Mr. Chairman, we are pleased to come before you today to discuss tax treatment of port infrastructure. Ports are critical links in this nation's ability to internationally transport goods and people. Since colonial times, waterborne commerce has stimulated the economic growth and vitality of this great nation. A large measure of this country's unprecedented economic growth is due to the increased productivity of the American economy and foreign trade. In order to remain competitive in the global marketplace, U.S. businesses must have an efficient and reliable transportation system.
Ports provide just that.
Currently, more than 95 percent of all U.S. foreign commerce flows through ports along our nation's coastlines and the Great Lakes. Foreign trade is an increasingly important part of the U.S. economy, accounting for over 27 percent of the Gross Domestic Product in 1999. More than 11.5 million U.S. jobs now depend on exports. By the year 2010, the value of international trade is expected to more than double, and by the year 2040 forecasts indicate that imports and exports will increase eightfold. The demand on port services to meet this growth in international trade is already being felt and will be even greater as we move toward the opening of international markets.