Security lapses could lead to port closures. (Up Front).

The commanding officer of the U.S. Coast Guard's operations at the Ports of Los Angeles and Long Beach has threatened to shut down operations at some shipping terminals unless security is improved.

This comes amid an ongoing undercover Coast Guard investigation at the ports where agents have been able to gain access to and wander around terminal yards without proper identification.

Capt. John Holmes, commanding officer of the Marine Safety Office at the port complex, issued an ultimatum threatening to prohibit ships from docking at terminals where security breaches are repeatedly discovered.

"We're prepared to take the actions necessary to ensure that the facilities are secured," Holmes said. "This isn't about punishment. This is about security."

Coast Guard officials would not reveal which of the complex's 57 terminals were found to be in violation of safety standards since the investigation was launched in September.

The Steamship Association of Southern California, a trade group representing port tenants, refused comment.

In one security breach, an undercover agent without proper identification was able to walk onto a cargo vessel undetected -- an incident security officials also blamed on the ship line, which is supposed to have its own gangway personnel looking for intruders.

The investigation also has found untrained or no guards at terminal gates, broken perimeter fences, random ID checks and failure to inspect the contents of container trucks to make sure goods match those listed on pickup and delivery orders.

Since the Sept. 11 terrorist attacks, the federal government has placed a top priority on securing ports -- in particular large ones such as the L.A.-Long Beach complex, which is the nation's largest.

Much of the focus has been on preventing terrorists and explosive devices from entering the country.

Security budget rises

In the immediate aftermath of the attacks, the security portion of the Marine Safety Office's budget jumped to 50 percent of its overall operating budget, up from 3 percent before the attacks. Security now makes up 35 percent of the overall budget, with the undercover investigations funded through the agency's regional office in San Francisco.

The most visible security operation has been the sea marshal program where Coast Guard personnel board passenger and cargo ships 12 miles out to sea to make sure the right people are running the ship, which is then escorted into the harbor.

Ship lines are also mandated to provide the Coast Guard with crew, passenger and cargo lists 96 hours before arriving at a harbor.

The data is run through FBI, U.S. Customs Service and Immigration and Naturalization Service databases to ensure that no one is on a "watch list" and the cargo is coming from known importers.

But Coast Guard and port officials said security at the terminals still needs improvement.

Holmes said most terminal operators comply with security improvement orders when confronted with lapses. But security personnel are criticizing terminals for taking shortcuts to save small amounts of money.

"It's a common occurrence not to hire a security guard," said L.A. port police Chief Noel Cunningham. "They'll use the workers themselves for security. But they arc not trained. They go through the motions but there is a breach of security because there is not a dedicated security force."

Terminals responsible

The Ports of Los Angeles and Long Beach merely lease space to terminal operators, who are responsible for providing security. Terminals would bear the brunt of any losses caused by forced shutdowns.

Ports generate most of their revenues through leasing agreements with terminal operators, who pay minimum annual fees plus a fluctuating percentage of tariffs after a certain amount of cargo has passed through.

A temporary ban on ships docking at one or more terminals would only cost the port funding if the ship diverted its cargo to a different port.

"Once (the terminal) reopens, if the ships are just sitting out at anchor in the harbor, then they would come in with the same cargo," said Art Wong, the Long Beach port's spokesman. "We wouldn't necessarily lose that cargo or that revenue."

Besides lapses discovered by Coast Guard personnel, Cunningham said his office gets about two calls per week from port laborers reporting security breaches. "Usually it's the dockworkers," he said. "They're very concerned about their own safety."