A major terminal operator at the Port of Long Beach broke ground on a $365-million expansion project Friday, even as activity at the port has cooled recently in response to rising tariffs.
The terminal operator International Transportation Service plans to fill in a 19-acre area of water and extend the existing quay by 560 feet, which would allow larger ships to dock at the port.
The expansion would boost cargo-handling capacity by 50% and create jobs, the company said at a ground breaking ceremony Friday. The new terminal would be able to accommodate two vessels each capable of carrying 18,000 cargo containers.
“There is a demand coming for bigger ships,” said ITS Chief Executive Kim Holtermand. “This project strengthens America’s supply chain by investing in infrastructure the right way.”
The leap comes after container movement through the Port of Long Beach dropped sharply in recent months.
Read more: ‘It’s going to hurt a lot.’ How L.A.’s importers are navigating Trump’s shifting tariffs
President Trump’s frequent changing of tariffs on countries including key trade partners Canada and Mexico have stunted global trade, prompting concern from public officials, laborers and business leaders.
The Port of Los Angeles has also experienced a slowdown and reported that job opportunities at the port were down by half in June.
The number of containers processed at the Port of Long Beach in May is down more than 8% from last year, and loaded containers being shipped out of the port, known as loaded exports, are down more than 18%. At the Port of Los Angeles, loaded exports dropped 4% from last May.
Port of Long Beach Chief Executive Mario Cordero said the port is capable of progress in times of crisis and has learned from its perseverance through the pandemic.
“We are most definitely in a period of uncertainty in this industry,” Cordero said. “But there is one certainty here at the port. We will continue to build,” he said.
A large group gathered to celebrate the start of the project in Long Beach, including Long Beach Mayor Rex Richardson and longshore and warehouse workers union ILWU 13 President Gary Herrera.
This story originally appeared in Los Angeles Times.
