A Case For The Harbor Maintenance Fund
March 01, 2011 —
By Captain Michael R. Lorino, JR
Associated Branch Pilots President
Metairie, LA
Three feet. That's all it takes for the maritime economy on the Mississippi River to lose billions of dollars. Because of the lack of adequate funding for dredging the lower Mississippi, we at The Associated Branch Pilots were forced to reduce the acceptable draft of ships coming in and out of the river from 47 feet to 44 feet. The results of just those three feet are already being felt from New Orleans to the heartland of America in the form of billions of dollars.
To put things in perspective - the loss of three feet of draft on a Crude Oil tanker equals more than a $4 million loss. That's per ship. Consider that everyday, roughly 30 ships of every kind, from oil tankers to cruise ships, make their way in and out of the river. Do the math. I can promise you, shipping companies are. And it won't be long before they realize they can be far more profitable going to ports all across South America.
There's a solution. In fact, there's been a solution for more than a decade. We just haven't utilized it.
The Harbor Maintenance Trust Fund was established in 1986 to give the Army Corps of Engineers the necessary funding to avoid exactly this type of disaster. A 0.125% tax based on cargo value has been levied on all cargo imported or domestically moved through our nation's rivers and harbors. This fund has produced more than a billion dollars a year for the maintenance of ports and harbors.
Unfortunately, this dedicated fund was never dedicated at all. It's been raided for years to help fund other government programs through the general budget. It's been referred to by many elected officials as the "silver bullet" to address budget deficits and nearly half of it has been used for anything but our ports and harbors.
Louisiana Congressman Charles Boustany, R-Lafayette, has introduced a bill to congress to free up these funds for their intended purpose. A bill in the Senate by Senator Carl Levin, D-Mich, seeks to do the same.
We support Congressman Boustany and Senator Levin in these efforts, and not just because our livelihood depends on the river. Our nation's economy does as well. This isn't a Louisiana problem. This is an Iowa problem, a Missouri problem, an American problem.
In a time when our economy can ill afford a major blow, investing in the Mississippi is a sure bet. Consider that for roughly ever $1 spent on dredging our economy gets a $35 return. Give me a stock tip like that, and I'll put everything I have into it. So should our Federal Government.
By the way, time is money and we're running out of both.
