First, there is the election. When asked for views about a Trump presidency, Kurt Nagle, the ceo of the American Association of Port Authorities (AAPA), speaking on a conference call, pointed out that Trump had mentioned harbour deepening, a lightning rod issue for AAPA members, at a recent rally on a tour around the US heartland to thank voters for their support.
Nagle said, “We think that there is a recognition by the new administration that we need to invest….in our transportation infrastructure…and specifically our freight infrastructure, if we are to compete internationally.”
There is more, the conference call itself, organized by the AAPA and another group promoting surface transportation, had the purpose of recapping developments on the one year anniversary of the Fixing America’s Transportation Act (FAST Act), which sets aside $11bn for freight handling, over a five year period, included within a much larger funding authorization.
In a prepared statement, Nagle said: “For the first time we have dedicated funding for multimodal freight projects. This is a big step forward. It shows that Congress and the Administration firmly recognize that seaports must be connected to America’s surface transportation network in order for the freight network to be efficient.”
The conference coincided with the release of an AAPA-led report “The State of Freight II”, amplifying on the AAPA’s estimate that $29bn would be needed in the next decade, for baseline investments in seaport landside infrastructure.
One example, mentioned on the call by Maryland Port Administration’s deputy chair Kathleen Broadwater concerned a railway tunnel, built in the 1890s, connecting the Port of Baltimore with the network of the CSX railroad, that must be raised to allow the movement of trains with double stacked containers. When asked about a desired funding mix, Broadwater suggested equal tranches from the private side, the State (in this case, Maryland) and from funding mechanisms under the FAST Act.
The AAPA call also coincided with other developments that are viewed as auspicious for the seaports, and for inland waterways which also depend on Federal funding for maintenance of river depths. A revised Water Resources Development Act is now in the final stages of its tortuous voyage through the U.S. legislative process.
Under the latest drafts of the bill, dubbed Water Infrastructure Improvement for the Nation (or WIIN), the allowable harbour dredging depth would be increased to 50 feet (from the present 45 feet) on harbor deepening projects, which become eligible for a 75% federal contribution. Additionally ports will also gain better access to money previously withheld by the Federal government, out of a trust fund built up on collections from the Harbor Maintenance Tax - a levy on each container imported into the US.
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