Maritime Infrastructure: Public Ports Engage in an Extensive Range of Activities beyond Freight Movement

What GAO Found

Public ports across the U.S. quest for an extensive stove of activities unrelated to freight motion. Examples of such non-freight activities include cruise transport and ferry terminals, commercial fish, diversion, and commercial and residential development. In a GAO sketch of ports, 67 of the 80 respondents reported being involved in non-freight activities in the stopping point 10 years, with most respondents having a mix of freight and non-freight activities. Port officials said they pursue non-freight activities to diversify lines of commercial enterprise, find newfangled uses for underused facilities, and address unmet community development needs, among other reasons. Non-freight activities can besides have economic impacts including creating jobs, according to port stakeholders and economic impact studies. For case, one study estimated that commercial fish activity at the Port of Seattle accounted for 11,300 jobs and generated $ 1.4 billion in total business end product in 2017. Ports most normally reported funding their non-freight activities with port revenues ( 55 view respondents ) or state funds ( 53 view respondents ) .
Waterfront Park Area and Development, Port of San Diego

Federal concede programs GAO reviewed have provided some fund to ports for non-freight projects but have largely focused on freight. According to GAO ‘s analysis of federal grant award data for fiscal years 2010 through 2020, agencies provided at least $ 141 million to ports for non-freight projects during this time, or about 8 percentage of the about $ 1.9 billion in full fund these programs awarded to ports, in fiscal year 2020 dollars. The U.S. Department of Transportation ( DOT ) provided the majority of fund to ports for both freight and non-freight projects. DOT-funded non-freight projects include ferry-, cruise-, and fishing-related projects, among others. Stakeholders reported that ports, particularly small ports, face challenges with union grant programs. For exemplar, stakeholders and federal officials said that many concede programs GAO reviewed are systematically oversubscribed and that smaller ports may lack the resources to develop a competitive application. Stakeholders GAO spoke with differed on the need for extra federal fund for non-freight activities.

Why GAO Did This Study

The nation ‘s coastal, Great Lakes, and inland ports have long been recognized as critical to the national and local economies. Ports can contribute not alone by moving freight but besides, for example, through activities related to tourism, department of transportation, or real estate. Nationwide port studies have typically focused on the impact of freight, and less attention has been paid to these non-freight activities .
House Report 116-452 included a planning for GAO to examine ports ‘ non-freight activities. This GAO report describes ( 1 ) what is known about the nature of and funding for non-freight activities at public ports, and ( 2 ) the extent to which federal discretionary grant programs have provided funds to populace ports for non-freight and cargo projects, and stakeholders ‘ views on this federal aid.

To address the two objectives above, GAO conducted a non-generalizable view of 80 ports and interviewed officials at 15 ports and 14 larboard industry stakeholders. GAO selected ports for kind based on their flat of non-freight action, freight traffic, and location, and whether they have applied for DOT support. GAO besides interviewed officials within DOT ; the Departments of Commerce ( Commerce ), Defense, and Homeland Security ; and the Environmental Protection Agency ( EPA ).

In addition, GAO ( 1 ) reviewed port documentation, such as economic impact studies and ( 2 ) analyzed DOT, Commerce, and EPA grant award data from fiscal year 2010 through fiscal year 2020 .

For more information, contact Andrew Von Ah at ( 202 ) 512-2834 or vonaha @ gao.gov .