US port authorities face increasing challenges in funding needed road, rail, and bridge projects. Port funding has traditionally been focused on marine terminals and dredging projects, not landside transportation infrastructure. The San Pedro Bay Ports of Long Beach and Los Angeles have identified several highway/bridge and rail projects estimated to cost $3.2 billion and scheduled for construction over a 7-year period. Expected federal, state and local sources will fund a significant share of project costs, but like most agencies, the ports face a large challenge in developing a complete funding plan. This paper discusses "Infrastructure Cargo Fees" (ICFs) as a potential source of additional revenue for improving port-access infrastructure. Both ports previously approved these fees in their tariffs and had targeted collection to begin in 2009. As designed, these fees would only be spent on identified projects and would expire when the projects are completed. Because of the current economic climate, however, fee collection has been delayed indefinitely, to be reconsidered depending on how quickly the economy recovers. The fees are not without controversy. Constraints to the implementation of the fees include the downturn in the economy (shippers worldwide are struggling to adjust to uncertain conditions) and concern about potential diversion of cargo to other ports. The authors will define the issues, the projects, engineering challenges, ICF calculation methodology, collection method, and benefits. The paper discusses whether this funding strategy can be adopted as a way forward by ports throughout the nation to complete critical infrastructure projects.


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    Title :

    Infrastructure Cargo Fees—A Way Forward


    Contributors:

    Conference:

    12th Triannual International Conference on Ports ; 2010 ; Jacksonville, Florida, United States


    Published in:

    Ports 2010 ; 1137-1144


    Publication date :

    2010-04-22




    Type of media :

    Conference paper


    Type of material :

    Electronic Resource


    Language :

    English




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