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‘Ports 101’ - An Industry Perspective
Prepared by
American Association of Port Authorities
July 2007
Ports Connect Us With The World
Ports Are Dynamic Transportation Hubs
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
Ports Are Environmental Stewards
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 freightCruise 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
Key Port Challenge: Cargo Volume Gains
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