The move comes after California United Terminals spent about 25 years at the Port of Long Beach, officials said.
The company currently sits on 130 acres of land on Piers D and E in Long Beach, where it operated on a month-to-month lease with the port.
“The decision by California United Terminal to relocate from Long Beach to Los Angeles has been an extremely difficult one, considering the long-term relationship with the Port of Long Beach,” said Jeff Sprawls, director of harbor and logistics for Hyundai Merchant Marine.
“Over the coming weeks,” he said, “we will work closely with the Port of Long Beach and APM Terminals to develop a moving plan that will allow for a smooth transition.”
Sprawls said the shipping company is leaving Long Beach amid concerns that business would be hampered by the upcoming Middle Harbor redevelopment project, which calls for creating 65 new acres of land for terminals.
The anticipated loss in shipments at Long Beach will be offset by two new services that will result in 550,000 annual cargo containers at the SSA Terminal, along with another 234,000 annual shipments anticipated by Matson Navigation Co.’s expanded service to China, said Chris Lytle, deputy executive director and operating officer at the Port of Long Beach.
“The timing of this departure allows us to entertain a variety of leasing opportunities that may ultimately result in a more effective use of this property and shorter construction times,” Lytle said. “With cargo trade on the rise, there is strong demand for terminal space in Long Beach, and the port has had interest from several shipping companies in leasing the property.”
Shipments are just beginning to rebound at the twin port complex after two years of declines brought on by the economic recession.
June marked one of the strongest months on record at the Port of Los Angeles, where officials said they hope to see the momentum continue through the rest of 2010.
“I think it’s a big deal,” Los Angeles Harbor Commissioner Joseph Radisich said about California United Terminals’ pending move. “It’s a good day for the port.”
