The $3.4 billion annual budget for the Port of Los Angeles is built on an economic forecast that the port will see a decline of 7% in container volumes next year, port leaders said Thursday.“Continued volatility in global trade and uncertainty about trade policy are factors contributing to a more cautious cargo volume outlook for the coming year,” the port said.Specifically, the Port’s FY 2026/27 adopted budget is based on predictions of steady, yet slightly lower cargo demand of 9.3 million container units, 7% less than its current forecast for FY 2025/26.While volumes might be down, spending will be up. The $3.4 billion budget total represents a 25% increase, or $665 million, over the Port’s FY 2025/26 adopted budget. The year-over-year increase is primarily due to a significant boost in the Port’s capital improvement spending program—up 31% over the previous fiscal year. It also reflects subsidy increases in the Port’s Clean Truck Fund Rate; cost-of-living increases across staff salary and benefits; and outside inflationary pressures, the port said.Those capital improvements will have the highest budget in more than a decade at $302 million. Projects will focus on container terminal modernization, enhancing public-access infrastructure, and improving transportation in and out of the Port. Signature projects include the $154 million Avalon Pedestrian Bridge and Promenade Gateway project, which kicked off construction in March 2026. Construction is underway on the $74 million rail expansion at Berths 302-305 and $130 million SR 47/Vincent Thomas Bridge interchange reconfiguration.“Over the last decade, we’ve built a strong…
