AAPA Seaports Magazine
Saturday, September 4, 2010 AAPA Seaports Magazine is "The Voice of the Industry"

Summer 2009 - Managing through Challenging Economic Times

Viewpoint: Geraldine Knatz, Ph.D.

Seaports Continuing to Deliver Prosperity

from the desk of Geraldine Knatz, Ph.D., Executive Director Port of Los Angeles and Chairman of the Board and U.S. Delegation Chairman, American Association of Port Authorities

Seaports have long been recognized for their ability to create jobs and generate tax revenues while facilitating the safe and secure movement of cargo. As ports around the world feel the impact of the deepest global recession in decades, there is growing pressure on many port authorities to take bold, dramatic steps toward ensuring that port activity continues to provide jobs and other economic benefits.

Despite the severity of the downturn, these hard times present an opportunity for member ports of the American Association of Port Authorities to prepare for eventual economic recovery. For their part, AAPA ports are aggressively pursuing stimulus funding for more than 200 shovel-ready infrastructure projects with a combined construction value of $8.5 billion. These projects could create more than 275,000 jobs and provide tremendous economic contributions to neighboring cities and communities, many of which are severely impacted by the global economic crisis.

While these American Recovery & Reinvestment Act programs include funding for waterside navigation projects, road and rail connections to ports and other traditional infrastructure projects, stimulus projects will also help AAPA ports initiate or continue to advance "green" development initiatives at their facilities. For example, the U.S. Department of Energy received $400 million from the stimulus act for transportation electrification that can fund electric and hybrid trucks and marine vessels, including retrofits, as well as infrastructure for shoreside power production for ships.

The U.S. Environmental Protection Agency's clean diesel program also received $300 million that can be used for reducing diesel emissions from port-related activities. Environmentally responsible expansion projects, such as those funded through the Department of Energy, will not only create and sustain jobs, but will improve air quality and provide other environmental benefits in port regions.

Similarly, the U.S. Commerce Department's Economic Development Administration received $150 million for grants to economically distressed communities to generate new employment, retain existing jobs and stimulate industrial and commercial growth. Such opportunities could involve regional partnerships among AAPA ports for mutually beneficial projects.

At the same time that AAPA ports are pursuing projects that will provide much-needed jobs and economic stimulus, the EPA is proposing creation of an Emissions Control Area that would significantly reduce emissions of sulfur oxides, nitrogen oxides and particulate matter from ocean vessels moving within a 230-mile buffer zone around U.S. and Canadian coastlines. According to EPA, which was joined by its Canadian counterpart in submitting the proposal to the International Maritime Organization, creation of the ECA would save the lives of as many as 8,300 Americans and Canadians every year. The AAPA's U.S. Delegation has endorsed the North American ECA.

In addition to investing in our infrastructure and continuing our environmental progress during these tough economic times, it is equally important that national leaders resist any impulse to adopt protectionist policies that would further reduce the flow of cargo through seaports. International goods movement has flourished as trade barriers have been torn down. Particularly now, national governments must avoid resurrecting those hurdles.

The show of support from our national leaders is evidence that AAPA's rallying cry - Seaports Deliver Prosperity - is being heard and producing results. Now, as our nations work toward recovery, AAPA ports must keep up the drumbeat: Seaports Deliver Prosperity. The vitality of our seaport regions depends on it.

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Seaports have served as a crucial economic lifeline by bringing goods and services to people around the world for hundreds of years. Seaports continue to be a critical link and play a vital role in the global marketplace, but they don't always get credit for the significant contribution they make to our society and economy.

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Outbound

Letter from Ray Venturino, Publisher

Throughout this issue, esteemed industry professionals give their insights into public perceptions of seaports and take a look at what some AAPA member ports are doing in their awareness initiatives.

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