[Congressional Record Volume 159, Number 122 (Tuesday, September 17, 2013)]
[Senate]
[Pages S6522-S6523]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mrs. MURRAY (for herself and Ms. Cantwell):
  S. 1509. A bill to establish a Maritime Goods Movement User Fee and 
provide grants for international maritime cargo improvements and for 
other purposes; to the Committee on Finance.
  Mrs. MURRAY. Mr. President, I rise to discuss legislation that 
Senator Cantwell and I are introducing today to strengthen our maritime 
economy and protect American jobs.
  Over the past decade, we have seen increasing competition for the 
market share of U.S.-bound maritime goods from ports beyond our border 
to the north and to the south. In fact, among the 25 largest North 
American ports, the fastest growing in 2012 were the Port of Prince 
Rupert in Canada and the Port of Lazaro Cardenas in Mexico. Instead of 
U.S.-bound cargo creating economic growth here at home by entering at 
U.S. ports, we are witnessing it being diverted through Canadian and 
Mexican ports. This loss of cargo shipments leads to decreased activity 
and capacity at American ports. In our home State alone, more than 
200,000 jobs are tied to the activities at the Ports of Seattle and 
Tacoma. With nearly 27 percent of international container cargo 
potentially at risk of moving to Canada from four West Coast ports, 
this trend could result in significant job losses.
  One of the main reasons for cargo diversion is the Harbor Maintenance 
Tax, HMT. The HMT is a levy on imports designed to fund the operation 
and maintenance of America's large and small ports, which drives job 
creation and strengthens America's trade economy. Unfortunately, 
shippers have been able to avoid the Harbor Maintenance Tax by shipping 
goods through ports in Canada and Mexico and then transporting those 
goods into the United States via truck and rail. This growing cargo 
diversion reduces the funds available to keep our ports in operating 
condition.
  The loss of revenue from cargo diversion is only part of the problem. 
Equally concerning is the fact that only half of the tax revenue 
collected is being spent, even though ports across the country are in 
desperate need of additional maintenance funding. As of 2011,

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the balance of the Harbor Maintenance Trust Fund, HMTF, which is funded 
by the HMT, had a surplus of more than $6.4 billion, and it continues 
to grow. Furthermore, of the funds allocated through the HMTF, the 
balance is rarely spent on operations and maintenance at West Coast 
ports, where a significant amount of the tax revenue is generated. Our 
two largest ports in Washington--Seattle and Tacoma--generate, on 
average, close to seven percent of the funding for the HMTF, but each 
received just over a penny for every dollar collected from shippers who 
pay the HMT in Seattle and Tacoma. We believe that we must work to 
address the issue of cargo diversion as well as ensure that the funds 
collected are allocated fully and more equitably to meet our nationwide 
harbor and waterway needs.
  To remain competitive in an international marketplace, we need a 
long-term plan to grow and support infrastructure development, and 
reforming the Harbor Maintenance Tax is a commonsense place to start. 
That is why we are proud to introduce the Maritime Goods Movement Act 
for the 21st Century. The legislation addresses threats to America's 
maritime economy by repealing the Harbor Maintenance Tax and replacing 
it with the Maritime Goods Movement User Fee. The proceeds of which 
would be fully available to Congress to provide for port operation and 
maintenance. This would nearly double the amount of funds available for 
American ports, which will help our economy thrive.
  The bill ensures that shippers cannot avoid the Maritime Goods 
Movement User Fee by using ports in Canada and Mexico.
  The legislation sets aside a portion of the user fee for critical 
low-use ports that are at a competitive disadvantage for Federal 
funding compared to large ports.
  Lastly, the bill creates a competitive grant program using a 
percentage of the proceeds of the user fee to help make improvements to 
the intermodal transportation system of the United States so that goods 
can more efficiently reach their intended destinations.
  The HMT simply is not being collected or spent in a way that ensures 
American ports can continue to compete on a level playing field. Our 
legislation works to address these inequalities and enhance our 
economic competitiveness abroad while supporting good jobs here in the 
United States.
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