U.S. ports welcome grants but heed shut-down warning

Applications totalling over $987m had been submitted by ports across the country seeking funding assistance in order to comply with new U.S.

Coast Guard security regulations.

“We applaud TSA for providing a considerable portion of the 2004 appropriation in this round of grants to help secure America’s ports, ” stated AAPA President Kurt Nagle. “It is vital for our nation’s security that these investments in port security be made in a timely manner?.

While the latest round of funding is significant, it covers only about 18% of the costs ports identified in the security projects set forth in their recent applications.”

According to U.S. Coast Guard estimates ports will need to spend $5.4 billion on enhanced security measures over the next ten years to comply with new federal regulations mandated by the Maritime Transportation Security Act (MTSA), with $1.125 billion of that to be invested in the first year alone.

While ports are challenged to manage security expenses of unprecedented magnitude, Nagle said they must simultaneously carry out their vital role as America’s commerce catalyst. With 95% of international trade passing through U.S. ports and trade projected to more than double by 2020, ports are finding it necessary to spend about $1.7 billion per year on operations and another $1.5 billion annually on capital improvements to support burgeoning trade growth.

Meanwhile the US Coast Guard will issue penalties for failure to comply with ISPS Code requirements. Two thirds of the country’s 5,000-odd ports missed the 31 December to file their security plans. The Coast Guard also warned they are compelled to shut an operation down if it does not comply with the Code’s 1 July deadline.