- Rep. Janice Hahn introduced a bill to help fund upgrades to ports in Los Angeles and Long Beach to maintain their competitive edge against other ports seeing increased traffic after the Panama Canal expansion. - The bill would allocate 5% of import fees collected at U.S. borders, estimated at $2 billion annually, for improvements to ports and freight infrastructure nationally. This could help fund a $648.65 million wish list of rail and road upgrades for the LA ports. - Failure to improve infrastructure could cost the region over 500,000 jobs tied to international trade, from dock workers to distribution centers, as importers may start routing cargo through cheaper ports on the east or west coasts. However, the

1. THE LOS ANGELES REGISTER
Competition threatens to hurt
regional ports
Published Sunday, August 24, 2014
BYLINE: David Hood
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LENGTH: 1123 words
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WASHINGTON – No one likes a mushy blueberry.
That’s why, when the tiny treats make the trip to America from Chile, they need to get
to market as quickly as possible, and so far, the Ports of Los Angeles/Long Beach
have been a good entry point.
But experts believe those blueberries – and a lot of other imports – could take a
much longer trip if Southern California ports fail to keep their edge in the increasingly
competitive world of trade and logistics. Accordingly, Rep. Janice Hahn of San Pedro
recently introduced a bill aimed at funding significant upgrades that she says will help.
Importers already are calculating the comparative costs of sending fruit through
Southern California ports, or via the Panama Canal when it reopens in 2016, or even
by way of Vancouver, British Columbia, or Savannah, Ga. And if there is a cheaper
or more efficient way to move goods to huge population centers on the East Coast,
importers will redirect freight traffic – at the expense of the many jobs in the region
tied to international trade.
“When I came to Congress three years ago, my big focus was on the ports,” Hahn
said. “I felt there was a need for a larger funding stream for the National Freight
Network – even the president called for a $2.5 billion funding over four years for it. So
I thought in my mind this is the right time to do (the bill).”
Hahn’s bill would reallocate 5 percent of import fees collected at U.S. borders and
create a dedicated pool of funds, estimated at $2 billion annually, that ports and other
transportation entities could tap into. She expects freight operations in her district and
Southern California to be major beneficiaries.
For example, her bill could help the Ports of Los Angeles/Long Beach fund and
implement a wish list of $648.65 million in rail and roadway improvements to help
speed handling of the 15 million or so containers that come through every year.
On Tuesday, the Los Angeles City Council unanimously approved a resolution
backing the bill, which is also supported by the Los Angeles County Economic
Development Corp., the Los Angeles Chamber and the Southern California
Association of Governments.
Economic impact
Jock O’Connell, an economist who specializes in international trade, estimates that more
than half a million jobs in the region are tied to international trade, from the docks at the

2. THE LOS ANGELES REGISTER
Competition threatens to hurt
regional ports
Published Sunday, August 24, 2014
BYLINE: David Hood
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LENGTH: 1123 words
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Ports of Los Angeles/Long Beach to the distribution centers that carpet the Inland Empire.
Shoring up California’s competitive advantage could not only retain those jobs but
bring in more, he said.
He has support. According to the proposal by the Port of Los Angeles, almost 10,000
full-time jobs could be added as rail improvement projects get underway.
“Stock and distribution workers are most at risk of being sidelined,” O’Connell said,
noting that most packing and shipping jobs require lower skills than at the docks,
where operating sensitive, heavy equipment requires more skills and brings home
higher pay.
Peter Friedmann, executive director of the agriculture transportation coalition, points
out that “the presumption that (importers) need to come to Los Angeles/Long Beach
– it’s dangerous for Los Angeles/Long Beach to rely on that.”
“If you draw a line from Dallas to Chicago, everything east is one-third of the country,
but two-thirds the population,” he said. That’s one reason Spartanburg, S.C., has
become a national distribution center for major consumer brands.
Other projects proposed in the Hahn bill include dedicated truck lanes on truck-
intensive freeways like I-710 and more on-dock railroad lines to expedite transfer of
goods.
L.A. Chamber of Commerce President Gary Toebben called the movement of goods
the “largest sector of our economy,” explaining that there are $50 billion worth of
projects relating to moving goods that need to be funded in the next 20 years for
Southern California to stay globally competitive.
“We will use local funding for a large share of these projects, but this is a national
priority and the federal government needs to invest its fair share since 40 percent of
all goods imported into the U.S. come through the Ports of L.A. and Long Beach,”
Toebben said.
The Hahn bill
The duties collected by U.S. Customs and Border Protection would be used to
improve infrastructure on what is known as the National Freight Network, which
includes at least 50,000 miles of roadways critical to moving goods.
“Why don’t we take a percentage of the customs fees we take in every year in our

3. THE LOS ANGELES REGISTER
Competition threatens to hurt
regional ports
Published Sunday, August 24, 2014
BYLINE: David Hood
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LENGTH: 1123 words
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ports based on the value coming in and direct that to fund this National Freight
Network?” Hahn suggested. “That money is collected based on imports. It’s based
on volumes and value of cargo, which also means that cargo is causing risk to our
highways, bridges and rail.”
For Hahn, the bill is the second of a one-two punch this year on behalf of the ports.
Earlier this summer, she succeeded in freeing up $57 million from the Harbor
Maintenance Trust Fund, which supplies money for dredging harbors and operating
ports, to be spent on the kinds of berth improvements the local ports say they need.
Pros and Cons
Susan Monteverde, vice president of government relations for the American
Association of Port Authorities, said that although her organization supports Hahn’s
bill, it is still too early to tell whether it has the political gravitas to jump the political
hurdles ensnaring most legislation in Washington and actually become law.
“I see this bill as a great way to show leadership on the importance of freight,”
Monteverde said. “From our perspective, if we get a dedicated freight (funding)
program, we’re happy with that – we’re not worried where the money is coming from
... customs or somewhere else,” she said.
Friedmann of the agriculture transportation group also praised the bill as a way to
draw attention to infrastructure needs, but he sees little chance of any bill gaining
traction until a new revenue stream like a higher gas tax is identified to pay for it.
He also beat the drum for a far less expensive measure that would have an immediate
impact – allowing heavier trucks, specifically three-axle, 96,000-pound gross weight
truck trailers, rather than the two-axle, 80,000-pound gross weight truck trailers
that must be used now. “California is the only state not to have heavyweight truck
corridors to its ports,” he said.
Hahn’s bill does not address this issue.
The bill so far has 37 co-sponsors – a good sign – but of them only one is a
Republican, and GOP support will be needed in the Republican-controlled House of
Representatives. The lone Republican is Texas’ Ted Poe, who is co-chairman of the
Congressional Ports Caucus, with Hahn. Poe declined to comment on the outlook for
the bill.
Bureau Chief Cathy Taylor contributed to this report.