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 Reporter July 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Ports

Hapag-Lloyd Adds Halmstad to Rotation

As one of the top global carriers Hapag-Lloyd offers a comprehensive service network and will add port of Halmstad, Sweden to the Nordic Short Sea Network. As

BBC Chartering Opens Vietnam Office

BBC Chartering announces the opening of a new representative office in Ho Chi Minh City, Vietnam, starting August 1st breakbulk, and general cargo transportation

Fratelli Neri Orders Damen Tug

One of the largest Italian tug owners, Fratelli Neri S.p.A, ordered its first Damen tug, an ASD 3212, on 21 July 2015.   The vessel will be the first ASD tug

Finance

Diana Shipping Nets 2Q Loss

Diana Shipping Inc. today reported a net loss of $14.1 million and net loss attributed to common stockholders of $15.5 million for the second quarter of 2015, compared to net loss of $5.

U.S. Drillers Add Rigs Despite Crude Collapse

U.S. energy firms added 5 oil rigs this week after putting 21 rigs into service last week, the most in over a year, despite a collapse in U.S. crude prices from recent highs in June,

DryShips Reaches Agreement with Ocean Rig

DryShips Inc. (NASDAQ: DRYS), a global provider of marine transportation services for drybulk and petroleum cargoes, and through its subsidiary, Ocean Rig UDW Inc.

News

On USCG Anniversary, Gov. McAuliffe Urges Hurricane Preparedness

Gov. Terry McAuliffe encouraged Virginians to get ready for hurricane season and provided an update on the commonwealth’s preparations Friday at a press conference

Diana Shipping Nets 2Q Loss

Diana Shipping Inc. today reported a net loss of $14.1 million and net loss attributed to common stockholders of $15.5 million for the second quarter of 2015, compared to net loss of $5.

Optimized Tug-Barge System Designs by Robert Allan

Optimized Tug-Barge System Designs by Robert Allan Ltd. by David R. Connand Robert G. Allan, P.Eng. Some veteran Mississippi pushboats and barges have been

Mergers & Acquisitions

MHI: Notice of Absorption-Type Split Agreements

MHI gives Notice Regarding Conclusion of Absorption-type Split Agreements Relating to Transfer of Ship Construction and Hull Block Manufacture Businesses to Two

Calais Port Blocked Again by Protesters

Protesting ferry-workers blocked road access to the northern French port of Calais with burning tyres on Friday, police said. The workers have in recent weeks

BBC Chartering Opens Vietnam Office

BBC Chartering announces the opening of a new representative office in Ho Chi Minh City, Vietnam, starting August 1st breakbulk, and general cargo transportation

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Standards Navigation Offshore Oil Pod Propulsion Salvage Ship Repair 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: 0.4978 sec (2 req/sec)