Seaports: Essential to our Seaports: Essential to our Econom ic - - PowerPoint PPT Presentation

Seaports: Essential to our Seaports: Essential to our Econom ic Prosperity

W hy the Federal Governm ent Must I nvest in S t R l t d I f t t Seaport Related I nfrastructure Kurt Nagle President and CEO President and CEO American Association of Port Authorities

March 4, 2013

1 American Association of Port Authorities 703.684.5700 • w w w .aapa-ports.org

Am erican Association of Port Authorities Representing Seaports of the Western Hemisphere for 100 years! Western Hemisphere for 100 years!

• AAPA was established in 1912
• Since that time AAPA has been providing a space

S ce e s bee p ov d g sp ce for collaboration and exchange of best practices

• Fostering collaboration among members and

allied groups We do this through: allied groups. We do this through:

• Education and Training, PPM
• Networking and one on one interaction

i l i d li

• Legislative and Policy support
• Outreach

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Creating Aw areness: W e Have a Great Story to Tell g y

• Today, as we confront a host of international challenges – a

tenuous economy (both globally and at home), more trading

• pportunities, larger vessels, population growth, trade growth

– there is a clear and critical role for our ports

• It is critical that we communicate the value of seaports and
• It is critical that we communicate the value of seaports and

their related infrastructure

• Ports are dynamic, vibrant centers of trade and commerce
• While we face competing interests the message is clear:

Seaports Deliver Prosperity. It is hard to argue with an industry that is a proven economic driver industry that is a proven economic driver.

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W hat’s on the Horizon – A quick review … q

• New trade agreements with Colombia, Panama, and South Korea
• Panama making significant investments in the Canal Expansion
• Canada investing in infrastructure through the Gateways Initiatives
• Brazil is emerging as a strong economy weakness of dollar has

Brazil is emerging as a strong economy, weakness of dollar has increased demand for imports. The country is expected to invest $12.44 billion in its public and private ports through 2020

• We are seeing h ge in estments in Me ico’s ports s stem to handle
• We are seeing huge investments in Mexico’s ports system to handle

the growing demand for trade

• Obama goal remains to double exports by 2015

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Ports in the W estern Hem isphere Must Prepare for Larger Vessels Prepare for Larger Vessels

• With ships getting increasingly larger, ports of the Western Hemisphere are faced

with assessing if they have adequate channel capacity with assessing if they have adequate channel capacity

• For some ports, investments are required for deepening the channels to remain

competitive.

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Can the U.S. m eet these challenges ith t f i ht li i ? w ith current freight policies? Existing transportation programs do not Existing transportation programs do not adequately address goods movement!

AAPA li f h il i i i f

• AAPA policy focuses heavily on improving port infrastructure

and connections through greater investment in:  Federal navigation channels and marine highways Federal navigation channels and marine highways  Port, road and rail infrastructure

• Without these investments we cannot accommodate trade

growth, population growth, increasing vessel size, etc.

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Landside Access Landside Access

• Landside connections to seaports, including connector roads,

il d hi h id t t hi d th ffi i t fl rail, and highway corridors, must not hinder the efficient flow

• f goods through the supply chain.
• The most recent authorization of surface transportation

p programs, known as MAP-21, establishes a framework for moving forward with a National Freight Policy and supporting programs but more must be done programs, but more must be done.

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Recent Developm ents: AAPA is Strong Ad ocate of National F eight Polic Advocate of National Freight Policy

MAP-21

• Law establishes national freight policy and creates supporting programs that

Law establishes national freight policy and creates supporting programs that target national and regional freight networks/intermodal connectors to ports

• Calls for defining a primary freight network and critical rural corridors based
• n freight flows

C i i i i f i li d i l f d i i

• Connectivity to maritime ports of entry is listed prominently for designations
• States must begin planning. AAPA has encouraged members to work with their

states on freight plans.

• Encourages states to undertake more freight projects by providing a higher

Encourages states to undertake more freight projects by providing a higher federal cost-share

• Authorizes $500 million for projects of national and regional significance.
• Language encouraging the Administration to budget for full use of HMT – a

hi i fi historic first

• AAPA and DOT had joint webinar on the new law for seaports

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Funding Port I nfrastructure TIGER:

• Started as part of American Reinvestment and

Recovery Act y

• AAPA strong supporter of continued TIGER

discretionary grant program y g p g

• AAPA policy position advocates that 25% of TIGER

grants should be awarded to port related infrastructure projects

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W aterside Access

Corps Projects:

N d t dit th C

• Need to expedite the Corps process
• AAPA has a partnership with the Corps – Quality Partnership

Initiative and developed set of process improvements for Initiative and developed set of process improvements for permitting, project study and delivery processes

• We will be working with the Corps and Congress to implement

h l i ( f b f d ) these solutions (copy of report can be found on aapa-ports.org)

• In June the President decided to expedite certain Corps permits

and we encourage more of that in the future. and we encourage more of that in the future.

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W aterside Access W aterside Access

Federal navigation channels not being maintained at authorized dimensions

• More than 90 percent of the nation’s busiest seaports require regular

maintenance dredging to move the 99 4 percent of America’s overseas maintenance dredging to move the 99.4 percent of America s overseas cargo.

• Without routine dredging, ships are limited from entering certain

waterways or cannot sail with full cargo loads, which ultimately increases t t costs to consumers.

• The federal government does not fully utilize the Harbor Maintenance Tax

(HMT) for its intended purpose and critical dredging needs have been neglected. g

• Only about half of user fees are being spent, resulting in increased costs for

waterborne transportation, higher prices to consumers and reduced competiveness of U.S. exports in the global marketplace. C h ld f ll f h HMT hi h ld h l l

• Congress should guarantee full use of the HMT, which would help resolve

the earmark issue.

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W hat Does the Future Hold?

Surface Transportation:

• Encourage members to work with states to develop

Encourage members to work with states to develop freight plans

• Continue to work with DOT on freight policy (Secretary

L H d t bli h d F i ht Ad i C itt i LaHood established a Freight Advisory Committee in February)

• Support appropriations for TIGER and PRNS in federal

Support appropriations for TIGER and PRNS in federal budget

• Lay plans to begin working on next MAP-21
• AAPA Co-Chairs Freight Stakeholder Coalition

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W hat Does the Future Hold?

Water Resources Legislation:

A t t d i it i b th th S t d th H

• A stated priority in both the Senate and the House
• AAPA advocating range of policy changes such as

1 F ll f h HMT

• 1. Full use of the HMT
• 2. Regulatory Streamlining

3 Process Streamlining/Updating

• 3. Process Streamlining/Updating
• 4. Updating cost share formula
• 5. Navigation Center of Expertise

g p

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AAPA U S Delegation Guiding Principles: AAPA U.S. Delegation Guiding Principles:

• 1. Full use of HMT

2 Funding from HMT first should be used for historically

• 2. Funding from HMT first should be used for historically

intended purposes

• 3. Provide more equity for HMT donors
• 4. U.S. tax policy should not disadvantage U.S. ports and

maritime cargo 5 U S t h t ffi i tl t d d t t

• 5. U.S. must have a process to efficiently study and construct

deep draft navigation projects

• 6. Cost share formula for maintenance and deepening should be

p g reflective of the current cargo fleet

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President Obam a I nfrastructure I nitiative

• State of the Union Address mentions need to modernize ports
• Plan lays out three policy categories concerning infrastructure

investment:

• Investing in a “fix-it-first” policy

Investing in a fix it first policy

• Attracting private investment through a “Rebuild America Partnership,”
• Cutting red tape
• President reaffirms commitment to “doubling American

exports” by expanding market access for American-made products through trade agreements with South Korea, p g g , Colombia, Panama, and the European Union.

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The Fiscal Cliff and the Continuing Budget Battles in W ashington Battles in W ashington March 1 was the deadline of th t ti t f the automatic sequester of government funds or automatic spending cuts. On March 27 the continuing resolution expires.

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Our Message:

Federal investm ents in seaports are an i l ff i essential, effective utilization of lim ited resources, paying dividends through increased trade and com m erce, long-term job creation, secure borders, m ilitary support and environm ental stew ardship.

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Seaport Activity can be a Key Econom ic Driver if I n estm ents a e Made if I nvestm ents are Made

• Cargo moving through ports generates 13

million jobs

• Over one quarter of U.S. Gross Domestic

Product accounted for by international trade 99% f t d th h

• 99% of overseas trade goes through

America’s seaports

• Port activity generates over $200 billion in

federal state and local tax revenues federal, state and local tax revenues

• According to the ASCE: Failure to Act

Report, if investments are not made in infrastructure, the losses will profoundly p y impact the economy, household costs and international competitiveness

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W hat Can W e Do?

We must emphasize the value of seaports… We must emphasize the value of seaports…

• Need for big picture

messages and more messages and more global understanding

• f seaports as vital part
• f the economy
• AAPA’s “Seaports

Deliver Prosperity” Deliver Prosperity hemispheric campaign lends credibility, cachet y to individual port efforts

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W e m ust educate…. W e m ust educate….

• A better public understanding of seaports and intermodal

transportation = more support = more infrastructure transportation more support more infrastructure investment, trade and local collaboration

• Learn more at:

seaportsdeliverprosperity.org

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