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Big win for port and waterways interests in the US

Big win for port and waterways interests in the US
Port and logistics executives were waxing very positive this week. In the normally gridlocked and dysfunctional Washington, D.C. environment, President Barack Obama actually signed a group of bills into law- one of which was the Water Resources Reform and Development Act (WRRDA).

The bill would allocate $12.3bn to be spent across three dozen port and inland waterway projects spread around the US - literally from Boston  (which will be eligible for the Federal share of a $300m dredging project (and a deepening of tanker approaches at “Chelsea Creek”) to Los Angeles/Long Beach (where the ports would now be eligible for greater funding based on “Harbor Maintenance Tax” payments). Other ports set to benefit included Savannah, Georgia and Jacksonville, Florida - two gateways that have worked hard to capitalize on the closeness to railway and highway links to the burgeoning Southeastern US and beyond.

With the widening of the Panama Canal, East Coast ports have all been readying themselves for the arrival of larger vessels.

Washington watchers were quick to note that the bills support was bi-partisan, ie with support from both Democrats (the party of Obama) and Republicans. Not surprisingly, the WRRDA’s enactment drew good words from industry groups. The American Waterway Operators (AWO), the American Association of Port Authorities (AAPA) and the Waterways Council each offered positive words.

Kurt Nagle, the president and ceo of the AAPA, was effusive in praise, noting that the new legislation would “…enable expedited navigation project studies, create more flexibility for capital investment and advance construction on the nation's 21st century maritime infrastructure.”

The AWO, representing the “brown water” (tugboat, towboat and barge) segment of the business, praised the legislation as “…a victory for the nation. It helps ensure the continued safe, efficient and environmentally friendly delivery of critical cargo via the nation’s waterways.”

The Waterways Council, which looks closely at issues concerning under-maintained locks and dams on inland rivers, pointed to likely changes in the application of taxes collected on fuel for inland river towboats - with the likelihood that more could be spent on upgrades of the locking infrastructure.