Sang-Yi, President and CEO, American Association of Port Authorities (AAPA) said the US maritime and ports’ industries need to do more to stress the national security importance of the US ports and maritime sectors because that message is not being sufficiently heard: “We need to change that narrative as important as we would all agree that this industry is.”
This need to do more was reflected in reports from the government affairs representatives for the American Association of Port Authorities speaking at AAPA’s annual convention in New Orleans on September 28th.
Unfortunately, the current authorization for the five-year Surface Transportation Authorization, the BUILD AMERICA 250 Act, contains no funding for PIDP, the AAPA representatives reported.
In addition, there have also been delays in passage of the next Water Resources Development Act (WRDA)which authorizes the US Army Corps of Engineers, amongst other activities, to dredge and maintain ship channels for ports and harbors.
Following Sang’s remarks, John Bressler, Vice President, Government Relations AAPA provided a generally positive overview of AAPA’s ability to win and maintain support for its agenda with House and Senate members.
Even so, Bressler reported that the PIDP program, begun under the Biden administration as the Bi-Partisan Infrastructure Law, is about to expire after providing $2.25 billion in port investments. There is no new authorization.
The Infrastructure Law had provided an estimated $550 billion in new programs and investments including into ports via PIDP.
Resistance To PIDP
Following Bressler, Ian Gansler, Director, Government Affairs AAPA, reported to US port executives and representative about the challenges: “AAPA has been advocating that the next Surface Transportation Authorization bill includes advanced appropriations for PIDP just as in the previous authorization. We've been asking Congress for $10.9 billion dollars over five years for PIDP and the rationale behind that number is that's how much you all applied for from PIDP in the last five years. So, we're asking for the program essentially to be fully funded. We've gotten pretty good reception on Capitol Hill. Admittedly, with conservative majorities in both Houses of Congress … they're seeking a little bit more fiscally conservative spending plan. So, the House Transportation and Infrastructure Committee passed its version of the next Surface Transportation bill … That bill does not include any advanced appropriations for PIDP but it has not yet passed the full House of Representatives.”
However, that could change with the next Congress: “Congress had to pass an extension through December 11th. So, now Congress has until December 11th to either pass a Surface Transportation Authorization or another short-term extension. What we think and what we've been hearing up on the Hill is another short-term extension is very likely. Most likely this will get pushed into the next Congress and it will be the next Congress's responsibility to pass the Surface Transportation bill. Taking into account, AAPA’s advocacy we plan to continue pushing for advanced appropriations for $10.9 billion dollars over five years … We work very closely with our representatives of other modes of transportation truck, rail and aviation. And really the entire infrastructure sector is pretty much on the same page that we're asking for advanced appropriations not to have been a one-off as in the Bi-Partisan Infrastructure law, but to be the new normal going forward in these bills.”
Gansler noted that the Trump administration has indicated support for PIDP: “The President’s budget did call for $500 million for PIDP. That's a very, very strong signal of support.”
The Port Infrastructure Development Program (PIDP) is a discretionary grant program administered by the U.S. Maritime Administration. Funds for the PIDP are awarded on a competitive basis to projects that improve the safety, efficiency, or reliability of the movement of goods into, out of, around, or within a port.
PIDP grants support efforts by ports and industry stakeholders to improve port and related freight infrastructure to meet the nation’s freight transportation needs and ensure port infrastructure can meet anticipated growth in freight volumes. The PIDP provides funding to ports in both urban and rural areas for planning and capital projects. It also includes a statutory set-aside for small ports to continue to improve and expand their capacity to move freight reliably and efficiently and support local and regional economies, according to the U.S. Maritime Administration.
PIDP grants have been used to acquire new ship to shore cranes, modernize cargo-handling operations and improve rail and road connectivity to terminals and ports, according to AAPA.
Senate Delays Passing Water Resource Development Act.
There are also delays passing the Water Resources Development Act (WRDA) and that passage may also be delayed into 2027.
The Water Resources Development Act is a comprehensive legislative package that provides for the conservation and development of water and related resources. It authorizes the Secretary of the Army, through the Assistant Secretary of the Army for Civil Works, to conduct studies, construct projects and research activities that can lead to the improvement of rivers and harbors of the United States. WRDA is strictly authorizing legislation; it does not include funding. The funding of WRDA-authorized studies and projects is provided separately through the annual Energy and Water Development appropriations process according to the US Army Corps of Engineers.
Holden Haley, Manager Government Relations AAPA, said: “As you all know, this is a two-year authorization of the Army Corps of Engineers. This handles all of the channel maintenance, dredging, all new construction projects. It's a very critically important piece of legislation in making things happen in US maritime. And so, we're very proud to say that we got three of AAPA’s requests in the House version of WRDA, which passed overwhelmingly just a couple days ago.”
Unfortunately, passage in the U.S. Senate is still not a done deal: “The Senate has not yet passed their bill. The reason I raise this is because we have a short window during the lame duck session between November and January to get a final WRDA signed into law. So those of us that have vested interest in the WRDA bill, the time is running out. Really important to continue to step on the gas, make sure that those relationships are being kept very, very warm, making sure the policies that we're pushing are front of mind to those key legislators and committees.”
China Spends More on Foreign Ports Than US Spends on US Ports
In a short interview with AJOT after the reports, Ian Gansler noted that China invests $1 billion per year in supporting investment in ports around the world outside of China: “China is investing in ports outside of China. Over the last 20 years, they've invested about 25 billion dollars in ports outside of China. So, over a billion a year in not even their own ports, China's investing more in the world's ports than America's investing in its own ports on an annual basis.”
