By Paul Scott Abbott, AJOTToday’s challenging times must not deter American port leaders from pursuing projects to accommodate growth in demand that will come when the US economy rebounds and the Panama Canal is expanded. That was the most salient message delivered repeatedly Jan. 15-16 in Tampa as more than 150 leaders of the port industry and related disciplines gathered for the second annual Shifting International Trade Routes Workshop, cosponsored by the American Association of Port Authorities and US Maritime Administration. While the first such workshop, held in Tampa a year earlier, focused largely on perceived impacts of the Panama Canal expansion, this year’s edition was dominated by discussions about the current fiscal downturn and, in spite of such tough conditions, the importance of advancing infrastructure enhancements now. “In these difficult economic times, we all have to be looking at what’s happening in the future, and this is happening in the future,” said Michael A. Leone, port director of the Massachusetts Port Authority and AAPA US Delegation chairman-elect, citing the Panama Canal expansion that is slated for completion in 2014. “We’ve got to start planning now,” Leone said, noting time needed to secure funding and permitting. Gary P. LaGrange, president and chief executive officer of the Port of New Orleans, commented, “I think now is the time to build. “If we wait for the Panama Canal expansion to be finished or for the economy to return, it’s too late and we lose,” added LaGrange, who served as 2004-05 AAPA chairman. Terming “funding” as “the ‘F’ word,” LaGrange called for strong partnerships across the spectrum of supply chain providers, as well as a push to get more federal money for ports – including freeing up the $4.7 billion surplus in the Harbor Maintenance Trust Fund. Dr. Walter Kemmsies, chief economist for the commercial analysis group of the port engineering firm of Moffatt & Nichol, said that, while supply of capital is tight, ports must still proceed with adding container terminal acreage, bringing in more efficient cargo-handling equipment and deepening harbor channels. “The time to start doing this is today – not in three to four years,” said Kemmsies, whose doctorate is in economics. “If you wait until everything is going well again, you’ll find there is a long waiting list of people trying to access the same limited resources.” James R. Brennan, partner in the management consulting firm of Norbridge, Inc., said he does not anticipate economic recovery until the first half of 2011 and added, “This is a perfect time to get the industry’s house in order.” Anne Van Praagh, vice president with the public finance, transportation and banking team of the Morgan Stanley financial services firm, echoed that sentiment, telling port executives, “It’s important to get your own financial house in order.” Van Praagh said that, with trade volume down, port operating revenues are not likely to rise, so it becomes all the more important for ports to be creditworthy and looked upon favorably by the bond market. Also, she said, public-private partnerships remain an option for advancing projects, but private investors are now seeking as much as 100% equity while being unwilling to share in debt. Lillian C. Borrone, chairman of the Eno Transportation Foundation and former director of the port department of the Port Authority of New York and New Jersey, said she does not believe the federal government will be any more than a 20% partner in future transportation infrastructure endeavors “if we’re lucky,” so there is a growing need for ports to cement partnerships – with everyone from investment groups to manufacturers and suppliers. With capital infusion from the federal stimulus package seen as minimal, the possibility remains that some new form of fees may be implemented at US ports to pay for infrastructure improvements and/or environmental progress. Bruce J. Carlton, president of the National Industrial Transportation L