Port of Long Beach (POLB) — Financial Profile
City of Long Beach Harbor Department
#2 U.S. Container Port — Revenue Bond Credit Analysis
Prepared by DWU AI
An AI Product of DWU Consulting LLC
February 2026
DWU Consulting LLC provides specialized municipal finance consulting for transportation agencies, airports, ports, toll roads, and water utilities. Our infrastructure finance expertise spans revenue forecasting, bond structuring, rate analysis, and capital program advisory. Please visit https://dwuconsulting.com
Important Disclaimer: This article is generated by artificial intelligence and provided for informational purposes only. It should not be construed as legal advice, investment advice, or financial guidance. Port authorities, investors, and policymakers should consult qualified legal, financial, and technical advisors before making decisions based on this content. DWU Consulting does not provide personalized investment, legal, or tax advice through this article.
Entity financial data: Sourced from the port authority's published ACFR, official statements, and EMMA continuing disclosures. Figures reflect reported data as of the fiscal years cited; current figures may differ.
Credit ratings: Referenced from published rating agency reports. Ratings are point-in-time; verify current ratings before reliance.
Operational statistics: Based on port-published cargo volumes, vessel calls, and operational reports. Cargo data is subject to revision.
Governance and organizational information: Based on publicly available port authority enabling legislation, board records, and organizational documents.
Analysis and commentary: DWU Consulting analysis. Port finance is an expanding area of DWU's practice; independent verification of specific figures against primary source documents is recommended.
Changelog
2026-02-23 — Initial publication. Comprehensive financial profile covering POLB bond structure, FY2024 throughput (all-time record 9.65M TEUs), Pier B Rail $1.8B project, TIFIA financing, gross revenue pledge, and tariff trade risk.POLB Update (February 2026): The Port of Long Beach handled 9,649,724 TEUs in calendar year 2024 — an all-time record and a 20.3% year-over-year increase driven by front-loading ahead of anticipated tariff changes. The Port's $1.8 billion Pier B On-Dock Rail Support Facility began construction in July 2024, the largest infrastructure investment in Port history. Upon completion (~2032), Pier B will increase rail capacity from 1.5 million to 4.7 million TEUs annually. POLB's FY2024/25 budget totals $760 million (+19.5% over prior year), reflecting the volume surge. Gross revenue pledge bonds are rated AA+/Aa2/AA (all Stable), with an internal policy DSCR target of 2.0x and 600 days cash on hand liquidity requirement. The 2026-2035 Capital Improvement Plan totals $3.2 billion — the most capital-intensive program of any U.S. port by investment density.
Introduction
The Port of Long Beach (POLB), formally the City of Long Beach Harbor Department, is the second-busiest container port in the United States and the Western Hemisphere. Sharing San Pedro Bay with the adjacent Port of Los Angeles, POLB handled 9.65 million TEUs in calendar year 2024 — a new all-time record. Together, POLA and POLB form the San Pedro Bay port complex, handling approximately 40-45% of all U.S. container imports and representing the largest concentration of container port infrastructure on the Western Hemisphere.
POLB's bond structure differs in one key respect from POLA: POLB pledges gross revenues (all available operating revenues before deduction of O&M expenses) rather than net revenues. This structurally stronger pledge — typical in transactions where operating cost variability is a concern — gives bondholders first claim on all port revenue, making POLB bonds slightly more conservative from a structural standpoint. The practical difference is modest given POLB's financial strength, but reflects the Port's approach to bondholder protection.
POLB is undertaking the most ambitious capital investment program of any U.S. port in proportion to its revenue base — $3.2 billion over 2026-2035, anchored by the $1.8 billion Pier B Rail project. This investment positions the Port for the next generation of mega-vessel calls and intermodal cargo routing, but also represents meaningful future debt issuance that investors should monitor.
Entity Overview
| Field | Value |
|---|---|
| Full Legal Name | City of Long Beach Harbor Department |
| Market Position | #2 container port in US and Western Hemisphere |
| Governance | Board of Harbor Commissioners (5 members) |
| Structure | Component unit of City of Long Beach; Tidelands trust property (State of California) |
| Fiscal Year End | September 30 |
| EMMA ID | 8F1970E09EEEEDC262A6898F271A5648 |
Operational Performance
| Metric | CY 2024 | CY 2023 | Change |
|---|---|---|---|
| Total TEUs | 9,649,724 | ~8,018,000 | +20.3% |
| Imports | 4.7M TEUs | — | +24.3% |
| Exports | 1.2M TEUs | — | -5.9% |
| Empties (repositioning) | 3.7M TEUs | — | +26.6% |
| Annual Cargo Value | ~$180B | — | — |
| Economic Impact (regional) | 370,000 jobs; $5.6B taxes | — | — |
Revenue Composition: Approximately 90% of POLB's revenue derives from long-term container terminal leases with major operators. Six major container terminals operate at the Port under lease agreements, with minimum annual rents ranging from $160,000 to $270,000 per acre. This lease-heavy revenue structure provides predictability that distinguishes POLB from pure volume-sensitive ports: even in a down throughput year, the fixed lease component provides a revenue floor. Variable revenue from wharfage, dockage, and cargo handling charges responds to actual throughput.
Bond Structure and Debt Profile
POLB's bonds are secured by a gross revenue pledge — the first lien on all available operating revenues of the Harbor Department before deduction of operating expenses. This contrasts with POLA's net revenue pledge and represents slightly stronger structural bondholder protection.
| Feature | Detail |
|---|---|
| Pledge Type | Gross Revenue — senior lien on all available operating revenues |
| Rate Covenant (Legal) | 1.25x net revenue coverage on senior lien bonds |
| Internal Policy (Board Ordinance Oct 2011) | 2.0x DSCR on all obligations combined; 600 DCOH minimum |
| Historical DSCR | ~3.0x consistently since 2011; pandemic low 2.4x; rebounded 3.0x+ |
| Outstanding Debt | ~$1.7 billion (harbor revenue bonds + TIFIA subordinate loan) |
| Senior Bond Ratings | S&P AA+ / Moody's Aa2 / Fitch AA — all Stable (Fitch affirmed July 2024) |
| TIFIA (Gerald Desmond Bridge) | S&P AA / Fitch AA- — subordinate to senior revenue bonds |
TIFIA Financing — Gerald Desmond Bridge: The Port used a TIFIA (Transportation Infrastructure Finance and Innovation Act) loan to partially finance the $1.5 billion Gerald Desmond Bridge replacement, completed in October 2020. The TIFIA loan is subordinate to POLB's senior revenue bonds and secured by a secondary pledge of port revenues. This structure — senior revenue bonds with subordinate TIFIA — is a well-established template in U.S. port finance that has been replicated at other major ports. The subordinate nature of TIFIA debt improves the senior lien DSCR by keeping TIFIA service below the coverage line.
Capital Program — Pier B Rail
POLB's capital program is defined by the $1.8 billion Pier B On-Dock Rail Support Facility, the single largest infrastructure investment in Port history. Construction began in July 2024 with an expected completion around 2032. The project will expand Pier B from 82 to 171 acres (+109 acres, a 133% increase in land footprint) and increase on-dock rail capacity from 1.5 million to 4.7 million TEUs annually — a 213% capacity increase. This investment is strategically critical: as container volumes grow and trucking becomes more costly and constrained by CARB zero-emission mandates, intermodal rail becomes the primary means of moving containers inland cost-effectively.
| Project | Amount | Status |
|---|---|---|
| Pier B On-Dock Rail Support Facility | $1.8 billion | Construction began Jul 2024; completion ~2032 |
| 2026-2035 Total CIP | $3.2 billion | #1 US port by capital investment intensity |
| Middle Harbor Terminal Redevelopment | $1.5 billion | Completed 2021 |
| Gerald Desmond Bridge Replacement | $1.5 billion | Completed Oct 2020; TIFIA-financed (subordinate) |
| Deep Draft Channel Deepening | $170 million | Completed 2021; channel now 76 ft in deepened sections |
Capital Funding Strategy: POLB funds its capital program through a combination of operating cash flows, reserves, federal grants (PIDP, INFRA, BUILD), and debt issuance. The Pier B Rail project is expected to attract significant federal participation (prior POLB projects have secured $400M+ in federal infrastructure grants cumulatively). Future revenue bond issuance to fund the $3.2B CIP will add to POLB's current ~$1.7B debt load, but the Port's strong revenue base and current low leverage provide ample headroom.
Credit Analysis
Strengths: (1) AA+/Aa2/AA ratings — among the highest for any US seaport. (2) Gross revenue pledge — structural bondholder protection superior to net revenue pledge. (3) Lease-heavy revenue base (~90% from long-term terminal leases) provides predictable revenue floor. (4) Consistent ~3.0x DSCR demonstrates significant covenant headroom. (5) 600 DCOH liquidity policy. (6) $180B+ in annual cargo value reflects deep economic embedding. (7) TIFIA subordinate structure keeps senior DSCR metrics strong. (8) Proven capital program execution (Middle Harbor, Gerald Desmond) demonstrates implementation capability for Pier B.
Risks: (1) Pier B execution risk — $1.8B in new construction over 8 years creates cost overrun, delay, and funding risk. (2) Tariff/trade policy — same Trans-Pacific concentration as POLA; 145% China tariffs caused late-2025 volume softening. (3) Future debt issuance — $3.2B CIP will require meaningful new bond issuance, adding leverage. (4) CARB compliance costs — zero-emission drayage requirement by 2035 affects truckers who use the Port but also generates Port investment obligations. (5) Labor — ILWU West Coast labor contract risk shared with POLA.