Stealth tax threat to US west coast ports

A controversial revenue-generating port bill appears to be on the home stretch in the California legislative process, lacking only the final seal from state governor Arnold Schwarzenegger.

Ports Strategy: US west coast ports support congestion taxation

The Ports Investment Bill, pioneered by senator Alan Lowenthal, proposes a $30 per container levy to combat pollution and congestion at the US west coast ports of Long Beach, Los Angeles and Oakland. The California State Assembly approved the bill, which has been in the making for four years and has been rejected twice in that time, with a 45-23 vote last week.

Initial estimates put the potential revenue at $480m/year, based on current container throughput figures.

Opponents of the bill are concerned that the additional levy will deter lines from calling at the west coast ports.

7-9 October

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