The Long Beach Board of Harbor Commissioners has signed off on a $1.05 billion spending plan for the Port of Long Beach for fiscal year 2026–27, a roughly 28.6% jump over the current budget that pours fresh money into rail, terminal upgrades and zero-emissions projects. The move puts serious muscle behind the Pier B on-dock rail program and other system upgrades meant to move cargo faster while cutting truck trips through the harbor.
The vote came at the commission’s June 23 meeting, and port officials say about 55% of the spending is tied to capital investments in rail, zero-emissions technology and other improvements. As reported by MyNewsLA, capital expenditures are slated to climb to $571.8 million, which is a 53.7% increase from the prior year, while operating revenue is estimated at roughly $577.9 million and the plan includes an estimated $28.7 million transfer to the city’s Tidelands operating fund. The commission characterized the bigger spend as a long-term play to expand capacity and improve sustainability across the port complex.
Port CEO Noel Hacegaba framed the budget as part of a long-range push to double throughput to about 20 million containers by 2050 and called for sweeping upgrades across terminals and rail. The Los Angeles Times reported that the port has mapped out roughly a $3.2–$3.3 billion 10-year capital program to help reach those goals.
Pier B And The Rail Overhaul
The Pier B On-Dock Rail Support Facility is the star of that program. Construction broke ground in July 2024 and full buildout is expected to wrap in 2032. As detailed by Railway Age, the project will reshape the yard footprint, add long staging tracks and more than triple the port’s on-dock rail capacity, allowing longer and faster intermodal trains to roll through.
Speed And The Supply Chain Payoff
Port officials say faster rail service should sharply reduce how long containers sit in the harbor. The target is to cut average rail dwell from roughly four days to about 24 hours once Pier B and related rail projects are fully online. Industry coverage quoting port leadership notes that shorter dwell times are intended to offset longer ocean transit as shippers diversify routes, helping keep Long Beach in the hunt for cargo, according to Air Freight News.
Where The Money Goes
Roughly 55% of the budget is earmarked for capital work, including funding for the Clean Trucks Program and other zero-emission initiatives. As MyNewsLA reports, the FY 2026–27 plan provides about $54 million for the Clean Trucks Program while maintaining the port’s transfer to the Tidelands operating fund to support shoreline and community projects.
Financing And The Port’s Credit Profile
The port’s financial footing helped make the bigger budget possible. Long Beach carries top-tier credit ratings that give it relatively low-cost access to capital and a cushion for a multi-year buildout. Financial analysis notes the Port of Long Beach holds an AA+ rating from S&P and an AA rating from Fitch, along with a strong Moody’s placement, underscoring the authority’s capacity to fund major projects over time, per MuniIntel.
Next Steps And What To Watch
With the Harbor Commission’s adoption, the budget now moves into the city’s broader budget review process, where the Long Beach City Council reviews Harbor Department spending as part of the municipal calendar. City budget materials show the Harbor Department’s fiscal year begins Oct. 1, and the adopted plan will be tied to that October start date; see the City of Long Beach for details.
For Long Beach residents, the package signals a major construction era along the waterfront that aims to reduce truck traffic and emissions while positioning the port for growth over the coming decades. Expect permitting, phased construction and community outreach to ramp up over the next year as projects move from design to active building.
