The biggest change I see on the horizon for U.S. seaports will be a move toward more self-sufficiency in the face of dwindling federal, state and local dollars. We must seek innovative funding sources and non-traditional business avenues in order to pay our way into continued success.
The replacement of aging infrastructure, the deepening of waterways to accommodate post-Panamax ship traffic (along with the ongoing cost of maintaining that depth) and the investment required to operate more efficiently mean most major seaports will each need tens of millions, if not billions, of dollars in the decade to come.
Bridging the shortfall will require expanding a port’s role and finding new revenue sources in alternative, yet related activities. One avenue is the establishment of port-run chassis-pools. Ports might look to enlarging their role in the business of logistics by getting involved in cross- docking and warehousing operations. There also may be non-maritime opportunities in using port-owned properties for commercial development that yields revenue that can invested back into the port. The list of inventive ideas for supporting ourselves will be bound only by the limits of our own imaginations and the respective rules and legal regulations we each operate under.
Public-private partnerships offer further financial fortification if they can offer the return on investment required by the private part of the equation. Creating workable partnerships also will be an important part of ensuring mostly self-sufficient seaports in the future.
Once ports venture into novel territory for earning revenue, more may be able to fund the building and operation of intermodal facilities and on-dock rail facilities wherever possible. Both are critical elements in creating a competitive advantage in our highly competitive industry.