1 port freight infrastructure planning & investment john n. young director of freight &...
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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 Authorities703.684.5700 • www.aapa-ports.org
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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
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INFRASTRUCTURE VITAL FOR AMERICA’S TRADE FUTURE
LANDSIDE AND WATERSIDE CONNECTIONS CRITICAL
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WRRDA & Harbor Maintenance Tax
HMT TARGETS
• FY 2015 67% of FY 2014 • FY 2016 69% of FY 2015• FY 2017 71%• FY 2018 74%• FY 2019 77%• FY 2020 80%• FY 2021 83%• FY 2022 87%• FY 2023 91%• FY 2024 95%• 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)
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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
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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
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AAPA and NACo Working Together
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
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Investment in the Freight Network
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%.
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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.
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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
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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
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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
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Mapping Freight – Interactive Website
http://www.brookings.edu/research/reports2/2014/11/06-mapping-freight-tomer-kane
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.
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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.