Eleven border state congressmen last week sent a letter to House leaders in both parties urging that any economic stimulus bill include $5 billion in infrastructure investment for land ports of entry.
Congress is convening a lame duck session to deal with the economic crisis and Democratic leaders have stated they intend to pass a spending bill of up to $100 billion designed to create jobs. Much discussion has focused on a large portion of the money being directed for road, bridge and other ready-to-go infrastructure projects.
The lawmakers, led by Rep. Henry Cuellar, D-Texas, said that modernization and staffing levels for Customs facilities have not kept pace with cross-border trade with Mexico and Canada.
Land ports accounted for almost 90 percent of the $797 billion in import-export flows between the United States and its neighbors last year, and their direct contribution to the U.S. economy is $363.5 billion, according to Commerce Department figures. Factoring out travel and tourism receipts, the movement of goods across U.S. land borders is worth $346 billion to the U.S. economy.
Until recently, exports have been one of the U.S. economy's strengths while overall growth stagnated during the past 18 months.
The Border Trade Alliance, an organization representing border and trade interests, endorsed the call for immediate funding to upgrade neglected border facilities.
We don't consider any investment at our ports of entry to be pork, but as essential to our economy, said BTA President Maria Luisa O'Connell in an interview. We have to invest in that (trade) so as not to lose those cash registers we have. Congestion at many high-volume border crossings can result in truckers spending an hour or more during peak periods waiting in line to be processed by Customs officers, driving up transportation, inventory and labor costs as well as the potential for produce spoilage and delay of just-in-time manufacturing processes.
The $5 billion figure is Customs and Border Protection's estimate of how much money is needed to expand and upgrade facilities to meet today's new security mission and trade volumes. The nation's 166 border checkpoints average 42 years of age.
The General Services Administration's 2009 budget request for Department of Homeland Security facilities only includes $74 million for new construction at two ports of entry and $225 million for maintenance and upgrades split among six compounds. The GSA is operating at last year's funding level under a continuing resolution until Congress passes its appropriation bill.
At the current pace the federal property manager said it will take 40 years to bring border facilities up to par. The agency said it has a list of border projects already in the pipeline that could be started within three to four months if funding becomes available.
With the current downturn in the economy, our nation's businesses cannot afford delays at our borders, the lawmakers said in their letter. International trade and commerce are vital elements to bolstering our economy, and for this reason we must address infrastructure problems at our land ports of entry. On another front, the Department of Transportation is progressing in its effort to jump start three priority border projects designed to ease congestion at border crossings.
The DOT said in September it wanted to facilitate the construction of a new border facility just east of the existing one in Otay Mesa, Calif., along with a 2.7-mile, four-lane highway linking it to the California highway system.
In Laredo, Texas, there are plans to build a new freight rail bridge across the border and a bypass around the city to replace the route through downtown. Laredo is the largest volume rail crossing on the U.S.-Mexico border.
And DOT is supporting the creation of an advanced traveler information system in Blaine, Wash., to provide real-time border-crossing wait times and other travel information through a combination of technologies.
The Federal Highway Administration, the lead agency for the effort, is negotiating with local, state, federal and private sector partners in each area to develop a comprehensive agreement spelling out project goals, timelines and milestones, as well the roles and expectations for each party committing to participate, spokesman Ian Grossman said.
The agency expects to complete the blueprint process by mid-January, he said.
The DOT then plans to leverage federal seed money to provide incentives to local governments and businesses to fund the balance of the project through public-private partnerships.
Source: American Shipper