Port activity in the United States is booming. Even more activity is expected when the Panama Canal expansion is complete and more and larger ships begin frequenting American ports. As ports nationwide prepare for this burgeoning increase in shipping activity, contracting opportunities for infrastructure projects are looming large over the next five years. According to the American Association of Port Authorities (AAPA), a recent survey of its member ports indicates that American ports and their private-sector partners are planning to spend $154.8 billion on port-related freight and passenger infrastructure between this year and 2020. That is more than three times the $46 billion figure from the same survey five years ago.
Photo by Robert Raines is licensed under CC BY 2.0
Unfortunately, only $24.825 billion in federal investments in American ports is expected during that five-year period. While the federal surface transportation act passed by Congress at the end of last year provided for $11 billion in new funding through 2020 for land-side freight improvements, the increase in freight volumes will require a much larger investment, according to port officials.
The AAPA survey indicates that the largest port projects over the next five years will include energy processing, production and transfer facilities along the U.S. Gulf Coast.
A breakdown of the survey’s projected port spending and the investment expected by the private sector through 2020 includes:
- The Gulf Coast Port Region has on tap projected port capital expenditures of $4.999 billion. Private-sector investment of more than $122.79 billion will bring the total investment in projects in this area to $127.79 billion through 2020.
- The South Atlantic Port Region plans to spend $7.592 of port funding on more than $9.379 billion in projects under consideration. Private-sector projects are expected to make up $1.787 billion of that total.
- The South Pacific Port Region is prepared to spend $4.573 billion on capital projects in the five-year period. The private sector additionally is planning $3.139 billion toward a total of $7.712 billion in projects in this region.
- The North Atlantic Port Region has projects planned that will result in a port investment of $3.64 billion. Private-sector spending of $1.2 billion will bring the total amount to be spent on projects to $4.858 billion.
- The Great Lakes Port Region is planning $1.007 billion in capital projects, $503.2 million of which will be port-funded projects with another $504.5 million in private investments.
- The North Pacific Port Region ports plan to spend $1.293 billion in port funds on projects over the next five years. With private-sector project funding totaling $734 billion, total project spending in the region will top $4.027 billion for planned capital projects.
Of the $154.7 billion in capital projects planned nationwide from now through 2020, public funding will represent $22.6 billion of that total. Private-sector businesses should watch for announcements of these planned port projects that will, no doubt, result in a myriad of contracting opportunities as well as the possibility for collaborative efforts through public-private partnerships.