Ports Call on Congress for Long-Term Solution for Maintenance, Infrastructure
15 Apr, 2019
In written testimony submitted to the House Transportation and Infrastructure Committee, Subcommittee on Water Resource and Environment hearing on the “Cost of Doing Nothing,” the American Association of Port Authorities (AAPA) calls on Congress to invest in critical landside and waterside connections to seaports, fully utilize HMT revenues and implement a long-term funding solution for port maintenance.
“Landside and waterside investments are critical to building America’s 21st century seaport infrastructure. AAPA has highlighted $66 billion in federal need over the next decade for port-related infrastructure. About half of that need, $33.8 billion, is for waterside investments,” said Kurt Nagle, President & CEO of the AAPA.
On the waterside, there are existing funding opportunities to address our needs at seaports. The Harbor Maintenance Tax (HMT) is paid by shippers to ensure our nation’s ports are well maintained. According to Port of Los Angeles Executive Director, Eugene Seroka, who testified at the April 10 Subcommittee hearing, “(The HMT) is a unique and important revenue source that can keep our nation’s ports and harbors operating at their maximum potential.”
Both ports requiring traditional dredging and donor ports (where a large proportion of the HMT revenues are collected) require the use of these funds. Approving a long-term funding solution for port maintenance that makes full use of the HMT more permanent and includes language to address tax fairness and cargo diversion problems is critical. The four pillars of this solution are:
•Full use of future HMT revenues;
•A funds distribution framework that makes permanent and expands donor and energy transfer port funding, as well as expands the allowable in-water use of these funds;
•Minimum regional funding assurances based on historic funding; and
•Emerging harbors funding that updates the provisions in WRRDA 2014 and WIIN 2016 to guarantee no less than 10% to these harbors.
AAPA applauds the Subcommittee for focusing on this critical issue. The cost of doing nothing not only impacts our ports and freight infrastructure system but also affects our ability as a nation to grow and thrive. America: Keep it Moving.
Founded in 1912 and recognized as the unified voice of seaports in the Americas, AAPA today represents 140 of the leading seaport authorities in the United States, Canada, Latin America and the Caribbean and more than 250 sustaining and associate members, firms and individuals with an interest in seaports. According to IHS Markit’s World Trade Service, combined international sea trade moving through Western Hemisphere ports in 2016 totaled 3.49 billion metric tons in volume and US$3.01 trillion in value. Of that total, ports in Central and South America handled 1.71 billion metric tons of cargo valued at US$941 billion, while North American ports handled 1.79 billion metric tons of goods, valued at US$2.07 trillion. To meet the growing demand for trade, the AAPA and its members are committed to keeping seaports navigable, secure and sustainable. For more information, visit www.aapa-ports.org. On Twitter: http://twitter.com/AAPA_Seaports
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