As executive director of the Port of Los Angeles, one of my recurring nightmares is waking up to discover that the Western Hemisphere’s busiest port has ground to a halt. Unfortunately, that nightmare became a reality for a week last month due to a labor dispute. Cargo operations essentially ceased during the strike. It was a stark reminder of the enormous economic impact the San Pedro Bay port complex has on the Southern California region and what’s at stake in the future.

What I found remarkable is what happened when the strike ended. The nation’s busiest port sprang back to life immediately. Linesmen, pilots and tugboats were dispatched within an hour of the announcement of a tentative deal, and ships started moving. By daybreak, thousands of workers, dozens of trucks and billions of dollars of infrastructure investments proved that we have the bandwidth and resources to recapture a week’s worth of backed-up cargo very quickly.

No trade gateway in North America can move so much cargo so efficiently. That’s why it is essential that business, labor and government unite to make certain that this port complex remains the leading global trade gateway in North America. We cannot afford to let other ports chip away at the jobs and economic vitality that is so critical to Southern California.

Based on a recently updated economic analysis, the ports of Los Angeles and Long Beach in 2011 had a $310 billion impact on the economy. That translates into 900,000 jobs in Southern California and more than 1.2 million jobs statewide.

It’s been well publicized that the widening of the Panama Canal is only two years away, a project that could result in the biggest ships passing us by to serve America’s heartland from East Coast ports. That’s our market! As America’s port, more than 40 percent of our cargo goes east, most of that to the Chicago area. Less known is the increased competition coming from ports in the Pacific Northwest, Western Canada and Mexico.

Our largest terminal operator has broken ground, with plans to spend nearly $1 billion, on a container terminal at the Port of Lazaro Cardenas in Mexico. Where do you think the cargo will come from that will fill that terminal? Simply put, competition is more intense than ever.

So how do we maintain and grow market share when the San Pedro Bay port complex has a target on its back? The Port of Los Angeles adopted a five-year strategic plan in April that is a blueprint for responsible growth and job creation. It focuses on competitive operations, strong relationships and financial strength.

The foundation of the plan is built upon our commitment to maintain and develop our world-class infrastructure. With a five-year, $1.2 billion capital improvement plan, the port is investing about $1 million a day to deliver terminal, wharf and transportation projects on time and budget.

The port recently completed deepening its main navigational channels and basins to a 53-foot depth, ensuring that we can accommodate ships of all sizes for decades to come. We’re expanding and modernizing container terminals, about to break ground on a rail yard and have several projects under environmental review. All of this is taking place while air pollution from port-related sources has been reduced by as much as 76 percent over the last five years.

Because of our size, regional warehousing resources and speed-to-market connectivity, our customers achieve an economy of scale that makes it competitive to do business here. When the recession hit several years ago, some of our customers began consolidating their shipments through the Port of Los Angeles. We need to keep that cargo on our doorstep.

Even with the investment being made by the port to remain competitive, factors beyond our control will dictate whether we win or lose. Our railroad partners, who have invested in heavily upgrading their facilities and equipment, must keep their rates competitive. Cargo terminal operators and labor need to have a stable relationship because customers demand certainty and reliability. If we cannot assure our customers the reliability of uninterrupted service with competitive rates, we will lose them. After the 2002 labor dispute shut down ports along the West Coast, it took years to convince our overseas customers that we could be a reliable port. We can’t afford those questions today.

We’re fortunate to have business groups such as the L.A.-based Beat the Canal initiative, the Los Angeles Area Chamber of Commerce, the Central City Association and Jobs First Alliance advocating for our capital development projects to move forward expeditiously. It’s this kind of partnership and understanding of the port’s importance that will allow us to maintain our competitive advantage.

More than ever, our future in Los Angeles is tied to our engagement in the global marketplace. The Port of Los Angeles is blessed with what I refer to as the “L.A. Advantage.” For everyone’s sake, let’s work together to make sure we keep it.

Geraldine Knatz, Ph.D., is the executive director of the Port of Los Angeles.