California ports and harbors are an interdependent
system:
Centralized large deepwater port complexes are required
for economies of scale in large, long-distance cargo
movements. California’s port and harbor system
includes large deepwater port complexes on San Francisco
Bay and the Los Angeles/Long Beach Harbor, containing
massive terminals for the latest generations of post-Panamax
container ships, supertankers and large bulk carriers.
For these functions to expand to meet growing demand,
it is essential that other functions be accommodated
in surrounding smaller ports and harbors.
Decentralized small deepwater ports are required as
collection and distribution points for petroleum products,
minerals, grain, forest products, and general cargo.
California’s port and harbor system includes seven
small and medium-sized deep-draft harbors on the State’s
coast, rivers and bays, from which significant exports
originate.
Decentralized small craft harbors are required to
realize the enormous resource potential in the ocean’s
rich coastal shelves. Harbors must be available near
ocean use areas for commercial fishing, marine construction,
mineral extraction, ocean research, recreational boating
and public safety. California’s port and harbor
system includes twenty-five shallow-draft harbors at
decentralized coast and estuary sites as well as small
craft facilities in all the deep-draft harbors.
Reducing the Congressionally mandated maintenance
of California ports and harbors would cripple the port
system:
California port and harbor maintenance is in the public
interest:
Public benefits greatly exceed public costs.
State and local governments cannot fairly allocate
costs among the nationwide beneficiaries of the California
harbor system.
California ports and harbors need the centralized
disaster response capability of a Federal agency to
deal with the unpredictable costs and timing of maintenance
dredging and breakwater repairs requirements, and to
provide rapid restoration of ocean access when it is
interrupted.
Ocean access, once abandoned, will be irreversibly
lost, due to land development and environmental pressures.
California port and harbor maintenance is in the Federal
interest:
Port and harbor maintenance promotes interstate trade
and commerce.
Port and harbor maintenance protects national competitiveness
in the rapidly growing Pacific Rim markets and the rest
of the world.
Every dollar spent on Federal port and harbor maintenance
generates more than $160 in Federal revenues.
The California Economic Engine Annual Economic Return to the Nation From Federal Appropriations for California Ports and
Harbors
$41 billion to the Gross Domestic Product
$8 billion to the U.S. Treasury
1.16 million jobs
$1.00 of Federal O & M appropriations contributes
$812 to the Gross Domestic Product
$1.00 of Federal O & M appropriations contributes
$161 to the Treasury
Between $150-200 million is needed to maintain California’s
ports and harbors to handle almost 31% of all US ocean
trade and support the State’s #1 industry, tourism.
Less than 1/2 of that need is recommended by the President
or appropriated by The Congress and the Treasury is
losing tax revenue.
California is the 7th largest world economy. It depends
on the Federal Civil Works mission.
Current demand on California infrastructure is overwhelming
and increasing at 6% per year.
California Containerized Cargo Growth, January-August
>97-=98
Loaded International Containers + 7.6%
source: JOC-PIERS
EXECUTIVE SUMMARY HIGHLIGHT:
C-MANC Economic Benefit Study Message
California’s complex of large and small ports, harbors,
marine terminals and associated coastal facilities carry
31% of the nation’s waterborne international trade
cargoes, connecting every state with the Pacific Rim and
propelling the whole nation’s economic growth and
prosperity. This complex contributes $40.6 billion to
the nation’s Gross Domestic Product and over $8.0
billion annually to the revenues of the Federal Treasury.
These contributions to the nation’s economy urgently
depend upon annual maintenance of the Federal channels
and breakwaters that permit the complexes to function.
A single year’s delay of any project can make a harbor
inaccessible at times to fully laden ships, reducing the
nation’s competitiveness in international markets.
Federal harbor infrastructure is a part of the nation’s
Civil Works infrastructure that has historically been
developed and maintained by the Army Corps of Engineers
in the national interest under Co
ngressional mandate.
Along with the Interstate Highway System and the National
Air Navigation System, it is Federally funded because
it is a key element of the nation’s economic engine
and defense capability.
California infrastructure is dependent on adequate levels
of Energy and Water appropriations, which must include
approximately $150-200 million per year for Corps of Engineers
harbor project operation and maintenance in California.
Any less will cause rapid deterioration of California
harbor accessibility and significant losses to the nation’s
economy.
This study documents these findings and warns of the
attendant restrictive economic and fiscal circumstances
that will result from inadequate Federal Civil Works budget
allocations and appropriations.
