John McCloud is editor of Industry Property Journal, from which this article is excerpted.

Washington, DC—US ports and waterways handle more than two billion tons of domestic and import/export cargo annually. But many of the nation's federal navigation channels are ill-equipped to handle the ever increasing sizes of ocean-going ships, according to Warren McCrimmon, US delegation chair of the American Association of Port Authorities. In testimony before the House Appropriations Subcommittee on Energy and Water Development last Friday, McCrimmon said it was critical to provide the funds the US Army Corps of Engineers needs to maintain the nation's deep-draft shipping channels and harbors.

"It's crucial that the Corps has the resources it needs, not only to maintain federal navigation channels at their required depths and widths, but to plan for the future needs of these waterways as ships continue to get bigger and need deeper water in which to operate," said McCrimmon, seaport director for the Toledo-Lucas County Port Authority in Ohio.

If the ports aren't maintained, he warned, "American businesses will have to pay more to transport the goods they buy and sell, which means job losses when exports are less competitive overseas, and which increases the price of the goods we consume when it costs more to import them."

The American Association of Port Authorities represents 160 of the leading public port authorities in the US, Canada, Latin America and the Caribbean, as well as 300 sustaining and associate members, firms and individuals with an interest in the seaports of the Western Hemisphere. Ports are increasingly significant catalysts for industrial growth and economic development in cities nationwide, including:

Savannah
—Atlanta-based IDI acquired 125 acres at Tradeport East Business Center, 30 miles south of the Port of Savannah. IDI, which bought the land from the Liberty County Development Authority, wants to leverage the area's growing role as an international port of entry. Sean Fitzsimmons, IDI's director of national business development, says the property is in an ideal location for companies looking to consolidate their East Coast import and distribution operations because it is a day's drive from all major Southeast population centers, including Miami. LCDA has already attracted two major tenants to Tradeport East. Tire Rack of South Bend, IN recently opened a 242,000-sf distribution facility and Minneapolis-based Target Corp. will open a 1.5-million sf regional distribution center later this year. IDI says Liberty County offers some of the most aggressive incentives in the Southeast, including ad-valorem tax abatement programs and job-creation tax credits.
Vancouver, WA
—The commissioners of the Port of Vancouver voted to raise the agency's tax rate to finance purchase of a former aluminum plant, one of the last sizable waterfront industrial sites available on the West Coast. The agency will pay $48.25 million for the 218-acre property on the Columbia River west of the city's downtown. The tax increase will generate $78 million within six years, with excess funds going toward preparation of the site for development and improved rail access. Combined with existing acreage, the acquisition will give the port nearly 780 acres of developable industrial land in addition to the 600 acres already developed. The front half of the new site will be designated for marine shipping and receiving, with the remainder developed as an industrial park. In related news, Felton Properties Inc. of Portland, OR sold the Vancouver Business Park for $7.3 million. The price is $2.2 million more than it paid for the 108,000-sf incubator industrial park in 2001.
Rockport, IN
—A massive expansion of the 100-acre Rockport River Terminal on the Ohio River will transform the facility into a full-service port and enable it to handle container deliveries for the first time. Rockport-based MidAmerica Terminals Inc. owns the terminal. The expansion would include creation of an intermodal industrial park and logistics center to serve the region's agriculture, steel, furniture manufacturing and mining sectors. The 900-acre project includes acquisition of 600 adjacent acres owned by Indiana Michigan Power, a division of American Electric Power Service Corp. of Columbus, OH, and 200 acres held by various private landowners. It would be partly funded by the Rockport-based Lincolnland Economic Development Corp., a quasi-public agency formed by surrounding Spencer County. MidAmerica tentatively plans to begin the project's $30-million first phase in June or July. Later work will include laying two miles of track to connect the site to the Norfolk Southern Railway. County officials claim the expanded operation will be the largest port on the nation's inland waterway system between Pittsburgh and St. Louis.

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Waterways Inadequate for Large Ships

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