LA/LB approves new cargo fee
NITL -- Logistics Management, 1/16/2008
Senior Editor Jeff Berman reports on what's new in logistics news; lift trucks; logistics; shippers; Senior Editor Jeff Berman tells us whats new in the latest logistics news. (Logistics Management) http://link.brightcove.com/services/link/bcpid1381639961http://www.brightcove.com/channel.jsp?channel=1244057710
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The Long Beach and Los Angeles Boards of Harbor Commissioners on Monday, January 14 will jointly consider a new cargo fee of $15 per loaded twenty foot equivalent unit (TEU) to pay for bridges, roads and rail networks in the harbor area. This latest fee is estimated to generate $1.4 billion for transportation projects. The proposed fee would be assessed on every loaded TEU container entering or leaving any terminal by truck or train beginning January 1, 2009. According to the ports, the amount would fluctuate based on the current funding needs of approved projects. It is anticipated that the charge would be $15 per loaded TEU for several years, but could vary depending on how quickly the ports move forward with these projects. Funds generated by the infrastructure cargo fee would be used to match Proposition 1B funds, which California voters approved in 2006 to help pay for major transportation and air quality improvement projects. Together the cargo fee and Proposition 1B monies will finance about $3 billion in improvements.
The cargo fee would apply to the entire San Pedro Bay area. The projects that would be financed by the new fee are included in the California Goods Movement Action Plan. The new fee is in addition to the $35 TEU clean truck assessment approved last month as well as prospective state wide fees that could be assessed on cargo. (Notice, December 21).
Due to the implications that shippers may face as a result of these fees and other possible practices, a memorandum detailing the latest developments including potential responses that might be considered is being prepared for the chairs of the League’s Highway and Ocean Transportation Committees.
Read more about this fee approval on the Port of Long Beach's website in Ports Approve Cargo Fee for Transportation Projects
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