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LA 2020 Commission seeks port merger with Long Beach - LB rebuffs idea

THE ports of Los Angeles and Long Beach should become a 50-50 collaboration, an independent private commission studying fiscal stability and job growth in Los Angeles, but Long Beach rebuffs the idea.

"Long Beach and Los Angeles could enter into a Joint Powers Agreement (JPA) to manage future strategy and direction as well as capital planning and rate setting," said the Los Angeles 2020 Commission's report "A Time for Action".

"A JPA should not be construed as either the port of Los Angeles or Long Beach ports being taken over by the other - rather, this should be a true 50-50 collaboration, with the governing board comprised of equal representation appointed by the cities of LA and Long Beach," the report said.

"The individual ports would still oversee day-to-day operations for now, but over time the ports would naturally become more closely linked in day-to-day operations," it said.

Long Beach officials dismissed the proposal. "I find it condescending and disrespectful that they didn't have the courtesy to call the Port of Long Beach or the mayor of Long Beach before they issued this recommendation," Long Beach Mayor Bob Foster told the Los Angeles Times.

Long Beach Harbour Commission president Doug Drummond said a merger was "an awful idea. The two ports have been competing for over a hundred years to the benefit of customers. Why would we give up our port?"

The two ports form the fifth-busiest port facility in the world, but have seen their share of the nation's goods drop five per cent in 10 years an amount equal to the cargo handled by the ports of Seattle and Tacoma, said the report.

"All too often, the Ports of LA and Long Beach issue press releases boasting of new customers - one only has to study the details to understand these customers are just switching from LA to Long Beach or vice versa and not bringing new jobs to the region," said the report.