1 00:00:07,720 --> 00:00:10,400 Speaker 1: Hi everyone, this is Lee class Gan when We're Talking Transports. 2 00:00:10,480 --> 00:00:13,760 Speaker 1: Welcome to Bloomberg Intelligence Talking Transports podcast. I'm your host, 3 00:00:13,800 --> 00:00:18,320 Speaker 1: Lee Clascowse, senior freight, transportation and logistics analysts at Bloomberg Intelligence. 4 00:00:18,680 --> 00:00:21,280 Speaker 1: Bloomberg's in house research arm of almost five hundred analysts 5 00:00:21,320 --> 00:00:24,599 Speaker 1: and strategists are around the globe. Quick public service announcement 6 00:00:24,680 --> 00:00:27,960 Speaker 1: before we dive in. Your support is instrumental to keep 7 00:00:27,960 --> 00:00:31,319 Speaker 1: bringing great guests and conversations to you, our listeners, and 8 00:00:31,360 --> 00:00:34,360 Speaker 1: we need your support. So please, if you enjoy this podcast, 9 00:00:34,520 --> 00:00:37,000 Speaker 1: share it and like it and leave a comment. Also, 10 00:00:37,240 --> 00:00:40,120 Speaker 1: if you've got ideas, feedback, or just want to talk transports, 11 00:00:40,320 --> 00:00:42,320 Speaker 1: I'm always happy to connect. You can find me on 12 00:00:42,360 --> 00:00:46,120 Speaker 1: the Bloomberg terminal, on LinkedIn or on x at Logistics. 13 00:00:46,159 --> 00:00:48,480 Speaker 1: Late Well, I'm very excited to have with us today. 14 00:00:48,560 --> 00:00:51,919 Speaker 1: John Brustler. He's Vice president of Government Relations at the 15 00:00:51,960 --> 00:00:57,400 Speaker 1: American Association of Port Authorities or AAPA. John joined AAPA 16 00:00:57,600 --> 00:01:00,800 Speaker 1: after serving as head of Government Relations at the National 17 00:01:00,840 --> 00:01:05,080 Speaker 1: Air Traffic Controllers, where he led the union's government relations 18 00:01:05,080 --> 00:01:08,520 Speaker 1: and political department. In total, John has over twenty years 19 00:01:08,520 --> 00:01:12,399 Speaker 1: of professional experience, including ten years on Capitol Hill, serving 20 00:01:12,560 --> 00:01:16,720 Speaker 1: as former House Subcommittee on Coast Guard and Maritime Transportation 21 00:01:16,880 --> 00:01:22,360 Speaker 1: and Aviation Chair. Rep. Frank Lowe Biondo's legislative director. He 22 00:01:22,440 --> 00:01:27,520 Speaker 1: also held senior level staff roles on the House Committee 23 00:01:27,560 --> 00:01:32,039 Speaker 1: on Transportation and Infrastructure and House Aviation Subcommittee, leading the 24 00:01:32,120 --> 00:01:38,600 Speaker 1: Airport and Labor portfolio during FAA reauthorizations. He has a 25 00:01:38,640 --> 00:01:43,120 Speaker 1: BA from Westminster College in New Wilmlington, Pennsylvania, and political 26 00:01:43,200 --> 00:01:47,199 Speaker 1: science and a master's of Public Policy and Management from 27 00:01:47,240 --> 00:01:50,840 Speaker 1: the University of Pittsburgh. Thanks so much for joining us today, John. 28 00:01:50,840 --> 00:01:53,120 Speaker 2: Thank you for having me. I'm very excited to talk 29 00:01:53,160 --> 00:01:54,680 Speaker 2: about America's seaports today. 30 00:01:55,000 --> 00:01:58,600 Speaker 1: Okay, so you know the name of the organization with 31 00:01:58,720 --> 00:02:01,960 Speaker 1: is American Association of Port Authorities. I think some of 32 00:02:02,040 --> 00:02:04,960 Speaker 1: us know what a port authority is. I sometimes go 33 00:02:05,000 --> 00:02:08,000 Speaker 1: into to one through a bus or an airport. Could 34 00:02:08,000 --> 00:02:10,639 Speaker 1: you just give really basic what the heck is a 35 00:02:10,720 --> 00:02:12,280 Speaker 1: port authority and why do they exist? 36 00:02:12,800 --> 00:02:16,480 Speaker 2: Yeah? Absolutely. The main priority of seaports is to move 37 00:02:16,760 --> 00:02:20,280 Speaker 2: cargo in and out for the supply chain. So a 38 00:02:20,280 --> 00:02:24,359 Speaker 2: lot of our seaport members are landlord ports. They lease 39 00:02:24,720 --> 00:02:28,080 Speaker 2: the land to terminal operators and they work hand in 40 00:02:28,080 --> 00:02:31,680 Speaker 2: hand with terminal operators to make sure ocean carrying vessels 41 00:02:32,240 --> 00:02:36,440 Speaker 2: are brought in, imported in, and exported out with the 42 00:02:36,480 --> 00:02:41,280 Speaker 2: necessary supplies for our country. We work very collaboratively with 43 00:02:41,560 --> 00:02:46,080 Speaker 2: terminal operators, with shippers, with labor, with all of the 44 00:02:46,080 --> 00:02:48,679 Speaker 2: parties to make sure that the supply chain runs smoothly. 45 00:02:49,160 --> 00:02:52,400 Speaker 2: Some of our ports are also operating ports. They actually 46 00:02:52,400 --> 00:02:55,399 Speaker 2: serve to operate similar to the way a terminal operator does. 47 00:02:55,480 --> 00:02:58,920 Speaker 2: So we represent over eighty five US public port authorities 48 00:02:59,120 --> 00:03:02,560 Speaker 2: and other members, international members and supply chain. 49 00:03:02,440 --> 00:03:07,840 Speaker 1: Partners and just generally speaking, port authorities are quasi government entities. Correct. 50 00:03:08,280 --> 00:03:12,440 Speaker 2: Yes, port authorities are quasi government entities either a close 51 00:03:12,960 --> 00:03:18,919 Speaker 2: proximity with a state, local, or other entity. And each 52 00:03:18,960 --> 00:03:21,600 Speaker 2: one is unique. Each one has a unique governing body. 53 00:03:22,040 --> 00:03:25,240 Speaker 1: Okay, so can you just talk about like who your 54 00:03:25,280 --> 00:03:26,440 Speaker 1: members are? Sure? 55 00:03:26,840 --> 00:03:28,800 Speaker 2: So we have as I mentioned, we have eighty five 56 00:03:29,000 --> 00:03:32,520 Speaker 2: US public port authorities representing from the East coast to 57 00:03:32,600 --> 00:03:36,600 Speaker 2: the west coast, north south. Some are smaller, some are medium, 58 00:03:36,720 --> 00:03:42,000 Speaker 2: some are large. We represent mostly coastal seaports. We advocate 59 00:03:42,080 --> 00:03:45,800 Speaker 2: only on behalf of US public port authorities on Capitol Hill. 60 00:03:46,160 --> 00:03:48,520 Speaker 2: That's where we do all our government relations work. I'm 61 00:03:48,560 --> 00:03:52,720 Speaker 2: the leader of that team. We also do have Canadian 62 00:03:53,800 --> 00:03:58,000 Speaker 2: and Mexican and Caribbean members. They provide we provide resources 63 00:03:58,000 --> 00:04:02,560 Speaker 2: for them, information sharing, discounts for conferences, those sorts of things. 64 00:04:02,600 --> 00:04:07,280 Speaker 2: And we also have more ancillary members, very important supply 65 00:04:07,360 --> 00:04:11,280 Speaker 2: chain partners and industry service providers like Great Lakes, Stretch 66 00:04:11,320 --> 00:04:15,440 Speaker 2: and Dock for example, MSc, CMA, GM, Amazon. 67 00:04:15,880 --> 00:04:18,760 Speaker 1: And then you know, on on Capitol Hill, obviously you 68 00:04:18,760 --> 00:04:23,040 Speaker 1: guys do lobbying. Can you talk about, you know, some 69 00:04:23,440 --> 00:04:26,119 Speaker 1: of the things that you are working on Capital maybe 70 00:04:26,160 --> 00:04:28,480 Speaker 1: not doing so much work right now given the shutdown 71 00:04:29,200 --> 00:04:33,440 Speaker 1: I had. I was fortunate or unfortunate to be trying 72 00:04:33,440 --> 00:04:36,240 Speaker 1: to get home to Newark last night and had a 73 00:04:36,279 --> 00:04:40,200 Speaker 1: four hour delay because of the shutdown. So you could 74 00:04:40,200 --> 00:04:44,160 Speaker 1: you talk about, you know, what your work is on 75 00:04:44,240 --> 00:04:48,680 Speaker 1: Capitol Hill and what kind of priorities the AAPA has 76 00:04:48,760 --> 00:04:49,159 Speaker 1: right now. 77 00:04:49,800 --> 00:04:54,359 Speaker 2: Yes, absolutely, despite the government shutdown. From the staff level here, 78 00:04:54,800 --> 00:04:58,159 Speaker 2: our work has continued aggressively. We just finished up a 79 00:04:58,240 --> 00:05:02,640 Speaker 2: very successful conference in Quebec City, Canada, talking about a 80 00:05:02,640 --> 00:05:06,880 Speaker 2: wide range of international issues. On Capitol Hill, we lobby 81 00:05:06,960 --> 00:05:10,560 Speaker 2: for Port Infrastructure Development Program dollars I raised that at 82 00:05:10,560 --> 00:05:14,680 Speaker 2: the top. Because the reauthorization of the Highway Bill, the 83 00:05:14,720 --> 00:05:19,240 Speaker 2: Surface Transportation Bill is underway in Congress. We've been having 84 00:05:19,240 --> 00:05:22,520 Speaker 2: a lot of meetings with House and Senate members and 85 00:05:22,640 --> 00:05:26,640 Speaker 2: Administration of vituals about the importance of the PIDP program 86 00:05:27,000 --> 00:05:34,000 Speaker 2: for rebuilding wharves, docks, terminals, railyards, code stores, those sorts 87 00:05:34,000 --> 00:05:38,560 Speaker 2: of things. We were pleased that the administration did suggest 88 00:05:38,600 --> 00:05:41,800 Speaker 2: five hundred and fifty million dollars for the Infrastructure Development 89 00:05:41,839 --> 00:05:46,280 Speaker 2: Program in their budget for FY twenty twenty six. However, 90 00:05:46,440 --> 00:05:50,480 Speaker 2: given the current control of government being Republican, we do think, 91 00:05:50,920 --> 00:05:56,480 Speaker 2: based on our sources, that a huge mammoth size infrastructure 92 00:05:56,480 --> 00:06:00,200 Speaker 2: bill like to byparison Infrastructure of Law, which provided two 93 00:06:00,279 --> 00:06:03,480 Speaker 2: point two five billion for ports or five years, is 94 00:06:03,520 --> 00:06:07,240 Speaker 2: going to be challenging. But we're doing our advocacy. Nevertheless, 95 00:06:07,839 --> 00:06:11,320 Speaker 2: on the surface Transportation bill. Our sources have said that 96 00:06:11,480 --> 00:06:13,600 Speaker 2: right now there isn't an appetite for a large term 97 00:06:13,640 --> 00:06:17,240 Speaker 2: infrastructure bill, But you don't know what President Trump is 98 00:06:17,279 --> 00:06:19,680 Speaker 2: going to do on this topic if he wants to 99 00:06:19,680 --> 00:06:22,760 Speaker 2: push forward with another infrastructure bill. Ports are at the table. 100 00:06:22,839 --> 00:06:25,479 Speaker 2: We have a lot of other issues, for example, the 101 00:06:25,480 --> 00:06:29,960 Speaker 2: water resource development Act is also being considered for reauthorization 102 00:06:30,160 --> 00:06:33,800 Speaker 2: in twenty twenty six. In the last SWORDA of twenty 103 00:06:33,839 --> 00:06:38,440 Speaker 2: twenty four, ports were very successful whenever we fought for 104 00:06:38,640 --> 00:06:42,920 Speaker 2: language to increase the federal cost share for dredging projects, 105 00:06:43,480 --> 00:06:48,120 Speaker 2: federal dredging projects down to fifty five feet. That allowed 106 00:06:48,200 --> 00:06:52,039 Speaker 2: many of our ports to pursue dredging projects with a 107 00:06:52,080 --> 00:06:55,799 Speaker 2: federal cost share that's greater. That of course, gives those 108 00:06:55,880 --> 00:07:00,760 Speaker 2: ports the ability to move in larger vest goals, create 109 00:07:00,760 --> 00:07:05,200 Speaker 2: greater efficiencies, more goods coming in and coming out. We 110 00:07:05,279 --> 00:07:09,720 Speaker 2: also work on security related topics. We've done a lot 111 00:07:09,720 --> 00:07:12,920 Speaker 2: of work on protecting the clean Ports grants which are 112 00:07:12,920 --> 00:07:16,480 Speaker 2: currently being obligated, and a number of other topics. 113 00:07:17,880 --> 00:07:20,080 Speaker 1: Yeah, So, at the time of recording this, the Trump 114 00:07:20,160 --> 00:07:22,920 Speaker 1: administration and the Chinese government, I think they've come to 115 00:07:23,000 --> 00:07:28,160 Speaker 1: some terms with, you know, cooling down tariffs and also 116 00:07:29,320 --> 00:07:33,280 Speaker 1: with regards to delaying the port fees that they're going 117 00:07:33,360 --> 00:07:35,960 Speaker 1: to put on each other. The Trump administration has been 118 00:07:35,960 --> 00:07:41,800 Speaker 1: pretty vocal about increasing shipbuilding capacity. Is that a good 119 00:07:41,840 --> 00:07:45,160 Speaker 1: thing for your members? Is that something that has a benefit, 120 00:07:45,200 --> 00:07:49,440 Speaker 1: Because if they're going to increase shipbuilding, I'm assuming they 121 00:07:49,440 --> 00:07:53,840 Speaker 1: have to increase the infrastructure related to shipbuilding, which touches ports. 122 00:07:53,960 --> 00:07:57,280 Speaker 2: So can you talk about that. Yeah, thanks, that's a 123 00:07:57,280 --> 00:08:01,920 Speaker 2: great question. Our ports do coort shipbuilding at many of 124 00:08:01,960 --> 00:08:04,360 Speaker 2: their ports. They have the land and the resources to 125 00:08:04,440 --> 00:08:08,160 Speaker 2: do that. We're remaining at the table. However, with that 126 00:08:08,320 --> 00:08:13,520 Speaker 2: being said, we do have major concerns about tariffs. We 127 00:08:13,640 --> 00:08:18,280 Speaker 2: have concerns about shipbuilding fees. Inherently, we do oppose tariffs. 128 00:08:18,760 --> 00:08:21,680 Speaker 2: We believe that any tariffs are going to impact the 129 00:08:21,720 --> 00:08:26,360 Speaker 2: bottom line at ports. They will ultimately impact American consumers 130 00:08:26,480 --> 00:08:28,920 Speaker 2: and it will impact the costs that Americans are paying 131 00:08:29,000 --> 00:08:34,800 Speaker 2: for a wide range of consumer goods. Also, on shipbuilding fees, 132 00:08:35,240 --> 00:08:39,760 Speaker 2: we completely support the administration's push back on Chinese dominance. 133 00:08:39,880 --> 00:08:44,680 Speaker 2: We understand the reason for pursuing a fee on Chinese 134 00:08:44,800 --> 00:08:48,000 Speaker 2: linked ships. However, we don't think that American terminals and 135 00:08:48,120 --> 00:08:52,839 Speaker 2: businesses should be penalized. APA has been at the forefront 136 00:08:53,320 --> 00:08:57,360 Speaker 2: of American manufacturing. We think before tariffs are proposed, we 137 00:08:57,400 --> 00:09:01,760 Speaker 2: need to have the American manufacturing for this type of revitalization. 138 00:09:02,360 --> 00:09:06,760 Speaker 2: Right now, no American manufacturer makes shift to short cranes. 139 00:09:07,120 --> 00:09:09,359 Speaker 2: These are the big cranes that pick up the containers 140 00:09:09,440 --> 00:09:12,560 Speaker 2: and put them onto the dock. They're controlled largely and 141 00:09:12,640 --> 00:09:16,760 Speaker 2: manufactured by the Chinese, with some others in Korea and Japan. 142 00:09:17,320 --> 00:09:20,880 Speaker 2: We've proposed legislation. Congressman Eizel, who is the chair of 143 00:09:20,920 --> 00:09:25,160 Speaker 2: the Coaxcarter Maritime Infrastructure Subcommittee, has introduced this bill to 144 00:09:25,240 --> 00:09:28,800 Speaker 2: provide up to a sixty percent tax credit for bringing 145 00:09:28,840 --> 00:09:31,520 Speaker 2: back that manufacturer of shipped to short cranes and mobile 146 00:09:31,520 --> 00:09:34,959 Speaker 2: harbor cranes. We think that that type of initiative we 147 00:09:35,120 --> 00:09:39,160 Speaker 2: to bring back American manufacturing by taking action before we 148 00:09:39,640 --> 00:09:43,400 Speaker 2: place unfair penalties and fees on American businesses. 149 00:09:43,840 --> 00:09:45,920 Speaker 1: And you know, you mentioned the fact that you know, 150 00:09:46,120 --> 00:09:48,520 Speaker 1: you guys are for being bringing back ship building, and 151 00:09:48,800 --> 00:09:51,920 Speaker 1: some of the ports that you represent seem open to 152 00:09:52,880 --> 00:09:56,400 Speaker 1: I guess hosting those types of companies. I'm assuming those 153 00:09:56,400 --> 00:09:59,959 Speaker 1: are mostly smaller ports on the East Coast that would 154 00:10:00,679 --> 00:10:02,360 Speaker 1: I guess that expressed an interest. I don't know if 155 00:10:02,360 --> 00:10:03,199 Speaker 1: you can talk about that. 156 00:10:03,960 --> 00:10:06,520 Speaker 2: Yeah, we've heard at a high level from ports across 157 00:10:06,520 --> 00:10:09,000 Speaker 2: the country. Actually, we've heard from some on the East 158 00:10:09,000 --> 00:10:12,360 Speaker 2: coasts who are interested in staying engaged and involved and 159 00:10:12,559 --> 00:10:16,360 Speaker 2: having visits from potential shipbuilding manufacturers, but also the golf 160 00:10:16,760 --> 00:10:21,360 Speaker 2: and the West Coast. We've been discussing this topic internally, 161 00:10:21,400 --> 00:10:24,679 Speaker 2: and we have our legislative summit in DC coming up 162 00:10:24,760 --> 00:10:28,800 Speaker 2: mark to fourth through six, and we are planning to 163 00:10:28,880 --> 00:10:32,120 Speaker 2: have shipbuilding as one of the topics. We've continued to 164 00:10:32,120 --> 00:10:36,320 Speaker 2: maintain a close relationship with the White House and the 165 00:10:36,400 --> 00:10:40,280 Speaker 2: National Security Council and also the OMB, and we're planning 166 00:10:40,320 --> 00:10:43,080 Speaker 2: to invite them to talk to our members about what's 167 00:10:43,120 --> 00:10:46,000 Speaker 2: out there. I note that there was twenty five billion 168 00:10:46,520 --> 00:10:49,240 Speaker 2: in the Big Beautiful built for coast Guard and for 169 00:10:49,320 --> 00:10:51,840 Speaker 2: shipbuilding manufacturing. We want to make sure that we're at 170 00:10:51,880 --> 00:10:57,000 Speaker 2: the table and ports are being considered poor infrastructure, and 171 00:10:57,160 --> 00:10:59,360 Speaker 2: does weave into there. We think that they need to 172 00:10:59,400 --> 00:11:04,640 Speaker 2: go hand in hand as this rebuilding revitalization of American 173 00:11:04,640 --> 00:11:05,800 Speaker 2: maritime happens. 174 00:11:06,360 --> 00:11:09,960 Speaker 1: Yeah, it's certainly a capital intensive endeavor. It will be 175 00:11:10,000 --> 00:11:13,400 Speaker 1: interesting to see, uh, you know, I if that takes 176 00:11:13,400 --> 00:11:16,760 Speaker 1: off like I guess the administration hopes it does. Definitely 177 00:11:16,800 --> 00:11:19,280 Speaker 1: can see the benefit of building more ships here in 178 00:11:19,320 --> 00:11:25,000 Speaker 1: the US. Are there any other legislative issues or concerns 179 00:11:25,120 --> 00:11:27,800 Speaker 1: that is really a focus to a PA. 180 00:11:28,240 --> 00:11:31,200 Speaker 2: Yeah, we so, as I mentioned the Highway Bill, of course, 181 00:11:31,440 --> 00:11:34,160 Speaker 2: and the Water Resource Development Act are critical. 182 00:11:34,440 --> 00:11:36,120 Speaker 1: So can I ask, can I ask a dumb question 183 00:11:36,160 --> 00:11:38,040 Speaker 1: about the Highway bill because it has highway in it? 184 00:11:38,080 --> 00:11:40,920 Speaker 1: And I guess people don't think about ports when so 185 00:11:41,679 --> 00:11:44,600 Speaker 1: port funding is included in the highway bill. 186 00:11:45,480 --> 00:11:50,200 Speaker 2: Port funding was included in the last highway bill. Yes, 187 00:11:50,280 --> 00:11:54,000 Speaker 2: it was included as a as an appropriation in that 188 00:11:54,080 --> 00:11:58,080 Speaker 2: highway bill. That Bypars an infrastructure law right provided to 189 00:11:58,120 --> 00:12:02,480 Speaker 2: the two point two five billion for ports. That is 190 00:12:02,559 --> 00:12:09,960 Speaker 2: the current legislative vehicle for additional appropriations for ports. That's 191 00:12:09,960 --> 00:12:13,200 Speaker 2: a very important point because ports are funded through the 192 00:12:13,240 --> 00:12:17,920 Speaker 2: annual appropriations process. They're funded at a very low level, 193 00:12:18,200 --> 00:12:22,280 Speaker 2: not enough to sustain the needs of port infrastructure. So 194 00:12:22,320 --> 00:12:26,720 Speaker 2: there for example, for FY twenty twenty six, there's four 195 00:12:26,800 --> 00:12:30,800 Speaker 2: hundred and fifty million dollars in the by Parson Infrastructure 196 00:12:30,880 --> 00:12:35,520 Speaker 2: Law for for the Port Infrastructure Development Program and that 197 00:12:35,640 --> 00:12:42,240 Speaker 2: program has has been oversubscribed, but by four to one, 198 00:12:43,400 --> 00:12:46,760 Speaker 2: our request for the Port Infrastructure Development Program is ten 199 00:12:46,760 --> 00:12:49,000 Speaker 2: point nine billion over five years. 200 00:12:49,360 --> 00:12:51,240 Speaker 1: Yeah, that's that's a bit more than four hundred and 201 00:12:51,240 --> 00:12:54,600 Speaker 1: fifty million dollars a year. And when you say oversubscribed, 202 00:12:54,679 --> 00:12:59,520 Speaker 1: so you're saying that your members there, they've been requesting 203 00:12:59,720 --> 00:13:03,080 Speaker 1: I guess four times, So I guess that's one point 204 00:13:03,120 --> 00:13:05,400 Speaker 1: eight billion dollars that's for funding. 205 00:13:05,520 --> 00:13:09,040 Speaker 2: Okay, that's right. And for every dollar, according to the 206 00:13:09,080 --> 00:13:13,880 Speaker 2: Maritime Administration the Department of Transportation, for every dollar invested 207 00:13:14,000 --> 00:13:18,360 Speaker 2: in maritime, that stimulates two to three dollars of economic growth, 208 00:13:19,760 --> 00:13:22,520 Speaker 2: which is tremendous. So we always emphasize that when we're 209 00:13:22,559 --> 00:13:26,320 Speaker 2: talking to lawmakers that investing in infrastructure through our courts, 210 00:13:26,760 --> 00:13:29,240 Speaker 2: the return on investment is just tremendous. 211 00:13:29,520 --> 00:13:32,480 Speaker 1: Right. I guess let's talk about that return. So where's 212 00:13:32,480 --> 00:13:35,360 Speaker 1: that return coming from. Is it just more imports coming 213 00:13:35,440 --> 00:13:38,440 Speaker 1: into the US. Is it doing it more efficiently? Is it? 214 00:13:38,480 --> 00:13:40,880 Speaker 1: Is it the local economies or is it kind of 215 00:13:40,920 --> 00:13:41,520 Speaker 1: all the above. 216 00:13:42,559 --> 00:13:47,480 Speaker 2: It's from state or local or private partners. Reports want 217 00:13:47,520 --> 00:13:50,480 Speaker 2: to be the economic engine. They want to collaborate with 218 00:13:50,600 --> 00:13:54,680 Speaker 2: federal partners. They also want the state, local, and private 219 00:13:54,720 --> 00:14:00,199 Speaker 2: operators to become involved. As these initiatives move forward, rates 220 00:14:00,240 --> 00:14:03,920 Speaker 2: as an economic engine. So as that economic engine roars, 221 00:14:04,000 --> 00:14:08,120 Speaker 2: whether it's from a new manufacturing facility or a new terminal, 222 00:14:08,800 --> 00:14:14,800 Speaker 2: or if there's a channel widening, for example, in Houston 223 00:14:15,080 --> 00:14:18,640 Speaker 2: there's a current, there's a channel being widened, and that's 224 00:14:18,720 --> 00:14:21,960 Speaker 2: going to allow more jobs, more economic growth, more ships 225 00:14:21,960 --> 00:14:25,080 Speaker 2: coming out, and that makes it more attractive to prevent 226 00:14:25,200 --> 00:14:28,240 Speaker 2: to potential customers. Or if you look at what's happening 227 00:14:28,280 --> 00:14:32,080 Speaker 2: in New Orleans with a new terminal being built that 228 00:14:32,120 --> 00:14:36,240 Speaker 2: will generate it served as an economic engine for all 229 00:14:36,280 --> 00:14:40,119 Speaker 2: of these good paying maritime jobs and stimulate the economy. 230 00:14:40,320 --> 00:14:44,320 Speaker 2: So we we firmly believe that each dollar invested, it's 231 00:14:44,320 --> 00:14:48,400 Speaker 2: a very well, well well placed use of your finances 232 00:14:48,400 --> 00:14:50,280 Speaker 2: and resources from the federal government. 233 00:14:50,600 --> 00:14:53,560 Speaker 1: And so you mentioned like two places where there's growth 234 00:14:53,600 --> 00:14:57,600 Speaker 1: going on, can you talk about growth more broadly? And 235 00:14:57,640 --> 00:15:00,520 Speaker 1: when I say that, like are the West those US 236 00:15:00,640 --> 00:15:03,200 Speaker 1: ports growing more than the East Coast ports? Orre's the 237 00:15:03,200 --> 00:15:08,600 Speaker 1: Gulf ports? Like where where's the where's the growth coming from? 238 00:15:08,840 --> 00:15:10,720 Speaker 1: Within your world? 239 00:15:11,440 --> 00:15:14,360 Speaker 2: Yeah, very important topic right now. There have been ebbs 240 00:15:14,440 --> 00:15:17,480 Speaker 2: and flows for the last about year and a half. 241 00:15:17,600 --> 00:15:21,080 Speaker 2: Some of that is based on on tariffs and ship 242 00:15:21,120 --> 00:15:25,640 Speaker 2: building fees and some turbulence at the in the political side, 243 00:15:26,080 --> 00:15:30,360 Speaker 2: but it's more focused on the regional level as different 244 00:15:30,400 --> 00:15:34,480 Speaker 2: types of infrastructure projects and cargo loads are managed. So 245 00:15:34,520 --> 00:15:37,640 Speaker 2: for for example, if a if a great lakes port 246 00:15:37,760 --> 00:15:40,560 Speaker 2: gets US gets a contract for a massive amount of 247 00:15:40,640 --> 00:15:44,280 Speaker 2: grain or steel, there's going to be a surge in 248 00:15:44,400 --> 00:15:47,720 Speaker 2: economic activity that's going to blow away the national GDP. 249 00:15:48,320 --> 00:15:50,120 Speaker 2: Or if they might have a little bit of a 250 00:15:50,160 --> 00:15:52,240 Speaker 2: bit of a downturn, they might go a little beneath 251 00:15:53,000 --> 00:15:55,560 Speaker 2: on the West coast. There's been a lot of front 252 00:15:55,560 --> 00:15:59,240 Speaker 2: loading by retailers to try to avoid some of the 253 00:15:59,360 --> 00:16:03,600 Speaker 2: costs of tariffs, and that has increased volumes, but then 254 00:16:03,640 --> 00:16:07,680 Speaker 2: it will go up and down. That type of instability 255 00:16:08,120 --> 00:16:11,120 Speaker 2: isn't good for any of the businesses. They need to 256 00:16:11,160 --> 00:16:15,000 Speaker 2: be able to plan long term. As also an additional 257 00:16:15,080 --> 00:16:18,720 Speaker 2: reason why the current government shut down, right, I think 258 00:16:18,720 --> 00:16:23,040 Speaker 2: what's thirty days now, almost the longest in government history. 259 00:16:23,760 --> 00:16:26,800 Speaker 2: That's certainly not helping. Whether we're talking about the trade 260 00:16:26,840 --> 00:16:31,000 Speaker 2: volumes and flows or we're talking about the actual appropriations 261 00:16:31,120 --> 00:16:35,280 Speaker 2: legislation which is long overdue. These types of things are 262 00:16:35,360 --> 00:16:40,360 Speaker 2: not good for the maritime industry and sustaining and improving 263 00:16:40,360 --> 00:16:42,960 Speaker 2: and increasing the long term growth. 264 00:16:43,440 --> 00:16:47,280 Speaker 1: And how do your members grow, So you know, I'm 265 00:16:47,280 --> 00:16:52,360 Speaker 1: assuming it's not so much winning share from other modes. 266 00:16:53,480 --> 00:16:58,080 Speaker 1: I'm assuming it's attracting new imports and exports. Is that 267 00:16:58,240 --> 00:17:05,400 Speaker 1: how your outside of obviously increasing the capacity through these 268 00:17:05,440 --> 00:17:09,840 Speaker 1: projects that you talked about, what are your members doing 269 00:17:09,880 --> 00:17:12,800 Speaker 1: to kind of to grow their own businesses. 270 00:17:13,720 --> 00:17:17,640 Speaker 2: Yeah, the capacity side is of course very important. They're 271 00:17:17,680 --> 00:17:22,560 Speaker 2: investing in workforce training. They continue to work closely with 272 00:17:22,640 --> 00:17:26,040 Speaker 2: their customers. I talked about some of the projects that 273 00:17:26,040 --> 00:17:29,960 Speaker 2: they're pursuing, whether it's a water infrastructure project, a raal yard, 274 00:17:30,760 --> 00:17:36,280 Speaker 2: better truck connectivity, better equipment. They're constantly fighting for more business. 275 00:17:36,400 --> 00:17:40,480 Speaker 2: And while the ports do collaborate across the whole, so 276 00:17:40,720 --> 00:17:44,160 Speaker 2: we bring them together from an association perspective, they do 277 00:17:44,200 --> 00:17:48,280 Speaker 2: share best practices and collaborate, especially on a regional level. 278 00:17:48,520 --> 00:17:51,960 Speaker 2: We have regional port associations set up across the country 279 00:17:52,000 --> 00:17:54,560 Speaker 2: and they all have their own uniques and priorities. But 280 00:17:55,000 --> 00:17:58,159 Speaker 2: on a competitive level, as you get to understand the 281 00:17:58,240 --> 00:18:02,800 Speaker 2: local port dynamics, they do compete fiercely for critical government 282 00:18:03,000 --> 00:18:07,960 Speaker 2: business and oftentimes their boards, their commissioning bodies, they also 283 00:18:08,040 --> 00:18:11,080 Speaker 2: have a role in that in identifying what can take 284 00:18:11,119 --> 00:18:15,760 Speaker 2: them to the next level, and they some of them 285 00:18:15,800 --> 00:18:18,679 Speaker 2: visit capital, they talk to legislators. They're always looking for 286 00:18:18,760 --> 00:18:22,080 Speaker 2: additional ways to maneuver to get to that next step. 287 00:18:22,960 --> 00:18:26,520 Speaker 1: And are are there some ports that you mentioned that 288 00:18:26,600 --> 00:18:29,080 Speaker 1: they do take share from each other and they compete 289 00:18:29,080 --> 00:18:31,080 Speaker 1: against each other. So are there some ports that are 290 00:18:31,119 --> 00:18:34,360 Speaker 1: growing faster than others if you can talk about that. 291 00:18:34,600 --> 00:18:37,880 Speaker 2: Yeah, yeah, some ports aren't growing faster than others. I'd 292 00:18:37,880 --> 00:18:41,080 Speaker 2: say it's scattered across the board. We've heard from some 293 00:18:41,240 --> 00:18:43,760 Speaker 2: ports who are having some challenges right now. I got 294 00:18:43,760 --> 00:18:46,480 Speaker 2: a call from a port director two weeks ago and 295 00:18:46,520 --> 00:18:50,560 Speaker 2: they said they were having some layoffs and they in 296 00:18:50,640 --> 00:18:54,399 Speaker 2: a very unfortunate circumstance because some of their imports that 297 00:18:54,480 --> 00:18:58,879 Speaker 2: were being we're strong previously to tariffs. They've had to 298 00:18:58,920 --> 00:19:03,359 Speaker 2: stop those because the manufacturing company has had to raise 299 00:19:03,400 --> 00:19:05,920 Speaker 2: prices to the point where the company went out of business. 300 00:19:06,600 --> 00:19:10,399 Speaker 2: Whereas other other other ports, for example, I know of 301 00:19:10,440 --> 00:19:12,920 Speaker 2: a few in the South, but also scattered across the 302 00:19:13,560 --> 00:19:16,720 Speaker 2: company that aren't as focused on container trade, so the 303 00:19:16,800 --> 00:19:19,879 Speaker 2: tariffs aren't hitting them as much. Who have more of 304 00:19:19,880 --> 00:19:22,719 Speaker 2: an energy profile for example, they seem to be a 305 00:19:22,720 --> 00:19:27,760 Speaker 2: little less impacted from the current the current tax and 306 00:19:27,800 --> 00:19:29,120 Speaker 2: tariff structure. 307 00:19:29,200 --> 00:19:32,879 Speaker 1: Right And you know, obviously you know a way to 308 00:19:33,320 --> 00:19:36,960 Speaker 1: get new business is to be more efficient. Uh, you know, 309 00:19:37,359 --> 00:19:41,879 Speaker 1: people think of automation. How are your ports addressing, you know, 310 00:19:42,119 --> 00:19:45,359 Speaker 1: embracing automation, because I'm assuming you know, they must walk 311 00:19:45,400 --> 00:19:52,080 Speaker 1: a fine line between you know, not annoying their workforce 312 00:19:52,280 --> 00:19:55,280 Speaker 1: and trying to move forward uh with technology. 313 00:19:55,800 --> 00:19:59,000 Speaker 2: So internationally, of course, if you look at some of 314 00:19:58,840 --> 00:20:04,080 Speaker 2: the bigger ports like Shanghai or Rotterdam, they've really moved 315 00:20:04,119 --> 00:20:07,720 Speaker 2: forward aggressively with AI and automation. They've proven to be 316 00:20:07,880 --> 00:20:12,560 Speaker 2: very successful using automation for cranings, for example. We've seen 317 00:20:12,600 --> 00:20:15,840 Speaker 2: that at some of our ports, it's taking place in 318 00:20:16,040 --> 00:20:20,920 Speaker 2: targeted circumstances. In all of the successful examples that I've 319 00:20:20,960 --> 00:20:24,800 Speaker 2: seen in the US, there have been very close cordial 320 00:20:24,840 --> 00:20:28,119 Speaker 2: relationships between the terminal operators and the labor unions on 321 00:20:28,160 --> 00:20:32,280 Speaker 2: the contracts to make sure that the working women and 322 00:20:32,359 --> 00:20:35,120 Speaker 2: men are being protected and there are no job losses. 323 00:20:35,520 --> 00:20:38,919 Speaker 2: That there's a lot of focus on safety being the 324 00:20:38,960 --> 00:20:42,960 Speaker 2: first priority. The knee jerk reaction in the past to 325 00:20:43,040 --> 00:20:46,560 Speaker 2: automation has been perhaps a concern about jobs or safety. 326 00:20:46,800 --> 00:20:49,960 Speaker 2: So I think there's that recognition that before anything moves 327 00:20:49,960 --> 00:20:54,720 Speaker 2: forward on automation, and these regional examples the safety and efficiency, 328 00:20:54,720 --> 00:20:57,600 Speaker 2: but also the protection of jobs does need to occur. 329 00:20:57,720 --> 00:21:02,680 Speaker 2: That On the AI side, been been examples of security 330 00:21:02,720 --> 00:21:07,160 Speaker 2: being used, for example by by drones, and there's also 331 00:21:07,240 --> 00:21:11,200 Speaker 2: been a focus on cyber security. For example, the Coastguard 332 00:21:11,280 --> 00:21:14,800 Speaker 2: has has cyber threat hunt teams and if the port 333 00:21:14,920 --> 00:21:19,280 Speaker 2: requests an inspection of something like a like a crane, 334 00:21:19,720 --> 00:21:22,320 Speaker 2: that cyber threat hunt team will actually come to the 335 00:21:22,359 --> 00:21:26,760 Speaker 2: port and do a thorough investigation and analysis of whether 336 00:21:26,880 --> 00:21:30,199 Speaker 2: that specific type of infrastructure is safe or not. So 337 00:21:30,280 --> 00:21:32,840 Speaker 2: a lot of movie parts here. Another issue that we 338 00:21:33,240 --> 00:21:35,520 Speaker 2: want to be involved in and at the forefront on 339 00:21:35,720 --> 00:21:38,399 Speaker 2: as it continues to evolve in the coming days. 340 00:21:38,800 --> 00:21:41,520 Speaker 1: So you just mentioned something, you know when it comes 341 00:21:41,520 --> 00:21:44,480 Speaker 1: to enforcement, and it just like, you know, put something 342 00:21:44,520 --> 00:21:47,000 Speaker 1: to mind. You know, given the Trump administration is focus on, 343 00:21:47,160 --> 00:21:51,080 Speaker 1: you know, reducing fentanoyl imports into the US or were 344 00:21:51,320 --> 00:21:57,200 Speaker 1: related chemicals into the US, has the enforcement from customs 345 00:21:57,200 --> 00:22:01,480 Speaker 1: been a lot more I guess strict over the last 346 00:22:02,160 --> 00:22:04,560 Speaker 1: I don't know how many months, eleven months, twelve months 347 00:22:04,760 --> 00:22:08,920 Speaker 1: since the Trump administration has been around compared to the 348 00:22:09,000 --> 00:22:09,800 Speaker 1: last four years. 349 00:22:10,600 --> 00:22:14,040 Speaker 2: Yeah, great, great question. I haven't heard of any specific 350 00:22:14,800 --> 00:22:18,040 Speaker 2: challenges on that front. I do know that right now 351 00:22:18,600 --> 00:22:23,120 Speaker 2: CBP are under some pressure because they're dm D central workers, 352 00:22:23,720 --> 00:22:27,359 Speaker 2: and I don't believe they're actually getting paid now that 353 00:22:27,359 --> 00:22:29,600 Speaker 2: I think they missed their first paycheck. So that's adding 354 00:22:29,960 --> 00:22:34,240 Speaker 2: an additional unnecessary layer. As far as the specific question 355 00:22:34,400 --> 00:22:39,600 Speaker 2: you ask, I'm not aware of any any major impacts there, so. 356 00:22:39,640 --> 00:22:42,040 Speaker 1: Just and then just going back to the automation, So, 357 00:22:42,200 --> 00:22:45,000 Speaker 1: what are the types of automation do you think that 358 00:22:46,640 --> 00:22:50,280 Speaker 1: are acceptable to labor that will help the ports out, 359 00:22:50,400 --> 00:22:52,520 Speaker 1: you know, because you know we've seen you know, you 360 00:22:52,600 --> 00:22:56,480 Speaker 1: talked about like the automation of some of some equipment, 361 00:22:56,520 --> 00:22:59,320 Speaker 1: but that could be still operated by somebody, you know, 362 00:22:59,800 --> 00:23:02,960 Speaker 1: in side somewhere, which obviously is a if you're not 363 00:23:03,000 --> 00:23:05,560 Speaker 1: working out the elements, and probably a little safer because 364 00:23:05,600 --> 00:23:10,560 Speaker 1: you're not around multi ton containers that could fall and 365 00:23:11,320 --> 00:23:13,520 Speaker 1: hurt somebody. So can you talk about like the what 366 00:23:13,640 --> 00:23:16,480 Speaker 1: kind of automation do you think that is palatable for 367 00:23:16,680 --> 00:23:21,240 Speaker 1: labor versus you know, things that maybe uh, they're they're 368 00:23:21,280 --> 00:23:22,240 Speaker 1: they're more resistant to. 369 00:23:23,400 --> 00:23:27,040 Speaker 2: Yeah, I can't speak exactly to what would be palatable 370 00:23:27,040 --> 00:23:29,320 Speaker 2: to labor, but I can talk a little bit about 371 00:23:29,400 --> 00:23:33,560 Speaker 2: what we've seen and what may be something for the 372 00:23:33,680 --> 00:23:37,679 Speaker 2: US maritime to consider. I would also highlight Deloitte just 373 00:23:37,720 --> 00:23:42,679 Speaker 2: put out a really interesting piece about AI and automation 374 00:23:43,440 --> 00:23:46,280 Speaker 2: and how this is something that needs to be considered 375 00:23:46,560 --> 00:23:50,040 Speaker 2: as Congress and the government pushes to make American maritime 376 00:23:50,440 --> 00:23:52,840 Speaker 2: great again. So if you look at some of the 377 00:23:53,000 --> 00:23:56,440 Speaker 2: successful examples in Rotterdam, for example, they're using a lot 378 00:23:56,480 --> 00:24:01,560 Speaker 2: of AI and automation for the contain are stacking. So 379 00:24:01,760 --> 00:24:05,439 Speaker 2: for example, a truck that's coming in to pick up 380 00:24:05,480 --> 00:24:09,000 Speaker 2: a container, it will know exactly where it is, where 381 00:24:09,040 --> 00:24:11,919 Speaker 2: it is, and that container will be placed in a 382 00:24:12,040 --> 00:24:14,560 Speaker 2: very very strategically so it can pick it up and 383 00:24:14,640 --> 00:24:17,760 Speaker 2: remove it without having any weight time. So that's the 384 00:24:17,840 --> 00:24:20,680 Speaker 2: type of automation that I think is being considered also 385 00:24:20,920 --> 00:24:23,920 Speaker 2: at US ports. But also the you know, weaving into 386 00:24:23,960 --> 00:24:28,760 Speaker 2: this is the whole concept of digitization, which is also 387 00:24:28,800 --> 00:24:31,680 Speaker 2: an AI component to some extent. You not that long 388 00:24:31,760 --> 00:24:36,280 Speaker 2: ago carriers and CBP were using physical bills of laid 389 00:24:36,359 --> 00:24:40,119 Speaker 2: and to identify their ship, what it carried, their their number, 390 00:24:41,080 --> 00:24:45,280 Speaker 2: the cargo, et cetera. But that, for example, is being 391 00:24:45,400 --> 00:24:50,720 Speaker 2: now digitized, where those ocean carriers have have digitization back 392 00:24:50,760 --> 00:24:53,840 Speaker 2: and forth between the CVP government and the terminal operator. 393 00:24:54,320 --> 00:24:58,520 Speaker 2: That does increase the efficiencies for everyone, and I imagine 394 00:24:58,560 --> 00:25:02,840 Speaker 2: that's something that the workforce, for example, could probably benefit from. 395 00:25:03,040 --> 00:25:06,359 Speaker 1: Gotcha, you know, I guess it. When it comes to 396 00:25:06,440 --> 00:25:12,000 Speaker 1: ports and technology, obviously those are the ports of assuming 397 00:25:12,000 --> 00:25:15,679 Speaker 1: are using technology and to reduce their emissions. Can you 398 00:25:15,720 --> 00:25:20,880 Speaker 1: can you talk about, you know, what your members kind 399 00:25:20,880 --> 00:25:23,639 Speaker 1: of goals are towards admission. You know, you have a 400 00:25:23,680 --> 00:25:25,240 Speaker 1: lot of companies that are trying to get to zero 401 00:25:25,320 --> 00:25:28,560 Speaker 1: by a certain time. Does the port world have like 402 00:25:28,880 --> 00:25:32,159 Speaker 1: a broad goal that they're all trying to get to 403 00:25:32,280 --> 00:25:33,880 Speaker 1: and if you can, if you can talk to that, 404 00:25:33,880 --> 00:25:36,240 Speaker 1: that would be I think pretty interesting. 405 00:25:36,720 --> 00:25:42,360 Speaker 2: Yeah. Yeah, absolutely so ports do have very ambitious decarbonization goals. 406 00:25:42,600 --> 00:25:45,080 Speaker 2: I wouldn't characterize it as a as a top down 407 00:25:45,200 --> 00:25:49,560 Speaker 2: type of federal government regulation, but ports do work with 408 00:25:49,760 --> 00:25:53,399 Speaker 2: state local government governments and businesses to set goals for 409 00:25:53,480 --> 00:25:56,639 Speaker 2: themselves and they have made a lot of progress. So, 410 00:25:56,800 --> 00:26:00,440 Speaker 2: for example, the ports of LA and Long Beach their 411 00:26:00,520 --> 00:26:05,720 Speaker 2: world renowned for what they've done to reduce carbon emissions. 412 00:26:06,480 --> 00:26:09,520 Speaker 2: But it's not just a California type of initiative. If 413 00:26:09,520 --> 00:26:12,480 Speaker 2: you look at the ports in the Gulf. For example, 414 00:26:12,520 --> 00:26:16,200 Speaker 2: in the South like Texas, Florida, Georgia, they are adopted 415 00:26:16,440 --> 00:26:23,240 Speaker 2: adopting electric equipment like tugboats, cranes, and Texas Ports specifically 416 00:26:23,240 --> 00:26:27,120 Speaker 2: see hydrogen as a specific area of growth for zero 417 00:26:27,200 --> 00:26:32,080 Speaker 2: missions fuels. We do take in all above strategy as 418 00:26:32,119 --> 00:26:37,080 Speaker 2: the association perspective. There are some challenges with moving away 419 00:26:37,119 --> 00:26:40,600 Speaker 2: from traditional bunker. A lot of it has to do 420 00:26:40,680 --> 00:26:44,760 Speaker 2: with the cost and the cost of the infrastructure to 421 00:26:44,800 --> 00:26:48,280 Speaker 2: set up. Sometimes that can be a timely and more expensive. 422 00:26:48,800 --> 00:26:53,480 Speaker 2: There also can be political challenges. Sometimes at local levels 423 00:26:53,520 --> 00:26:56,159 Speaker 2: there's a bit of hesitation to move to something different, 424 00:26:56,200 --> 00:27:00,720 Speaker 2: So that does also play into the entire discussion. 425 00:27:01,280 --> 00:27:05,760 Speaker 1: And has anything changed under the new administration? Obviously they 426 00:27:05,800 --> 00:27:11,439 Speaker 1: are not as focused on emissions as prior administration. So 427 00:27:12,280 --> 00:27:14,719 Speaker 1: have your ports done anything differently or are they just 428 00:27:14,880 --> 00:27:18,240 Speaker 1: operating as they did over the last couple of years 429 00:27:18,280 --> 00:27:19,960 Speaker 1: In terms of those goals. 430 00:27:21,359 --> 00:27:26,640 Speaker 2: The overarching administration position, I think that most ports are 431 00:27:26,800 --> 00:27:31,760 Speaker 2: very in tune with what their government is desiring. So 432 00:27:32,240 --> 00:27:36,960 Speaker 2: if there's more grants available for specific areas of port development, 433 00:27:37,040 --> 00:27:40,679 Speaker 2: they may try to follow those types of programs with 434 00:27:40,800 --> 00:27:44,040 Speaker 2: that being said, we are seeing a lot of the 435 00:27:44,119 --> 00:27:48,080 Speaker 2: ports stick with their decarb goals because it's very important 436 00:27:48,119 --> 00:27:50,520 Speaker 2: to them, sometimes at a regional level, but mainly because 437 00:27:50,520 --> 00:27:54,960 Speaker 2: they think it's the right path forward. The interesting thing 438 00:27:55,000 --> 00:27:58,080 Speaker 2: about ports, from my perspective having been here a little 439 00:27:58,119 --> 00:28:02,760 Speaker 2: over two years, is that usually the politics is left 440 00:28:02,840 --> 00:28:04,840 Speaker 2: out of it as much as possible, out of their 441 00:28:04,840 --> 00:28:08,359 Speaker 2: decision making, and it's not based on it a Republican 442 00:28:08,560 --> 00:28:10,840 Speaker 2: or democratic platform. They're going to based on what the 443 00:28:10,880 --> 00:28:14,440 Speaker 2: policy and the program is and what's best for their 444 00:28:14,480 --> 00:28:18,520 Speaker 2: operating business and how to maintain competitive and keep attracting, 445 00:28:19,520 --> 00:28:22,000 Speaker 2: attract new customers and maintaining the current ones. 446 00:28:22,160 --> 00:28:24,840 Speaker 1: Is there anything else on your radar that your members 447 00:28:25,000 --> 00:28:26,960 Speaker 1: are kind of concerned with that it might, you know, 448 00:28:27,000 --> 00:28:29,040 Speaker 1: could be either an opportunity or a challenge for them 449 00:28:29,080 --> 00:28:30,359 Speaker 1: that maybe we haven't discussed. 450 00:28:30,520 --> 00:28:35,840 Speaker 2: We are tracking the proposed merger between Union Pacific and 451 00:28:36,160 --> 00:28:40,280 Speaker 2: Norfolk Southern. Some of our members have asked questions about it. 452 00:28:41,200 --> 00:28:44,760 Speaker 2: We do understand that that merger is in the process, 453 00:28:45,360 --> 00:28:48,600 Speaker 2: as in they're working towards their filing their application to 454 00:28:48,640 --> 00:28:52,640 Speaker 2: the Surface Transportation Board, which would be the operating governing 455 00:28:52,720 --> 00:28:55,360 Speaker 2: body in this case. Understand they're going to submit that 456 00:28:55,480 --> 00:28:59,560 Speaker 2: file to for the merger application by January twenty nine, 457 00:29:00,160 --> 00:29:04,680 Speaker 2: twenty six, So after that occurs, we anticipate there will 458 00:29:04,680 --> 00:29:07,800 Speaker 2: be congressional hearings. There's a lot of lobbying already happening 459 00:29:08,280 --> 00:29:12,320 Speaker 2: on the up Norfolk Southern merger. We're hearing from railroads, 460 00:29:12,320 --> 00:29:14,760 Speaker 2: but also we're hearing from chemical groups. We're hearing from 461 00:29:14,760 --> 00:29:19,280 Speaker 2: any operator of or excuse me, any user of railroads. 462 00:29:19,320 --> 00:29:22,040 Speaker 2: We think that's going to be a big topic for discussion. 463 00:29:22,080 --> 00:29:25,040 Speaker 2: We want to make sure reports are well represented. We 464 00:29:25,080 --> 00:29:28,560 Speaker 2: need to do more work directly with our courts understand 465 00:29:28,600 --> 00:29:32,520 Speaker 2: what maybe be good and potentially bad on that merger. 466 00:29:33,080 --> 00:29:36,040 Speaker 1: So when you say you're hearing from your reports, are 467 00:29:36,040 --> 00:29:38,840 Speaker 1: most of your members concerned about it? And what are 468 00:29:38,920 --> 00:29:40,440 Speaker 1: what are what are the concerns? 469 00:29:40,840 --> 00:29:44,480 Speaker 2: I wouldn't say they're concerned. They hear about it from 470 00:29:45,480 --> 00:29:48,280 Speaker 2: one of their customers or from a board member, and 471 00:29:48,360 --> 00:29:50,360 Speaker 2: they want to know more about it. Right now, we're 472 00:29:50,440 --> 00:29:54,240 Speaker 2: more of the fact finding stage, understanding what the pros 473 00:29:54,280 --> 00:29:57,920 Speaker 2: and cons could be. But I haven't heard any imports 474 00:29:57,960 --> 00:30:00,440 Speaker 2: at this point, take any firm position one where or other, 475 00:30:00,560 --> 00:30:04,880 Speaker 2: and weren't in the research back from the stage at 476 00:30:04,880 --> 00:30:05,600 Speaker 2: this point. 477 00:30:05,680 --> 00:30:10,320 Speaker 1: Got you and then you know, I guess when we 478 00:30:10,360 --> 00:30:13,880 Speaker 1: did the intro you kind of been involved in transports 479 00:30:13,920 --> 00:30:18,400 Speaker 1: for some time on the hill. How did you get 480 00:30:18,440 --> 00:30:20,840 Speaker 1: into transports? Was it something like you're like, oh, I've 481 00:30:20,840 --> 00:30:22,760 Speaker 1: always been interested in that, or it's kind of like 482 00:30:23,360 --> 00:30:25,440 Speaker 1: a lot of us that are involved in transportation, you 483 00:30:25,520 --> 00:30:26,840 Speaker 1: kind of step in it if you will. 484 00:30:27,920 --> 00:30:30,560 Speaker 2: Well, my first job on Capitol Hill was for a 485 00:30:30,560 --> 00:30:33,080 Speaker 2: former member of Congress named Bud Schuster, who was the 486 00:30:33,200 --> 00:30:37,720 Speaker 2: chair at the House Transportation and Infrastructure Community. He had 487 00:30:37,840 --> 00:30:40,240 Speaker 2: family that belonged to the same church as mine in 488 00:30:40,600 --> 00:30:43,680 Speaker 2: Central Pennsylvania, and that started off my career in the 489 00:30:43,720 --> 00:30:47,720 Speaker 2: transportation world. I worked for Congressman Low Biondo who was 490 00:30:48,280 --> 00:30:51,160 Speaker 2: chair of the Maritime sub Community and aviation. That's where 491 00:30:51,160 --> 00:30:56,040 Speaker 2: I got my most interest in maritime. So after working 492 00:30:56,120 --> 00:31:00,440 Speaker 2: in aviation and at NATKA the Airtraft Controllers, which was 493 00:31:00,480 --> 00:31:03,880 Speaker 2: a great experience, I talked to a PA and I've 494 00:31:03,920 --> 00:31:07,080 Speaker 2: been here now for two years. I'm really enjoying it. 495 00:31:07,680 --> 00:31:08,840 Speaker 2: Excellent organization. 496 00:31:09,520 --> 00:31:12,760 Speaker 1: So, you know, I would like to ask my guests 497 00:31:12,760 --> 00:31:15,280 Speaker 1: this last question about books. You know, is there a 498 00:31:15,280 --> 00:31:19,560 Speaker 1: book that you've read, whether it's about transportation leadership, or 499 00:31:19,640 --> 00:31:22,960 Speaker 1: even the world of politics that you know you touch 500 00:31:23,000 --> 00:31:26,920 Speaker 1: as a trade organization that's kind of close to your heart. 501 00:31:27,600 --> 00:31:30,400 Speaker 2: Yeah, good question. I am an avid reader. I read 502 00:31:30,480 --> 00:31:33,560 Speaker 2: every night. The book that I think of as far 503 00:31:33,600 --> 00:31:37,040 Speaker 2: as leadership that's most recent in my memory is actually 504 00:31:37,080 --> 00:31:41,480 Speaker 2: Shoe Dog by Phil Knight in the legendary basketball coach, 505 00:31:41,560 --> 00:31:43,760 Speaker 2: Because if you look at the way that he started 506 00:31:43,800 --> 00:31:46,360 Speaker 2: his business to build Nike from the ground up with 507 00:31:46,480 --> 00:31:50,960 Speaker 2: nothing in his basement and going from region to regions 508 00:31:51,000 --> 00:31:54,320 Speaker 2: selling stores out of his shoes, his tenacity and persistence 509 00:31:55,000 --> 00:31:57,760 Speaker 2: and love for what he did, it was really an 510 00:31:57,800 --> 00:32:03,520 Speaker 2: amazing example of how leadership can be done and done successfully. 511 00:32:03,800 --> 00:32:05,760 Speaker 1: Well, maybe we should take those principles to heart and 512 00:32:05,760 --> 00:32:09,680 Speaker 1: we can. We can start a shipbuilding company here in 513 00:32:09,680 --> 00:32:14,080 Speaker 1: the US, go to door to door selling ships. All right, John, 514 00:32:14,120 --> 00:32:15,480 Speaker 1: I really want to thank you for your time and 515 00:32:15,560 --> 00:32:19,239 Speaker 1: insights today. I really appreciate it, and you know, I 516 00:32:19,320 --> 00:32:21,960 Speaker 1: enjoyed learning a little bit more about your organization and 517 00:32:22,080 --> 00:32:23,560 Speaker 1: about what you know ports are facing. 518 00:32:24,360 --> 00:32:26,960 Speaker 2: Thank you for having me look forward to the continued conversation. 519 00:32:27,480 --> 00:32:30,080 Speaker 1: Great, and I want to thank you for your time 520 00:32:30,240 --> 00:32:33,120 Speaker 1: for tuning in. If you like the episode, please subscribe 521 00:32:33,200 --> 00:32:35,560 Speaker 1: and leave a review. We've lined up a number of 522 00:32:35,560 --> 00:32:37,920 Speaker 1: great guests for the podcast, so please check back to 523 00:32:37,960 --> 00:32:42,840 Speaker 1: hear conversations with C suite executives, shippers, regulators, and decision 524 00:32:42,840 --> 00:32:45,520 Speaker 1: makers within the freight markets. Also, if you want to 525 00:32:45,560 --> 00:32:48,600 Speaker 1: learn more about the freight transportation markets, check out our 526 00:32:48,640 --> 00:32:52,680 Speaker 1: work on the Bloomberg Terminal at BIG and on social media. 527 00:32:52,840 --> 00:32:55,240 Speaker 1: This is Lee Glasgow signing off and thanks for talking 528 00:32:55,280 --> 00:33:03,920 Speaker 1: transports with me. Talk to you soon. Bye.