Long Beach Dismisses Proposed Los Angeles Merger

Posted by Michelle Howard
Friday, April 11, 2014
West coast rival: Long Beach is opposed to the merger with its long-time rival. Photo: Paul Ottaviano

A proposal by the LA 2020 Commission to merge the ports of Los Angeles and Long Beach – the two busiest container ports in the US – has been slated by Long Beach leaders for being “condescending and disrespectful”.

 

The Commission made the recommendation in its A Time for Action report, along with 12 other recommendations on minimum wage and promoting regional tourism, and defended its proposal by saying it will “put the city on a path to fiscal stability and renew job creation”.
 


“Los Angeles and Long Beach should parlay their individual successes into a combined port to enhance their overall competitive position — a one-two punch, if you will,” the Commission said in its report.
 


Together, the ports form the fifth busiest port facility in the world (busiest in the Western Hemisphere), yet the region has lost 5% of the nation’s market share in the past 10 years.
 


But, while it's understood the Port of Los Angeles (POLA) says it’s willing to discuss the opportunity, its Long Beach rival is said to be less open to the “awful idea”.



Doug Drummond, president of the Long Beach Board Harbour Commissioners, told Port Strategy: “The Port of Long Beach is not interested in a merger with our neighbour. For more than 100 years, the two neighbouring seaports have grown and thrived, side by side, run by separate port authorities. I can assure you that the Port of Long Beach is better run by the citizens of Long Beach."



Tensions are already high following Los Angeles’ approval of the BNSF Railway US$500m Southern California International Gateway project, which would allow BNSF to handle up to 2.8 million container units from the ports, despite the traffic and economic impact it will have on Long Beach neighbourhoods. POLB was unavailable for comment.



Despite not consulting with Long Beach on the idea, the LA 2020 Commission is hopeful that the merger will be seen as a step in the right direction.



“With the ongoing widening of the Panama Canal, maritime trade is about to get a lot more complex — and competitive. We should be competing with ports in other regions, not with each other. This kind of regional cooperation happens elsewhere," the Commission added.



It referred to the example set by New York and New Jersey, which formed to co-operate for a “brighter shared future” and is now the third largest port in the US. Earlier this year, the ports of Seattle and Tacoma, also agreed to co-operate to share information about operations, facilities and rates to help Puget Sound compete in a shifting global maritime industry.



The Commission’s report will be presented and reviewed to the full Los Angeles City Council in the coming weeks.

 

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter June 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Finance

VEB Guarantees $3 Bln of Yamal LNG Debt

Russian development bank VEB said on Friday it had provided a guarantee for $3 billion of debt to the Yamal liquefied natural gas (LNG) project, led by Russian gas firm Novatek.

US Oil Drillers Cut Rigs after 3 Weeks of Additions

U.S. oil drillers cut rigs this week for a 20th week this year after three weeks of additions, according to a closely followed report on Friday, as crude prices

World Stocks Tumble as Britain Votes for EU Exit

Global capital markets reeled on Friday after Britain voted to leave the European Union, with $2 trillion in value wiped from equity bourses worldwide, while money

Container Ships

MSC Jade Sails with MAN's Biggest Engine

The largest and most powerful engine from MAN Diesel & Turbo’s portfolio ever designed and built has entered service.   Built by Doosan Engine in Korea and rated at 75,

Slowing Shipping Fleet Growth to Ease Officer Shortage

Slowing growth in the size of the shipping fleet will reduce the shortage of officers over the coming years, according to the latest Manning report published by global shipping consultancy Drewry.

Kuriyama Joins Matson Board of Directors

The Board of Directors of Matson, Inc. has appointed Stanley Kuriyama as a director of the company, effective June 23, 2016.   Kuriyama is the Executive Chairman of Alexander & Baldwin, Inc.

News

Denmark Adopts Digital Ship Certification

As of June 24, 2016, ships flying the Danish flag are being digitally certified, making Denmark one of the first countries to put an end to the 100-year-old tradition

Conrad Shipyard Forms LNG Business Unit

Conrad Shipyard has formed a new business unit focused on LNG projects.   Conrad, builder of North America’s first LNG bunker barge scheduled for 2017 delivery,

Prince Charles Places Final Section of UK Aircraft Carrier

The second of the largest warships ever built for the U.K. Royal Navy, the Queen Elizabeth Class carrier HMS Prince of Wales, was given the royal seal of approval when HRH The Prince of Wales,

Mergers & Acquisitions

OSG Joins NYSE "Big Board"

Overseas Shipholding Group, Inc. (NYSE:OSG) (the “Company” or “OSG”) announced today that it has been approved by the New York Stock Exchange (“NYSE”) to transfer

Merger: Survitec Joins Forces with WMS

Survitec Group announced a transformational deal with the Marine Safety business of Wilhelmsen Maritime Services AS (WMS), in which WMS will transfer into Survitec

Maersk's New CEO Appointment Raises Prospect of Break-up

Danish shipping and oil group A. P. Moller-Maersk could split up into separate companies, its chairman said on Thursday after naming Soren Skou, the head of its container business, as chief executive.

 
 
Maritime Careers / Shipboard Positions Maritime Security Maritime Standards Naval Architecture Navigation Offshore Oil Pipelines Pod Propulsion Ship Simulators Sonar
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1203 sec (8 req/sec)