Port of L.A. Sued After Canceling Agreement for Shipping Container Facility

The Port of L.A. is seen in an undated photo. (Credit: Genaro Molina / Los Angeles Times)

The Port of L.A. is seen in an undated photo. (Credit: Genaro Molina / Los Angeles Times)

A Los Angeles company is suing the Port of L.A., claiming it improperly terminated an agreement to negotiate the development of a $130 million container facility at the harbor. The termination came after the company couldn’t secure support for the project from the union representing dockworkers, according to the lawsuit.

In a 15-page complaint filed this week in L.A. Superior Court, Harbor Performance Enhancement Center claims that it spent four years and more than $2 million on its planned facility at Terminal Island.

Shipping containers were to be stored and accessed at the site, using a “hub and spoke” model that would ultimately ease congestion at the port.

Port officials supported the project, according to the lawsuit, and granted the company an exclusive negotiating agreement. However, last month, Gene Seroka, executive director of the Port of L.A., told the company that the facility was “infeasible.”

Read the full story on LATimes.com.

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