Harbor tax exemption could increase cargo traffic, boost business for ports
August 14, 08 by TheFleetIf you're new here, you may want to subscribe to our RSS feed. Thanks for visiting!
By Tony Walter | Source: Green Bay Press Gazette
Port and harbor officials want federal lawmakers to help make water transport more attractive to companies by exempting some vessels from a harbor maintenance tax.
The American Great Lakes Ports Association, meeting Tuesday in Green Bay, added its support to federal legislation that would maintain the tax for bulk haulers but eliminate it for shorter hauls throughout the Great Lakes.
Green Bay Port Director Dean Haen said there have been conversations with major companies in Northeastern Wisconsin such as Georgia-Pacific, Oshkosh Truck, Marinette Marine, Kimberly-Clark and Mercury Marine, about shipping goods on the lakes. The high price of fuel and the crowded highways have led company officials to seek less-expensive ways to move goods.
“The tax exemption would allow free movement” on the lakes, Haen said. “It would take traffic off the roads and rails.”
The tax now costs haulers 12.5 cents per $100 of value for goods shipped on the Great Lakes, making shipping in the region a deterrent for many companies. It was established in 1986 and collects an estimated $22 billion annually, mostly from foreign shippers.
…The tax has been the major source of revenue to pay for the dredging of Great Lakes harbors, a necessity to maintain the health of businesses that depend on Great Lakes shipping. The exemption would only apply to smaller carriers, which provide a small contribution to that revenue.
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