Port and Shipper End Fight

Los Angeles harbor commissioners approved a $22.2-million legal settlement Wednesday, bringing to more than $80 million the total that the port has been forced to pay out because it did not complete required environmental studies for a new terminal.

The Port of Los Angeles has agreed to pay China Shipping Holding Co. $22.2 million for losses stemming from delays in opening the terminal and for unexpected environmental costs.

The terminal was delayed after environmental groups sued, alleging the port had not done the required studies for the terminal.

The agreement also calls for the port to pay the Shanghai-based firm additional penalties of up to $7.2 million if two upcoming expansions are not finished on schedule. Port officials say they do not expect more delays.

Harbor commissioners said they are pleased with the settlement, noting that China Shipping had sought more than $70 million in damages.

China Shipping originally planned to move into its new $47-million terminal in November 2002. But the Natural Resources Defense Council and community groups sued the port and the city. An appellate court ordered construction halted in October 2002 until those reviews were completed.

To open the terminal sooner, the port and the administration of Mayor James K. Hahn crafted a March 2003 pact to win permission to finish Berth 100. In return, the port agreed to pay $60 million for environmental projects.

The port and city did not notify China Shipping of the settlement terms, which required the company’s ships to be retrofitted to use onshore electricity in port.

The terminal opened in May 2004.