Terminal a Boon to Coal Industry

Creating a critical link between America’s Western coal mines and the Pacific Rim, the new Los Angeles Export Terminal is expected to help boost exports for the nation’s $17.9-billion coal industry, city officials and business leaders said Thursday as they inaugurated the state-of-the art, $200-million facility at Terminal Island.

The 115-acre terminal is expected to increase exports to 10 million tons of coal and petroleum coke annually--up from 6 million--eventually increasing to 12 million tons, said Lou K. Rommel, president and general manager of the facility.

“The Port of Los Angeles is now the focal point of America’s coal trade to the Pacific Rim,” Rommel said. “LAXT provides American coal producers with a competitive advantage in the global steam-coal market.”

LAXT currently exports about $240-million worth of coal, LAXT operations manager Jim Holland said. In 1995, the U.S. coal industry produced 595.5 million tons, more than half of which is consumed domestically.

The Export Terminal is a closely held venture of 37 American and Japanese shareholder companies in conjunction with the Port of Los Angeles. All shareholders are involved in the coal export chain, including Arco Coal Co., Mitsubishi Oil Co., Sumitomo Corp. and Union Pacific Railroad Co., among others.

“Together, we are maintaining L.A.’s place as a leading foreign trade center in the United States,” said Los Angeles Mayor Richard Riordan, who joined other local dignitaries to throw the ceremonial switch that activated a huge ship-loader.

The terminal created about 100 new jobs and is expected to generate about $82 million annually in payroll for local and regional businesses, Rommel said.

The facility has a storage capacity of 750,000 metric tons. The coal will be shipped by rail from mines in Utah, Colorado, Arizona and New Mexico.

Rommel acknowledged that the recent rail backlog plaguing Union Pacific has affected the terminal, but said he has seen improvement in the last month.

Still, “We’re receiving less product that we would like right now,” Holland said.

The terminal’s board quelled a community protest Wednesday by voting to build covers for its petroleum coke piles. Although it will constitute only one-tenth of the terminal’s exports, residents were concerned that the petroleum coke, which contains known carcinogens, was going to be stored in uncovered piles.