The widening of the Panama Canal has received much attention as ports prepare for the larger, post-Panamax ships that will pass through it, but Jacksonville Port Authority CEO Paul Anderson explained Thursday the need for improvements to aging infrastructure to compete in that burgeoning global marketplace.
“All U.S. ports are at a critical juncture, not just Jacksonville,” Anderson said. “The question is will we be ready as a port, will we be ready as a nation for global cargo growth.”
The comments were part of a “State of the Port” presentation Anderson shared with di members of the Propeller Club of Jacksonville.
Since being hired as the CEO of the authority just over a year ago, Anderson has been noticeably frustrated that the shipping industry has fallen into “stepchild status in transportation industry.”
Anderson said the industry lacks a dedicated funding source that other transportation modes have.
“There’s a transportation bill known as the Highway Bill, and that funds all sorts of roads, tunnels and bridges, and there is a dedicated funding source for those dollars,” said Anderson.
The ports have a Harbor Maintenance Trust Fund, but it also has been a source of frustration for Anderson.
“It is, by definition, a trust fund. That means that you pay a tax, in this case its tax on cargo that is imported to the United States, that is supposed to be put into the trust fund to maintain our harbors,” he said.
He has been critical of legislators using the funds for other needs.
“I’m not sure anyone in here is going to be shocked to know that we collect about $1.4-$1.6 billion annually for that fund,” said Anderson of the fund that currently has a balance of about $6 billion. “Congress steals the rest. Harsh words, but it’s true. They use it to offset the deficit. They give about $750 million every year for our harbor maintenance and it’s not enough to currently maintain all of our ports at the current authorize drafts.”
Anderson also discussed the need to reduce the amount of time it takes to complete infrastructure projects as they are processed by the government.
“In the United States it takes an average of 12 years to complete a project on our rivers for critical locks and dams,” said Anderson. “We face that problem in our ports. It takes 12 years.”
He talked about how Panama passed a national referendum to spend $5.5 billion to expand the Panama Canal.
“Imagine that, if all of you had to go vote so we as a country could spend $5.5 billion,” he said, “but to do what? To do something that changes the way the world moves cargo with one of the largest construction projects in the world and it’s a game-changer.”
He compared the widening of the Panama Canal to Jacksonville’s efforts to fix the tidal restrictions on shipping at Mile Point.
“It’s going to take our country — because we need congressional authorization to fix that — longer to fix this little $40 million project than it will take a Third World country like Panama to complete on of the largest construction projects in the world,” said Anderson.
The presentation included accomplishments as well as needs. Anderson was proud of the port becoming the No. 1 container port in Florida, passing the 900,000 20-foot equivalent unit mark — even if Miami claims to still be No. 1.
“I am not sure who is No. 1. We thought we were at the end of the year, but somewhere Bill (Johnson, Port of Miami director) claims they found a few hundred more containers and they actually passed us and he is claiming No. 1,” said Anderson then joked: “Isn’t it just like someone from South Florida to do a recount.”
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