The Long Beach Board of Harbor Commissioners on Tuesday approved a $1.05 billion spending plan for the port for fiscal year 2026-27, a 28.6% increase over the current budget.
Approximately 55% of the port’s spending is tied to capital investments in rail, zero emissions, technology and other improvements designed to handle growing cargo volumes and minimize environmental impacts, officials said.
The port’s next fiscal year begins Oct. 1.
“This budget sends a strong signal to our supply chain partners that we are bullish on the future and committed to doubling our cargo capacity by 2050,” port CEO Noel Hacegaba said. “Our industry-leading $3.3 billion capital improvement plan will help us get there as we transform our operations and build the ‘Port of the Future.'”
Port officials noted the increase in spending reflects a 53.7% increase in capital expenditures compared to the prior year, to $571.8 million, as work continues on delivering the Pier B On-Dock Rail Support Facility.
Pier B broke ground in July 2024. The project will triple the port’s on-dock rail capacity and reduce the time it takes to move cargo from ship to rail, from four days to 24 hours, enhancing the efficiency of moving goods in Southern California and the entire U.S. supply chain, officials said.
Individual construction projects are underway, with the facility expected to be finished in 2032.
The spending increase is also associated with the port’s 2050 Vision, which aims to double cargo to 20 million containers annually by mid-century while transforming the port as the first “zero-emissions” facility in the world. The 10-year, $3.3 billion capital improvement program is the largest of any port in the nation, officials said.
Next year’s budget also provides $54 million to the Clean Trucks Program — subsidies to support drivers and trucking companies as they transition to zero-emissions, heavy-duty drayage trucks.
“Our success has always depended on staying ahead of the demands of a rapidly changing global supply chain and investing for the future,” Long Beach Harbor Commission President Frank Colonna said. “This budget strengthens our competitive position to move more goods, faster and more sustainable.”
The Long Beach City Council will consider approval of the budget in the late summer.
It includes a $28.7 million estimated transfer to the city’s Tidelands Operating Fund, supporting projects along Long Beach’s coastline.
Operating revenue is estimated to be relatively flat at $577.9 million, 0.6% higher than last year.