On the heels of posting surging volume, the nation's busiest container port is investing in technology and real estate upgrades.
The Port of Los Angeles had its second most active year ever in 2024, moving 10.3 million container units, up 20% from 2023. That’s the largest year-over-year gain recorded at the 117-year-old port, according to executive director Gene Seroka.
"With state-of-the-art equipment, streamlined operations and expanded capacity, we're setting the stage for tremendous growth for the next decade and beyond," Seroka said at a press event in San Pedro, the South Bay neighborhood home to the Los Angeles port.
A strong economy, robust imports and exports, investment by the Union Pacific and BNSF railroads to accommodate increased cargo, and better use of real-time data combined to help drive business in 2024, Seroka said.
Looking ahead, the port is building thousands of square feet of new waterfront retail, restaurant and entertainment space and revamping its cruise segment to drive additional gains.
Expansion efforts come under the shadow of potential tariffs and trade restrictions under the new Trump administration that could slow activity and create uncertainty, port executives said.
Entertainment district
The port is joining the mixed-use redevelopment wave playing out across the country through its $250 million West Harbor project, a repurposing of the Ports O' Call shopping center. The 375,000-square-foot waterfront entertainment, dining and shopping district — including a 150-foot Ferris wheel — is scheduled to open in phases starting in 2026.
The project will also include a 6,200-seat amphitheater managed by live venue operator Nederlander Organization and a branch of the popular Japanese-themed destination restaurant Yamashiro.
In November, the port issued a call for proposals for the redevelopment or adaptive reuse of the historic six-story, 500,000-square-foot Warehouse No.1 property that's considered one of the port's most iconic buildings. Potential uses include creative office, hospitality, dining, entertainment, education and other marine-related or visitor-serving commercial uses.
Executives also pointed to cruise ships as a key component of the port's future. Each cruise ship generates more than $1 million in local economic activity when it calls at the port, Seroka said. In the past year, 100 cruise ships called with 1.5 million people, and the port wants to build capacity for more.
"When a cruise ship comes in, San Pedro buzzes," Seroka said.
The port is developing the Outer Harbor Cruise Terminal by 2030 to accommodate bigger and more vessels from expanding operators like Princess and Royal Caribbean. It's also redeveloping the existing 22-acre World Cruise Center terminals in San Pedro to accommodate additional noncruise uses in the off-season, such as filming, conferences and events.
Modernizing logistics
The port recently added a new feature to its proprietary digital platform that allows nearly 20,000 truckers serving the port to digitally manage terminal appointments to improve workflow.
Cutting greenhouse gas emissions is also a goal for the port in 2025, with new charging infrastructure upgrades for a growing fleet of electric trucks, tractors and top handlers. Diesel equipment is being swapped for electric and hydrogen powered equipment, while planners are considering an electric locomotive for hauling materials within the port, Seroka said.
The port will also play an important part in helping bring in essential goods to rebuild sections of Los Angeles destroyed by recent wildfires, according to Councilmember Tim McOsker, who represents Council District 15, which includes San Pedro and Wilmington.
"We will have a long recovery, and we need a strong port complex to help bring Los Angeles back to where it needs to be," McOsker said at the press event on Thursday.
To combat the potential headwind of tariffs, port officials plan to lobby against trade restrictions in Washington, D.C.
“This post-globalization era is creating new headwinds that we must navigate,” Seroka said. “We will knock on every door in Washington and share the benefits of this port to anyone who will listen because we need strong federal and local partnership.”