Latest budget forecasts $48 million increase in shipping income
Los Angeles port budgets need untangling for those fortunate not to be accountants or bookkeepers. The news media blithely trumpets the $976 million put out in the press release for the financial (fiscal) year beginning July, but this includes all funds available to the port, such as the TraPac and China Shipping accounts, along with interest earned from other sources.
Actual operating revenue for the year is forecast to be $405 million, up from $375 million in the previous year's budget. Shipping services are the main driver, bringing in $348 million ($320 million 2010/11). Wharfage is projected to earn $323 million, continuing its reign as the biggest single money maker. Second in the income stakes is land rentals at $47 million (up from $40 million this year). Pilotage will earn $7 million
Wages and salaries are predictably the biggest expense, taking up $110 million (an increase of about 1 percent) of total operating expenses of $225 million, a tad under 50 percent. Of this, $60 million is for salaries and $40 million for benefits (with other bits for incidental stuff).
Security takes another big slice at $24 million while "outside services" (e.g. contractors and suppliers) account for $36 million and city-provided services $40 million. Taxpayers might begin to wonder why so much has to be paid to the city when the port provides so much itself.
The big news from a financial guru's perspective is that what the port terms "net income" and which other people might call operating profit, is up more than 90 percent to $85 million.
Capital spending is taking up $230 million, with marine terminals taking up only 17 percent ($40 million). TraPac will be the biggest terminal item at $11 million, while China Shipping gets $7 million.
It's a sign of the times that security is getting $24 million, more than any of the terminals. Another $30 million is being sunk into Main Channel deepening. Rail, road and bridge work is costing $40 million.
Just to round everything off with a nice pink ribbon, the port waterfront beauty project gets $45 million. LA might have the slowest container movement rate of any of the world's major ports, but at least impatient cargo owners will have a nice view while they wait for their goods.