The Cost of Inaction: Why Freezing Port Infrastructure Grants Hurts Washington State and U.S. Competitiveness

The Trump Administration’s recent decision to pause federal infrastructure spending has thrown a wrench into the economic growth and modernization of U.S. ports. Specifically, $104,710,550 in Environmental Protection Agency (EPA) grants that were earmarked for Washington State’s ports have been put on hold, jeopardizing critical projects to improve efficiency, reduce pollution, and stimulate job creation.

This move is not just a bureaucratic delay—it’s a strategic misstep with serious economic and national security implications. While the U.S. hesitates, China continues to invest aggressively in maritime infrastructure, shipbuilding, and crane manufacturing, further solidifying its dominance in global trade. If Washington, D.C., does not act swiftly to reinstate these grants, we risk stalling economic growth at home and allowing China to fill the void where the U.S. retreats.

The Economic Power of Port Investment

Investing in port infrastructure isn’t just about improving facilities—it’s an economic multiplier. For every dollar invested, the nation yields $2 to $3 in return. These returns come in the form of job creation, increased trade capacity, and long-term economic growth. Port improvements lead to:

More efficient cargo movement– reducing bottlenecks and increasing throughput.

Job creation– both directly in port operations and indirectly in industries that rely on maritime trade.

Environmental benefits – reducing emissions through electrification and shore power infrastructure.

Pausing $105 million in federal funding to Washington’s ports means delaying these benefits. The grants, part of the Clean Ports Program, were designed to fund shore power deployment, upgrade infrastructure, and create jobs in the private sector. In particular, the $63 million grant to the Port of Anacortes, which was already signed, was set to redevelop an underutilized part of the port, modernizing operations and attracting private investment. Now, that progress is at a standstill.

Public-Private Partnerships Are the Key to Success

Ports operate at the intersection of public and private interests. Government funding alone cannot sustain the investment required for modernization—nor should it. Successful port expansion and efficiency improvements require public-private partnerships (PPPs) to maximize the impact of every dollar spent.

Private companies are eager to invest in modernized port facilities, especially regarding sustainability efforts like shore power, which allows ships to plug into the electrical grid instead of burning diesel fuel while at berth. However, these investments often depend on federal or state funding to build the foundational infrastructure.

Without federal backing, private partners may withdraw or delay their participation, leading to further stagnation and lost economic opportunities. The uncertainty created by freezing these grants is not just delaying progress—it is actively discouraging investment from stakeholders who depend on long-term stability in infrastructure planning.

China’s Maritime Dominance: A Threat to U.S. Competitiveness

While the United States debates whether to continue funding critical port infrastructure, China is not hesitating. The Chinese government heavily subsidizes its maritime sector, investing billions into port expansion, shipbuilding, and crane manufacturing. The result?

  • Seven of the top 10 busiest ports in the world are in China.
  • China builds nearly 50% of the world’s commercial ships.
  • The majority of the world’s port cranes are made in China.

By contrast, the U.S. has only two ports in the top 20 globally. Our shipbuilding industry continues to shrink, and without investment, our ports risk falling even further behind. The Bipartisan Infrastructure Law (BIL) and the Inflation Reduction Act (IRA) were steps in the right direction, but pulling back now only cements China’s advantage.

When the U.S. Retreats, China Fills the Void

The global maritime industry is not just about trade—it’s about national security and strategic influence. Ports are vital supply chain nodes, ensuring the efficient movement of goods and military readiness in times of crisis.

By allowing China to dominate shipbuilding, port infrastructure, and crane manufacturing, the U.S. is effectively ceding control over critical components of the global supply chain. If China controls the world’s ports and the equipment that moves cargo, it also gains leverage over international trade flows. This is a national security risk that cannot be ignored.

The U.S. has already seen how supply chain vulnerabilities can cripple industries, from semiconductor shortages to manufacturing disruptions. Our maritime infrastructure must not be the next weak link.

Washington’s Ports Need Federal Support—Now

The ports of Washington State play a crucial role in U.S. trade. The Northwest Seaport Alliance (NWSA), which includes the Ports of Seattle and Tacoma, is one of the nation’s largest container gateways. These ports handle goods from Asia, serving as critical economic hubs for not just Washington, but the entire country.

With over $104 million in EPA grants now in limbo, port projects that were set to drive economic growth, improve efficiency, and reduce emissions are now at risk. Specifically:

  • The Port of Anacortes was set to receive $63 million for shore power and redevelopment, bringing new jobs and economic opportunities.
  • The Port of Bellingham had funding allocated for key infrastructure improvements.
  • Other Washington State ports were counting on this funding to modernize their facilities and remain competitive.

The ripple effect of these delays will be felt beyond the maritime sector. Small businesses, logistics companies, and manufacturers all depend on efficient port operations to move goods across the country and internationally.

A Call to Action: Restore Port Funding and Keep America Competitive

The federal government must act now to reinstate these critical port grants. Pausing investment in maritime infrastructure is not just an economic misstep—it’s a failure to compete globally.

Restore the $104+ million in EPA grants to Washington’s ports.

Maintain a commitment to public-private partnerships that drive investment.

Recognize maritime infrastructure as a national security priority.

The time for hesitation is over. Washington’s ports—and ports across the U.S.—cannot afford uncertainty. The investments made through the Bipartisan Infrastructure Law were designed to keep America competitive. Now, as China continues to expand its dominance, we must double down on those investments, not retreat from them.

The bottom line? We won’t quietly let this happen.

It’s time to restore funding and keep our ports—and our economy—moving forward.

U.S. Trade Tariffs and Potential Impacts on Washington’s Maritime Industry

On February 4th, 2025, new U.S. tariffs will take effect, impacting trade with Canada and China. Originally, these tariffs were due to impact trade with Mexico as well, but this has been deferred for one month as Mexico has agreed to surge security personnel to the border in exchange. These measures introduce significant changes to import costs and supply chain logistics, which will have direct implications for Washington State’s ports, trade flows, and maritime operations.

Summary of Key Changes:

  • A 25% tariff on all Canadian and Mexican imports, except for energy products, which will be subject to a 10% tariff.
  • A 10% additional tariff on all Chinese imports.
  • Elimination of the de minimis rule for Canada and Mexico, meaning that low-value shipments that previously entered duty-free will now be subject to tariffs.
  • Cargo loaded before February 1st is exempt from the new tariffs.

Response and Retaliatory Measures:

  • Canada will impose 25% tariffs on $30 billion worth of U.S. goods, escalating to $155 billion in three weeks. The affected products include agriculture, alcohol, lumber, household goods, and aerospace components.
  • Mexico has negotiated a one-month extension of the U.S. tariffs by agreeing to deploy additional security personnel to the border. Details of Mexico’s potential countermeasures have not yet been announced.
  • China has filed a World Trade Organization (WTO) complaint and is preparing retaliatory countermeasures that may affect Washington’s aerospace, agricultural, and technology exports.

Potential Impacts on Washington’s Maritime Industry

Washington State is one of the most trade-dependent states in the U.S., with nearly one-third of jobs tied to international trade. The tariffs and retaliatory measures will likely have far-reaching effects on maritime commerce, including:

✔️ Higher costs for Washington importers, particularly in retail, electronics, and construction materials.
✔️ Disruptions to key agricultural exports, including apples, cherries, seafood, and dairy, which rely on Canada, Mexico, and China as major markets.
✔️ Slower container traffic at the Northwest Seaport Alliance (NWSA), which already faces challenges from shifting global trade routes and supply chain disruptions.
✔️ Increased operational uncertainty for shipping companies, freight forwarders, and terminal operators, as businesses re-evaluate sourcing and trade strategies.

What’s Next?

The executive orders authorizing these tariffs include provisions for further increases should Canada, Mexico, or China introduce additional retaliatory measures. Given the strategic importance of international trade to Washington State, the Marine Exchange of Puget Sound will continue to monitor developments and coordinate with industry stakeholders to assess potential impacts.

With additional uncertainties such as the ongoing Red Sea crisis and global shipping disruptions, Washington’s maritime industry must remain agile and prepared for shifts in trade patterns.

The Marine Exchange will provide ongoing updates and encourages stakeholders to remain engaged as these policies unfold.

The Path Forward: Uncertainty and Opportunity

Despite these challenges, Washington has a strong tradition of trade leadership and economic adaptability. Our maritime industry, ports, and businesses must:

  • Engage with policymakers to advocate for trade policies that protect Washington’s economic interests. I’ll be in Olympia tomorrow to testify on HB 1689, which proposes fully adopting California Air Resource Board (CARB) standards for ocean-going vessels at berth here in Washington.
  • Diversify markets and trade routes to reduce reliance on any single country or region. If we are to leverage our maritime industry as a means of diversification, we can’t afford to lose more industrial capacity. The Marine Exchange has opposed the City of Seattle’s proposed rezoning of maritime industrial lands and is engaged with the Seattle City Council.
  • Leverage maritime innovation to remain competitive in an increasingly complex trade environment. We’re launching an online career development center this year and bringing back the monthly agent/ops meeting that went away during COVID. Now is a time to double down on community and cooperation.

For further information, please contact us.

Hold Fast.

The Marine Exchange of Puget Sound Partners with Pinnacle Government Affairs to Advance Maritime Legislative Priorities

 

 

FOR IMMEDIATE RELEASE
January 3, 2025
Contact: Patrick Gallagher
patrick@marexps 206-771-1620

Marine Exchange of Puget Sound Partners with Pinnacle
Government Affairs to Advance Maritime Legislative Priorities

Seattle, WA – The Marine Exchange of Puget Sound is proud to announce its partnership with Pinnacle Government Affairs, LLC, a premier government relations firm based in Olympia, WA. This contract underscores the Marine Exchange’s commitment to advancing the needs of its diverse membership by addressing critical legislative and policy priorities that impact the maritime industry and Puget Sound waterways.

With Pinnacle Government Affairs’ Principal, Trent Matson, bringing over 30 years of government affairs expertise, this partnership will focus on securing essential funding and support for key initiatives, including derelict gear removal, workforce development, and critical infrastructure projects. This work will also bolster the efforts of organizations such as the Puget Sound Harbor Safety Committee, ensuring that the region’s maritime operations remain safe, sustainable, and economically vital.

“I am humbled to have the opportunity to represent the Marine Exchange of Puget Sound,” said Trent Matson, Principal of Pinnacle Government Affairs. “With an outstanding list of diverse members and an incredibly knowledgeable staff, the Marine Exchange is poised to make a positive impact in Olympia. The Marine Exchange has an important story to convey to policymakers, which will benefit the sustainability of our Puget Sound waterways and working-class families simultaneously. I am excited to help make this happen.”

The Marine Exchange will continue its longstanding participation in the Washington Maritime Federation, contributing to the collective legislative agenda. This new work with Pinnacle Government Affairs will allow the Marine Exchange to pursue specific initiatives in Olympia that directly address its members’ unique needs.

Patrick Gallagher, Director of the Marine Exchange of Puget Sound, emphasized the importance of this collaboration:
“Advocating for the needs of our members is a responsibility we take seriously. Partnering with Pinnacle Government Affairs and leveraging Trent’s extensive expertise strengthens our ability to champion policies that align with our mission and complex member needs. Together, we’re committed to securing the resources and legislative support that will ensure the continued success of our maritime community.”

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About the Marine Exchange of Puget Sound: Founded in 1980, the Marine Exchange of Puget Sound operates around the clock, delivering real-time vessel tracking data and essential administrative services to its members. With a diverse membership, the Exchange is dedicated to fostering safe, efficient, and environmentally responsible maritime operations.

About Pinnacle Government Affairs, LLC: Pinnacle Government Affairs’ Principal, Trent Matson, brings 30 years of Government Affairs experience in Olympia. Trent has a stellar reputation having built meaningful relationships with Olympia’s decision makers and a long record of successful outcomes for his clients. During his tenure, Trent has successfully navigated, on behalf of his clients, on important issues critical to economic development, working class families, and environmental balance.

Marine Exchange of Puget Sound and Beam Reach Sign Memorandum of Agreement to Share Data for Maritime Safety and Conservation

 

 

FOR IMMEDIATE RELEASE
December 20, 2024
Contact: Patrick Gallagher
patrick@marexps
206-771-1620

 

Marine Exchange of Puget Sound and Beam Reach Sign Memorandum of Agreement to Share Data for Maritime Safety and Conservation

 

Seattle, WA – The Marine Exchange of Puget Sound (MAREXPS) and Beam Reach have signed a Memorandum of Agreement (MOA) to formalize their collaboration on data-sharing projects through 2025. This partnership builds on an initial informal collaboration begun in late 2023 between the MAREXPS and phase one partners in the Acartia data cooperative, including Beam Reach, Orcasound, and Orca Network.

The MOA outlines a commitment to advancing shared missions within Puget Sound, focusing on projects that strengthen the maritime transportation community while supporting marine mammal conservation. By leveraging each other’s data resources, MAREXPS and Beam Reach aim to deliver innovative solutions for both short- and long-term challenges.

Key Objectives

Short-Term Projects:

  • Testing thermal cameras for marine mammal detection and refining algorithms for species classification.
  • Visualizing interactions between marine mammals and vessels, including real-world examples of safe vessel operations near whales.

Long-Term Projects (Through 2025):

  • Exploring Distributed Acoustic Sensing (DAS) to detect and track vessel noise and marine mammal sounds in collaboration with the University of Washington.
  • Developing tools to reduce underwater noise pollution and promote sustainable shipping practices.

Under the agreement, Beam Reach will continue to provide MAREXPS access to the Acartia data cooperative through its public API, while MAREXPS will continue to share select AIS data and thermal imagery with Beam Reach and its collaborators to support targeted projects.

Through this collaborative partnership, MAREXPS and Beam Reach are continuing to build on critical efforts in maritime safety and conservation, driving forward innovative ideas and solutions that will benefit Puget Sound and establish a strong foundation for future advancements.

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The Marine Exchange of Puget Sound with the U.S. Coast Guard Release Comprehensive Cetacean Guide for Mariners

July 10, 2024

FOR IMMEDIATE RELEASE

The Marine Exchange of Puget Sound with the U.S. Coast Guard Release Comprehensive Cetacean Guide for Mariners

 

SEATTLE, July 10, 2024 – The Marine Exchange of Puget Sound (MXPS), in collaboration with the United States Coast Guard, is pleased to announce the release of the “Puget Sound Cetacean Guide for Mariners.”

Endorsed by the National Oceanic and Atmospheric Administration (NOAA) and the Washington State Department of Fish and Wildlife (WSDFW), the guide provides essential information for mariners navigating the Puget Sound. It includes details on legal distance requirements, where to report sightings, protective measures to be aware of, and more.

The guide has compiled information and resources from critical organizations including the United States Coast Guard Cetacean Desk embedded within the Puget Sound Vessel Traffic Service,  the Whale Reporting Alert System/Whale Report App (WRAS) managed by Ocean Wise, Acartia.io data cooperative, NOAA, WSDFW, and the Port of Vancouver Enhancing Cetacean Habitat and Observation (ECHO) Program.

“We hope that this guide can be a usable resource for those on the water encountering these animals and provide mariners the immediate information they need regarding the laws and conservation efforts in place for them.”, said Sara Zeman, a designer of the guide.

Physical copies of the guide will be available at maritime offices and events across the region. It can also be accessed digitally on the MXPS website (https://marexps.com/wp-content/uploads/2024/07/Puget-Sound-Cetacean-Guide-for-Mariners.pdf). For further information or to request copies, please contact the Marine Exchange of Puget Sound at info@marexps.com or 206-443-3830.

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The Marine Exchange of Puget Sound (MXPS) is a nonprofit organization dedicated to making the maritime transportation system safer and stronger in the region. Since 1980, MXPS has served as a vital resource for the maritime community, providing services such as vessel tracking technology, real-time data solutions, communications services, and collaborative initiatives.

Navigating the Future of PacNW Maritime

Pacific NW Maritime industry

In case you missed it, the Marine Exchange had a fantastic turnout for a software demo.

If you’re rolling your eyes right now (oh boy, more software), I’ll start by acknowledging that software may be eating the world, but this was much more valuable as a gathering to talk about what drives us and what problems we need to solve. It was the most candid conversation I’ve witnessed since starting with the Marine Exchange almost three years ago. Because of this, I am grateful, energized, and genuinely inspired. I want to extend a heartful thank you to everyone who gathered in our conference room and later on our rooftop. For everyone who followed up with me, I want to tell you that your message is loud and clear.

It does not serve us to shield the fact that the maritime industry in Washington state is struggling. The ship count is down, cargo loads have not recovered like nearly every other port in the US, and we’ve been experiencing a long slide downward for thirty years as we’ve voluntarily donned the yoke of fearful bureaucracy, stagnation, and under-investment. The Northwest Seaport Alliance is trailing with a negative 27% growth rate since 2006, measuring year-on-year container volume growth. Some lines of business are doing fine (cruise, RO/RO), but I look at the aggregate activity, and it’s clear that we’re in decline and lacking deep, sustaining investment.

Northwest Seaport Alliance growth chart
Source: Pacific Merchant Shipping Association. My goal is to help invert this graph.

The question is, what do we do about it? I think we start by acknowledging that we have entered silos that tend to ossify slowly amidst retraction almost without notice. There are systemic problems here that I believe are untangled only with collaboration and trust – so easy, right? Imagine going to work on Monday and having someone tell you our new strategy is collaboration and trust when what you really need is a bunch of trucks. Inverting this graph is a decision made by people energized by a mission. I believe in this.

No software can solve this unless the people involved are committed to sharing ideas and information vital to telling the whole story. What bothers me is that I genuinely believe that we’re best at this. I say this because I’ve been stationed in many places and seen many ports operate around the country, so I approach this as a relatively objective outsider.

Follow-up question: Do we want to do anything about it? If Harbor Island becomes a theme park in the next 20 years, we’ll have our answer. However, it’s a valid question.

Our geography should be a significant selling point, as should our access to innovation, abundant clean energy, and incredible safety record. We know how to do this right, yet the narrative seems to be that we need more regulation, restrictions, and oversight by people who lack a basic understanding of what it takes to bring a ship across an ocean and into port. I have been shocked by the power and influence of industry consultants and overseers who couldn’t tell me the difference between a dead cat and a dead reckoning.

Author, exuding maritime dominance.

I am desperate for us to be heard. We have a world-class story, and I don’t think it’s getting out comprehensively. The truth is that PacNW Maritime is the jewel of the industry. That may sound corny, but I believe it. It’s hard to watch it struggle when it could be such a potent driver of the future and provide so much for so many people, including jobs with purpose and dignity, while we fulfill the most pressing needs of our civilization.

I could continue, but I will stop as I risk waxing overly saccharine. Please know that the Marine Exchange is intimately connected to the success of this industry in a way that I don’t believe any other organization is. We’re not a national association – we live and die with WA Maritime. We’re not eyeing global moonshot schemes – we’re looking to our backyard for opportunity and incremental improvement. We’re not disruptors looking to pick through bones – we’re committed to growing the corpus for future generations. Our core is to make all of Washington state a maritime leader in the United States, believing that if we become more competitive, the entire world will benefit.


Here’s what I’m reading:

  1. Maritime Administration Strategic Plan 2022-2026. MARAD has an undeniably massive responsibility in the future of US Maritime. I hope that their modest near-term vision is fully supported.
  2. PMSA West Coast Trade Report, April 2024.The numbers don’t lie. Jordan Royer’s opinion piece in April’s Trade Report partially inspired this blog post.
  3. The Algebra of Wealth. Professor Scott Galloway’s new bestseller is accessible and personal but doesn’t shy away from more complex macroeconomic concepts that contextualize capitalism for a mass audience. Although it is intended for young people, my kids at home just rolled their eyes when they saw me reading it.

Here’s what I’m interested in right now:

  1. Claude.ai. I’m figuring out how this differs from chatgpt and which Artificial Intelligence overlord I will eventually serve.
  2. Franklin on Apple TV. I watched the first episode using someone else’s login, which I’m sure Apple already knows. I like this trend of dramatic history — especially as Benjamin Franklin’s plight is essentially for maritime dominance.
  3. Midst Podcast. This podcast is a captivating space western (yes, that’s a thing) that hooked me almost immediately. I’m listening to the final season with my daughter and trying not to ruin it by pointing out how important reliable supply lines are within this intriguing science fiction realm.

Here’s what I’m doing:

  1. Planting tomatoes. Do I need more evidence that the PacNW sucks for growing tomatoes? We shall see. Also, the USDA zone map changed… thanks, climate change.
  2. Shopping for a mid-life crisis car. I’ve got it down to a Mercedes SL55 AMG or any affordable Porsche (yeah, right). I was initially gunning for a 1964 Ford Galaxie 500XL like I drove when I was 30, but is that too overtly midlife?
image credit: pinterest

I’m wishing you the very best and safest May ever.

— Patrick Gallagher

Races, Alliances, and Clubs

Emergency Response Towing Vessel

I write these blog posts by opening my calendar and looking at what I’ve been doing since the last time I wrote. This is so great for me in that I get an opportunity to reflect on how cool this job really is. I spend my time with amazing people who are doing unbelievable things that most people never get to see, so I share the ultimate behind-the-scenes look at maritime in Puget Sound.

Here’s what I’ve been up to:

  1. Race to Alaska. The R2AK planning starts as the race finishes up from last year. We’ve been a sponsor the past 2 years in an attempt to open the aperture into a completely different application of our shared waterway, and it’s been a beautiful relationship between the Marine Exchange and the NW Maritime Center’s Race to Alaska. I don’t know how we’d do it exactly, but my secret hope is to be the official race tracker someday.
  2. Cetacean Desk. Unless you’ve been hiding under a rock (sounds cool), you’ve likely heard that the Coast Guard has formally launched its Cetacean Desk within Sector Puget Sound. What you may not recognize amidst the applause and high fiving is that this remains an unfunded mandate for the Coast Guard which makes their accomplishments even more impressive to me. If you ever need blood drawn from a stone, don a lifejacket then call the Coast Guard.
  3. Harbor Safety, Chicago style. I’ve been on this year’s National Harbor Safety Committee Conference for several months, and this one is going to be good. I’m on a lot of committees these days, and I hesitated to join another. But, I am very glad that I did. The planning and participation level is so impressive that I’ve been considering volunteering to host the next national convention here in Seattle. Thoughts? Volunteers?
  4. Beam Reach, Acartia Data Cooperative. Scott Veirs from Beam Reach is brilliant. He shared his time with us at the Marine Exchange educating us about his work, the organizations he serves, and his ideas for the future. Every time I schedule an hour with Scott, it turns into 2 and a half. We’re grateful to all the data contributors at acartia.io and continue to develop software to contribute to the cooperative.
  5. Northwest Seaport Alliance (NWSA); Pacific Merchant Shipping Association (PMSA): I had two great meetings in one day with two strong organizations locally, but both were centered around the same topic but completely different angles. The short version is that everyone is aligned with making Puget Sound ports more competitive and attractive for port visits. We spent time looking at data sets and how we count arrivals, departures, and shifts. At the NWSA, I got an opportunity to tour their operations and the terminals. Wow, what a dance. These are impressive people who are constantly resolving issues that swirl around any port visit. Incredible day.
  6. Seattle Propeller Club: SPC hosted their first “deep dive,” and although I couldn’t attend, I heard it was a big success. This event’s deep dive was centered around the issue of alternative fuels…. and cocktails.
  7. Marine Exchange of San Francisco: My good friend, Scott Humphrey, from the Marine Exchange of San Francisco met with me while he was visiting Panama. We got an hour to catch up, and I got to hear about the bidding system to get ships through the Panama Canal. Unbelievable! We also talked about whale tracking, Harbor Safety Committees, and NOAA’s Physical Oceanographic Real-Time System (PORTS). Did you know there are two PORTS sensors in Puget Sound? Both are in Tacoma.
  8. Merchant’s Exchange: My new friend and southern neighbor in Portland, Curtis Cannizzaro, graciously shared an hour with me to talk about Marine Firefighting and specifically the future of the Puget Sound Marine Firefighting Commission. In Portland they have the Fire Protection Agencies Advisory Council within the Maritime Fire & Safety Association which have similar missions but are structured very differently. Curtis shared a lot of information with me including the news that the Merchant’s Exchange just signed a Continuity of Operations Memorandum of Understanding with the Coast Guard. Very cool.

Okay, that’s enough. It’s been a tremendous couple of weeks and judging by my calendar, the next 2 are going to blow my mind. Thanks for reading!

 

Patrick Gallagher, Executive Director
Marine Exchange of Puget Sound