11-12. NovDec 2021 issue.qxp_Pages-12-40-JanFeb WPD 13/12/2021 16:20 Page 4
north america
port survey
Port study reveals Canadian investments more than double US West Coast ports funding A recent study executed by Davies Transportation Consulting, in collaboration with Hatch Consultants Associates, has revealed that Canadian ports have received more than double the federal funding levels compared to US West Coast ports...
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he study, commissioned by ports in Washington and California, highlights the need to increase US port infrastructure funding in order to strengthen US ports’ competitiveness along the West Coast. Current federal levels of investment in infrastructure are insufficient to build the freight system the US needs today and in the coming decades. Improving the efficiency of existing infrastructure requires strategic investments that enable ports to handle current volumes and grow capacity to remain competitive with ports in British Columbia (BC). From 2016-2020, BC ports received USD372 million in Direct Port project funding compared with USD45 million for Washington State ports and USD179 million for California ports. This funding differential leads to a competitive disadvantage for US west coast ports. Beyond port-specific projects, the road and rail infrastructure that supports the efficient movement of goods throughout the supply chain are also receiving significantly fewer federal dollars than BC investments. The study reports that from 2005-2020 federal contributions to port-related projects total USD1.332 billion in BC compared to US USD457 million for Washington projects. These dollars support critical infrastructure such as road, rail, highway and bridge upgrades. “The Northwest Seaport Alliance has worked diligently to remain competitive despite inequitable distributions of the Harbour Maintenance Tax and growing competition with BC ports. The Canadian government has made their British Columbia ports a national priority and unfortunately US west coast ports have seen market share slowly shift north to Canada,” stated NWSA Co-Chair and Port of Tacoma Commissioner President Dick Marzano.
“More infrastructure funding from the US federal government means that we can move more cargo and support more family-wage jobs across our region.” US west coast ports compete directly with ports in Canada such as Prince Rupert and the Vancouver-Fraser Port Authority for cargo volumes in the Transpacific trade. As the Northwest Seaport Alliance, Port of Long Beach, and other ports in California aim to maximise US trade opportunities, accessing federal and non-federal funds for port-related investments is a fundamental challenge.
“The Northwest Seaport Alliance is making strategic investments in infrastructure to increase the efficiency of Seattle and Tacoma ports and remain competitive, but we can’t do it alone,” stated NWSA Co-Chair and Port of Seattle Commissioner President Fred Felleman. “Investments in port infrastructure not only benefit our economy but also reduce impacts on our neighbouring port communities and the environment. The Infrastructure Investment and Jobs Act and the Build Back Better Act fully recognise these benefits.”
Key takeaways from the study include: * Ports in British Columbia have successfully competed against Washington and California ports for container traffic. * Canada has treated West Coast Ports as a national priority. * Canadian federal contributions to BC port projects have substantially exceeded US grants to Washington and California ports over the past five years.
Ports play an integral role in the health of the US economy. By facilitating import goods for businesses and providing a key gateway to international markets for exports, ports support the country’s GDP and create millions of family-wage jobs across the country.
“The important role seaports play in the nation’s economy has never been more visible than it is today, during the global pandemic,” said Port of Long Beach Executive Director Mario Cordero. “The ports of Long Beach and Los Angeles, known as the San Pedro Bay port complex, handle 40% of the nation’s container cargo imports. The West Coast is the gateway to Asia and the country’s most prominent trade partners. A more equitable distribution of federal funding would make all our operations faster and more efficient, with tremendous benefits up and down the supply chain.”
The Northwest Seaport Alliance has stated it is committed to maintaining a thriving gateway for US trade in the Pacific Northwest and is making substantial investments to modernise its marine terminals and improve freight mobility through the port. The NWSA is already implementing many of the study’s recommendations including modernising Terminal 5 to handle larger container ships, partnering with local governments to advocate for improved landside infrastructure, and investing in zero-emission cargo handling equipment in the gateway.
Beyond funding, the study identifies ways to increase US West Coast port competitiveness including prioritising investments to accommodate larger vessels, upgrading landside infrastructure, and improving the environmental sustainability of port operations.
November/December 2021 World Port Development
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