far from Southern California, industry officials said. The development has resulted in some ports, such as Los Angeles and Long Beach, emerging as so-called load centers, where shipping companies bring all of their cargo destined for the United States on fewer but larger ships, the officials said.

“The old boundaries of ports have broken down,” said Rex Sherman, a spokesman for the Virginia-based American Assn. of Port Authorities. “Now you have Los Angeles competing not only with Long Beach but with Seattle, Oakland and East Coast ports. It has made the inland markets much more competitive.”

Added Jack Wells, chief deputy executive director at the Port of Los Angeles: “Traffic that was going through other ports, perhaps East Coast or Gulf Coast ports, is now coming in to the West Coast and is being placed on a rail system for transportation into the hinterlands.”

Auto Imports Up Sharply

Large increases in automobile imports, cruise passengers and a 14% jump in container cargo shipments helped fuel the growth at the Los Angeles port, officials there said. More than 520,000 vehicles--up 24% from the year before, when the port ranked first in the nation--passed through the port last year, and 488,000 passengers--at least 80,000 more than the year before--embarked on cruises there. (Auto-import rankings of ports for the past year are not yet available.)

Total cargo, which includes containerized and bulk cargo, such as scrap metal and raw materials, increased 13.4% to 51.1 million metric tons at the Los Angeles harbor.

The equivalent of nearly 1.2 million 20-foot containers moved through Los Angeles harbor, compared to 1 million the year before. (While most containers are 40 feet long, they are measured in 20-foot units for statistical purposes.) Port officials attributed the increase in part to the return to Los Angeles of Mitsui OSK Line and East Asiatic Corp., a consortium that had temporarily relocated to Long Beach harbor.

At Long Beach, 57 million metric tons of cargo moved through the port, a 7% increase over the year before and 11.5% more cargo than was handled at the Port of Los Angeles. Long Beach port officials said their harbor has led West Coast ports in total tonnage for the past six years.

Containerized cargo at Long Beach increased 12% to the equivalent of nearly 1.3 million 20-foot containers. Automobile imports increased 22% to 419,000 vehicles, Long Beach officials said.

Officials at both ports said they expect containerized cargo shipments to grow in coming years with the opening in December of a $62-million intermodal transfer facility. The facility, located about four miles from the two ports, will speed the transfer of containers from ships to trains.

The 150-acre facility will be able to handle 250 intermodal rail cars a day and will eliminate a 20-mile freeway haul now required to get containers to rail yards near downtown Los Angeles.