Pacific Maritime Association

14 2025 ANNUAL REPORT 2 0 2 5 | A Y E A R I N R E V I E W Driving Jobs and Economic Growth in Southern California Nearly 100,000 direct jobs were created by marine cargo activity at the San Pedro Bay Port Complex, with most located in Los Angeles County, spanning longshore labor, trucking, terminal operations, warehousing, rail, and maritime services. Additionally, the ports supported nearly 3.6 million jobs and generated approximately $893 billion in economic output statewide — about 22% of California's entire economy in 2024. Containerized Cargo is the Key to Growth The Martin report makes clear the future economic contribution of the San Pedro Bay Port Complex is closely tied to containerized cargo, which generates the overwhelming majority of jobs and economic value. Container activity accounts for more than 90% of the direct, induced, and indirect impacts and nearly all related user employment. As a result, maintaining and growing container volumes will be critical to preserving the ports' central role in the local, regional, state, and national economies. "Sustaining cargo volumes is essential to protecting millions of jobs and hundreds of billions in economic output," said Dr. Martin. "At the same time, terminal operations are evolving, with increased automation and modern technologies reshaping how work is performed. Modern, efficient terminals will be critical to reliability, future growth, and global competitiveness." The twin Ports of Los Angeles and Long Beach continue to serve as one of the most powerful economic engines in the United States, supporting 7.6 million jobs nationwide and producing more than $1.6 trillion in total economic value – 5% of the U.S. GDP – according to a 2025 economic impact report prepared by Martin Associates for the Pacific Maritime Association. MARTIN ASSOCIATES ECONOMIC REPORT Terminal Modernization is Essential to the Vitality of Ports that Power the L.A. and U.S. Economies An automated straddle carrier moves a container at TraPac at the Port of Los Angeles. Global Rankings Highlight Urgency to Modernize The need for modernization is reinforced by global benchmarks, including the World Bank and S&P Global's Container Port Performance Index, which tracks port efficiency and cargo flow. In recent years, the Ports of Los Angeles and Long Beach have ranked near the bottom of these lists, highlighting constraints to growth. Analysts widely view these results as a clear signal that investing in modern infrastructure and advanced technologies is essential to improve reliability, compete with faster global ports, and grow cargo volumes in the years ahead. Generating Billions in Public Revenue to Support Local Communities The economic benefits also translate into major public revenue. San Pedro Bay Port Complex activity generated more than $88 billion in federal tax revenue and nearly $40 billion in state and local taxes nationwide in 2024. In California alone, it generated $29 billion in state and local taxes. These findings underscore a clear bottom line: Sustained investment in modern, efficient terminal infrastructure is not just a port priority, but a local, state, and national economic imperative to protect jobs, grow trade, and keep the San Pedro Bay ports competitive for decades to come.

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