LA's Exploding Trade Gridlock Will Put Thousands of Good Southland Jobs At Risk!"

The Los Angeles area trade activity is bursting at the ports and rail corridors and creating local and national trade congestion problems. Gridlock will put 28,000 good paying trade jobs at risk according to new Trade Trends Study.

Los Angeles, CA (PRWEB) May 5, 2004 -- International trade activity at the Los Angeles Customs District will move to new record levels in 2004, according to the annual assessment of the industry done by the Los Angeles County Economic Development Corporation (LAEDC). Interventional Trade Trends & Impacts," is posted at: http://laedc.info/pdf/Trade-04.pdf.

The value of two-way trade at the Los Angeles Customs District should increase by 11.6 percent to $262.3 billion, while the total number of containers handled at the ports of Long Beach and Los Angeles should hit 13.1 million twenty foot equivalent units (TEUs)," said LAEDC Senior Vice President and Chief Economist Jack Kyser. The LAEDC Economists at a news conference with California Secretary of Business Transportation and Housing, Sunne Wright McPeak released the results of its annual study at Union Station in Los Angeles today (Wednesday, May 5,2004). While trade is one of Southern Californias major growth industries, this growth is generating controversy and worries. There are no clear champions to articulate the benefits provided by international trade," Kyser said.

Other states need to recognize the benefits that they are receiving from all of this activity and to support the transportation and infrastructure initiatives in Congress designed to improve our nationally significant freight corridors, which improves freight and passenger service to the entire country," said LAEDC Chairman Bob Hertzberg. Every state in the nation gets containers moved through either Long Beach or Los Angeles, so there is the need to make sure that the nations transportation infrastructure especially in Southern California can keep pace with the expected growth. These are issues that the LAEDC is constantly studying," he said.
   
The LAEDC study, International Trade Trends & Impacts," focused on three major challenges that could curb future growth. The challenges are landside infrastructure, environmental concerns, and port productivity.

Landside infrastructure -- is being impacted by cuts in state funding for transportation projects, and the arrival of 8,000 TEU ships at local ports. While people immediately think of trucks hauling containers on the 710 freeway, the local rail network is also under going serious stress," Kyser explained. There is discussion about operating a container shuttle train between the ports and the huge distribution centers in the Inland Empire, but current track capacity is too tight to accommodate a shuttle train. In Fact our rail capacity will max out by late 2006."

Environmental concerns -- Ports are coming under scrutiny on the environmental front. The LAEDC report points out that the international trade industry is facing serious problems due to its heavy use of diesel powered trucks, trains and port equipment." Many environmentalists consider trains as the best mode for low diesel pollution per ton of cargo. Both local ports are also implementing green" technologies, and Los Angeles has one terminal capable of cold ironing." (The ship shuts down its diesel engine while in port and uses dockside electric power). This is an expensive process and will take time before a significant number of ships are so equipped, the study said.

Port productivity -- was the third challenge highlighted in the LAEDC report? The local ports are running out of land, and ports elsewhere along the Pacific Coast are licking their chops in anticipation of more traffic," said Kyser. While Tacoma and Oakland do have land available, their challenge is overcoming the lure of the large market in Southern California and the good rail connections out of Los Angeles to the mid-west and southeast. There is an effort to have more night time operations at the local ports, but this could cause problems for smaller shippers."

In terms of total two-way international trade through the Los Angeles Customs District during 2003, it was no contest as to which nation was the regions largest trading partner," said Kyser. Chinas two-way trade total increased by 24.0 percent to $68.2 billion, a new record level (not including Hong Kong). In second place was Japan, which had 2003 total trade with Los Angeles eased down by 1.0 percent to $41.5 billion. In 2000, Japans trade through the Los Angeles Customs District was $51.8 billion, but its recession and shifts in auto production has impacted Japans numbers. South Korea remained third in total two-way trade with Los Angeles during 2003, with an increase of 4.3 percent to $16.2 billion."

Additionally, Kyser noted that several European Union (EU) nations are important trading partners with the Los Angeles area. In 2003, Germany ranked sixth with a total of $7.5 billion, up by 16.6 percent over the previous year." The U.K. posted $4.6 billion in 2003. As to why Germany racks up such strong numbers, think Audi, BMW and Mercedes," said Kyser.

The largest trade commodities export out of Los Angeles last year was electrical apparatus with a value of $11.8 billion, up slightly from $11.3 billion in 2002. The second largest export was flying devices" (Census Bureau terminology) at $4.8 billion, unchanged from 2002. Fashion" exports out of Los Angeles were significant in 2003. Silk, wool and fabrics had a value of $1.3 billion, apparel exports were valued at $344 million, and beauty & hygiene products were valued at $660 million.

Imports through the Los Angeles Customs District in 2003 were headed up by electronic machinery valued at $26.4 billion, a sharp increase from 2002s $22.8 billion. In second place were motor vehicles at $23.0 billion, versus $21.2 billion in 2002. Apparel imports through Los Angeles totaled $12.5 billion, compared with $10.2 billion the previous year.

Other fashion" related imports included footwear ($6.2 billion), animal skin & leather ($2.5 billion), textile products ($839 million), silk, wool & fabrics ($587 million), manmade fiber ($465 million), hats ($349 million), and beauty & hygiene products at $313 million).

International trade has been a tremendous generator of jobs in Southern California, with 31,600 created during 2003 moving the annual average in the region to 475,000 jobs. The industry should continue to grow and add jobs, but this is a good news-bad news situation.

"Public infrastructure is a vital yet underappreciated factor in Los Angeless and Southern Californias rapid growth and transformation into a global economy," said author Steve Erie of Globalizing L.A. Erie, who also attended the news conference, is a Professor of Political Science and Director of the Urban Studies and Planning Program at UC San Diego.

Globalizing L.A. highlights the unheralded role of local political institutions and public entrepreneurs in shaping development strategies that have contributed to L.A.s growth and globalization. Beginning with the fierce battles over railroad and harbor development in the late nineteenth century, Erie chronicles L.A.s emergence as the nations leading trade center and chief gateway to the Pacific Rim. Up until the 1990s, L.A. behaved much like a city-state where powerful, semi-autonomous development bureaucracies and entrepreneurial leaders provided the farsighted strategic planning that made infrastructure mega-projects possible."

Today, Erie argues, Southern California-as elsewhere-faces daunting challenges, pitting the forces of globalization and the economy against community and environmental resistance. Globalizing L.A. offers in-depth analyses of recent epic battles over key infrastructure projects, such as the expansion of LAX, creating a new international airport in Orange County at El Toro and building the landmark Alameda Corridor rail link. Erie dissects the strategies and effectiveness of supporters and opponents of these trade mega-projects". The book considers these and more recent challenges-such as new post-9/11 security concerns-to assess their effects on Southern Californias global competitiveness.

For interviews or for more about his book Globalizing L.A. contact: Puja Sangar (650) 724-4211 or email: puja.sangar@stanford.edu.

Editors: For an advanced copy of study, interviews and images contact: George Mc Quade or Aida Mayo at MAYO Communications at: 818.340.5300 or 818.618.9229 or PR@MayoCommunications.com.
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