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Port Freight Infrastructure Planning & Investment

John N. Young

Director of Freight & Surface Transportation Policies

American Association of Port Authorities

jyoung@aapa-ports.org

National Association of Counties Annual Meeting

February 21, 2015

American Association of Port Authorities703.684.5700 • www.aapa-ports.org

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American Association of Port Authorities

Representing Seaports of the

Western Hemisphere for 100 years!

• AAPA was established in 1912• Since then, AAPA has been providing a space

for collaboration and exchange of best practices• Fostering collaboration among members and

allied groups through:• Education and Training• Networking and one on one interaction• Legislative and Policy support for U.S. ports• Outreach

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INFRASTRUCTURE VITAL FOR AMERICA’S TRADE FUTURE

LANDSIDE AND WATERSIDE CONNECTIONS CRITICAL

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WRRDA & Harbor Maintenance Tax

HMT TARGETS

• FY 2015 67% of FY 2014 • FY 2016 69% of FY 2015• FY 2017 71%• FY 2018 74%• FY 2019 77%• FY 2020 80%• FY 2021 83%• FY 2022 87%• FY 2023 91%• FY 2024 95%• FY 2025+ 100%

February 6, 2015

ACTUAL FUNDING

FY15 Cromnibus: $1.12 B ($50 M short of target)

FY16 HMT Target: $1.25 B ($1.81 B HMT x 69%)Budget request: $915 M ($335 M short) (50% of Tax revenue)

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Trade Opportunities, Planning For Growth

• Population to increase to 8 billion by 2024 - growing at a rate of 1.14% per year

• India’s population expected to surpass China by 2030 driving demand and trade growth

• Trade projected to more than double by 2020, especially containers

• America’s trade volume expected to quadruple after 2030• Growth in exports in the U.S.• Doubling of coal and bulk consumption

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 AAPA Landside Freight Priorities

Need for Federal and State Planning• Designation of Gateways and Corridors• Identification of Connectors on Primary Freight Network• Expertise in Maritime/Freight Planning should be a part of every state

DOT• Short Sea Shipping or America’s Marine Highways

Dedicated Freight Funding • Port authorities should be eligible to apply directly for funding• Funding for Connectors, Intermodal projects and ‘First and Last Mile’

projects • Funding for Projects of National & Regional Significance (PNRS)

TIFIA and Strong Financing Options

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AAPA and NACo Working Together

Preliminary results from AAPA’s “Port Surface Freight Infrastructure Survey,”:

• 67% of our nation’s ports are working directly with their region's Metropolitan Planning Organization (MPO) or Council of Governments (COG) in the development and planning of a recent (or as-yet-unfinished) freight project

• 75% of our ports participated in the development of their state's statewide freight plan

• 69% of ports are members of a local freight advisory committees

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Investment in the Freight Network

Over the next decade, handling projected inbound and outbound cargo efficiently will require investing in upgrading intermodal connectors.

Nearly 80% of our port members surveyed said a minimum investment of $10 million in their connectors is necessary. 31% of the survey said $100 million is needed.

35% of Port Authorities said congestion on connectors negatively impact their port's productivity by 25-50%.

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Ports Must Prepare for Larger Vessels

As ships continue to increase in size, ports of the Western Hemisphere are faced with assessing the adequacy of channel and marine terminal capacity.

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Investment is Critical Now More Than Ever

• Ports and their private sector partners are investing more than $46 billion over 5 years

• Government entities need to uphold the partnership• Governments/private sector must get creative about

financing options • Investment in infrastructure pays dividends in the long

term and is a worthy investment• Partnerships among seaports, governments, investors,

terminal operators will be more important in the future

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The State of Freight

• Two freight advisory committees were set up to study the nation’s freight challenges after the passage of MAP-21

• Industry also weighs in with recommendations• House T&I Committee• National Freight Advisory Committee (NFAC)• The Freight Stakeholders Coalition

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USDOT Reports and Releases Impacting Ports

• National Freight Strategic Plan Framework – to be released Spring 2015• Need to define eligibility of ports for surface transportation programs

• Ports need clarity

• Conditions & Performance Report – to be released Spring 2015• Focuses on the now and what are the implications

• Will call for the fluidity index that would measure how long it will take goods to move

throughout the country – Similar to Canada’s approach

• 30 Year Frame Work – Beyond Traffic• Secretary's initiative, available now for your comments • Looks at how we incorporate growing population and increased freight flows

• National Maritime Strategy – to be released 2015• Congress requested examining options to meet US Freight movement needs on the water• Will include funding options

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Mapping Freight – Interactive Website

http://www.brookings.edu/research/reports2/2014/11/06-mapping-freight-tomer-kane

Image: © 2015 The Brookings Institution

Trade of All Commodities (Total Trade) between Omaha, NE-IA and its Largest Trading Partners

This diagram shows the largest trade flows (imports plus exports) by dollar value of all commodities (total trade) between Omaha, NE-IA and its largest trading partners for this commodity group.

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Our Message

Investments in seaports are an essential, effective utilization of limited resources, paying dividends through increased trade and commerce, long-term job creation, economic vitality, and sizable tax revenues. 

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AAPA-PORTS.ORGseaportsdeliverprosperity.org

Contact: John YoungJyoung@aapa-ports.org