US economic recovery depends on port investment

American Society of Civil Engineers issues new report

In its latest port report, the American Society of Civil Engineers (ASCE) paints a bleak picture for the US economic recovery if the US port system doesn’t get itself in order. Some highlights from the report include:

“Between now and 2020, investment needs in the nation’s marine ports and inland waterways sector total $30 billion, while planned expenditures are about $14 billion, leaving a total investment gap of nearly $16 billion. Similarly, the investment needed at US airports totals close to $114 billion, with anticipated spending of $95 billion by 2020.”

“If we don’t close the investment gaps, everyone is going to feel the negative impacts because we are on course to lose more than 1 million jobs and more than $1 trillion in personal income by 2020.”

Port expansion is the key for recovery of the US economy.

Andrew W. Herrmann, president of ASCE, states that “Congestion and delays lead to goods waiting on docks and in warehouses for shipment, which in turn leads to higher transportation costs and higher-priced products on store shelves.”

The report also projects that if America’s infrastructure investment gaps are not addressed soon, transporting goods will become costlier, prices will rise and the United States will become less competitive in the global market, American GDP will fall.