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 financial foundation that allows us to continue investing in the projects, programs and people that keep cargo moving efficiently,” said Port Executive Director Gene Seroka. “This budget advances infrastructure modernization, sustainability initiatives, community programs and technology deployment, while creating opportunities for Port employees, workforce development and the broader community through the Port’s training campus.”
