From Paben
“U.S. ports are competitive internationally; however, it would appear that the (Harbor Maintenance Tax) makes the challenge more difficult,” according to a new report by the Federal Maritime Commission. “This is especially the sentiment of the ports that are competitive with Canadian and Mexican ports. According to Tay Yoshitani, CEO of the Port of Seattle, “A lot of factors go into the routing of cargo and a lot of carriers/shippers want diversity in how they get cargo to warehouses…cost is always an issue, and the HMT clearly disadvantages us against Canadian Ports.”
The report, requested by Rep. Rick Larsen, D-Everett, and other members of Congress, said that the tax is one of many factors resulting in increased use of Canadian and Mexican ports of goods that are eventually bound for U.S. inland locations.
“While a user fee is necessary for U.S. ports to grow, the number of proposals in both the House and Senate as well as from other sources, suggest that amendment to the current HMT structure should be given consideration,” the report stated.
Rep. Larsen
The Harbor Maintenance Tax, charged by the federal government, pays for all of the U.S. Army Corps of Engineers’ shipping channel dredging costs, according to the report.
Larsen, who sits on the Coast Guard and Maritime Transportation Subcommittee in the House of Representatives, said the report shows that the U.S. needs to invest in its infrastructure and reform the “inflexible” harbor tax.
Larsen is running for re-election this year against Republicans Dan Matthews, Eli Olson, John C.W. Shoop, Mike Lapointe of “The 99% Party” and Glen Johnson, who listed no party preference. Click here to see our candidate information for that race.
Following is from his office:
WASHINGTON—Rep. Rick Larsen, WA-02, says a Federal Maritime Commission report released today shows that Pacific Northwest ports are losing business to Canada and called for action to address the root causes of the cargo diversion. Larsen is the top Democrat on the Coast Guard and Maritime Transportation Subcommittee, which has jurisdiction on the issue in the House of Representatives.
“Pacific Northwest ports are facing an invisible blockade that is sending our business to Canada,” Larsen said. “The Federal Maritime Commission’s report shows we need to invest in our infrastructure to make our ports more competitive and take a hard look at reforming the inflexible Harbor Maintenance Tax which is putting our ports at a disadvantage.
Larsen led a letter with other members of Washington state’s Congressional delegation in September requesting the report. That letter is available here.
“With this report in hand, I will work with my colleagues to reform the Harbor Maintenance Tax so we can get more U.S.-bound cargo coming through our ports and get longshoreman, truckers and shippers back to work,” Larsen added.
As the report shows, a large number of U.S. imports from Asia are processed through Canadian ports before moving to the United States through cross-border rail. In meetings with port officials throughout the Pacific Northwest, Larsen has been told that the Harbor Maintenance Tax creates a significant competitive disadvantage for U.S. ports compared to Canadian ports. Canada does not have a comparable tax, which charges shippers $1.25 per $1,000 worth of cargo.
The report also notes that Canada and Mexico have a “strong national port policy and infrastructure strategy.” Larsen has been a strong advocate of a national freight policy and infrastructure investment as a way to create jobs and lay the foundation for economic growth.
The commission concluded that shippers that use non-U.S. ports do not violate U.S. laws, treaties or Federal Maritime Commission regulations.
What do you think?
Reducing user fees for maintenance of Ports sounds like socializing the costs (tax increases), or reducing maintenance. Good plan.
Coming from Larsen doesn’t mean much. Get a new Rep in the 2nd this guy is worthless.
Give Larsen a break, Tychon. He is far from worthless to the special interests that fund his campaigns.
Why do these issues only come up during the campaign season? As for Mr. Larsen? I voted for him during the time he used his mind to think for himself, lately under obama, he no longer exercises’s his mind and blindly goes along with the party! Reminds me of the “Tundra” cartoon in the Herald “Don’t know why we are following, but it must be good” as they head for the cliff!
So you still vote Republican RC? Larsen is your puppet.
Well, If they remove the tax, then more cargo will go through Seattle instead of Vancouver, Canada south to Bellingham. So less cargo trains will going South through Bellingham. But then that then leaves more room for the coal trains returning from Canada to go through Bellingham or just more room on the rails for coal in either direction. Mr. Larsen backs the trains and is one reason I just will not vote for him. All he cares about is Everett. This is only opeing up the lines for coal. Thanks for nothin.
Tychon, I just voted for a couple of democrats, and some republicans. In the mail as we speak! I no longer vote for Larsen because he no longer thinks for himself, no way can a politition agree with his/her party 100 percent of the time!
Why would anyone who is fighting against coal vote for Rick?
Rick has made it clear that he supports the GPT. Cole who is paid by SSA Marine gave Rick a fund raiser. Additionally, he did not personally accept an initiative signed by over 4,000 people who are opposed to the coal shipments.
He did not receive the endorsement from his own party. He did not receive enough votes at the Whatcom Dems.
How could anyone with good moral values support a man who receives contributions from a company who makes drones?
We have a good choice and do not need to vote for the lesser of two evils.
Vote for Mike Lapointe.