Bills on cargo piling up, too (in CA)

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Long Beach Press Telegram

Bills on cargo piling up, too

Lawmakers try to force governor to take action to keep goods moving.
By Eric Johnson
Staff writer

LONG BEACH — Gov. Arnold Schwarzenegger may face as many as 100 proposed state bills potentially affecting California's lucrative cargo movement industry. Legislation ranges from a threatened cap on port growth to fees on containers to pay for security and freeway improvements. The number of bills is raising the ire of state business officials, maritime advocates and the owners of cargo lines.

"The ports don't create growth, they accommodate it," said John McLaurin, president of the maritime advocate Pacific Merchant Shipping Association. "I think that's lost on some policymakers. While some of these bills may be good political solutions, they aren't good practical solutions."

Cargo volumes in the Port of Long Beach are up 45 percent this year, following growth of 24 percent in 2004 that shattered previous records... Those huge increases have environmentalists and air quality officials worried, which is why many politicians took it upon themselves to force the issue through legislation.

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The maritime industry is opposed to nearly all the goods movement bills, particularly container fee legislation. "What will the money be used for?" McLaurin said. "There's a history in the state of collecting money and it not being used for what it was intended. The cargo owners aren't opposed to fees, but they're a little leery about whether the legislature will collect a fee and actually use it for what it's intended for. There's a real credibility issue." With roughly 6.5 million containers coming to Long Beach and Los Angeles last year, a $30 fee would produce $195 million in revenue.

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Robin Lanier, executive director of the Washington, D.C.-based Waterfront Coalition, which represents U.S. importers, said her members are "adamantly opposed to the bill." "First of all, it's unconstitutional, because the Constitution prohibits any state from taxing interstate commerce," she said. "Should this bill be enacted, it would challenged in federal court within minutes." The bill could also trigger conflict with U.S. trading partners for using trade tariffs for non-trade related uses, Lanier said.

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