Port of L.A. cuts terminal rent 6%
| Knatz |
The Port of Los Angeles on Thursday approved discounts to terminal operators that are estimated to amount to $25.7 million through June 2010.
The discounts include a temporary 6 percent reduction in rent for terminal operators that will save them nearly $20 million collectively, the port estimates.
'While there are hints that we've seen the worst of the recession, it is critical that we continue to help our customers through this difficult period,' said Port Executive Director Geraldine Knatz. 'These measures will provide some cost relief to our customers, protect our market share, and help us maintain a competitive edge through the next 18 months as the market slowly recovers.'
The port said it saved its tenants and customers $15 million in 2009, mostly from its Intermodal Container Discount Program in which port customers were rewarded for increasing rail use over and above previous volume. The program was specifically designed to help Los Angeles maintain and grow its share of discretionary intermodal cargo headed to markets outside of Southern California.
The other two measures approved Thursday provide discounts on empty containers and transshipment handled by the port, and are projected to amount to $6 million in savings.
'From an industry standpoint, we welcome this assistance from the Port of Los Angeles,' said Michele Grubbs, vice president of the Pacific Merchant Shipping Association, which represents terminal operators and shipping lines. 'The port recognizes the growing competitive challenges facing our industry.'