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
March 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
2026-03-13 — Updated with CY2025 record data (9.9M TEUs, +2.4% YoY, approaching 10M TEU milestone). Moody's Aa2 upgrade confirmed. All 6 terminals exceed 1M TEU milestone. S389 refresh.2026-02-23 — Initial publication. 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 (March 2026): The Port of Long Beach handled approximately 9.9 million TEUs in calendar year 2025 — a new all-time record (+2.4% over CY2024), and the first time POLB approached 10 million TEUs. All six container terminals individually exceeded 1 million TEUs annually — an industry milestone. 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 FY2025/26 budget reflects sustained record volumes. The 2026-2035 Capital Improvement Plan remains at $3.2 billion, anchored by Pier B Rail. 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.
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 approximately 9.9 million TEUs in calendar year 2025 — 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 (combined POLA and POLB volumes as a share of total U.S. import TEUs; source: port-published annual volume data).
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 gives bondholders first claim on all port revenue before any operating expense deductions, contrasting with a net revenue pledge where O&M expenses are deducted first. This distinction reflects the Port's approach to bondholder protection.
POLB is executing a $3.2 billion capital program (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 merits monitoring in credit analysis.
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 2025 | CY 2024 | Change |
|---|---|---|---|
| Total TEUs | ~9,900,000 | 9,649,724 | +2.4% |
| 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 (POLB 2021 Economic Impact Study) | — | — |
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 (per publicly available terminal lease summaries; specific year not independently confirmed). This lease-heavy revenue structure provides predictability: even in a down throughput year, the fixed lease component provides a revenue floor — a contrast with ports that derive the majority of revenue from per-unit tariff charges tied directly to throughput volume. 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 stronger structural bondholder protection — under a gross pledge, bondholders have first claim on revenues before any operating expense deductions.
| 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 (Moody's upgraded to Aa2 Feb 2025; Fitch AA affirmed) |
| TIFIA (Gerald Desmond Bridge) | S&P AA / Fitch AA- — subordinate to senior revenue bonds |
Reserve Funds: The POLB Master Trust Indenture requires reserve funds including a Debt Service Reserve Fund (DSRF) and additional reserve accounts. Funded balances and reserve fund requirements are disclosed in POLB's annual ACFR and official statements on EMMA.
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 a subordinate TIFIA loan — layers federal credit below the senior lien, preserving senior lien DSCR metrics while utilizing lower-cost federal credit for the capital component. 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 (+89 acres, a 109% 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 central to POLB's long-term capacity: as container volumes grow and trucking becomes more costly and constrained by CARB zero-emission drayage mandates (phased 2023–2035), on-dock rail capacity 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 | 2026-2035 CIP; includes Pier B Rail ($1.8B anchor project) |
| 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, and debt issuance. Prior POLB capital projects secured over $400 million in cumulative federal infrastructure grants (PIDP, INFRA, BUILD programs; cumulative through FY2024). Pier B Rail has applied for federal funding; award amounts remain subject to program decisions and appropriations. Future revenue bond issuance to fund the $3.2B CIP will add to POLB's current ~$1.7B outstanding debt; POLB's ~3.0x historical DSCR and 600 DCOH liquidity policy provide approximately 1.75x of coverage headroom above the 1.25x legal covenant.
Credit Analysis
Strengths: (1) AA+/Aa2/AA ratings from S&P, Moody's, and Fitch (all Stable; Moody's upgraded to Aa2 in February 2025) — comparable to Port of Los Angeles. (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 (FY2011-2024; pandemic low 2.4x; rebounded 3.0x+) — approximately 1.75x above the 1.25x legal covenant. (5) 600 DCOH liquidity policy. (6) ~$180B in annual cargo value (POLB port-published estimate; year unspecified in source). (7) TIFIA subordinate structure keeps senior DSCR metrics strong. (8) Track record on large capital projects: Middle Harbor Terminal Redevelopment ($1.5B, completed 2021) and Gerald Desmond Bridge Replacement ($1.5B, completed Oct 2020) — both brought to completion, establishing execution precedent 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.