Lack of US port funding a ‘concern’

Speaking at London International Shipping Week, MARAD administrator Paul ‘Chip’ Jaenicken said that there is no real substitute for government funding in infrastructure in the US, however a lack of federal funding is stalling significant projects.

“We understand the infrastructure challenges that we are facing: the current federal reality is that we are offering less long term reliability in funding on infrastructure,” he said, adding that population growth will put additional burdens on the US infrastructure system. “We’re continuing to be creative to support growth in our infrastructure, especially in ports.”

In lieu of long term federal funding, President Barack Obama’s Build America Investment Initiative goes some way towards improving access to cash, while the US Department of Transportation’s TIGER grant programme adds to federal dollars.

“Prior to TIGER there was no way to get federal funding to ports,” said Mr Jaenicken. “But we recognise that the TIGER grants are not a long term solution to infrastructure funding.”

Mr Jaenicken added that estimates from the American Association of Port Authorities report that the US is currently $29bn behind in the investment needed in the nation’s ports.