Completion of LAX's People Mover project likely to be delayed until next year, report says
The long-anticipated Automated People Mover planned to ease transport around Los Angeles International Airport may not debut until next year, according to a new report.
The report, which comes from credit ratings agency Fitch Ratings, has downgraded the bond rating for the project to "negative" as construction appears to be taking longer than first expected. The project was initially planned for completion at some point in 2024.
According to the report, the unplanned postponement boils down to increasing delays in construction and a "strained relationship" between airport officials and the company that they chose to operate APM.
"Although the project is around 96% complete, the Negative Outlook reflects the likelihood that any unresolved construction issues, further deterioration of the relationship between the two parties, or further disputes during the testing and commissioning phase could result in additional material completion risk concerns," the Fitch Ratings report read.
Now, the debut may be pushed back to April 2025.
An airport official said that there are active negotiations with the contracted company building APM to resolve outstanding claims.
Citing a recent technical advisor report, Fitch Ratings says that the two sides "have agreed to work towards a time extension and cost compensation agreement by Feb. 1, 2024."
AMP is a 2.25-mile elevated guideway being constructed to "enhance traveler experience, give guests time-certain access to terminals and provide the long-awaited connection to the regional transportation system," according to the Los Angeles World Airports.
The people mover is just $5.5 billion of the extensive $30 billion modernization project called the Landside Access Modernization Program that has been ongoing at LAX in recent years.
