PORTNUS Project

Abstract

The objective of the Portunus Project is to create large, automated offshore ports that will the pace and scale of international trade. Additionally, these ports would increase the number of U.S. domestic trade vessels needed, as the imported goods would need to be transported from these offshore platforms to land-based ports such as Boston, Los Angeles, and Newark. Currently, domestic trade in the United States can only be conducted by vessels that abide by the Merchant Marine Act of 1920 – also referred to as the Jones Act. The Jones Act stipulates that vessels involved in domestic trade must be U.S. owned, U.S. built, and manned by a crew made up of U.S. citizens. The Portunus Project would increase the number of Jones Act vessels needed, which raises an interesting economic concern. Are Jones Act ships more expensive to operate than foreign vessels? Would it be more economically efficient to modify the Jones Act and allow vessels manned by foreign crews to engage in U.S. domestic trade? While opposition to altering the Jones Act is strong, it is important to consider the possibility that ship-owners who employ foreign crews will lobby for the chance to enter a growing domestic trade market. Their success would mean potential job loss for thousands of Americans currently employed in maritime trade.