For more than a century, the Port of Los Angeles has operated under a governance structure built for stability, professional management, and long-term investment. That structure matters. The Port is the backbone of a vast supply chain sector that sustains millions of jobs, drives economic growth, and keeps goods moving across the nation.
The San Pedro Bay port complex, anchored by the Ports of Los Angeles and Long Beach, supports more than 3.5 million jobs across California, generates over $800 billion in economic activity, and provides $2.8 billion in state and local tax revenues. Economic activity tied to the port complex represents approximately 18% of California’s gross domestic product.
That is why two proposals being discussed as part of Los Angeles’s City Charter reform process are alarming. One would impose a rigid formula directing the investment of Port revenues. The other would layer on a new bureaucratic framework to Port leasing decisions, creating additional hoops for terminal operators, cargo owners, and supply chain partners to jump through.
The stakes could not be higher. Both proposals would move detailed operational decisions into the City Charter and out of the Port’s hands. That would tie the hands of professional management, limiting its ability to respond to changing market conditions, invest where the need is greatest, and make business decisions based on the realities of global trade.
Today, ports throughout North America are competing aggressively for Los Angeles’s cargo. In recent years, Los Angeles has lost double-digit market share to faster-growing gateways along the Gulf and East coasts and in Canada. Other ports are making it easier and less costly to do business. Los Angeles should not respond by adopting a City Charter that micromanages port operations.
By imposing rigid investment formulas, we risk diverting Port revenues from vital projects like roadway improvements and the transition to zero-emissions equipment. Roadway improvements, for example, can improve safety, reduce congestion and emissions, and support the truck fleets that are essential to moving cargo.
These investments benefit Angelenos by supporting cleaner air, family-sustaining jobs, safer streets, and less congestion. If these investments are delayed or blocked, cargo volumes will decline, and disinvestment will hinder the Port’s ability to move cargo efficiently and safely.
What would that mean for small- and mid-sized truckers and warehouse jobs?
The leasing proposal raises similar concerns. Leases are long-term business agreements that shape how terminals operate, how cargo moves, and whether companies are willing to invest in Los Angeles.
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Importantly, these requirements would undermine the Port, whose role is to exercise independent judgment over investments in the waterfront. Eroding that authority risks politicizing routine business decisions by putting City Hall in the driver’s seat and weakening the Port’s governance.
For Los Angeles, adding new layers of cost and uncertainty would open the door to cargo diversion and market share erosion. It would also discourage the billions in investment needed for the Port to sustain jobs and expand economic opportunities across the supply chain, from truck drivers and warehouse workers to small businesses and manufacturers.
Against this backdrop, the last thing City Hall should do is support changes that make it even harder for the Port to compete. By rejecting these proposals, city leaders would send a clear message that Los Angeles is focused on keeping the Port strong, competitive, and productive for the hundreds of thousands of Los Angeles residents, and millions more across the state and nation, who depend on it.
Tim Jemal, a resident of Southern California, is CEO of the Supply Chain Federation, a coalition representing business and labor that works to improve life for California families.
Robert Loya is the CEO of the Harbor Trucking Association and a Long Beach resident with 30 years of experience in transportation operations and a contributor to federal and state legislative efforts pertaining to maritime reform. He has also served as Board President for both the Harbor Trucking Association and the California Trucking Association.