According to a new survey, U.S. ports need billions in near-term capital investments to maintain their efficiency and global competitiveness.
The survey of 25 senior port and terminal executives by the National Association of Waterfront Employers also found there is demand for more than 100 new or replacement ship-to-shore cranes, underscoring the scale of infrastructure investment needed to modernize ports to accommodate larger vessels and maintain port efficiency. Survey respondents put the costs associated with the repairs and upgrades at $6.7 billion over the next five years.
“These findings underscore the scale and urgency of the investment challenge facing U.S. ports,” NAWE President Carl Bentzel said. “Modern cargo handling equipment is essential to ensuring terminal productivity, supply chain resilience, and the ability of U.S. ports to compete with international gateways. To invest in this equipment is an investment in securing America’s future and supply chain, and will be the lynchpin to unlock tens of billions of private sector investment in related intermodal infrastructure.”
Included in that figure is $2.74 billion for new STS crane purchases, $2.4 billion for large yard cargo handling equipment and additional STS cranes, $917 million for rail-mounted large yard cargo handling equipment, and $790 million for repairs to existing STS cranes and cargo handling equipment at marine terminals.
Officials said the survey highlights the increasing cost pressures facing port operators as cargo volumes grow, vessels get bigger and equipment ages. Survey respondents said sustained capital investment, supported by public-private collaboration – will be critical to keeping pace with global competitors and meeting the demands of exporters, importers and American consumers.