AAPA calls fiscal 2017 budget “grossly imbalanced” for U.S. ports
Landside freight transportation funds would increase; navigation, port security & emission reduction funds would drop
in the NewsState of Logistics 2016: Pursue mutual benefit Drewry maritime analysts examine the Hanjin shakeout Day 2 at APICS Stifel Logistics Confidence Index reaches 12 months of negative confidence CSCMP’s Hall of Fame More News
The American Association of Port Authorities (AAPA) is encouraged by the potential of significant gains for landside freight transportation programs in President Obama’s fiscal 2017 budget. But has serious concerns about other parts of the budget.
According to spokesmen, the AAPA is “disappointed” in the proposed funding levels for U.S. Army Corps of Engineers coastal navigation programs, the Environmental Protection Agency’s Diesel Emissions Reduction Act (DERA) grants, and the Federal Emergency Management Agency’s (FEMA) Port Security Grant program.
The proposed budget reflects the funding increases and freight focus evident in the recently-enacted FAST Act that President Obama signed into law in December, which includes close to $2 billion in dedicated freight funding. Additionally, the budget calls for a new 21st Century Clean Transportation Plan that would significantly increase funding for TIGER (Transportation Investments Generating Economic Recovery). If adopted, that would push TIGER funding from $500 million to $1.25 billion.
Conversely, the proposed budget would significantly reduce funding for navigation maintenance and improvements, which is desperately needed to ensure America’s international competitiveness and to allow the nation’s ports to accommodate increasingly large, sea-going vessels. It would also cut funding for DERA and port security grants.
“International trade now accounts for fully 30 percent of the U.S. economy,” said Kurt Nagle, AAPA’s president and CEO. “To compete in global markets, America needs an efficient and modern 21st century freight transportation system. AAPA’s FreightKeepItMoving campaign highlights the importance of investing in both land and water connections to our nation’s port facilities.”
Nagle added that the AAPA is pleased to see and support the increased funding requested for surface transportation infrastructure, but deeply troubled by “a grossly imbalanced budget” that would cut funding for maintenance and modernization of federal navigation channels, the critical waterside infrastructure that connect our ports and nation to the world marketplace.
About the AuthorPatrick Burnson, Executive Editor Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at [email protected]
Subscribe to Logistics Management Magazine!Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your entire logistics operation.
Start your FREE subscription today!
Time for Asia’s ports to rebuild Is the freight recession upon us…again? View More From this Issue