Ports Plan Major Investments in Infrastructure

Large-scale infrastructure projects along ports and freight corridors are expected to receive a major boost over the next five years from port operators and investors, the American Association of Port Authorities found in a recent survey.

The survey, unveiled April 6, found that the country’s ports are planning to spend nearly $155 billion on port-related freight infrastructure and roadways for trucks through 2020. The figure is three times the association’s estimate from five years prior.

SURVEY RESULTS: PDF from AAPA

“Infrastructure investments in America’s seaports and their intermodal connections — both on the land and in the water — are in our nation’s best interest because they provide opportunities to bolster our economy, create and sustain jobs, enhance our international competitiveness and pay annual dividends through the generation of more than $321 billion in federal, state and local tax revenue,” said Kurt Nagle, CEO of AAPA.

The largest projects would be based at ports along the Gulf Coast region to equip energy and fuel operations, freight distribution hubs and transfer facilities. AAPA’s survey also found despite efforts to modernize infrastructure, such as the enactment of the 2015 FAST Act highway law, more money is needed for projects. The federal government continues to underinvest in the distribution of freight, the survey argued.

“While [the FAST Act] was a major positive step, additional investments are needed to effectively handle the nation’s burgeoning freight volumes,” Nagle added.