US budget cuts run counter to depth

The budget contained a mere $600,000 for various projects, but no concrete commitment toward actual dredging works – the largest factor, costing an estimated half of the requested amount.

Works such as these are carried out by the US Army Corps of Engineers which has suffered from budget cuts: the Corps’ Civil Works programme is to drop by more than a quarter-billion dollars to $4.6bn, including a $6m reduction in the draw from the Harbour Maintenance Trust Fund (HMTF) to $758m.

Overall, the American Association of Port Authorities (AAPA) has expressed a mixed reaction to the budget announced by president Obama.

The budget includes a robust, six-year, $556bn surface transportation authorisation proposal, as well as a $50bn up-front, first-year outlay which provides $2bn for a National Infrastructure Investments program (similar to the previous TIGER programme).

Among the proposals is a National Infrastructure Bank (I-Bank) that would be available for investments in projects of national and regional significance. However, though the I-Bank could support improvements in road and rail access to ports, it might well be “overshadowed by high-profile initiatives such as transit and intercity rail”, said Mr Kurt Nagle, AAPA’s president.