MARAD: Funding

Innovations: US/MARAD Funding

Funding for marine infrastructure projects cannot come from the government
alone. In a time of tight Federal, state and local government budgets for the
foreseeable future, improved and innovative private financing methods are an
absolute necessity.

Funding for marine infrastructure projects cannot come from the government alone.

US Maritime Administration

Public Private Partnerships

Funding for marine infrastructure projects cannot come from the government
alone. In a time of tight Federal, state and local government budgets for the
foreseeable future, improved and innovative private financing methods are an
absolute necessity.

Public Private Partnerships–also known as P3s–are increasingly viewed as a major
component of funding and developing a seamless, reliable and cost-efficient 21st
century transportation system. Some of these partnerships are also involved in
the actual management of these assets, such as ports and terminals.

Banks and private investment firms are already rushing to invest in private infrastructure,
including highways, bridges and ports. States such as Texas, Virginia,
Florida and Georgia are relying more heavily on private capital to expand their
highway systems. Billions of dollars are flowing into these projects.

However, bringing an infusion of private capital to the marine transportation
infrastructure cannot merely be a good monetary investment with a high rate of
return for a few people. Rather, investments in vessels, facilities, ports and waterways
must yield dividends for the Nation, including easing congestion, spurring
economic growth and helping to increase America’s presence within the global
marine transportation marketplace. The Maritime Administration will be working to
attract capital for the marine transportation sector as a good and solid investment
in America’s future.

Vision: The Buck Stops Here

At no other time since the early days of the United States has the country been
so dependent on trade and marine transportation. It is imperative that the Maritime
Administration work with public and private stakeholders to identify, broker
and implement solutions to facilitate the movement of goods and people.
Together, we and our partners must examine and encourage the use of every
available alternative to address the high level of transportation congestion due to
booming trade and the increasing use of larger ships that currently exist. Without
such collaboration, the problem of congestion will only grow and be a serious
threat to America’s economic prosperity.

It is critical to transform the intermodal transportation system–starting naturally
with the ports, the nexus of the system–but not stopping there. Piece-meal or isolated
fixes merely encourage “stove-piping” and kick the problem down the supply
chain to a different mode of transportation.

A comprehensive and integrated strategy and implementation effort that considers
how the transportation system works as a whole is needed to help ease
congestion, enhance freight mobility, increase capacity, reliability and efficiency,
improve service and reduce costs to government, shippers, operators and consumers.