The projected impact of insufficient port improvements on the US economy

An article in the Supply Chain Management Review (Sept 17, 2012 http://www.scmr.com/article/the_american_society_of_civil_engineers_say_u.s._supply_chains_at_risk/?goback=.gde_115985_member_165825492) states that investments in US marine ports ad waterways upkeep from now to 2020 is planned to be $ 16 billion lower than required, while investments in airports is $ 19 billion lower than required. The projected impact is greater congestion and thus lead time delays and higher costs of operation. The economic impact is projected to be 1 million jobs lost and $ 1 trillion in personal income lost. Given the large ROI of these infrastructure investments, can one design a way to pay for these improvements based on the value they create ? Will greater congestion result in more inventory and warehousing and so more jobs, or will it just decrease competitiveness and thus lower revenue ? How should the beneficiaries of the investments in airports and marine ports be expected to pay for the costs for their implementation ?

About aviyer2010

Professor
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