Maritime Interests Seek Upgraded Freight System

WASHINGTON — U.S. maritime interests added voices to a growing chorus seeking more federal transport funding, citing a $28.9 billion shortfall for freight-network upgrades.

The American Association of Port Authorities presented its case on behalf of 80 U.S. locations during a conference here that included Capitol Hill visits as Congress debates what to do about long-term transportation infrastructure funding. The ports’ effort is the latest move as transport interests, including trucking, urge Congress to address spending issues between now and May 31, when current funding expires.

“We have to get out the message that we need a long-term transportation bill with a dedicated, sustainable source of funding,” said Kristin Decas, CEO at California’s Port of Hueneme and chairwoman of the AAPA trade group.

As part of the funding campaign, the group released the results of a membership survey that identified the $28.9 billion to pay for 125 projects between now and 2025 in the face of mounting congestion and aging maritime infrastructure.

In addition, AAPA’s spring conference included a presentation by maritime economist John Martin of Martin Associates, who gauged the economic impact of coastal ports at $4.6 trillion last year, which reflects 26% of gross domestic product and more than 23 million jobs.

“These are some extremely dramatic numbers we can use here in Washington,” said AAPA President Kurt Nagle, who acknowledged the political task ahead.

“We’ve seen and continued to see a growing recognition in the administration and both sides of the aisle in Congress for a program that is focused on freight transportation beyond highways,” he said. “Reauthorization is very important.”

However, he added a familiar refrain from other quarters of transportation: “The challenge is, where is the funding going to come from?”

“With May 31 approaching fast, our hope is that it is a very short extension to allow [Congress] to craft a long-term bill,” Nagle said. “In general, the challenges are getting worse and worse for ports.”

AAPA members are seeking long-term funding that includes specific funding for freight projects as well as a “dedicated and sustainable” funding source, including sources such as the federal Transportation Investment Generating Economic Recovery, or TIGER, funds.

Martin Associates’ founder has done about 500 transportation consulting projects. Martin said his study found an increase of $1.4 trillion, or 43%, in port-related activity compared with a survey he did in 2007. The latest review was based on more than 12,000 interviews with truckers and other carriers, shippers and port officials.

Growth since the 2007 survey has been tilted toward exports that have increased in seven years as production of goods and services increased, he noted.

Martin’s survey also found that growth in Mexican and Canadian port facilities has outpaced the United States, due to factors such as increased security-related funding and recession-related declines in U.S. trade.

In addition to the shortfall in federal funding, Martin said there has been a drop in private funding of port projects that peaked in 2006-2007 with investor expectations of 12% return on investment at that time, which did not materialize.

He did note, however, that some private investment is continuing, such as Ports America’s purchase of the Seagirt Marine Terminal in Baltimore and investments by Carrix Inc.’s SSA Marine unit in California.