Shutdown doesn't stop record year moving cargo at Ports. (Up Front).

Despite a sluggish economy and a 10-day shutdown of West Coast terminals, the Port of Los Angeles-Long Beach complex posted a record year for container traffic in 2002, moving $205 billion worth of imports and exports.

Individually, the Port of L.A. had its best year ever, moving 6.1 million TEUs (20-foot equivalent container units) valued at $110 billion. The Port of Long Beach had its second-best year ever, handling 4.5 million TEUs worth $95 billion, despite losing the Maersk Sealand terminal to its L.A. rival in August.

The two ports combined accounted for two thirds of the $320.9 billion in West Coast trade volume last year. L.A.'s volume was a 17.8 percent increase over 2001, but Long Beach actually saw a 2 percent drop from the year before. Long Beach's best year ever was 2000 when it moved 4.6 million TEUs valued at $98.2 billion.

The record volume came despite a 10-day shutdown of West Coast ports in October by the Pacific Maritime Association, the ship companies' bargaining arm. The PMA said it was responding to what it claimed were work slow-downs by members of the International Long-shore and Warehouse Union during acrimonious contract negotiations. A contract was finally ratified last month.

"We have the largest vessels coming to the largest (U.S.) consumer market in the (nation's) largest port complex," said Julia Nagano, a spokesman for the L.A. port. "We have secured the largest market share on the West Coast."

When operations resumed Oct. 8 after the shutdown, a backlog of containers caused delays in moving the goods through the terminal gates. Operations are currently running at 99 percent of their normal capacity, port officials said.

The rise in cargo last year was attributed in part to terminals expanding operations in anticipation of the April opening of the $2.4 billion Alameda Corridor connecting the ports to the rail yards east of downtown. Another reason is that more manufacturers are seeking cheaper labor overseas.

"Because the ports in Southern California are increasing in size and efficiency, more trade is coming through," said Art Wong, spokesman for the Port of Long Beach.

Regional distribution

Roughly half the imports coming through the L.A.-Long Beach complex are earmarked for the 16 million consumers in the region--L.A., Orange, San Bernardino, Riverside and Ventura counties. The remainder is shipped nationwide.

Both ports project 5-6 percent increases in container traffic for 2003 through expansion of operations by ship companies and terminal operators.

Long Beach is making up for the loss of Maersk Sealand with Mediterranean Shipping Co., which moved from L.A. to a 170-acre terminal in Long Beach in December. Matson Navigation Co. left L.A. last week for a 70-acre terminal in Long Beach.

Additionally, Hanjin Shipping Co. moved out of its 170-acre terminal in Long Beach into a 375-acre terminal in the same complex last September.

The Port of Long Beach is expected to expand with the signing of a lease on a 160-acre facility on Terminal Island later this year. Cargo operations are expected to begin in two to three years.

The former oil field already has been cleaned and re-graded and the site is being paved. Construction of the buildings will begin when an agreement is signed with a tenant, officials said.

L.A.'s traffic numbers will jump even more when the second phase of Maersk Sealand's terminal, adding 168 acres to the existing 316, is complete in the summer of 2004. "All of our terminals are showing increases in traffic," said Nagano.

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