There are several changes on the horizon that will affect our part of the industry significantly this year.
The first will be increased environmental regulations and restrictions. For some time, the geographical area of South Texas has been considered “in attainment” of the air and water quality pollution standards regulated by the Environmental Protection Agency’s. Over the years, this has given the region a significant marketing advantage that has brought increased traffic, especially petrochemical and bulk cargoes. This year could see stricter environmental regulations and restrictions on refineries and other petrochemical facilities that could severely curtail that part of our industry and hinder the economy. It also would inhibit growth of bulk cargoes such as coal and petroleum coke.
The second significant change I see affecting our part of the industry isn’t really a change at all, but a continuing lack of federal funding for construction and maintenance of transportation/port infrastructures, primarily funds to dredge deeper port channels and to provide maintenance on those channels. Global trade is the backbone and primary artery of the U.S. and global economy. Without the funding to provide these infrastructure improvements and maintenance, trade will suffer. Coupled with stricter environmental restrictions, this could have a long-term negative effect on the U.S. and global economy.
These difficult issues won’t be simple to solve. My hope is the different elements of the world’s trade industry will band together to help the governments of the world better understand what is at stake. With the global economy still on shaky ground, 2011 will be a pivotal year that will shape the future, either in a positive or negative fashion. Difficult decisions must be made and, hopefully, these will be the right decisions.