Relates to cargo facility charges by the Port Authority

Summary of specific provisions

Section 1- adds a new Article VII-A, Cargo Facility Charges, to section 1 of Chapter 882 of the laws of 1953. Within the new Article,

Section 1 contains definitions

Section 2 provides that notwithstanding any law, rule, regulation or existing tariff to the contrary, the Port Authority shall not assess a user, ocean common carrier, marine terminal operator, carrier, or rail carrier a cargo facility charge on import and export cargo leaving any marine facility owned or operated by the Port Authority, except that the Port Authority may assess a user, ocean common carrier, marine terminal operator, carrier, or rail carrier a cargo facility charge upon written mutual agreement between the user, ocean common carrier, marine terminal operator, carrier, or rail carrier and the Port Authority.

Section 2 - provides that this act shall take effect upon the enactment into law by the State of New Jersey of legislation having an identical effect with this act, but if the State of New Jersey shall have already enacted such legislation, then it shall take effect immediately; and provided that the Waterfront Commission shall notify the Legislative Bill Drafting Commission upon the occurrence of the enactment of the legislation provided for in section one of the act in order that the Commission may maintain an accurate and timely effective data base of the official text of laws of the State of New York in furtherance of effecting the provisions of section 44 of the Legislative Law and section 70-b of the Public Officers Law.

Justification

It is critically important to the economic health of New York State that the New York port remain competitive with other ports around the country, and particularly along the east coast. In March of 2011, the Port Authority unilaterally imposed a cargo facility charge (CFC) of $4.95 per twenty foot equivalent unit on ocean carriers, in the mistaken belief that these charges could be spread through to other parties importing the goods and on through the supply chain. No other port in the country charges such a CFC charge. Unfortunately, the Port Authority of New York and New Jersey was already the most expensive port in the country to process a freight container, with costs now being approximately 18% higher than the next highest port at Long Beach, Cali-

fornia. Ocean carriers have not been able to pass this new fee on because of the highly competitive nature of their industry. Unfortunate- ly, the message of this tariff to ocean carriers is that they are not welcome, and that they will be more competitive bringing their cargo to another port. Cargo ships are by nature moving vessels that can choose where they want to take their cargoes, and you can be sure that if other ports make better economic sense, that is where these ships will dock.

Passage of this law would be a strong signal that New York State is in fact open for business and that we are serious about making New York State economically competitive again.

Prior legislative history

New bill

Fiscal implications

None to the state.

Effective date

This act shall take effect upon the enactment into law by the State of New Jersey of legislation having an identical effect with this act, but if the State of New Jersey shall have already enacted such legislation, then it shall take effect immediately; and provided that the Waterfront Commission shall notify the Legislative Bill Draft- ing Commission upon the occurrence of the enactment of the legislation provided for in section one of the act in order that the Commission may maintain an accurate and timely effective data base of the official text of laws of the State of New York in furtherance of effecting the provisions of section 44 of the Legislative Law and section 70-b of the Public Officers Law.