For a seaport to be successful, cargo must move freely in and out of its terminals. And seaports are key economic drivers for the nation, responsible for $4.6 trillion in economic activity or a full one-third of the U.S. economy last year. Those figures are expected to double in the next 15 years, but real infrastructure investment is necessary to keep pace with that growth.
Investment is needed both in the terminal and in land-side connections. First- and last-mile connectors, including roads, bridges and tunnels are critical links to the nation’s freight transportation network. Sadly, this infrastructure has fallen behind today’s needs and tomorrow’s demands.
According to surveys of U.S. deep-water ports, nearly 80 percent require major investment in land-side connecting infrastructure to reduce congestion and prepare for future growth. Ports are working to mitigate the issue by utilizing technology in automated gates, appointment systems and extended hours, but real federal investment is crucial to our nation’s global competitiveness and domestic economic and job growth.
A major factor in our nation’s future growth is leveling the playing field with our trading partners. Enacting the Trans-Pacific Partnership would immediately eliminate about 18,000 tariffs from the 11 participating nations, making U.S. exports more competitive with no negative impact to labor.
The agreement, which encompasses 40 percent of the world’s economy, was announced Oct. 5, 2015, but many political hurdles remain. The U.S. trade deficit is often cited as a reason to oppose such agreements. However, the fact remains that exports to the 20 nations the U.S. currently has agreements with have increased threefold. According to U.S. Department of Commerce statistics, these agreements have resulted in U.S. trade surpluses.
The TPA, which includes Australia, Brunei, Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, Vietnam and the U.S., would have tremendous results for American manufacturers, farmers, producers and shippers.
Gary LaGrange, President and CEO, Port of New Orleans