The American Association of Port Authorities (AAPA) has expressed disappointment in President Obama’s 2017 fiscal budget, calling it ‘grossly imbalanced’.
In particular, concerns have been raised about the proposed funding levels for the US Army Corps of Engineers coastal navigation programmes, grants for the Environmental Protection Agency’s Diesel Emissions Reduction Act (DERA) and the Federal Emergency Management Agency’s (FEMA) Port Security Grant programme.
The proposed budget is thought to reflect the focus on freight evident in the recently-enacted FAST Act and AAPA has praised the potential of significant gains for landside freight transportation programmes.
Also encouraging is the call for a new 21st Century Clean Transportation Plan that would increase funding for the Transportation Investments Generating Economic Recovery (TIGER) project.
However, the proposed budget would significantly reduce funds available for navigation maintenance and improvements, which AAPA feels is desperately needed to ensure America’s international competitiveness.
Kurt Nagle, president and CEO of AAPA, said: “International trade now accounts for 30% of the US economy. To compete in global markets, America needs an efficient and modern 21st century freight transportation system.”
“We’re pleased to see and support the increased funding requested for surface transportation infrastructure, but deeply troubled by a grossly imbalanced budget that would cut funding for maintenance and modernisation of federal navigation channels,” he continued.
“If we can’t get the goods efficiently and competitively into and out of our country, American manufacturers won’t be able to receive the materials and components they need and they, as well as US farmers, won’t be able to competitively export their products globally. US retailers and consumers will suffer,” he added.
As part of the Water Resources and Reform Development Act 2014, annual incremental increases were established for Harbour Maintenance Tax (HMT) funded work. AAPA feels that the proposed 2017 budget not only fails to meet these taxes but also fails to continue funding the HMT donor equity provisions that were initiated by Congress last year.
“It would be a grievous ‘miss’ if this budget is adopted,” said Mr Nagle. “By underfunding needed waterside investments, it breaks a vital link in the supply chain that disadvantages the entire freight-handling system, waterside and landside.”
Further concerns have been raised regarding the $951m set aside for deep-draft harbours, down 22% on 2016’s budget of $1.22bn. Also of concern to AAPA is a reduction in the navigation construction programme budget from that which was approved by Congress in the 2016 budget.
AAPA has also expressed surprise over the 80% decrease in DERA grant funds, pointing out that an earlier press release had detailed President Obama’s wish to use these funds to improve air quality as part of his climate change initiative.
AAPA acknowledges that the 21st Century Clean Transportation plan does call for $300m more in DERA funding if Congress approves the president’s request for an oil tax but argues it is unclear if this money would be used at ports.
Mr Nagle concluded: “As the Administration and Congress grapple with the multiple goals of reducing the nation’s debt while growing jobs and the economy, federal investments in ports and their connecting waterside and landside infrastructure continue to be an essential, effective utilisation of limited resources, paying dividends through increased trade, jobs, enhanced international competitiveness and over $320bn a year in tax revenues.”
