Ports dredging for dollars

There was some good news and bad news coming for U.S. port authorities today. President Obama’s fiscal 2013 budget contained a bit of both.

By ·

There was some good news and bad news coming for U.S. port authorities today. President Obama’s fiscal 2013 budget contained a bit of both.

Even though the Administration’s budget includes cuts in order to meet the Budget Control Act passed by Congress last year, there are bright spots for seaports, noted American Association of Port Authorities (AAPA).
For example, there is a much-needed increase in the portion of the U.S. Army Corps of Engineers’ funding pertaining to deep-draft navigation maintenance, and funding for the Department of Transportation’s budget that pertains to enhancing America’s freight mobility.?

The president’s 2013 budget proposal includes a request for reimbursement from the federal Harbor Maintenance Trust Fund (HMTF) of $848 million. This represents a nearly 12 percent increase ($90 million) over the fiscal 2012 request of $758 million and would be $28 million more than the $830 million Congress appropriated for maintenance dredging in fiscal 2012.
 
At the same time, the AAPA is not entirely satisfied with the president’s 2013 budget request for reimbursement from the federal Harbor Maintenance Trust Fund (HMTF) of $848 million. This is a significant shortfall from the AAPA’s estimation that $1.4 billion collected annually from importers and domestic shippers for deep-draft navigation maintenance dredging.

Since the Harbor Maintenance Tax’s inception in 1986, AAPA has advocated for full use of its collections for their intended purpose of dredging America’s deep-draft navigation channels to their authorized and required depths and widths.

As we have pointed out in the past, importers and domestic shippers pay approximately double the annual amount that is drawn from the HMTF for maintenance dredging, leaving a surplus that exceeds $6.3 billion today. 

We agree with the AAPA, which maintains that because this surplus has been used for other programs, there are serious dredging needs that have gone unheeded.??


About the Author

Patrick 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!

Article Topics

Ocean Cargo · Ocean Freight · Trade · All Topics
Latest Whitepaper
The View from the New “Single Window”
The single window, officially known as the "International Trade Data System," operates via the Customs and Border Protection (CBP) agency's Automated Commercial Environment (ACE) platform, and serves as a single point of contact for all trade filings.
Download Today!
From the March 2017 Issue
WMS vendors are stepping up to the plate and developing functionalities and solutions that meet the complex needs of today’s companies. Our top analysts take a peek into these developments and discuss the DC of the future and the software that will support it.
5 Supply Chain Trends Happening Now
2017 Warehouse/DC Equipment Survey: Investment up as service pressures rise
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
2017 Trucking Regulations & Infrastructure Update
In this session our panel brings shippers up to date on the state of transportation regulations. Discussion will revolve around regulatory reform, aspects of the federal highway bill and what the transportation landscape looks like in the early days of the Trump administration.
Register Today!
EDITORS' PICKS
LM Exclusive: Major Modes Join E-commerce Mix
While last mile carriers receive much of the attention, the traditional modal heavyweights are in...
ASEAN Logistics: Building Collectively
While most of the world withdraws inward, Southeast Asia is practicing effective cooperation between...

2017 Rate Outlook: Will the pieces fall into place?
Trade and transport analysts see a turnaround in last year’s negative market outlook, but as...
Logistics Management’s Top Logistics News Stories 2016
From mergers and acquisitions to regulation changes, Logistics Management has compiled the most...