Ports and Harbors

1
Ports and Harbors Transitions and Challenges
Presented at the Organization of American
States Inter-American Committee on Ports Houston,
Texas December 7, 2005

• Ms. Doris J. Bautch

Commissioner, U.S. Section of PIANC U.S. Maritime
Administration
2
Overview 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

3
Port Capital Expenditures by Type Share of
Total Capital Expenditures
Source Marad Port Financial Survey - 2003
4
U.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

5
Evaluating 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?

6
Ports 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?

7
Port Activities Part of Larger Chain
8
Challenges to U.S. Ports

• Channel and Navigation Access
• Landside Access
• Urbanization

9
What Metrics Best Present the Need to Improve the
System?

• Inventory Functions
• Engineering
• Operational Reliability
• Economical and Financial
• Safety and Security
• Non Navigational Users

10
What 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