AAPA report drives home for need for increased Port Security Grant Funding

A new report issued this week by the American Association of Port Authorities (AAPA) makes the case for the crucial need for roughly $4 billion in port and supply chain security needs over the next decade. This is the funding level AAPA says is needed to maintain and upgrade United States-based port facilities so they are properly equipped to meet new and evolving security challenges, according to the AAPA.

The report, entitled “State of Freight IV: Securing America’s Ports and Enhancing The Supply Chain,” takes a deep dive into the various needs of the nation’s deep-draft commercial public ports to “effectively move goods into and out of their facilities by land and water,” according to the AAPA.

A key approach in doing so, it stated, can be done by refocusing the Federal Emergency Management Agency’s Port Security Grant Program (PSGP), which was established in 2002 in response to the tragic acts of terrorism committed on September 11, 2001, so it can be better equipped to meet the security infrastructure needs of publicly-owned commercial seaports and associated maritime operations.

Since its inception, the PSGP has provided financial backing for 8,096 projects to the tune of more than $2.78 billion.

That figure serves as a jumping off point of sorts for the report, as AAPA conducted a survey of roughly 80 corporate members to gauge how the PSGP has impacted port security, as well as goods movement. Based on the results of the survey, AAPA’s corporate members estimated they need $2.62 billion to build, maintain, and, intermittently, upgrade their respective security apparatus over the next ten years.

What’s more, the report found that these members need a separate $1.27 billion in future security investment to address various security threats and concerns, including: cyber security, active shooter, drone mitigation, resiliency, and other evolving security threats, bringing the total required needed investment to nearly $4 billion ($3.89 billion) between 2019-2028.

AAPA Director of Intermodal and Surface Transportation Policy and Legislation John Young told LM that one of the drivers for the theme of this report is an increase in interest, from concerns like the Department of Homeland Security and the United States Department of Transportation and related surface transportation authorizing committees is the security aspect of U.S. infrastructure.

“There are various things occurring, cyber-related issues and autonomous vehicles and other new technologies that are interfacing with our infrastructure,” he said. “And the issue of port security, especially going back to 9/11, is huge. Part of what this report set out to do is to take stock of where things are. And aside from what is needed in terms of funding levels, this is a way for AAPA to go out to its membership to assess where things stand since 9/11 and when the PSGP went into effect…as the world has changed a lot since then.”

One significant way in which the world has changed in the 17-plus years since 9/11, outlined in the report, is the gains in freight and passenger volumes over that span, noting that between 2001-2017 container volumes have gone up 71%, total foreign trade in short tons is up 37%, and passenger traffic at U.S. cruise ports is up 98%.

Young said these numbers help to reset the dialogue, considering that the PSGP has received an annual investment of $100 million to protect resources accounting for more than 25% of the U.S. economy and represents the annual value of cargo and passenger activities attributed to U.S.-based ports in recent years.

“That is greatly appreciated by the industry and has been put to good use, however, I think that the PSGP and other programs need to show what the need is and also show how these programs are evolving,” he said. “It is two-fold in that we wanted to have funding levels, with $4 billion over ten years, at $400 million a year, which includes what is in place right now that needs to be upgraded, as well as anticipating new threats, whether it be cyber security, active shooter, or waterside issues that people are concerned about, especially as it relates to energy commodities coming in and out of our ports (among other issues).”

This rings especially true, with the report explaining that the ratio of grant funds needs to at least double to 50% to properly mitigate for security threats. And Young said that also helps AAPA to make its case.

The report’s conclusion further drives home AAPA’s case for an increase in PSGP funding, explaining that: “Ports have always been a critical node in the supply chain, no matter how they structure their operations or what kinds of cargo they handle. Securing port facilities to ensure safe and reliable goods movement is critical to the nation’s economic success. Meeting today’s security threats requires flexibility and adaptation on behalf of ports authorities and their partners, who continue to confront evolving challenges. Keeping ports secure and the supply chain moving requires a renewed commitment from the federal government regarding the funding levels and strategic direction of the PSGP.”