Seaports: Essential to our Seaports: Essential to our Econom ic Prosperity W hy the Federal Governm ent Must I nvest in Seaport Related I nfrastructure S t R l t d I f t t Kurt Nagle President and CEO President and CEO American Association of Port Authorities March 4, 2013 American Association of Port Authorities 703.684.5700 • w w w .aapa-ports.org 1
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 • Legislative and Policy support i l i d li • Outreach 2
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 opportunities, 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. 3
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 4
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. 5
Can the U.S. m eet these challenges w ith current freight policies? ith t f i ht li i ? Existing transportation programs do not Existing transportation programs do not adequately address goods movement! • AAPA policy focuses heavily on improving port infrastructure AAPA li f h il i i i f 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. 6
Landside Access Landside Access • Landside connections to seaports, including connector roads, rail, and highway corridors, must not hinder the efficient flow il d hi h id t t hi d th ffi i t fl of 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. 7
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 on freight flows • C Connectivity to maritime ports of entry is listed prominently for designations i i i i f i li d i l f d i i • 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 historic first i fi • AAPA and DOT had joint webinar on the new law for seaports 8
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 9
W aterside Access Corps Projects: • Need to expedite the Corps process N d t dit th C • 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 these solutions (copy of report can be found on aapa-ports.org) h l i ( f b f d ) • 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. 1 0
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 costs to consumers. t t • 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 Congress should guarantee full use of the HMT, which would help resolve h ld f ll f h HMT hi h ld h l l the earmark issue. 1 1
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 LaHood established a Freight Advisory Committee in L H d t bli h d F i ht Ad i C itt i 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 1 2
W hat Does the Future Hold? Water Resources Legislation: • A stated priority in both the Senate and the House A t t d i it i b th th S t d th H • AAPA advocating range of policy changes such as 1. Full use of the HMT 1 F ll f h HMT 2. Regulatory Streamlining 3 3. Process Streamlining/Updating Process Streamlining/Updating 4. Updating cost share formula 5. Navigation Center of Expertise g p 1 3
AAPA U S Delegation Guiding Principles: AAPA U.S. Delegation Guiding Principles: 1. Full use of HMT 2 2. Funding from HMT first should be used for historically 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. must have a process to efficiently study and construct 5 U S t h t ffi i tl t d d t t deep draft navigation projects 6. Cost share formula for maintenance and deepening should be p g reflective of the current cargo fleet 1 4
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. 1 5
The Fiscal Cliff and the Continuing Budget Battles in W ashington Battles in W ashington March 1 was the deadline of th the automatic sequester of t ti t f government funds or automatic spending cuts. On March 27 the continuing resolution expires. footer goes here 1 6
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