Search
  World Biz Tool: Save | Print | E-mail   
TIGER grants to marine industry help rejuvenate U.S. economy
Last Updated(Beijing Time):2012-01-03 05:58

Despite the fledgling economic recovery, the U.S. marine industry companies that do business at U.S. ports, and the ports themselves, were undergoing a period of prosperity in 2011 that contributed to the regeneration of the whole economy.

While national unemployment was still uncomfortably high in 2011, numerous economic indicators showed that the U.S. economy was slowly recovering from the recession of 2008. Total sales activity for the 2011 wintertime holiday season increased as the number of people applying for federal unemployment benefits decreased when compared to one year ago.

U.S. marine industry companies, and especially U.S. ports, had a profitable 2011, largely thanks to the much-needed TIGER ( Transportation Investment Generating Economic Recovery) grants program operated by U.S. Department of Transportation.

In mid-December, U.S. Transportation Secretary Ray LaHood announced that 46 transportation projects in over 30 states and also on the island of Puerto Rico, will receive over 500 million U. S. dollars in the third stage of the TIGER grants, a program created by the American Recovery and Reinvestment Act of 2009.

The U.S. Congress had already dedicated 1.5 billion dollars for TIGER I program and 600 million dollars for TIGER II program to fund projects that have a significant impact on a region or the nation.

This was welcome news for the U.S. marine industry. "We applaud this recognition of the critical role our nation's ports play and federal support in TIGER III for seaports," said Kurt Nagel, president and CEO of the American Association of Port Authorities.

Much of this money will be given to projects to improve the moving of goods, and imports and exporting products, to and from U. S. ports. An example of such a company that would benefit from TIGER III money is Amalie Oil Company.

Located in the Port of Tampa, Amalie Oil, which employs 200 full-time employees, manufactures and markets lubricating oils. Founded in 1903 in Franklin, Pennsylvania, the company has been at its Tampa location since 1956.

Amalie Oil has a 50-year long term lease of the land that it owns with the Tampa Port Authority (TPA), paying about 40,000 dollars in monthly rent to the TPA on the lease, in addition to payments for other types of services, said Harry Barkett, president and CEO of the company.

In Tampa, the Amalie Oil started with two acres of land and has since expanded to owning 28 acres of land. There are two work buildings, an office building, as well as what Barkett calls "fuel tank farms." These massive 1-million-gallon tanks can be viewed along the Port of Tampa grounds. The company does business in the U.S. and over 100 other countries, including China.

Amalie Oil gets its oil from ships that bring it to the company 's berth at the Port of Tampa. The oil is taken out of the ships via a pipeline and then goes directly into Amalie's "fuel tank farms."

"We can bring products in directly from the water. We also have additives coming here in railway cars. Anything that improves transportation getting to and from here is welcome," said Barkett.

Philip Sanfield, Director of Media Relations for the Port of Los Angeles, California, was also grateful that the Obama Administration has helped ports in a number of ways, including transportation and infrastructure funding, the signing of Free Trade Agreements, and the National Export Initiative, which is a nationwide program to increase exports.

The port of L.A., the busiest container port in North America, experienced record exports in 2011. "We expect to export approximately 2 million TEU's (20-feet equivalent containers), an all-time port record. Most of the port's revenues comes from its tenants in the container terminal business," Sanfield told Xinhua.

Up in the Pacific Northwest, the Port of Portland, Oregon, also had a fiscally rewarding 2011. The year 2010 was its third best tonnage year on record, with over 13 million tons of goods handled. All cargo categories were up in 2010, including containers, autos, grain, mineral bulks (potash and soda ash), and breakbulk (steel slab and rail). "In 2011, we continue to see a gradual return to volumes seen in years past," said Josh Thomas, the port's spokesman.

One project that the TIGER III money will be used for is to build a specialized railway yard near the Napoleon Avenue Container Terminal at the Port of New Orleans, Louisiana. Over 16 million dollars will be used on this particular project at the port, which is a vital part of the busiest port complex in the world -- Louisiana's Lower Mississippi River.

"This is the kind of nationally significant project that TIGER was designed to support. This investment will create good jobs and improve the movement of goods nationwide," said Port of New Orleans's deputy secretary John Porcari.

Richard Wainio, director and CEO of the Port of Tampa, Florida, noted in his December, 2011 "State of the Port 2011" report that " in fiscal 2011, that the port invested over 31 million dollars in port infrastructure, bringing the 5 year total to over 173 million dollars.

"These investments not only prepare the port for the future, but also supports hundreds of badly needed construction jobs during a time when this (construction) industry is in the doldrums, " Wainio said.

Source:Xinhua 
Tool: Save | Print | E-mail  

Photo Gallery--China Economic Net
Photo Gallery
Edition:
Link:    
About CE.cn | About the Economic Daily | Contact us
Copyright 2003-2024 China Economic Net. All right reserved