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1 Port Freight Infrastructure Planning & Investment John N. Young Director of Freight & Surface Transportation Policies American Association of Port Authorities.

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Presentation on theme: "1 Port Freight Infrastructure Planning & Investment John N. Young Director of Freight & Surface Transportation Policies American Association of Port Authorities."— Presentation transcript:

1 1 Port Freight Infrastructure Planning & Investment John N. Young Director of Freight & Surface Transportation Policies American Association of Port Authorities National Association of Counties Annual Meeting February 21, 2015 American Association of Port Authorities 703.684.5700

2 2 American Association of Port Authorities Representing Seaports of the Western Hemisphere for 100 years! AAPA was established in 1912 Since then, AAPA has been providing a space for collaboration and exchange of best practices Fostering collaboration among members and allied groups through: Education and Training Networking and one on one interaction Legislative and Policy support for U.S. ports Outreach


4 4 WRRDA & Harbor Maintenance Tax HMT TARGETS FY 201567% of FY 2014 FY 201669% of FY 2015 FY 201771% FY 201874% FY 201977% FY 202080% FY 202183% FY 202287% FY 202391% FY 202495% FY 2025+ 100% February 6, 2015 ACTUAL FUNDING FY15 Cromnibus: $1.12 B ($50 M short of target) FY16 HMT Target: $1.25 B ($1.81 B HMT x 69%) Budget request: $915 M ($335 M short) (50% of Tax revenue)

5 5 Trade Opportunities, Planning For Growth Population to increase to 8 billion by 2024 - growing at a rate of 1.14% per year India’s population expected to surpass China by 2030 driving demand and trade growth Trade projected to more than double by 2020, especially containers America’s trade volume expected to quadruple after 2030 Growth in exports in the U.S. Doubling of coal and bulk consumption

6 6 AAPA Landside Freight Priorities Need for Federal and State Planning Designation of Gateways and Corridors Identification of Connectors on Primary Freight Network Expertise in Maritime/Freight Planning should be a part of every state DOT Short Sea Shipping or America’s Marine Highways Dedicated Freight Funding Port authorities should be eligible to apply directly for funding Funding for Connectors, Intermodal projects and ‘First and Last Mile’ projects Funding for Projects of National & Regional Significance (PNRS) TIFIA and Strong Financing Options

7 7 AAPA and NACo Working Together footer goes here Preliminary results from AAPA’s “Port Surface Freight Infrastructure Survey,”: 67% of our nation’s ports are working directly with their region's Metropolitan Planning Organization (MPO) or Council of Governments (COG) in the development and planning of a recent (or as-yet-unfinished) freight project 75% of our ports participated in the development of their state's statewide freight plan 69% of ports are members of a local freight advisory committees

8 8 Investment in the Freight Network footer goes here Over the next decade, handling projected inbound and outbound cargo efficiently will require investing in upgrading intermodal connectors. Nearly 80% of our port members surveyed said a minimum investment of $10 million in their connectors is necessary. 31% of the survey said $100 million is needed. 35% of Port Authorities said congestion on connectors negatively impact their port's productivity by 25-50%.

9 9 Ports Must Prepare for Larger Vessels As ships continue to increase in size, ports of the Western Hemisphere are faced with assessing the adequacy of channel and marine terminal capacity.

10 10 Investment is Critical Now More Than Ever Ports and their private sector partners are investing more than $46 billion over 5 years Government entities need to uphold the partnership Governments/private sector must get creative about financing options Investment in infrastructure pays dividends in the long term and is a worthy investment Partnerships among seaports, governments, investors, terminal operators will be more important in the future

11 11 The State of Freight Two freight advisory committees were set up to study the nation’s freight challenges after the passage of MAP-21 Industry also weighs in with recommendations House T&I Committee National Freight Advisory Committee (NFAC) The Freight Stakeholders Coalition

12 12 USDOT Reports and Releases Impacting Ports National Freight Strategic Plan Framework – to be released Spring 2015 Need to define eligibility of ports for surface transportation programs Ports need clarity Conditions & Performance Report – to be released Spring 2015 Focuses on the now and what are the implications Will call for the fluidity index that would measure how long it will take goods to move throughout the country – Similar to Canada’s approach 30 Year Frame Work – Beyond Traffic Secretary's initiative, available now for your comments Looks at how we incorporate growing population and increased freight flows National Maritime Strategy – to be released 2015 Congress requested examining options to meet US Freight movement needs on the water Will include funding options

13 13 Mapping Freight – Interactive Website Image: © 2015 The Brookings Institution Trade of All Commodities (Total Trade) between Omaha, NE-IA and its Largest Trading Partners This diagram shows the largest trade flows (imports plus exports) by dollar value of all commodities (total trade) between Omaha, NE- IA and its largest trading partners for this commodity group.

14 14 Our Message Investments in seaports are an essential, effective utilization of limited resources, paying dividends through increased trade and commerce, long-term job creation, economic vitality, and sizable tax revenues.

15 15 Contact: John Young

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