Local stakeholders tell Senate Finance subcommittee federal programs could benefit from more opportunities for private-sector participation.
Land and seaport stakeholders during a Senate Finance subcommittee hearing on Wednesday expressed their wishes for improvements to U.S. Customs and Border Protection’s Reimbursable Services Program, in which the federal government collaborates with local government and private entities to fund port needs.
Written testimony of American Association of Port Authorities (AAPA) CEO Kurt Nagle submitted before a hearing of the Senate Finance Subcommittee on International Trade, Customs, and Global Competitiveness stated the program is “quite costly” and sets an “uneven playing field” for ports.
Ports have limited ability to charge shippers security fees to help recover costs, and the industry already pays user merchandise processing fees to support CBP inspection activity, Nagle wrote.
Congress should fulfill what has traditionally been a federal obligation to ensure sufficient CBP inspection activity, he stated.
“It would help ports as we seek to expand or offer additional services to address peak cargo flows such as extended terminal hours or weekend gates,” Nagle wrote. “While the Reimbursable Services Program is a good tool in the short term, it is not a long-term cost our ports can afford. The need for a permanent solution remains.”
Border Trade Alliance Chair-Elect Sergio Contreras told senators that more measuring tools should be identified for private entities to derive a return on investment from federal-local partnerships provided for in the Cross-Border Trade Enhancement Act, which was enacted in December 2016.
In addition to the Reimbursable Services Program, the legislation also contains language describing the CBP Donations Acceptance Program, whereby the U.S. government may accept real or personal property, monetary and/or non-personal services donations from private-sector and government entities, including for port of entry infrastructure.
Laredo, Texas, Mayor and Texas Border Coalition Chairman-elect Pete Saenz echoed Contreras’ sentiments, saying he hoped to find opportunities to incentivize more private-sector participation in situations in which local governments donate funds for port infrastructure.
He pointed to the “public-public” partnership in which the federal government is partnering with the City of Laredo to fund a $10.3 million FASTLANE expansion project at the World Trade Bridge through the Donations Acceptance Program.
Federal officials approved the Donations Acceptance Program grant in April 2017.
Ports funding program makes ‘uneven playing field’
