Opponents Look to Tie Down Ports’ Rail Project

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The ports of Los Angeles and Long Beach have run into a potential stumbling block in their plans to expand a major rail yard: opposition from residents and environmental groups worried about congestion and pollution.

The Intermodal Container Transfer Facility, operated by Union Pacific Railroad on 148 acres bordering West Long Beach, can handle up to 725,000 container units a year. Loaded off ships, the containers are trucked to the rail yard where they are put on trains bound for various points in the United States.

Within several years, however, the rail yard is expected to reach full capacity. So Union Pacific is funding a $400 million modernization and expansion project that would more than double its annual capacity to 1.5 million containers.

The plan calls for new tracks and gate facility; improving existing gates; and the incorporation of a number of “green” features, such as electric overhead cranes, cleaner tractors and ultralow-emission locomotives.

Residents of nearby communities, however, have reacted with alarm, arguing that the proposed environmental mitigation measures can’t make up for the doubling of capacity. At a recent public hearing in Long Beach, more than a dozen spoke out against the project.

“The existing facilities are already causing lots of damage to our children and the community at large,” said Elena Rodriguez, who lives in the area. “It was a grave mistake to build this facility, and so I am asking you not to commit the sin of building it again.”

The L.A. office the Natural Resources Defense Council also has vowed to keep a close watch on the project, citing potential health hazards to the residents.

A joint powers authority of the two ports that is overseeing the project has said it expects a preliminary environmental impact report to be completed early next year. Construction could be completed in about five years if litigation does not slow it down.

“The board will have to listen and address their concerns,” said JPA Executive Director Doug Thiessen. “Union Pacific will have to be willing to accept certain mitigations in their project to gain the citizens’ support.”

Up and Away

The city of Long Beach has sold $62 million in 30-year bonds to pay for a new concourse at Long Beach Airport.

The project will not increase capacity at the city-owned facility, which is restricted by a local noise ordinance, but it will greatly improve the convenience and efficiency of the passengers’ experience, promised airport Director Mario Rodriguez.

“This is a huge milestone,” he said. “It’s the biggest construction for this airport in the last 70 years. This project will redefine how we operate.”

The concourse, expected to be completed in about two years, will connect the airport’s 11 gates to its main terminal, providing waiting rooms decorated with interior gardens and palm trees. The airport’s 3 million annual passengers currently wait in temporary buildings.

The concourse is the final piece of an ambitious improvement plan that includes a $60 million parking garage expected to be completed late next year.

About $13 million in proceeds from the bonds will be used to refinance old debts, while the rest will be used to pay for the terminal improvements.

The bonds fetched a 5.03 percent interest rate, which Rodriguez said cost the city less than anticipated. They will be repaid out of a $4.50-per-passenger fee. The sale was underwritten by New York-based Morgan Stanley.

Holding the Hull

A $1.1 billion luxury ship being constructed by a Beverly Hills company has reached a major milestone: the successful testing of its hull and propellers in water.

The test took place at a Samsung Heavy Industries facility in South Korea, said John Letham, a spokesman for ship developer Utopia Residences Co.

“This means that we don’t have to go to the drawing boards,” he said.

The 971-foot ship – called Utopia – is expected to be completed in 2013. The vessel will feature condominium cabins starting at $3.7 million for a 1,400-square-foot unit with kitchen and bath. Prices will top out at $24 million for a 6,600-square-foot space. The ship also will include a 204-room luxury hotel with stays priced from $500 to $1,500 per night

The ship will travel around the world and have regular ports of call: Among them will be the Cannes Film Festival in France and the annual running of the bulls in Pamplona, Spain.

The developer is marketing the condos to “the captains of industry, the founders of successful companies and the leaders of entertainment,” according to Chairman David Robb.

The company expects to begin selling the units early next year. The project is being largely funded by Frontier Group, a St. Louis-based private equity firm.

Staff reporter David Haldane can be reached at [email protected] or at 323-549-5225, ext. 225.

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