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Presentation for the11th Annual Atlantic Intracoastal

Waterway Conference

By David B. SanfordDirector, Navigation Policy & LegislationAmerican Association of Port Authorities

November 18, 2010

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

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AAPA Overview

• AAPA is a hemispheric alliance of 150 leading port authorities, including 85in U.S.

• Promotes info sharing, education & training.

• Provides advocacy and representation on federal policy impacting ports.

Committed to keeping seaports navigable/secure/sustainable

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Seaports Deliver Prosperity

• Seaports are vital economic lifelines for communities, regions & nations.

• Seaports provide critical links to the global marketplace.

• Modern, navigable seaports are vital to trade & economic prosperity.

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Seaports Deliver Prosperity

• Generate more than $3 trillion in economic activity.

• Move more than 2 billion tons of international & domestic goods.

• Support jobs for over13 million workers who earn $650 billion in wages & salaries.

• Support businesses that pay in excess of $212 billion in taxes.

• Enable some 9 million Americans to take cruise vacations, generating 350,000 cruise-related jobs

Annually, U.S. seaports….

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Southeast U.S. Seaport Cargo Tons2005-2008

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Southeast U.S. Seaports – Cruise Trade

 2009 2008 2007 2006 2005

Southeast US Ports PSGRS VESSELS PSGRS VESSELS PSGRS VESSELS PSGRS VESSELS PSGRS VESSELS

Charleston 87,721 33 116,707 43 101,392 44 107,030 50 95,043 47

Hampton Roads 57,575 15 91,218 27 105,159 40 63,769 27 105,393 49

Jacksonville (FY) 184,737 79 76,474 50 129,838 80 128,745 78 138,289 86

Key West (fy) 863,767 378 754,407 360 830,954 403 859,089 413 976,761 495

Miami(fy) 4,110,100 789 4,137,491 789 3,787,410 713 3,731,459 757 3,605,201 734

Palm Beach(fy)         556,408   520,557   553,692  

Port Canaveral (fy) 3,250,775 1,530 3,573,960 1,546 4,275,922 1,918 4,542,056 1,967 4,467,088 1,947

Port Everglades (fy) 3,139,820 1,007 3,227,770 1,676 3,409,946 1,852 3,239,154 1,763 3,801,464 2,362

Savannah (GA)                 354 2

St. Petersburg (FL)                    

Wilmington(N.C.)     1,400 1            

Florida cruise ports continue to dominate in SE

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New York

New York

Norfolk

Baltimore

LA/LB

Oakland

Seattle/Tacoma

2014 Post-Panama Canal 50’ Draft Ports

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Navigation Channels Need Deepening

2014 Panama Canal expansion sets bar higher

• Need to increase navigation channel deepening & widening investments to help keep U.S. globally competitive

• Dredging policy reform needed to streamline permitting process

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Southeast U.S. Seaports – Channel Depths

Only Norfolk is currently dredged to 50 feet

SE seaport dredging projects underway or planned:

Charleston – currently 42’; seeking study funding to go to 50’Savannah – currently 42’; authorized to deepen to 48’Jacksonville – currently 40’; seeking study funding to go to 45’ Miami - currently 42’; authorized to deepen to 50’

Asia-Americas trade routing options

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America’s Marine Highways - A Viable Alternative

• Landside congestion costs Americans $200 billion a year.

• 2.9 billion gallons of fuel are wasted annually idling in traffic.

• Domestic waterways now carry only 2% of America’s freight.

• Shipping by water is the most cost-effective, environmentally friendly mode.

Putting more freight on America’s waterways would help cut landside gridlock, emissions, road costs

Only areas in green may compete for DOT funding

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Making The Best Useof Existing Cargo Capacity

• FHWA estimates highway freight tonnages will increase 70% between 1998-2020.

• Freight tie-ups slow our economic recovery.

• Trucks best suited for, and most profitable in, short hauls.

• Moving some cargo between ports via short-sea shipping would help alleviate congestion.

Congestion can slow the pace of economic recovery

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Short-Sea Shipping OpportunitiesMust Be Improved

Harbor Maintenance Tax first obstacle to overcome

• HMT unfairly burdens coastal shipping, domestic cargos.

• Trust fund running huge annual surplus.

• Proposed federal legislation would eliminate HMT on certain port-to-port “sea” freight.

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• Consider creating new, expanding existing programs, like CMAQ.

• Establish and provide incentives for using marine highway corridors.

• Develop expertise at the state/MPO level on marine highway alternatives and benefits.

• Reassess federal shipbuilding programs to support short-sea.

• Provide tax credits for terminals and vessel operators to encourage new short-sea infrastructure.

Need for additional incentives to initiate new services

Short-Sea Shipping OpportunitiesMust Be Improved

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America’s ports deliver prosperity through jobs, trade, security and environmental stewardship

• Seaports are our lifeline with the rest of the world.

• They provide jobs, goods, choices, security, sustainability.

• Ports and connecting infrastructure will aid our economic recovery.

American Association of Port Authoritieswww.aapa-ports.org ● 703-684-5700