Western Economic Diversification Canada
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Long Beach

General Description

The Long Beach Foreign Trade Zone (LBFTZ) is located in Long Beach, southern California, on the Pacific coast. Its grantee is the Board of Harbor, Commissioners of the Port of Long Beach.36

The LBFTZ has nine sub zones being operated by the following companies:37

  1. National RV
  2. Datatape, Inc.
  3. Alps Manufacturing
  4. Rauch Industries
  5. Shell Oil Products
  6. BP West Coast Products LLC
  7. Valero Energy Corporation
  8. Ricoh Electronics, Inc.
  9. Eastman Kodak Company

Infrastructure

Energy

California produced 69.5 percent of the electricity it used in 2007. The remaining part was imported from the Pacific Northwest (8.2 percent) and the U.S. desert southwest (22.3 percent).38

Telecommunications

The LBFTZ has access to a well established telecommunications network. Major telecommunication services providers operating in that area are AT&T California, T-Mobile USA, Verizon Wireless, Broadwing Communications Corp, and Pac-West Telecomm that provide a wide range of telecommunication services to their customers.

Transportation

Road Transport
The LBFTZ is located in close proximity to 710 Long Beach freeway, 405 San Diego freeway, 605 San Gabriel River freeway, 110 Harbor freeway, 105 Century freeway, and Route 1 Pacific Coast highway.39

Sea Transport
The LBFTZ is located in close proximity to the Port of Long Beach. The Port of Long Beach is a leading gateway for trade between the United States and Asia. It is the second busiest port in the U.S. and the 15th busiest container cargo port in the world. If combined with the port of Los Angeles, it would be the world's fifth busiest port complex behind Singapore, Shanghai, Hong Kong, and Shenzhen, China.40

Rail Transport
The LBFTZ is located in close proximity to rail transport, which is provided by Union Pacific Railroad and BNSF Railway. These railways carry about half of the transhipments from the Port of Long Beach. In addition, the Alameda Corridor connects the Port of Long Beach to the Los Angeles rail hub.

Air Transport
The LBFTZ is located in close proximity to Long Beach airport and Orange County/John Wayne airport.41

Financial Sector

The LBFTZ has access to an established financial network. Banks and financial institutions like 1st Century Bank, Asian Pacific National Bank, Bank of America, Bank of NAPA, Bank of New York, Barclays, offer a wide spectrum of financial services to their customers.

Business Sectors

The key sectors operating at the LBFTZ are auto, small appliances, oil and gas, and electronics.42

Business Inputs

Raw Materials

Raw materials may be imported to the LBFTZ with deferral of customs duties. In addition, if such raw materials carry a higher duty rate than a finished product, manufacturing or assembly operations within the LBFTZ can secure application of a lower duty rate applicable to the finished products.
California has access to abundant mineral resources including, but not limited to, oil, diatomite, gold, magnesium compounds, molybdenum, and perlite.43

Labour

As of 2000, there were 461,522 people residing in Long Beach city. The city's demographics is spread out with 29.2 percent under the age of 18, 10.9 percent from 18 to 24, 32.9 percent from 25 to 44,
18.0 percent from 45 to 64, and 9.1 percent who were 65 years of age or older. The median age was 31 years.

The California State University at Long Beach, the Long Beach City College and DeVry University ensure a steady influx of skilled labour into the local economy.

Investors

Deloitte was not able to obtain reliable information on the geographical origin of foreign investors that have established a presence in the LBFTZ.


[36] http://ia.ita.doc.gov/Ftzpage/letters/ftzlist.html, July 24, 2008.

[37] Ibid.

[38] http://energyalmanac.ca.gov/electricity/index.html, July 31, 2008.

[39] http://www.ci.long¬beach.ca.us/about/facts.asp, July 21, 2008.

[40] http://polb.com/about/facts.asp, July 21, 2008.

[41] http://www.ci.long¬beach.ca.us/about/facts.asp, July 21, 2008.

[42] http://ia.ita.doc.gov/Ftzpage/letters/ftzlist.html, July 24, 2008.

[43] http://www.netstate.com/economy/ca_economy.htm, July 31, 2008.