AAPA General Overview

‘Ports 101’ - An Industry Perspective: 

‘Ports 101’ - An Industry Perspective

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Ports Connect Us With The World

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Ports Are Dynamic Transportation Hubs

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Ports Are Economic Engines About 5 million people in U.S. employed in port-related jobs, earning $44 billion annually Port-related businesses generate over $16 billion a year in federal, state, local taxes Port activity contributes nearly $750 billion to GNP

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Ports Are Environmental Stewards

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No Two Ports Are Alike Port of Benton (Washington) Port of Long Beach (California)

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There are public- and privately-owned ports All AAPA member ports are public Public ports part of state, bi-state, county or city government, or special district Public ports run by elected or appointed boards with professional staff Port Governance

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Landlord ports lease their marine facilities Operating ports operate their own facilities Limited operating ports do some of both Most public ports use stevedores to hire and supervise longshore labor Landlord vs. Operating Ports

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Cargo Ports, Cruise Ports, Combo Ports ← Cargo ports serve freight Cruise ports serve people → ← Many serve both →

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Ports Handle Many Types Of Cargo Bulk cargoes like grain, petroleum and fertilizers Breakbulk cargoes like roll paper, baled cotton and steel rail Ro-Ro cargoes like auto-mobiles, tractors and mili-tary ve-hicles Contain-erized cargoes like food, electron-ics and textiles

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Through Federal/State/Local Partnerships U.S. ports plan, fund their own facilities Private investors help, such as terminal operators How Are Ports Developed?

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Federal government controls and funds navigation channel maintenance; cost-shares deepening projects State and local governments, with money from federal Highway Trust Fund, pay for road access to/from terminals How Are Ports Developed?

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Population growth, development creating land use pressures for ports Coastal populations expected to grow 60% by 2010 Competing demands for non-maritime waterfront uses How Are Ports Developed?

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Port Revenues General Obligation Bonds Revenue Bonds Loans Grants Other Sources How Are Ports Funded?

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Each state relies on 13-15 ports Seaports handle 99% of U.S. overseas cargo tonnage Annual freight volumes through U.S. ports exceed 2.6 billion tons International trade expected to reach one-third of GDP by 2020, up from 13% in 1970 Ports Are National Assets

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Many ports have agreements with federal government to serve needs of military 19 U.S. ports listed as militarily strategic Current Middle East conflict shows value of U.S. ports to military engagements overseas Ports Are Critical To The Military

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Key Port Challenge: Cargo Volume Gains

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Marine terminals are the hub for inbound and outbound cargoes Key Port Challenge: Terminal Congestion Ships getting bigger, necessitating terminal infrastructure investments to handle them

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Trucks/trains need unobstructed port access Short-sea shipping a good alternative where feasible National Freight Policy “framework” needs appropriations, more federal involvement Key Port Challenge: Landside Congestion

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Unresolved federal funding questions delaying critical navigation projects Harbor Maintenance Trust Fund is growing, along with backlog of navigation maintenance needs Corps of Engineers’ Civil Works Program funding is dwindling as ships are getting bigger New water resources bill imperative to maintain/improve America’s navigation system Key Port Challenge: Waterside Congestion

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Key Port Challenge: Seaport Security Seaport security must continue to be a top priority Ports have spent hundreds of millions of dollars to protect facilities against terrorism Port Security Grant program under-funded since inception Congress must fully appropriate SAFE Port Act provisions

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Key Port Challenge: Improving the Coastal Environment Port of Long Beach executives promote program to reduce marine terminal tractor exhausts AAPA members are taking a leadership role in improving the coastal environment by: Voluntarily reducing diesel emissions Advocating ratification of MARPOL Annex VI to limit vessel emissions Urging national & international ballast water management programs Adopting Environmental Management Systems (EMS)

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Summary: Port Communities Critical To Ports Port Communities are critical players and partners with ports in meeting industry challenges We look forward to working together to address our mutual needs