Ocean cargo/global logistics: AAPA takes issue with FY 2011 budget
If the Obama Administration is serious about doubling exports, the nation’s seaports will need to be adequately funded
Patrick Burnson -- Logistics Management, 2/2/2010
WASHINGTON--If the Obama Administration is serious about doubling exports, the nation's seaports will need to be adequately funded.
As reported in "Critical Cargoes," the American Association of Port Authorities (AAPA) expressed concern about the proposed fiscal 2011 federal budget. One particular sore point is over cuts in the U.S. Army Corps of Engineers' deep-draft maintenance and lack of funding for a program that would promote moving more cargo onto America's waterways.
"Shippers are already faced with paying into a Harbor Maintenance Trust Fund that barely covers existing needs for deeper harbors and channels," said AAPA president, Kurt Nagle. "Obviously, this is going to make a big impact on any effort to ramp up outbound cargo."
In an interview with LM, Nagle also noted that shippers sourcing parts from overseas for domestic manufacture would also be hurt.
"The Administration's proposal to cut nearly 10 percent from last year's congressionally-approved budget for the Corps of Engineers' Civil Works Program is not well thought out," he said. "It runs counter to the idea that we as a nation should be generating more vessel calls -- both inbound and outbound."
Nagle noted that grain exporters and other shippers of high-density cargo would be unable to fully load a vessel at many ports.
AAPA also indicated concern over the Administration's request to fund the federal Port Security Grant program at 25 percent less than Congress has authorized.
"Competitive, secure, navigable seaports are vital to the U.S. economy," said Nagle.
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