On The Road To Perdition?

By Thomas Jelenić, Vice President, Pacific Merchant Shipping Association

The Ports of Long Beach and Los Angeles, both over a century old, have long provided significant economic benefits. These ports have shaped their local communities and impacted the nation. As a lifelong San Pedro resident whose family worked in maritime trades, I understand the ports' local and regional importance.

The Port of Long Beach alone supports nearly 600,000 jobs, generates $31 billion in income, and $90 billion in economic output in the five-county region. Nationally, it supports 2.6 million jobs and contributes $127 billion in income and $374 billion in economic output. These figures exclude the Port of Los Angeles’s impact, which adds significantly to these numbers.

The ports’ economic influence is evident in their support for local exporters, especially in Southern California, a hub for various industries including manufacturing and logistics. However, declining market share over the past decade has not prompted adequate government action. The Port of Long Beach competes with the Port Authority of New York/New Jersey (PANYNJ) for the number two spot in port rankings, which, while seemingly a matter of prestige, has serious economic implications.

Headwinds such as regulatory costs and uncertainty pose challenges. The local ports face ambitious emission reduction goals under the Clean Air Action Plan, including zero-emission equipment by 2030 and 2035. However, the required technology does not yet exist, complicating planning and investment.

The state’s regulatory roadmap, despite the lack of available technology, threatens the ports' economic role. Additionally, debates over automation and its impact on middle-class jobs further complicate the situation. Despite a decade-old agreement that protected waterfront workers from automation’s negative impacts, policymakers are still challenging automation, risking the ports’ credibility as reliable supply chain partners.

Ultimately, the ports' future competitiveness depends on supportive policies that balance job preservation with economic growth. The well-planned infrastructure of these ports positions them to excel nationally, but policy uncertainty threatens their potential.