The U.S. government has failed to adequately finance security initiatives at the nation’s ports, according to the American Association of Port Authorities.
In testimony set for today before the House Appropriations Subcommittee on Homeland Security, Susan Monteverde, vice president of government relations for the AAPA, plans to request that security funding in the Bush administration’s proposed budget be increased to $400 million from the $210 million that was recommended.
Monteverde’s prepared remarks, released on Monday, stressed the key role of ports in boosting trade and their strategic importance in providing military supplies.
“Commercial ports now handle virtually all of the equipment and substantial amounts of needed supplies that are shipped overseas in support of our armed forces,” she said. “In short, our military depends on efficient, accessible public ports to defend this nation.”
Industry analysts believe that by 2020 the volume of cargo moving through U.S. ports will double compared with 2000, Monteverde said. Analysts also predict that the number of cruise ship passengers may reach 20 million by 2020, more than double the nine million reported in 2006. To cope with this rapid growth, ports are spending an estimated $2.1 billion a year to upgrade infrastructure, equipment and technology and on dredging.
However, the added costs related to improved security measures are putting significant financial pressures on port managers. Monteverde said the federal government has consistently underfunded port security initiatives. She pointed to the Port Security Grant program established in 2002 to pay for port security initiatives and protect them from terrorist attacks, as a primary example of the government’s failure to hold up its end of the bargain.
“From its inception, the Port Security Grant program has been dramatically underfunded,” Monteverde said. “Only 20 percent of the requests for security enhancements at our nation’s ports have received funding.”
Of the $4.34 billion that U.S. ports requested from the grant program between 2002 and 2006, only $876 million was distributed. This is not only far short of the amount requested, but drastically below estimates made years ago about the amount of funding that ports would need to secure themselves.
“When the Maritime Transportation Security Act was enacted five years ago, the Coast Guard estimated that port facilities would have to spend $5.4 billion over a 10-year period to comply with the new regulations,” Monteverde said.
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A call to the Department of Homeland Security was referred to the Transportation Security Administration, which did not return the call.
Ports are picking up a significant portion of the tab themselves when it comes to security. The Port of Long Beach in Southern California, one of the nation’s largest, has received $32 million in federal grants but has spent $19 million of its own money, as well. Long Beach and the Port of Los Angeles together expect to spend an additional $22 million to implement the Transportation Worker Identification Credential program that will provide background checks and identification cards to port workers who want “unescorted access to port facilities.”
The Bush administration’s proposed budget for 2008 raises more concerns for the AAPA. It recommends $210 million for the Port Security Grant program, the same level as 2007.
“At the same time, the administration is asking for an overall 8 percent increase in DHS’ fiscal 2008 budget, it is recommending that spending remain flat for port facility security,” Monteverde said. “We find this troublesome, especially in light of new security mandates being implemented.”