U.S. House Subcommittee recommends $1 billion For FY2014 maintenance dredging

If passed by the Senate and enacted into law, this would be the largest regular annual appropriation for navigation maintenance.
By Patrick Burnson, Executive Editor
June 19, 2013 - LM Editorial

For the second year in a row, the U.S. House Energy & Water Subcommittee, chaired by Rep. Rodney Frelinghuysen (R-NJ), has approved a $1 billion draw from the Harbor Maintenance Trust Fund.

The money is for maintaining America’s deep-draft navigation channels and harbors and is as part of the U.S. Army Corps of Engineers’ fiscal 2014 funding bill. If passed by the Senate and enacted into law, this would be the largest regular annual appropriation for navigation maintenance.

As reported in LM, the bill by the House Appropriations Committee stated that, in prioritizing funding, the subcommittee chose to “invest in critical infrastructure projects to protect lives and property and support economic growth.”

“While still less than the need for full use of the Harbor Maintenance Tax (HMT), this funding amount in a tightly constrained budget is a positive step toward ensuring that the HMT is fully utilized to maintain our nation’s federal navigation channels at their constructed dimensions,” said AAPA President and CEO Kurt Nagle.  “We greatly appreciate the leadership of Chairman Frelinghuysen and the subcommittee for recognizing this important national priority.”

The $1 billion appropriation approved by the subcommittee is $110 million more than the Administration requested in its fiscal 2014 budget earlier this year.  However, the annual revenue collected from the HMT for maintenance dredging is approximately $1.6 billion.

For many years, AAPA has urged Congress to utilize 100 percent of the Harbor Maintenance Tax for its intended purposes rather than allow the money to build up in the already bloated Harbor Maintenance Trust Fund, which is growing at a rate of about $1 billion per year and is estimated will contain more than $9 billion by the end of fiscal 2014.

Last month, AAPA sent letters to lawmakers in both the House and Senate urging them to guarantee full utilization of HMT revenues to achieve efficient 21st century freight movement.

Logistics managers should be heartened by the news that this issue may finally be resolved.



About the Author

image
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 .(JavaScript must be enabled to view this email address).


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!

Recent Entries

UPS today announced diluted earnings per share of $1.32 for the third quarter 2014, a 13.8% improvement over the prior year period. Operating profit increased 8.3%, resulting from balanced growth across all three segments.

The Department of Transportation’s Bureau of Transportation Statistics (BTS) reported this week that U.S. trade with its North America Free Trade Agreement (NAFTA) partners Canada and Mexico increased 4.4 percent from August 2013 to August 2014 at $100.6 billion.

As expected, global trade dipped from August to September but still saw annual gains, according to data issued this week by Panjiva, an online search engine with detailed information on global suppliers and manufacturers.

Transportation and logistics merger and acquisition (M&A) activity in the third quarter saw annual gains, which were driven by smaller deals in the trucking logistics, shipping, and passenger air sectors, according to data issued in the Intersections report by PwC this week.

With the holidays rapidly approaching, it appears retailers are not quite done getting inventory set up and on the shelves in time for what is expected to be a fairly active shopping season. That much was evident based on recent data for September volumes issued by the Port of Los Angeles (POLA) and the Port of Long Beach (POLB).

About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review. Patrick covers 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. Contact Patrick Burnson

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA