LA to invest US$3 billion over 10 years to fight Canada and Panama threats
The Port of Los Angeles will spend more than US$3 billion on terminals, on-dock rail and intermodal links in a fight to retain its No 1 ranking as America's biggest container port against threats from Canada and the Panama Canal.
"Protecting and retaining discretionary cargo market share in the face of changing economic conditions and intensifying competition is the key to the future of the port and the region," said the recently released Port of Los Angeles 2012-2017 Strategic Plan.
With containers accounting for 80 per cent of its revenue, and Canadian ports diverting more cargo to themselves and US east coast ports siphoning off boxes via Panama, Los Angeles is in a fight to keep its 21 per cent share of US box volume.
Fifty per cent of the container shipments to LA are discretionary, according to the plan, making the future threat of an expanded Panama Canal in 2015 a clear and present danger as the waterway doubles capacity from an old 4,500-TEU ship limit to accommodate 12,000-TEUers.
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