Finance: Los Angeles, New York/New Jersey

 

The Port of Los Angeles this month debuted portoflabonds.org, a dedicated investor website designed to communicate more effectively with current and potential bond investors who support port infrastructure projects, institutional investors, and smaller investors, such as local banks and individuals, and members of the public.

 

With more than 2,000 pages of data and documents, the corporate-style investor platform provides insight into the credit fundamentals behind the port’s longstanding ‘AA/Aa2/AA’ rating — the highest rating attainable for self-funded ports.

 

"This new tool is designed to make it easier for those interested in Port of Los Angeles bond opportunities to quickly access information about our nation’s busiest container port," said Marla Bleavins, deputy executive director and chief financial officer of the Port of Los Angeles. "This site consolidates investment opportunities, financial data, and other resources needed to make informed decisions." 

 

Free and open to all, the new website consolidates port data and documents that are valuable to bond investors and rating agencies, providing quick and easy access to extensive financial information. The long-term goal is to attract more investors, including retail investors, local banks and wealth managers, to the port’s bond program and thereby increase distribution and diversify the investor base.

 

 

Following a month-long public comment period, the governing board of the Port Authority of New York & Jersey on December 7 approved the agency’s 2018 budget consisting of $3.2 billion for operating expenses and $3.4 billion for capital expenses. 

 

The final document and supporting schedules will be available for download in both PDF and excel form upon completion of the gubernatorial review period.

The operating budget represents an increase of $61 million, or 1.9 percent versus the 2017 budget, in line with the rate of inflation. The increases are primarily driven by increases in police staffing at port authority facilities, higher operating costs from facilities coming into operation at the World Trade Center site in 2018 -- and higher payments to local municipalities and other landlords in return for the use of facilities or property. These expenses will be more than offset by increased revenues of $127 million or 2.5 percent versus the 2017 budget. 

The capital budget funds major state-of-good-repair work at key transportation facilities and major projects to replace aging infrastructure with modern, state-of-the-art facilities to provide for future growth. 

 

Highlights of the 2018 Operating Budget:

• $726 million to ensure safety and security at Port Authority facilities, including the addition of new counterterrorism police posts at the airports, the addition of new Port Authority Police Department supervisory officer positions, and the commencement of two PAPD classes in 2018.
• $1.6 billion to operate and maintain the agency’s infrastructure operations, including an increase in maintenance costs driven by additional facilities coming on line at the World Trade Center site.
• $392 million for ongoing management services.
• $396 million for payments to local municipalities and other landlords in return for the use of facilities or property.

 

Highlights of the 2018 Capital Budget:

• $1.1 billion to redevelop the region’s airports - LaGuardia, Newark Liberty International and JFK International
• $55 million for further planning and design activities for a new Port Authority Bus Terminal. 
• $432 million for upgrades to Trans-Hudson crossings, including the Bayonne Bridge Navigational Clearance Program construction.
• $71 million for PATH’s Signal System Replacement Program, and the continuation of PATH station and equipment modernization programs. 
• $55 million for the ExpressRail intermodal container transfer facilities at Port Jersey.
• $17 million to support continued planning activities for the Gateway Program

 

"This budget is a win for our customers and a win for this region and its economy," said Port Authority Chairman Kevin O’Toole. "It invests in better security at airports, bridges, tunnels and PATH, provides enhanced, state-of-the-art customer service amenities and allows for the construction of best-in-class facilities that will sustain regional growth for many decades."