Major Win for U.S. Maritime Infrastructure and Private Investment

A recent executive order from the current presidential administration focuses on revitalizing the U.S. maritime industry and invokes revolutionary opportunities for stakeholders vested in inland river ports and infrastructure projects.

The Apr. 9 order promotes favorable conditions, such as following:

• Expanded use of private capital to upgrade and expand port infrastructure.
• Maritime Prosperity Zones—modeled after Opportunity Zones—designed to attract investment in river regions and the Great Lakes.
• Financial incentives and loan programs to support port modernization, shipbuilding, and repair.

While early, the opportunities are real for the inland ports and logistics hubs that comprise America’s extensive maritime portfolio. This will include increased funding and less regulatory confusion.

The executive order in a nutshell:

• The order outlines a broad strategy to modernize U.S. shipyards and port infrastructure, with a strong focus on federal investment, public-private partnerships, and long-term funding through initiatives, like the Maritime Security Trust Fund and the newly established Shipbuilding Financial Incentives Program. It also seeks to boost the U.S.-flagged fleet and incentivize regional investment in proposed Maritime Prosperity Zones.
• The order emphasizes workplace development with plans to expand training, education, and credentialing programs. Additionally, there are calls-to-action for streamlining procurement, softening regulations, and generating additional U.S. port revenue by enforcing Harbor Maintenance Fee collection.
• National security is also an objective laid out in the order. There is a call to increase reserve fleet capacity and attention towards maritime strategy in the Arctic region.
• Assess investment options—The Secretary of Defense (with help from Commerce, Transportation, and Homeland Security) will evaluate how to upgrade and expand port infrastructure using both government tools (like the Defense Production Act) and private investment.
• U.S. secretaries of defense, transportation, commerce, and homeland security departments will evaluate and determine how to upgrade and expand port infrastructure using a combination of federal laws, like the Defense Production Act, and private sector investment.
• Projects related to supporting U.S. shipbuilding and defense objectives will receive priority for federal funding. The order vows chosen projects must achieve strong returns on investment—not just in economic gain, but national security and job creation.

To read the official White House press release regarding the executive order, please click here.

As a maritime stakeholder, VAA is vested to fully understand and leverage these opportunities towards favorable outcomes for our clients and partners.

Stay tuned for more updates from VAA’s grant strategy solutions team.