Los Angeles and Long Beach to vote on third container tax since 2005

2008-1-15

The Los Angeles and Long Beach harbour commissions are to decide this week on levying a 2009 container tax of US$15 per loaded 20-foot box moving through the port by truck or train, making it the third such tariff since 2005.

The latest tax is expected to raise $1.4 billion that would be put towards making improvements to bridges, railways and roads in and around the twin port complex, according to a report by the Long Beach Press-Telegram.

It said the fee would remain in place for seven years and would be scrapped once the infrastructure projects are completed.

Funds raised from the fee together with matching Proposition 1B infrastructure funds would theoretically generate $3 billion for projects designed to improve port transport and air quality by reducing traffic congestion in and around the port area.

The latest proposed projects include replacements of two bridges linking the ports of Los Angeles and Long Beach, the strengthening of the twin port rail network to reduce trucking, and the building of a new road junction.

"Proceeds from this tariff will help make our bridges safer, improve highway safety and congestion and shift more containers from trucks to on-dock rail," said Geraldine Knatz, executive director of the Port of Los Angeles in the report.

"It also generates local dollars to help our ports obtain additional state and federal funding for infrastructure and air quality projects."

The proposed infrastructure fee follows the approval of another fee last month by the Los Angeles and Long Beach harbour commissions to raise $1.6 billion over the next five years to replace or retrofit diesel-powered big rigs with cleaner-burning trucks.

Under the Clean Trucks Programme fee, all loaded 20-foot containers entering or leaving the ports on short-haul trucks will be subject to a $35 fee starting from June 1.

The new port fees will be applied on top of an existing fee of $100 per 40-foot container to reduce road congestion that was introduced in 2005, the report added.

Source: schednet
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