Posted on July 21, 2020
As Congress works to help airports, transit systems and other transportation services impacted by the coronavirus pandemic, the Port of Corpus Christi Authority and the American Association of Port Authorities believe it’s crucial that seaports also get the resources necessary to deal with the unprecedented financial, personnel, infrastructure and supply challenges imposed by this crisis. With only modest federal relief, the ability of America’s ports to continue delivering the goods you rely on will be bolstered so ports can significantly aid in the national recovery that follows.
Due to the pandemic this year, AAPA projects direct job losses at America’s seaports of about 130,000. That’s 20% of the U.S. maritime workforce, which, at full employment, supports an additional 30 million jobs nationwide. Most big U.S. ports will experience cargo volume declines ranging from 20% to 30%, while many smaller ones may experience much worse. Of course, ports that specialize in moving hard-hit cargoes like steel and automobiles, or depend on tourism dollars, such as from cruise ship calls and land leases to hotels, restaurants and retailers, are particularly vulnerable.
In 2018, cargo activities at America’s seaports generated $5.4 trillion, representing a quarter of the U.S. economy. Those cargo revenues created $378 billion in federal, state and local taxes. Additionally, America’s tourism ports attracted 13 million international cruise-goers, whose spending created $53 billion in business revenue nationwide and generated wages, salaries and taxes exceeding $23 billion.
The Port of Corpus Christi is responsible for $150 billion of economic activity for the United States, as well as $20 billion for the State of Texas. It also generates more than $353 million in local and state taxes, while providing more than 80,000 jobs. It is a vital economic engine for the State of Texas, its Coastal Bend region and the nation. But the Port has seen the impacts of COVID-19 over the past few months.
Beginning in April, the Port of Corpus Christi has seen consistent month-to-month declines, with the second quarter showing a nearly 13 percent drop in overall tonnage. The effects brought about by this decline in revenue – which will surely be felt in the months and years ahead – has resulted in the Port and its customers reevaluating scheduled capital projects. This is intended to navigate the financial uncertainty ahead. But it also means delaying necessary infrastructure improvements designed to facilitate more commerce and economic growth when it is needed most.
Now facing significant cargo and passenger declines, and added costs for cleaning, sanitation, personal protection equipment and related supplies, America’s seaports are requesting federal assistance. This isn’t about replacing lost revenue. It’s about maintaining a “State of Readiness” to make good on bond and other debt payments, and keep our workforce employed to the fullest extent possible.
To aid the seaport industry’s coronavirus response and recovery efforts, AAPA and the Port of Corpus Christi are urging Congress to provide $1.5 billion in direct grants to help ports cover operations, equipment and infrastructure costs, and debt service expenses. We’re also asking that any future aid packages be available to local authorities of any size, including ports, and that legislation provide payroll tax credits to cover personnel sick and family medical leave. Additionally, we’re recommending repeal of the trade-choking, job-killing ‘301’ China tariffs. Doing so will increase domestic consumer spending and help American manufacturing.
An April 2020 report prepared for the U.S. Committee on the Marine Transportation System shows that increasing port-related transportation infrastructure investments above a “business-as-usual” scenario will deliver higher levels of GDP, create more jobs, increase incomes, improve trade performance and raise productivity.
Every day, seaports like the Port of Corpus Christi are delivering critical goods and materials to the front line of the COVID-10 battlegrounds. We’re also ensuring consumer goods get to the doorsteps of countless millions of Americans who are safely working from home.
Policymakers cannot overlook our nation’s ports in this pandemic. Now, more than ever, Congress must deliver modest relief to lessen the effects COVID-19 has had on these important gateways to our nation’s future. This will ensure America’s seaports have the ability to maintain a reliable “State of Readiness” to aid in the nation’s recovery.
Christopher J. Connor is President and CEO of the American Association of Port Authorities. Sean C. Strawbridge is CEO of the Port of Corpus Christi.
Source: linkedin
