POLA in trouble over TraPac

The TraPac development cost has doubled in four years from $245m up to $510m which has largely been put down to opting for automated cranes running on rails instead of rubber tyres. This one change to the development plan reportedly bumped the cost up by $175m.

The LA Times says that its seen a report showing that port officials first drew up the changes to the terminal plan in 2010 but they were not submitted to the harbour commission or council for another three years.

Councillors say that they have been “blindsided” by the rising costs of the development and have pointed out that the Port of Los Angeles has been building a project without proper authorisation from the harbour commission and council leaving the port vulnerable to lawsuits.

Worse, the council has now questioned whether the move to automation will result in fewer jobs for International Longshore and Warehouse Union workers.

Phillip Sanfield, POLA spokesperson, told Port Strategy: “There were mistakes made by the Port with respect to not getting the lease amendment to the Harbor Commission and City Council in a timely manner, as well as underestimating the costs of project. We are currently reviewing our processes to make sure these problems are not repeated in the future.”

It’s unclear as to whether there will be repercussions for POLA for leaving the commission and the council out of the development loop at this stage.

LA City Council has requested a report in 90 days to find out what measures have been put in place to deal with the issues.