April 28, 2026

Rail Project for Port of Los Angeles Sparks Anger in Long Beach

It was a provocative statement from the mayor of this city of nearly half a million people, where the port, one of the busiest in the nation, has long driven the economy. For years, Mayor Bob Foster said, he has favored development projects in the region, looking for ways for the port to bring in more business. But the $500 million project by the Burlington Northern Santa Fe Railway would increase traffic and pollution and have a devastating effect on residents in adjacent working-class neighborhoods, he said.

“This is really taking advantage of poor people for the advantage of others,” Mr. Foster said in an interview. “The city of Los Angeles and a major corporation are really treating Long Beach in a deplorable manner — one city is literally ignoring another city’s residents. We’re asking them to be clean and to be a good neighbor and help mitigate this, but they’re basically thumbing their nose at us.”

The fight over the proposed railyard, which would serve as a large center for trains that move shipping containers from the Port of Los Angeles to other parts of the country, is the region’s biggest battle yet over threatened competition from the expansion of the Panama Canal, set to be completed by 2015.

Community activists say the project’s supporters have ignored the negative effects it would have on the neighborhood already hurt by pollution, but those who back it contend that it is the most environmentally friendly way to grow businesses in the region and maintain the port’s dominance.

“We have to start moving things faster and cleaner, and we have to have the infrastructure to do that as close to the port as you can, which is what this does,” said Wally Baker, the chairman of Beat the Canal, a coalition of industry and labor groups supporting projects that they say will bring thousands of jobs to the area. “The last thing we want to do is create more uncertainty. That’s the kind of goofy thing that drives business away from California.”

The ports of Los Angeles and Long Beach have long been economic engines for the region, which is now home to the nation’s largest hub of distribution warehouses that sort the imported goods before they are sent to retailers across the country.

Roughly 40 percent of the country’s container imports, including cars, clothing and household items, mostly from Asia, pass through the two ports, making it the sixth-busiest harbor in the world. Many here worry that competition with ports on the East Coast is the most important threat, because so many of the products that arrive in Long Beach and Los Angeles are on their way elsewhere, often crisscrossing through a web of trains and trucks to get to consumers in the East.

Other ports along the East and Gulf Coasts are rushing to make significant changes to compete with the widened Panama Canal. Last year, the Obama administration moved to speed up the review process to deepen the harbor for many of the ports, saying that deeper harbors would help to create new jobs and strengthen the economy.

Mr. Baker’s group has estimated that the ports could lose 100,000 jobs once the Panama Canal expansion allows larger ships to bypass California and go directly to the East Coast. Without the canal’s expansion, these larger ships could not fit through the waterway. And while Mr. Foster and Long Beach port officials have said that they do not see an immediate threat in the expansion, Los Angeles officials seem to disagree.

David Arian, a retired longshoreman and the vice president of the commission that oversees the Port of Los Angeles, called the railyard “essential to our future.”

“It is the only way to stay competitive, it’s the only way to deal with the canal,” he said during the hearing in March to approve the project. “It’s the only way we’re going to get that market share.”

Officials from the port declined to comment further, concerned that they could provide more fodder for a lawsuit from the plan’s opponents.

The ports have long been known as the biggest contributors to air pollution in the region, with local officials complaining that such pollution has caused an epidemic of asthma, stunted lung development in children and chronic lung disease in adults.

Article source: http://www.nytimes.com/2013/04/12/us/rail-project-for-port-of-los-angeles-sparks-anger-in-long-beach.html?partner=rss&emc=rss

At U.S. Ports, Flow of Imports Suggests Soft Holiday Shopping Season

But the people who work at the companies that ship and transport retailers’ goods are not nearly as optimistic about holiday sales.

When retailers expect that Americans will be crowding into their stores, their orders pile into the nation’s ports in August and September for delivery to stores by late October. But logistics companies say that is not happening this year.

“We’re concerned, because usually at this time, you see this peak,” said Richard D. Steinke, the executive director of the Port of Long Beach in California. “We haven’t seen it.”

In fact, the five busiest container ports in the United States said that imports in August 2011 were lower than or even with 2010 volumes.

In Long Beach, the second-busiest container port by volume, August imports fell by 14.2 percent from August 2010. While the port has not yet released September volumes, a spokesman, Art Wong, said it expected about a 15 percent drop from September 2010.

The reports from the remaining container ports in the top five were equally gloomy. In New York-New Jersey, the number of incoming containers in August was about flat with last year. In Savannah, Ga., imports in August fell by 4 percent. Oakland reported that August imports were down 0.9 percent from a year earlier. And Los Angeles, the nation’s highest-volume container port, counted 5.75 percent fewer containers in August than a year earlier.

“I expect over all the peak season will be muted,” said Kathryn McDermott, deputy executive director of business development for the Port of Los Angeles.

The holidays receive outsize attention, because sales in November and December tend to make up about a fifth of retailers’ sales for the whole year. And retail sales are a crucial indicator of economic health, given the importance of personal consumption in keeping the economy afloat.

In recent weeks, many retail analysts and trade groups have issued fairly positive forecasts about holiday sales.

Last Thursday, the National Retail Federation said it expected holiday sales to rise 2.8 percent over last year. And late last month, the federation said it expected port volumes to rise by at least 4.5 percent a month for the final four months of the year.

At the same time, some analysts revised their holiday forecasts upward after the retailers tracked by Thomson Reuters beat estimates and reported an average 5.1 percent increase in same-store sales for September last Thursday.

“For the holidays,” Craig R. Johnson, president of Customer Growth Partners, wrote in a note to clients last week, “a 5 to 6 percent increase is clearly in reach.”

On Monday, a Citigroup retail analyst, Deborah Weinswig, revised her holiday forecast up by a percentage point, saying she expected 4 percent to 5 percent gains in same-store sales at department stores, up from 3 percent to 4 percent. There is traditionally a strong correlation between the back-to-school and holiday seasons, Ms. Weinswig said. Some retailers are raising their prices because raw-material costs have gone up, she wrote, which would help sales. And the “surprisingly resilient” back-to-school season, she wrote, had led to “our more upbeat outlook.”

In contrast, the people who work at ports, and at train and trucking companies, say the shipments do not seem to be high enough to signal strong holiday sales.

Higher shipping volumes are “a prediction that sales are going to go up,” Mr. Steinke said. “The N.R.F. and some of those groups have said there’s going to be an increase in volume coming through the ports. When our August numbers are down and carriers say future loadings aren’t all that great, you wonder where that peak is coming from.”

While Mr. Steinke said that retailers occasionally delayed shipping for as long as possible to see how the economy progressed, he said they usually gave transportation companies a heads-up if they were planning a lot of last-minute orders. This year, he said, the retailers do not seem to be expecting that.

“We talk to the railroads, we talk to our ocean carriers, and they’re not seeing this big peak, or bracing themselves for a big late peak,” Mr. Steinke said.

Ms. McDermott of the Los Angeles port had a similar take.

“The N.R.F. came out with some numbers for strong growth, but I think what we’re seeing is consistent with the trends over all in the U.S.,” she said, and that is “some very small, maybe, or muted peak season, September, October, and then probably flat for the rest of the year.”

The slowdown seems to be occurring on land, too.

Article source: http://feeds.nytimes.com/click.phdo?i=2dc0f16eb6fabd79336c9a26fd78c07b