Page 34: of Maritime Reporter Magazine (June 1999)

Market Reports • Inland

Inland Issues:

With a host of new and pending legisla- tion, it seems the U.S. is preparing itself for the maritime boom anticipated to triple traffic on the waterways by the year 2020. However, a lack of funding for the USACE could result in bigger problems.

By Chris Palermo, managing editor, Marine News

Projections for maritime traffic show the num- ber of vessels tripling along the nation's water- ways by the year 2020. With such a substantial increase expected, lawmakers and lobbyists are pushing forward with a slew of legislative mea- sures to enhance and ensure the safe operation of vessels.

However, a shortfall of approximately $700 million in the USACE budget, as well as other agency budgets, has caused grave concern, that the infrastructure of the waterways may not be sufficiently maintained to support this increased usage. Additionally, the shortfall may be even

Legal matters more significant than imagined, as a percentage of the proposed budget includes a Harbor Ser- vices User Fee (HSUF); the replacement to the repealed - and rejected - Harbor Maintenance

Tax from last year. Few specifics regarding the fee are contained in the budget, except it would be assessed against carriers, would be uniform nationwide, and would collect approximately $980 million annually.

What's on the table

The $3.9 billion budget request for the USACE provides a 21 percent increase over its FY 99 request, but is still below the $3.96 billion appro- priated by Congress for USACE programs last year. Most of the increased spending is ear- marked for deep-draft ports and channels and environmental programs, with inland waterways and flood protection projects funded at roughly the same level as in FY 99.

Under the proposal, fees would be charged to vessels transiting the harbors of the U.S. These receipts would be available for the following fis- cal year for appropriation to fund construction and operation and maintenance of the nation's

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