Pier B project anchors Port of Long Beach capital expenditures
The Long Beach Board of Harbor Commissioners has approved a $1.05 billion annual budget for the Port of Long Beach, which is at the center of one of the busiest logistics hubs in the world. Approximately 55% of the Port’s spending is tied to capital investments in rail, zero emissions, technology and other improvements designed to efficiently handle growing cargo volumes while minimizing environmental impacts.
Budgeted spending for the 2027 fiscal year, which begins Oct. 1, is 28.6% more than estimated spending in the 2026 fiscal year. The variance reflects a 53.7% increase in capital expenditures compared to the prior year, to $571.8 million, as work accelerates on delivering the Pier B On-Dock Rail Support Facility, the Port’s largest project. The boost in spending is also aligned with delivering the infrastructure necessary to realize Port of Long Beach CEO Dr. Noel Hacegaba’s 2050 vision to double cargo to 20 million containers annually by midcentury while becoming the first zero-emissions port in the world. The 10-year, $3.3 billion capital improvement program is the largest of any port in the nation.
Next year’s budget also includes $54 million in Clean Trucks Program subsidies to support truck drivers and trucking companies as they transition to zero-emissions, heavy-duty drayage trucks.
“This budget sends a strong signal to our supply chain partners that we are bullish on the future and committed to doubling our cargo capacity by 2050,” Hacegaba said. “Our industry-leading $3.3 billion capital improvement plan will help us get there as we transform our operations and build the Port of the Future.”
“Our success has always depended on staying ahead of the demands of a rapidly changing global supply chain and investing for the future,” said Long Beach Harbor Commission President Frank Colonna. “This budget strengthens our competitive position to move more goods, faster and more sustainably.”
Pier B broke ground in July 2024. The project will triple the Port’s on-dock rail capacity and trim the time it takes to move cargo from ship to rail from four days to 24 hours, enhancing the efficiency of moving goods in Southern California and the entire U.S. supply chain. Individual construction projects are underway, adding benefits upon completion, with the facility expected to be finished in 2032.
In late summer, the Long Beach City Council will consider approval of the budget. It includes a $28.7 million estimated transfer to the City’s Tidelands Operating Fund, supporting quality-of-life projects along Long Beach’s 7-mile coastline that have improved shoreline safety, cleanliness, water quality, facilities and other amenities.
Operating revenue is estimated to be relatively flat at $577.9 million, 0.6% higher than last year. Recognized for its strong market position and financial resiliency, the Port of Long Beach holds exceptional credit ratings of AA+ from S&P Global Ratings and AA from Fitch and Moody’s Ratings.
