1. 1 Presentation for the 11th Annual Atlantic Intracoastal Waterway Conference By David B. Sanford Director, Navigation Policy & Legislation American Association of Port Authorities November 18, 2010 American Association of Port Authorities 703.684.5700 www.aapa-ports.org

2. 2 AAPA Overview AAPA is a hemispheric alliance of 150 leading port authorities, including 85 in U.S. Promotes info sharing, education & training. Provides advocacy and representation on federal policy impacting ports. Committed to keeping seaports navigable/secure/sustainable

3. 3 Seaports Deliver Prosperity Seaports are vital economic lifelines for communities, regions & nations. Seaports provide critical links to the global marketplace. Modern, navigable seaports are vital to trade & economic prosperity.

4. 4 Seaports Deliver Prosperity Generate more than $3 trillion in economic activity. Move more than 2 billion tons of international & domestic goods. Support jobs for over13 million workers who earn $650 billion in wages & salaries. Support businesses that pay in excess of $212 billion in taxes. Enable some 9 million Americans to take cruise vacations, generating 350,000 cruise-related jobs Annually, U.S. seaports….

5. 5 Southeast U.S. Seaport Cargo Tons 2005-2008

6. 6 Southeast U.S. Seaports – Cruise Trade 20092008200720062005 Southeast US PortsPSGRSVESSELSPSGRSVESSELSPSGRSVESSELSPSGRSVESSELSPSGRSVESSELS Charleston87,72133116,70743 101,39244107,030 5095,04347 Hampton Roads 57,575 15 91,218 27105,1594063,76927105,39349 Jacksonville (FY) 184,73779 76,47450129,83880128,74578138,28986 Key West (fy)863,767378754,407360830,954403859,089413976,761495 Miami(fy) 4,110,1007894,137,4917893,787,410713 3,731,459757 3,605,201 734 Palm Beach(fy) 556,408 520,557 553,692 Port Canaveral (fy)3,250,7751,5303,573,960 1,546 4,275,9221,9184,542,0561,967 4,467,088 1,947 Port Everglades (fy)3,139,8201,0073,227,7701,6763,409,946 1,852 3,239,154 1,763 3,801,464 2,362 Savannah (GA) 354 2 St. Petersburg (FL) Wilmington(N.C.) 1,400 1 Florida cruise ports continue to dominate in SE

7. 7 New York Norfolk Baltimore LA/LB Oakland Seattle/ Tacoma 2014 Post-Panama Canal 50’ Draft Ports

8. 8 Navigation Channels Need Deepening 2014 Panama Canal expansion sets bar higher Need to increase navigation channel deepening & widening investments to help keep U.S. globally competitive Dredging policy reform needed to streamline permitting process

9. 9 Southeast U.S. Seaports – Channel Depths Only Norfolk is currently dredged to 50 feet SE seaport dredging projects underway or planned: Charleston – currently 42’; seeking study funding to go to 50’ Savannah – currently 42’; authorized to deepen to 48’ Jacksonville – currently 40’; seeking study funding to go to 45’ Miami - currently 42’; authorized to deepen to 50’ Asia-Americas trade routing options

10. 10 America’s Marine Highways - A Viable Alternative Landside congestion costs Americans $200 billion a year. 2.9 billion gallons of fuel are wasted annually idling in traffic. Domestic waterways now carry only 2% of America’s freight. Shipping by water is the most cost-effective, environmentally friendly mode. Putting more freight on America’s waterways would help cut landside gridlock, emissions, road costs Only areas in green may compete for DOT funding

11. 11 Making The Best Use of Existing Cargo Capacity FHWA estimates highway freight tonnages will increase 70% between 1998-2020. Freight tie-ups slow our economic recovery. Trucks best suited for, and most profitable in, short hauls. Moving some cargo between ports via short-sea shipping would help alleviate congestion. Congestion can slow the pace of economic recovery

12. 12 Short-Sea Shipping Opportunities Must Be Improved Harbor Maintenance Tax first obstacle to overcome HMT unfairly burdens coastal shipping, domestic cargos. Trust fund running huge annual surplus. Proposed federal legislation would eliminate HMT on certain port-to-port “sea” freight.

13. 13 Consider creating new, expanding existing programs, like CMAQ. Establish and provide incentives for using marine highway corridors. Develop expertise at the state/MPO level on marine highway alternatives and benefits. Reassess federal shipbuilding programs to support short-sea. Provide tax credits for terminals and vessel operators to encourage new short-sea infrastructure. Need for additional incentives to initiate new services Short-Sea Shipping Opportunities Must Be Improved

14. 14 America’s ports deliver prosperity through jobs, trade, security and environmental stewardship Seaports are our lifeline with the rest of the world. They provide jobs, goods, choices, security, sustainability. Ports and connecting infrastructure will aid our economic recovery. American Association of Port Authorities www.aapa-ports.org ● 703-684-5700 www.aapa-ports.org