Effective Port Project Funding & Financing

Abstract: Commercial ports are investing in infrastructure and technologies to provide capacity for the future, to efficiently integrate landside connections, and to meet the societal needs of the wider community. Ports are challenged with identifying and defining projects that are operationally and financially attractive to port stakeholders, government agencies, external investors and the public. Port owners have emphasized the need for a resource to guide them as they prepare plans, evaluate the feasibility and estimate the financial performance of their projects to attract public and private investment.
To address this challenge, the American Association of Port Authorities (AAPA) and the U.S. Department of Transportation (USDOT), Maritime Administration (MARAD) with the assistance of WSP USA Inc., developed the Port Planning and Investment Toolkit (PP&IT). The PP&IT is a guiding resource for ports that are developing a funding/financing strategy for capital improvements. Beginning with guidance on how to plan for future capacity needs in a way that addresses financial, social, environmental and economic needs important to grant award evaluation committees, the PP&IT assists ports with identifying what mix of funding and financing are needed for each port’s projects.
The aim of this paper is to provide an overview of the contents of the PP&IT, how to use it and to contribute to the understanding of how U.S. government and private sector funding/financing affects port development and how awareness and knowledge of the PP&IT within the port community affects these outcomes. This paper is intended to offer a real world approach to apply the concepts included in the PP&IT.
With these objectives in mind, a group of experts from U.S. ports engaged in infrastructure funding/financing were interviewed to analyze how selected port projects have applied the PP&IT resource to identify opportunities and challenges with respect to institutional, regulatory, project financing, and other policy-relevant considerations. The paper will identify the best method for ensuring a sustainable and financially viable port project while obtaining multiple financial resources including government and private sector support.

How does this project / topic contribute to the advancement of the industry and profession?: Federal, State, and local grants evolve each year to include changes in policy/requirements for grant funds, such as the current BABA requirement that prohibits the use of Federal funds to purchase assets not made in America. The PP&IT provides guidance on a wide variety of funding/financing options and strategies to overcome project budgeting constraints such as BABA.

Does the project / topic implement new and innovative techniques, materials, technologies, and delivery methods?: The PP&IT is a comprehensive resource with the latest approach of obtaining funding and financing for the implementation of critical development, expansion, repair, equipment acquisition and project upgrades.

What was the most challenging aspect of your project / topic and how did you handle it to ensure success?: Coordinating and collaborating with over 70 port authorities to make sure the tool addressed the needs of all types of ports, projects and investments. WSP conducted a series of in-person and virtual brainstorming sessions with the diverse port participants to gather and identify each unique perspective. This information guided the development of the PP&IT documents.

Who is the target audience for this paper?: Port owners and professional staff, operators, state and local government agencies, private companies and other stakeholders involved with improving the movement of freight through ports with the assistance of financing and/or funding are the target audience.