‘Ports 101’ - An Industry Perspective

Prepared by

American Association of Port Authorities

July 2007

Ports Connect Us With The World

Ports Are Dynamic Transportation Hubs

Ports Are Economic Engines

• In 2000, 5 million people in U.S. were employed in port-related jobs, earning $44 billion annually

• In 2000, port-related businesses generated over $16 billion a year in federal, state, local taxes

• Port activity contributes nearly $750 billion to GNP

Ports Are Environmental Stewards

No Two Ports Are Alike

Port of Benton (Washington)

Port of Long Beach (California)

There are public- and privately-owned ports

All AAPA member ports are public Public ports part of state, bi-state,

county or city government, or special district

Public ports run by elected or appointed boards with professional staff

Port Governance

Landlord ports lease their marine facilities

Operating ports operate their own facilities

Limited operating ports do some of both

Most public ports use stevedores to hire and supervise longshore labor

Landlord vs. Operating Ports

Cargo Ports, Cruise Ports, Combo Ports

← Cargo ports serve freightCruise ports serve people →

← Many serve both →

Ports Handle Many Types Of Cargo

Bulk cargoes like grain, petroleum and fertilizers

Breakbulk cargoes like roll paper, baled cotton and steel rail

Ro-Ro cargoes like auto-mobiles, tractors and mili-tary ve-hicles

Contain-erized cargoes like food, electron-ics and textiles

Through Federal/State/Local Partnerships– U.S. ports plan, fund their own facilities– Private investors help, such as terminal

operators

How Are Ports Developed?

Federal government controls and funds navigation channel maintenance; cost-shares deepening projects

State and local governments, with money from federal Highway Trust Fund, pay for road access to/from terminals

How Are Ports Developed?

Population growth, development creating land use pressures for ports– Coastal populations expected to grow

60% by 2010– Competing demands for non-maritime

waterfront uses

How Are Ports Developed?

Port Revenues General

Obligation Bonds

Revenue Bonds Loans Grants Other Sources

How Are Ports Funded?

Each state relies on 13-15 ports Seaports handle 99% of U.S.

overseas (non-NAFTA) cargo tonnage Annual freight volumes through U.S.

ports exceed 2.6 billion tons International trade expected to

reach one-third of GDP by 2020, up from 13% in 1970

Ports Are National Assets

Many ports have agreements with the federal government to serve needs of military

19 U.S. ports listed as militarily “strategic”

Ports Are Vital To The Military

Efficient supply chain logistics at U.S. ports help reduce costs of moving military cargo

Key Port Challenge: Cargo Volume Gains

Marine terminals are the hub for inbound and outbound cargoes

Key Port Challenge: Terminal Congestion

Ships getting bigger, necessitating terminal infrastructure investments to handle them

Trucks/trains need unobstructed port access

Marine transportation system offers good alternative where feasible

National Freight Policy “framework” needs appropriations, more federal involvement

Key Port Challenge: Landside Congestion

Unresolved federal funding questions delaying critical navigation projects

Harbor Maintenance Trust Fund is growing, along with backlog of navigation maintenance needs

Corps of Engineers’ Civil Works Program funding is dwindling as ships are getting bigger

New water resources bill imperative to maintain/improve America’s navigation system

Key Port Challenge: Waterside Congestion

Key Port Challenge: Seaport Security

• Seaport security must continue to be a top priority

• Ports have spent hundreds of millions of dollars to protect facilities against terrorism

• Port Security Grant program under-funded since inception

• Congress must fully appropriate SAFE Port Act provisions

Key Port Challenge: Improving the Coastal

Environment

Port of Long Beach executives promote program to reduce marine terminal tractor exhausts

AAPA members are taking a leadership role in improving the coastal environment by:• Voluntarily reducing diesel

emissions

• Advocating ratification of MARPOL Annex VI to limit vessel emissions

• Urging national & international ballast water management programs

• Adopting Environmental Management Systems (EMS)

Summary: Ports & Communities Are

Allies• Port

communities are important players and partners with ports in meeting industry challenges

• We look forward to working together to address our mutual needs