Maritime Transportation Infrastructure

A modern and efficient maritime infrastructure is critical to America's and the world's continued economic well-being.

In May 2006, the Council endorsed a proposal by the Panama Canal Authority (ACP) to expand the canal by adding a third set of locks.

Additionally, a smooth and efficient multi-modal transportation system -- one that links huge cargo vessels, complex cargo handling and storage operations, dedicated and timely rail service, and extensive fleets of trucks -- is needed to support U.S. trade flows. The shipping industry has invested billions of dollars in new vessels, equipment, and systems to handle the transportation demands of American importers and exporters.

Ocean carriers have in fact built an ocean going transportation infrastructure that does an excellent job of meeting customers' needs. In addition, the large majority of the billions of dollars of capital invested in expanding the capacity of U.S. ports have been from World Shipping Council member shipping lines. Nevertheless, problems exist.

The U.S. port and inland transportation infrastructure is stressed today. More capacity is needed to handle the expected doubling of freight volume by 2020.Read a summary of Freight Volume Facts >>  

Understanding where and how to add expanded capacity - as well as determining how to pay for it - are the focus of important dialogue among system users. Developing actionable solutions requires participation by all parties, both public and private, with a clear understanding of the roles, responsibilities and capabilities of each.

In March 2006, World Shipping Council President and CEO, Chris Koch, addressed these issues to over 1,000 transportation professionals. Read his comments >>  

In January 2006, the US Department of Transportation (US DOT) issued a Draft Framework for a National Freight Policy, which can serve as the strategic planning tool for identifying the thousands of projects and initiatives nationwide that must be undertaken to improve freight movement. Read the Policy >>  

US DOT developed the policy with input from many stakeholders, including the World Shipping Council. The World Shipping Council, through its affiliation with the Freight Stakeholders Coalition, recently congratulated Secretary Mineta on the issuance of the policy. Read letter to the Secretary >>  

The World Shipping Council is also a member of the Maritime Transportation System National Advisory Council (MTSNAC), which provides recommendations to the Secretary of Transportation on maritime transportation. This group recognized the importance of intermodal cargo movement and its reliance on the transportation infrastructure and in September 2005, issued a full report to the Secretary. Read MTSNAC's Intermodal Report >>  

On August 10, 2005 the President signed the "Safe, Accountable, Flexible, Efficient Transportation Equity Act," (SAFETEA), a $286.5 billion, highway spending bill effective through 2009. Access the full text of SAFETEA >>   Passage of the bill was a multi-year effort and there were a number of provisions incorporated specifically to address freight transportation. A number of provisions are new and require the issuance of new regulation prior to implementation. Read a summary of provisions of interest to ocean carriers >>  

The importance of maritime infrastructure and concerns about whether the existing infrastructure can support the nation's economy in the future are not new topics however the passage of SAFETEA was the most significant action taken to date to actually address the problem.

Almost 10 years ago, the U.S. Congress, on November 3, 1998 directed that:

"The Secretary of Transportation, through the Coast Guard and the Maritime Administration shall in consultation with...other interested federal agencies and departments, establish a task force to assess the adequacy of the Nation's marine transportation system (including ports, waterways, harbor approach channels, and their intermodal connections) to operate in a safe, efficient, secure and environmentally sound manner."

A task force was formed to carry out this mandate. The group conducted seven regional listening sessions followed by a national conference on the Marine Transportation System (MTS) in November, 1998. They then produced a report to Congress, in September, 1999. The report identifies the challenges facing the country in maintaining an efficient marine transportation system over the next twenty years. Read the Assessment of the U.S. Marine Transportation System >>  

On April 4, 2001, Secretary of Transportation Norm Mineta told the House Committee on Transportation and Infrastructure that "Congestion in U.S transportation is a challenge that faces every American, simply because the vitality of the U.S. economy is so closely linked to an efficient transportation system...While the investment in maritime infrastructure has been and continues to be substantial, much of the infrastructure is aged and in need of repair."Read the Press Release >>  

On May 23, 2001, the same House committee held an oversight hearing on congestion in America's port and maritime transportation system. Representatives of federal agencies, port and waterway users and labor interests testified about the current situation and the need to address the nation's increasing congestion problems. Chris Koch, President of the World Shipping Council, testified on behalf of the Council's member lines that carry more than two-thirds of the goods moving through America's ports. Read his testimony >>   

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