Overall, we foresee cargo volume being down because of the weak economy, and the credit crunch, in particular. The weak economy could cause some states and port authorities to question infrastructure investments, but these individuals must recognize the downturn will be short-lived and investments for the future are very positive in the long run. In addition, port authorities — especially on the Gulf and East coasts — must prepare for the predicted increases in container traffic associated with the Panama Canal’s planned expansion.
A new Congress and administration also will be cause for speculation. The direction of our new leadership is relevant to any port that receives federal dollars for vital infrastructure projects, dredging and the replacement of antiquated lock systems. The industry will push the new Congress to dedicate collections from the Harbor Maintenance Trust Fund for dredging and investment into our nation’s ports and harbors. In 2007, $1.4 billion was collected by Customs, but only $751 million was spent on the fund’s intended purpose. The rest — $665 million — was deposited in the general treasury to offset spending deficits. Despite growing infrastructure needs and the overall aging of infrastructure at ports nationwide, the 2009 budget called for only $729 million to be spent. The HMTF currently has a $4.7 billion balance, which government analysts predict could rise to $8 billion by 2011. Those dollars should be reinvested into our ports and harbors, which is the intended purpose.
Despite the economic slowdown, container traffic growth within the next five years alone is expected to push many ports to their full capacity, thus challenging U.S. competitiveness in the world market. Security issues and the fate of free-trade agreements such as the North American Free Trade Agreement, the Central America Free Trade Agreement and the planned Colombia Free Trade Agreement could be at the forefront, as well. Will the new administration take the same course on these issues? Only time can answer these questions as Congress and President-elect Barack Obama begin to roll out new initiatives and agendas.