L.A. World Airports commissioners unanimously approved an additional $400 million to settle legal claims and set a date for completion of LAX's significantly delayed Automated People Mover -- increasing the project's total cost from $2.9 billion to $3.34 billion.
According to a report to commissioners from LAWA CEO John Ackerman, the additional funding is needed to address claims filed by the contractor, LAX Integrated Express Solutions, also known as LINXS, over issues related to compensation, production and timelines.
The funding request will need approval by Los Angeles City Council before any money can be allocated. The matter will go before council committees beforehand as well, sometime after council members return from summer recess on July 30.
"Resolution of claims now will provide LINXS the necessary cash flow and incentive to ensure schedule certainty," the report said.
"Resolution of these commercial issues will also allow the parties to focus on the activities necessary to complete the APM project, including reaching passenger service availability, and LAWA can avoid potentially higher costs should these claims continue unresolved," the report reads.
Ackerman said the project is a top priority for airport leadership. The settlement agreement largely covers already completed extra work by LINXS dating back to August 2018, and a longer than anticipated construction timeline.
"It is an honor to continue our partnership with LAWA and deliver a transportation system that will offer an elevated experience for travelers and Los Angeles residents alike. Our team has worked on large and complex transit projects around the globe, and the transformation provided by the LAX People Mover is poised to truly set the bar," Shawn West, LINXS Constructors board member, said in a statement.
In a statement to City News Service, Vice President of Communications for the Howard Jarvis Taxpayers Association Susan Shelley criticized the board's action.
"A new allocation of hundreds of millions of taxpayer dollars to settle legal claims over delays in the construction of the LAX Automated People Mover seems to suggest outrageous mismanagement in this over-budget and over- schedule project. Maybe the airport commissioners are showcasing to be appointed the next CEO of the California High Speed Rail Authority," Shelley said.
With the board's approval, the project is set to be completed on Dec. 8, 2025, and begin operation in January 2026. The electric train system on 2.25 miles of elevated rail with six stations will be available to ticketed passengers, their guests and airport employees for free.
For the first time, we're getting a close-up look at the Automated People Mover that's supposed to relieve traffic congestion when it opens.
"This project is going to reduce traffic on our freeways and our local streets while bringing good paying union jobs to Los Angeles," Mayor Karen Bass said in a statement. "This train will make a direct connection to the Metro system to ensure LAX welcomes Angelenos and visitors from across the globe in a truly world-class way."
Councilwoman Traci Park, who represents the 11th District, including the neighborhoods around LAX, and chair of the council's tourism committee, also applauded the board's decision.
"Constituents who drive, live and work around LAX are eager for the train to start taking cars off the road," Park said in a statement. I am hopeful this project will reduce congestion on our local streets; give people time back in their lives; and improve mobility for residents, travelers, and patrons of our local businesses."
The LAWA board in May already approved some $200 million in additional money for the project, to address similar claims submitted by the contractor -- but that money would be included as part of this $400 million, increasing the total settlement to about $550 million.
An additional $50 million was also approved as a contingency that may or may not be allocated fully, according airport officials.
The Automated People Mover is a piece of the airport's larger $30 billion project to update terminals, gates and airport signage.
The project is still aimed at coming online ahead of world events taking stage in the Los Angeles region, including the 2026 FIFA World Cup and the 2028 Olympic and Paralympic Games.
The airport broke ground on the People Mover in March 2019. It's estimated that it will eventually carry some 30 million passengers a year, resulting in 117,000 fewer vehicle miles traveled per day, according to LAWA's website.
LAX's train will operate 24/7, with trains arriving at stations every two minutes during peak hours from 9 a.m. to 11 p.m.. Running on 2.25 miles of elevated rail, it will connect to six stations: three inside the Central Terminal Area, one at LAX's Economy Parking facility, one connecting to Metro's LAX/Metro Transit Center station with transfers to the C (Green) and K lines and one at LAX's Consolidated Rent-A-Car facility. Total end-to-end travel time will be 10 minutes with a top speed of 47 miles per hour.
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