Maritime-related recommendations in a report from the Office of Management and Budget (OMB) focus on a suggestion that parts of the US Army Corps of Engineers – tasked with channel maintenance and dredging nationally, as well as overseeing the upkeep of inland waterway infrastructure – be moved into the Department of Transportation (DOT).
To me, such ideas make a good deal of sense. The DOT oversees the US Maritime Administration and is also involved in the landside transportation and infrastructure for moving freight. These days, ‘port’ investment is frequently tied to intermodal, landside improvements, which sits squarely in the DOT wheelhouse. Historically, the Corps of Engineers mission was defence related, hence its name and its inclusion within the Department of Defence remit.
There are other legislative adjustments under consideration that could speed up port projects, a sector where permitting and actual funding can drag on for years, which is not tolerable with today’s dynamic supply chains. Discussions surrounding the latest iteration of the Water Resources Development Act (covering rivers and harbours) includes language that streamlines the processes for ports to study and implement projects through accessing funding sources beyond federal dollars – which all-to-often flow too slowly.
One well publicised example concerns the Port of Corpus Christi, which has designs on becoming an export hub for crude oil shipments from very large crude carriers. As the stars are quickly aligning for exports of Texas oil, work has now begun on a channel deepening project with the first tranches of funding to be from private investments.
Anything that greases the wheels of port project development is a good thing. Couple that with the new-found sensibilities that might be happening on Capitol Hill, where law-makers seem to be recognising that business and trade flows can ‘pivot’ very quickly and it seems that a welcome change may be taking place. This is an election year, with mid-terms and all Representatives and some Senate seats in play. This provides a challenge to the re-organisation of the Federal government. Nevertheless, moves towards re-organisation should be supported, irrespective of political leanings.
