The Federal government acknowledges that America’s seaports are key targets for terrorists. According to The 9/11 Commission Report, opportunities to do harm are as great, or greater, in maritime or surface transportation facilities as they are at airports. Protecting these vital transportation links is critical to our nation’s economic growth and vitality, and an integral part of our homeland defense.

Since Sept. 11, 2001, ports have instituted heightened security measures and have invested hundreds of millions of dollars to address terrorism threats. In the last three years, the Department of Homeland Security’s (DHS) Port Security Grant Program has provided much-needed support to address immediate security needs and assessments. But the grant money made available to date—about $565 million—accounts for only about one-sixth of what ports have identified as needs in the grants program. Over 90 percent of the nation’s $5.3 billion annual investment in the Transportation Security Administration goes to aviation.

Sharing The Security Burden

America’s seaports are a vitally important resource that must be adequately protected. They handle 95 percent of our overseas cargo, enable the deployment of our military and serve as departure points for millions of cruise passengers. The port industry and port users also generate about 16 million jobs and handle more than $2 trillion worth of international trade annually, accounting for fully 27 percent of our country’s Gross Domestic Product.

Within the next 15 years, industry analysts predict the approximately 2 billion tons of cargo that U.S. ports and waterways handle now each year will double. At that rate, the volume of trade moving through America’s port facilities will grow to one-third of the GDP. In response, seaports across the country are expanding to meet the increased demand for their services, necessitating huge expenditures in infrastructure, equipment and personnel. But seaports are public service entities and not private enterprises, so they can’t simply cut vital programs and eliminate services to pay for implementing new security plans, such as mandated by the U.S. Coast Guard regulations in accordance with the Maritime Transportation Security Act (MTSA).

The U.S. Coast Guard estimates that a one-month closure of a major port would cost our national economy $60 billion. To help protect our nation from such a catastrophic event, the AAPA believes that defending our international seaport borders must be a shared responsibility between the ports and the Federal, state, and local governments, together with private industry. In addition to beefing up perimeter fencing and protecting their entrances/exits, ports need assistance paying for such things as enhanced information management systems, state-of-the-art surveillance technology, visitor and worker identification processes, and highly-trained personnel to respond, operate and maintain it all.

Before Sept. 11, 2001, security at most ports was self-funded, with resources used primarily to prevent crime and cargo theft. Today, it’s necessary to share the security burden to protect critical U.S. infrastructure from terrorism.

Seaports Need More Support

Port security investments are an enormous new expense demanding an immediate quantum leap in spending. Ports are already spending well over $3 billion annually on infrastructure improvements and operating expenses to keep pace with burgeoning world trade. Recovering security costs by passing them along to customers, such as shipping and cargo companies, would likely drive some of those firms out of business, cause American ports to lose business to foreign competitors, stunt U.S. business prosperity and stifle trade growth. While some ports have instituted user fees, these fees generally only help pay for operation and maintenance.

The Coast Guard estimates that addressing terrorist threats at port facilities will cost $5.4 billion over 10 years. For FY’05, AAPA advocated a Federal funding level for America’s seaports of $400 million, based on those Coast Guard cost estimates. Yet, Federal monies appropriated for marine facility security in FY’05 amounted to only $150 million … only about one-third of the AAPA’s recommendation, but 20 percent more than was appropriated in FY’04. Recently, Homeland Security Administration grants through the states have also become available to port authorities for equipment, training and operation. The bottom line is that marine facilities are making progress but don’t receive nearly the level of Federal security funding that they need, unlike their airport counterparts. And, like airports, seaports must continue to improve their security to thwart possible breaches. Without significant Federal support, the new baseline MTSA requirements are likely to become unfunded Federal mandates and large financial burdens on port facilities.

Get Involved

America’s ports are our gateways to the world and a critical component in our nation’s economic health and national defense. Paying for their security is a balancing act, with responsibility that must be shared between the ports, private industry and government. While ports are making progress in raising additional dollars for security investments, vital port needs are still being overlooked and under funded.

To stay informed on port security issues, I encourage you to continue reading PortSecurityNews.com and consider joining the Port Security Council, for which AAPA is a founding member. The purpose of the Port Security Council is to serve as a vehicle through which port and terminal operators, users and suppliers address terrorist threats to the nation’s seaports and the maritime transportation system. For more information on the Port Security Council, click on www.portsecuritycouncil.us.

Kurt Nagle is president and CEO of the American Association of Port Authorities.