Title: Ports and Harbors
1Ports and Harbors Transitions and Challenges
Presented at the Organization of American
States Inter-American Committee on Ports Houston,
Texas December 7, 2005
Commissioner, U.S. Section of PIANC U.S. Maritime
Administration
2Overview of U.S. Ports
- Most are landlord ports operated by State, County
or Local Governments - Mixed Goals
- Very capital intensive, but may not be profitable
- Include domestic and international traffic
- Intensely Competitive
3Port Capital Expenditures by Type Share of
Total Capital Expenditures
Source Marad Port Financial Survey - 2003
4U.S. Maritime Infrastructure Conditions and
Concerns -
- 25,000 miles of waterway and harbor channels
handle 2.4 billion tons of cargo vital to economy - Maintenance backlog increased to nearly 700
million under FY 2005 Budget - Lock Construction Projects underway to meet these
needs have been delayed by 5-10 years due to
funding shortfall - Harbor improvements are needed to handle new
larger vessels - Billions of dollars in economic benefits of
projects foregone due to delays in construction
of harbor and waterways
5Evaluating Ports and Economic Development
- We agree
- Ports contribute to local, regional, and national
economic well being - Ports are expensive to construct and operate but
require corresponding investment by others - Are we adequately valuating the asset?
- Public Utility?
- Business Incubator?
- Convention Center?
6Ports are now Components of Global Supply Chains
- Historically, limited inland transportation
options defined a port hinterland local or
captured cargo - Today, transportation decisions are
geographically blind. - Extended hinterlands have allowed investment
corridors development of economies of scale,
resulting in lower transportation costs - Ports are part of system not single node
- What correlation exists between a ports success
and other external actors? How do ports handle
growth?
7Port Activities Part of Larger Chain
8Challenges to U.S. Ports
- Channel and Navigation Access
- Landside Access
- Urbanization
9What Metrics Best Present the Need to Improve the
System?
- Inventory Functions
- Engineering
- Operational Reliability
- Economical and Financial
- Safety and Security
- Non Navigational Users
10What is the U.S. Maritime Industry Doing?
- Promotion
- Cabinet Level MTS
- New Maritime Studies from interested Groups
- Promoting Inland Water systems
- Planning
- Short Sea Shipping
- Asset Management Strategies
- Extending Terminals by using off-site terminals
- Corps NETS Program
- Terminal Productivity
- Greenfield/Brownfields