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Port of Los Angeles projects $713 million revenue but warns tariffs cloud outlook
Summary
Harbor Department officials told the Budget Committee the Port projects $713 million in revenue and a capital plan of about $231 million for FY25‑26 but said new tariffs and uncertain trade policy could cut cargo volumes and revenue, and recommended prudent cost management.
City Budget Committee members heard a presentation from the Port of Los Angeles on the harbor department’s proposed fiscal year 2025–26 budget, which the department said would include $713,000,000 in revenue and a $231,000,000 capital improvement program.
Dina Arian Zaelin, deputy executive director for development at the Harbor Department, told the committee the department projected 9,200,000 TEUs (twenty‑foot equivalent units) for FY25‑26 and that container traffic drives roughly 60 percent of port revenue. Department staff warned that recent tariff actions could reduce cargo volumes; the department said losing 1,000,000 TEUs could cut about $50,000,000 in port revenue.
The Port’s operating expenses were presented as flat to the prior adopted budget at about $417,000,000, while the five‑year capital plan expects roughly $1.5 billion in investments through FY28‑29 for projects including port electrification, seismic upgrades to marine oil terminals, Berth 302‑305 on‑dock rail expansion and the State Route 47/Harbor Boulevard interchange reconfiguration. The department also highlighted digital investments such as its Port Optimizer and cybersecurity and resiliency centers.
Jeff Strafford, the department’s chief financial officer, told the committee the harbor has built cash reserves — roughly $1.7 billion in unrestricted and restricted funds — to weather downturns and noted that the port enjoys minimum annual guarantees on container revenue that he said cover approximately 82 percent of the container guarantee, representing about $348,000,000 in guaranteed container revenue.
Committee members asked the Port about opportunities to absorb city employees in the event of broader municipal layoffs and requested budget memos on feasibility of transferring particular job classes (street service investigators) to the harbor department and on monthly reporting to capture trade policy impacts. Port representatives said they would work with the CAO and personnel department to review vacancies and absorption opportunities and provide requested memos.
