Häfen | Ports U.S. ports demand 66 bn $ in investments Quite a few ports in the United States reported growth and positive balances recently. But despite positive circumstances and good prospects, they urge the Federal Government for huge investments. By Michael Meyer According to figures presented by AAPA (American Association of Port Authorities), U.S. seaward trade increased by 10% within the first eleven months of 2017. »Overall for 2017, foreign trade tonnage was the highest it’s been since 2008, with exports experiencing double-digit growth to a record high and the fourth consecutive year of gains for imports,« AAPA President Kurt Nagle told HANSA. Experts continue to caution infrastructural deficiencies may slow down the US economic boom. Even though the Trump administration has introduced a comprehensive investment package to Congress recently, an agreement with the Democrat opposition is not expected. Some Republican party members also expressed reservations. After the Panama Canal expansion, ports consider being prepared for the launch of large container ships one of the most important issues – not merely in terms of quayside handling. Port and hinterland processing of cargo also poses problems for the operators. Traffic jams and blockages are the result cargo owners and freight forwarders complain about. In addition, ports need to invest in green technologies as harsher regulations require a reduction in emissions. Rather positively, AAPA is looking at political achievements: »AAPA is looking forward with great anticipation to a focus on America’s infrastructure investment needs by the Trump Administration and Congress in 2018,« Nagle says. Seaport cargo activity accounts for 26% of U.S. GDP, over 23 mill. American jobs, and generates over 320 bn $ annually in federal, state and local tax revenues. To ensure these jobs, tax revenues and freight volumes continue to grow and support the American economy, AAPA has worked to identify 66 bn $ in federal port-related infrastructure investments over the next ten years, on both the waterside and the landside. This level of federal investment into port-related infrastructure is needed to support the nearly 155 bn $ in infrastructure investments that U.S. ports and their private-sector partners plan to invest up and including 2020. Federal support for land and waterside infrastructure improvements, together with security and environmental protection, are key priorities for America’s ports in 2018 and beyond. Nagle adds, »AAPA member ports are pleased that the Congress continues to provide strong funding for the Corps’ Navigation program, including making progress towards full use of annual Harbor Maintenance Tax (HMT) revenues.« The association is also advocating congressional appropriations in other programmes for freight transportation, port security, diesel emissions reduction grants, additional customs and border protection. Photo: AAPA As part of the »Tax Cuts and Jobs Act« bill passed 2017, AAPA says it was successful in urging Congress to maintain most tax exemptions on Private Activity Bonds (PABs) to help finance infrastructure projects. The association’s advocacy efforts also were rewarded when Congress voted to maintain the tax credit for wind energy projects. Because PABs provide a significant source of financing for port-related and municipal infrastructure projects, AAPA worked with several transportation and bond-related coalitions to advocate against the elimination of tax exempt status for PABs. »We were extremely pleased the final legislation kept PABs mostly tax-exempt. Maintaining PABs as tax-exempt will Kurt Nagle, CEO help foster investments, not just in and around American Association of Port Authorities ports, but also in needed infrastructure development throughout the nation. It was estimated that ports would have had to pay approximately 19 mill. $ in extra debt service costs for every 100 mill. $ borrowed had the PAB tax exemption been lost. These significantly increased costs would have harmed ports’ ability to make needed investments, and likely would have delayed or even killed some projects. As Congress and the Trump Administration consider a broad infrastructure investment package, U.S. seaports have identified 66 bn $ in necessary infrastructure investments over the next decade to keep freight moving efficiently. On the waterside, this works out to about 33.8 bn $. On the landside, the amount is estimated to be 32.03 bn $. On the waterside, there is a need for 27.6 bn $ to maintain channels and harbours, and 6.2 bn $ to modernize them. Of the 27.6 bn $, 18.6 bn $ would come from full use of annual HMT revenues, which includes providing more equity to donor ports, plus 9 bn $ from the current HMT surplus to address the chronic dredging maintenance backlog at deep-draft ports. Of the 6.2 bn .$ modernization amount AAPA has identified, 3.1 bn $ is needed for the federal share of 15 current congressionally-authorized construction channel improvements and another 3.1 bn for the federal share of constructing projects undergoing feasibility studies. For the landside portion of the infrastructure investment need, 28.9 bn $ is necessary up and including 2025 to build vital road and rail connectors, plus 3.13 bn $ to improve port infrastructure, allowing more funding for multi-modal freight projects. »A top priority, going forward, is getting Congress to make HMT spending mandatory, while addressing donor equity and tax fairness issues,« the AAPA President explains. Because U.S. ports and their private-sector partners have told AAPA they plan to invest some 155 bn $ into port-related infrastructure and other capital projects between 2016 and 2020, AAPA says to continue to urge the Federal Government to make the 66 bn $ in port-related investments. 78 HANSA International Maritime Journal – 155. Jahrgang – 2018 – Nr. 3
Häfen | Ports First automated terminal in L.A. The supporting circumstances – the booming U.S. industry and the expanded Panama Canal, just to name two – led to very positive results for quite a few U.S. ports in 2017. One example is West Coast hub Los Angeles, the nation’s busiest container port, which is coming off of back-to-back record-breaking years. In 2017, the container port saw a throughput of 9.3 mill. TEUs, a 5.5% improvement over 2016’s record year. »We’ve had an extraordinary run these last two years, and we are optimistic about 2018. Record cargo numbers are providing us the opportunity to invest more in our port infrastructure,« a spokesperson tells HANSA. To adapt for future challenges, Los Angeles is working on several expansion projects. TraPac, a subsidiary of Japan-based Mitsui O.S.K. Lines, has expanded through a five-year, 510 mill. $ programme that has extended its wharves to 4,600 linear feet, deepened water depth at Berths 144–147, installed new cranes, upgraded and electrified backlands, constructed road and gate improvements and terminal buildings, and built a new on-dock rail facility. All programme elements have been constructed and the terminal is now operating with new electrified equipment. »Construction of on-dock rail and the final phase of backland improvements were completed in 2017, making the Port of Los Angeles home to the first automated terminal and rail facility on the West Coast,« the spokesperson adds. Container traffic in loaded TEUs (not including empties) January–November 2017 2016 Los Angeles 8,563,980 8,060,247 6.2% Long Beach 6,847,595 6,226,242 10.0% New York / New Jersey 6,166,851 5,723,821 7.7% Savannah 3,723,099 3,352,348 11.1% Seattle Tacoma Seaport Alliance 3,358,837 3,299,545 1.8% Hampton Roads 2,603,495 2,426,082 7.3% Houston 2,250,850 2,009,464 12.0% Oakland 2,212,646 2,369,641 -6.6% Charleston 1,994,673 1,831,801 8.9% Jacksonville 992,245 901,602 10.1% In October, the Los Angeles Harbor Commission certified the Final Environmental Impact Statement for the proposed improvement project for the »Everport Container Terminal Improvements Project«. Everport’s proposed plan is to deepen its berths and improve its terminal facilities, allowing the terminal operator to accommodate the larger next-generation vessels. The 58 mill. $ project would increase berth depth up to 53 feet. Construction is expected to start in late 2018. Source: AAPA Commitment to Service The Port of Long Beach is the greenest, fastest, most efficient gateway for goods moving to and from Asia and marketplaces across America. We’re keeping our competitive edge while working sustainably, offering unrivaled customer service while we build the Green Port of the Future. www.POLB.com HANSA International Maritime Journal – 155. Jahrgang – 2018 – Nr. 3 79
