The projected impact of insufficient port improvements on the US economy

An article in the Supply Chain Management Review (Sept 17, 2012 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

This entry was posted in Operations Management, Service Operations, Supply Chain Issues and tagged , , , , , , , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s