Agreement Reached to Open China Shipping Terminal at Port of Los Angeles.

News Editors/Business Editors

SAN PEDRO, Calif.--(BUSINESS WIRE)--March 5, 2003

The Port of Los Angeles today joined environmental and Harbor-area community groups to announce an agreement allowing the China Shipping terminal to open as the Port proceeds with a series of environmental programs designed to improve the area's air quality and quality of life.

"The settlement expedites both the creation of jobs and the improvement of air quality," said Mayor James Hahn. "This agreement is a win-win for the Los Angeles economy and its environment."

The settlement lifts the stay that prevented construction of Phase I of the China Shipping wharf at Berth 100 from being completed, permits operation of the Berth 100 terminal to commence immediately upon approval by the state court, and lays out the terms for future environmental review of the project.

The settlement also calls for the Port of Los Angeles to commit $50 million over five years to mitigation projects as well as undertake a new Environmental Impact Report (EIR) on the China Shipping terminal project for all phases, including proposed future Phases II and III.

The settlement gives a major boost to Mayor Hahn's proposal to implement Alternative Maritime Power (AMP) in order to reduce air emissions from container ships when they are docked at the terminal.

"I am pleased to have this agreement in place," stated Mayor Hahn, "and happy that the Port is working to be a positive contributor to the quality of life of its neighbors. The mitigation measures included in the agreement will go a long way in this regard."

"Today is a victory of the communities surrounding the Port of Los Angeles," said Councilwoman Janice Hahn. "This settlement is about clean air, healthy neighborhoods and environmental mitigation for the people of the Harbor area. With this settlement, it is obvious that we can have both a port that is a leader in international trade and communities who are safe, healthy and justly compensated for Port activities."

"I have always advocated that the Port needs to be a good neighbor and coexist with the San Pedro and Wilmington communities," said City Attorney Rocky Delgadillo. "The good news is this settlement allows the Port to continue conducting its core business, drive Los Angeles' economy and improve the air quality in the Harbor."

"The Board of Harbor Commissioners is committed to working with the community to balance the business needs of the Port with the community's needs. Both sides came together and we forged an agreement that benefits the harbor environment as well as the economy," said Harbor Commission President Nicholas Tonsich.

The agreement specifically calls for:

-- Preparation of a project-specific environmental review for the China Shipping Project

-- Use of alternative fuels for container handling equipment at the new terminal

-- Use of low-profile cranes at the terminal, if financially and operationally feasible

-- Use of Alternative Maritime Power (AMP) during hoteling of the ships at the terminal

-- Creation and implementation of a traffic mitigation plan for the area around the terminal

-- A total of $10 million mitigation funds to the Gateway Cities Program which will be used as incentives to replace, repower or retrofit existing diesel-powered on-road trucks

-- A total of $20 million for air quality mitigation

-- A total of $20 million for community aesthetic mitigation

With this settlement in place, the Port anticipates opening the terminal shortly and completing the Phase I wharf within the next few months.