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America’s
Ports Today
MERICA’S PORTS – GATEWAYS TO THE WORLD
America’s ports are our gateways to the world and a critical component in the nation’s
economic health and national defense. Whether products are arriving at our shores or
departing for foreign sale, trade relies on an efficiently operating U.S. port system. Responsible for moving over 99 percent of the country’s overseas trade by volume and 61 percent by
value, U.S. ports and waterways handle over 2.5 billion tons of cargo annually, and that
volume is projected to double within the next 15 years. In fact, international trade accounts for
25 percent of the U.S. Gross Domestic Product (GDP) – as compared to only 9 percent in
1960, for instance – and is expected to reach as much as one-third of the GDP by 2020.
America Needs its Ports
The benefits of ports are immense for the nation’s economy as well as its security:
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On average, each of our 50 states relies on 13 to 15 ports to handle its imports and exports, which
add up to over $5.5 billion worth of goods moving in and out of U.S. ports every day.
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$102.8 billion in federal, state and local revenues were collected from the industry in 2006.
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Commercial seaport activities provide jobs for 8.4 million Americans, whose earnings and
consumption totaled $314.5 billion in 2006.
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Public ports play a critical role in our national security, peacekeeping and humanitarian efforts
around the world. Ports support the mobilization, deployment and resupply of U.S. military forces.
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The growing cruise industry, which depends on ports, spent $17.6 billion on goods and services in
the U.S. in 2006. Those expenditures generated about 348,000 U.S. jobs. U.S. ports account for
about 75 percent of global cruise embarkations.
Key commodities moving through U.S. ports include: crude petroleum and petroleum products;
coal; chemicals; food and farm products, such as wheat and wheat flour, corn, soybeans, rice,
cotton, and coffee; forest products; iron and steel; automobiles, parts, and machinery; electronics;
and clothing, shoes and toys.
Ports Need America
Conservatively, public ports invest over $1.7 billion a year to update
and modernize their facilities to handle international trade. In turn,
America must support its ports in the critical objectives of:
• National security, including secure ports
• Well-maintained waterways conducive to growing trade and travel
• Efficient and cost-effective flow of goods into and out of ports
• Sustainable port communities
• Expansion of free and fair trade opportunities
Ports need federal support, both financially and in policy actions affecting their
well being and ability to serve America. Immediate actions are needed in these areas:
PORT SECURITY
Port security must continue to be a top priority as the nation hardens homeland security. Protecting this
vital part of our transportation infrastructure is critical to our nation’s economic growth and the ability to
meet the growing import and export market demands. Port security is a shared responsibility. Federal
funds, through the Port Security Grant program, are crucial to help ports make improvements, including
implementing the new Transportation Worker Identification Credential (TWIC) program. The SAFE Port
Act of 2006 calls for an annual funding level of $400 million for this important program.
MAINTENANCE AND IMPROVEMENT OF OUR WATER HIGHWAYS
Supporting the nation’s trade growth depends to a large degree on the federal government meeting its
responsibility to maintain adequate depths in shipping channels. A dedicated tax for maintenance
dredging, established in 1986, brings in more than sufficient revenue but about half of the $1.3 billion
collected annually is used for other non-maritime purposes. The Harbor Maintenance Trust Fund surplus
will grow to over $7 billion by 2010. Future growth also depends on the authorization of new projects in
the Water Resources Development Act (WRDA). There has been no WRDA bill since 2000 and needed
projects have not been authorized. WRDA needs to be passed this session of Congress. The funding for
both maintenance dredging and new project construction in Energy and Water Development (E&WD)
Appropriations bills is a third area that requires attention to help accommodate future growth. The
Congress has failed to enact E&WD bills for the past two years, which has frozen spending at fiscal year
2006 levels. The Congress and the Administration must attend to these bills with the urgency needed to
maintain and improve our navigation channels—the highways to ports.
ALLEVIATION OF FREIGHT CONGESTION
For decades federal investments in transportation infrastructure to enhance freight movement have taken a
back seat to passenger transit. As a result, cargo movement by rail and trucks into and out of ports is
hampered at the very time that fast, efficient movement is essential to keep up with escalating international
trade. The need to address freight mobility in future surface transportation reauthorization has become
widely recognized, and was a critical component of the SAFETEA-LU reauthorization of 2005. Policies
must be revised and more funding provided to enhance freight mobility and to fund intermodal connectors
between highways and ports to move our ever-growing volumes of trade.
SUSTAINABLE PORT COMMUNITIES
Ports invest heavily to handle trade growth while offsetting environmental impacts of their operations. Yet
important environmental and social concerns related to port activities, such as ballast water management,
traffic congestion and air pollution, are hampered by a lack of federal leadership on these issues. Of
particular importance are effective national and international regulatory programs to control air emissions
and ships’ ballast water discharges. The United States needs to implement the MARPOL Annex VI treaty,
which sets standards for oceangoing vessel emissions, and set a federal standard for ballast water
discharges, which would encourage the development of treatment technology and reduce the introduction
of non-native aquatic species. Ports are taking steps to preserve coastal resources for future generations,
but they need the United States government to assume a leadership role in addressing air and water
quality.
FREE AND FAIR TRADE
The U.S. lags behind the rest of the world in free trade agreements, despite the fact that trade translates
into greater national prosperity. As a result, American businesses and workers find themselves shut out of
preferential trade agreements negotiated by our trading partners. America must expand free and fair trade
through new agreements opening doors to greater economic opportunity.
September 2007
AMERICAN ASSOCIATION OF PORT AUTHORITIES
1010 Duke Street, Alexandria, VA 22314 ■ www.aapa-ports.org
Contact: Susan Monteverde at 703-684-5700 ■ Fax: 703-684-6321