The port claims Swift, based in Phoenix, didn't fulfill the requirements of a truck purchasing agreement, reports DailyBreeze.com.
The port gave Swift more than $11.8 million to purchase almost 600 trucks. The incentives of $20,000 per truck said the carrier would put the EPA-2007-compliant drayage trucks into service at the port by January 2009 and the trucks would make 300 annual trips at the Port for five years.
Many of those trucks, however, did not make the required trips to the port the first two years of the program, claimed port officials, saying Swift had to pay back part of the incentives. According to the settlement document, the port says that based on the first two years of the agreement, Swift would owe about $7.65 million over the term of the "incentive addendum." Swift disagreed and said it did not owe any such repayment.
Last year, the Board of Harbor Commissioners approved lowering the annual trip requirement and offered other benefits to Concessionaires at the port.
The DailyBreeze.com reports the Port of Los Angeles granted $44 million to 56 motor carriers to purchase trucks through its Clean Trucks Program.
Dave Berry, a Swift spokesman, made the following statement for the company: "Swift is pleased the board [of harbor commissioners] approved the agreement. It is a fair settlement for the port and Swift. Our plan is to continue to operate in the port."