Ocean cargo: Freight infrastructure funding put on congressional back burner?

Patrick Burnson, Executive Editor -- Logistics Management, 10/1/2008

WASHINGTON, DC—While government policy makers struggle to stabilize turbulent financial markets, advocates for domestic transportation infrastructure are demanding that their cause not be forgotten.

Legislation introduced this week by Congresswoman Laura Richardson (D-CA) helps underscore the growing recognition of the need to increase federal support of freight infrastructure, although shippers may be asked to pay the price.

The bill, the MOVEMENT Act of 2008 (H.R. 7002), calls for the creation of a separate National Goods Movement Improvement Account and concomitant National Goods Movement Improvement Grant Program, financed by a fee on each container moving into or out of U.S. seaports.

Ocean shippers in California, who already are being charged extra fees at their ports, are among the most resistant to this idea. Still, advocates maintain that such a program is long overdue.

“America has been under-investing in its transportation for may years, but goods movement projects have been especially neglected,” said Leslie Blakey, executive director of the Coalition for America’s Gateways and Trade Corridors (CAGTC). “HR 7002 calls attention to the system’s needs and will contribute to the important debate over how our nation should go about raising sorely-needed funds for goods movement as a part of next year’s reauthorization of federal-aid surface transportation programs and revenue sources that expire on October 1, 2009.

In an interview with LM, Blakey observed that both presidential candidates have made the issue a priority in their campaigns, but that this piece of legislation may be lost in the tumult hitting Congress this week over a proposed economic bailout.

“There is a lot of congressional support for this bill because of its economic and security elements,” said Blakey. “But time is running out for a decision here.”