Ports Are Economic Engines In 2000, 5 million people in U.S. were employed in port-related jobs, earning $44 billion annually In 2000, port-related businesses generated over $16 billion a year in federal, state, local taxes Port activity contributes nearly $750 billion to GNP
No Two Ports Are Alike Port of Benton (Washington) Port of Long Beach (California)
There are public- and privately-owned ports All AAPA member ports are public Public ports part of state, bi-state, county or city government, or special district Public ports run by elected or appointed boards with professional staff Port Governance
Landlord ports lease their marine facilities Operating ports operate their own facilities Limited operating ports do some of both Most public ports use stevedores to hire and supervise longshore labor Landlord vs. Operating Ports
Cargo Ports, Cruise Ports, Combo Ports ← Cargo ports serve freight Cruise ports serve people → ← Many serve both →
Ports Handle Many Types Of Cargo Bulk cargoes like grain, petroleum and fertilizers Breakbulk cargoes like roll paper, baled cotton and steel rail Ro-Ro cargoes like auto- mobiles, tractors and mili- tary ve- hicles Contain- erized cargoes like food, electron- ics and textiles
Through Federal/State/Local Partnerships – U.S. ports plan, fund their own facilities – Private investors help, such as terminal operators How Are Ports Developed?
Federal government controls and funds navigation channel maintenance; cost-shares deepening projects State and local governments, with money from federal Highway Trust Fund, pay for road access to/from terminals How Are Ports Developed?
Population growth, development creating land use pressures for ports – Coastal populations expected to grow 60% by 2010 – Competing demands for non-maritime waterfront uses How Are Ports Developed?
Port Revenues General Obligation Bonds Revenue Bonds Loans Grants Other Sources How Are Ports Funded?
Each state relies on 13-15 ports Seaports handle 99% of U.S. overseas (non- NAFTA) cargo tonnage Annual freight volumes through U.S. ports exceed 2.6 billion tons International trade expected to reach one-third of GDP by 2020, up from 13% in 1970 Ports Are National Assets
Many ports have agreements with the federal government to serve needs of military 19 U.S. ports listed as militarily “strategic” Ports Are Vital To The Military Efficient supply chain logistics at U.S. ports help reduce costs of moving military cargo
Marine terminals are the hub for inbound and outbound cargoes Key Port Challenge: Terminal Congestion Ships getting bigger, necessitating terminal infrastructure investments to handle them
Trucks/trains need unobstructed port access Marine transportation system offers good alternative where feasible National Freight Policy “framework” needs appropriations, more federal involvement Key Port Challenge: Landside Congestion
Unresolved federal funding questions delaying critical navigation projects Harbor Maintenance Trust Fund is growing, along with backlog of navigation maintenance needs Corps of Engineers’ Civil Works Program funding is dwindling as ships are getting bigger New water resources bill imperative to maintain/improve America’s navigation system Key Port Challenge: Waterside Congestion
Key Port Challenge: Seaport Security Seaport security must continue to be a top priority Ports have spent hundreds of millions of dollars to protect facilities against terrorism Port Security Grant program under-funded since inception Congress must fully appropriate SAFE Port Act provisions
Key Port Challenge: Improving the Coastal Environment Port of Long Beach executives promote program to reduce marine terminal tractor exhausts AAPA members are taking a leadership role in improving the coastal environment by: Voluntarily reducing diesel emissions Advocating ratification of MARPOL Annex VI to limit vessel emissions Urging national & international ballast water management programs Adopting Environmental Management Systems (EMS)
Summary: Ports & Communities Are Allies Port communities are important players and partners with ports in meeting industry challenges We look forward to working together to address our mutual needs