Washington (Platts)--1Feb2012/1249 am EST/549 GMT

US House Republicans unveiled a long-awaited proposal to reform transportation Tuesday, calling for more efficient use of the Harbor Maintenance Trust Fund and pushing back the deadline for railroads to install Positive Train Control.

The American Energy & Infrastructure Jobs Act is a five-year, $260-billion proposal that streamlines the approval process for transportation projects and promotes increased domestic energy production.

The Harbor Maintenance Trust Fund, supported by taxes on cargo, often is a point of contention among port directors and shippers because the funds are difficult to access or are sent to the general treasury for other projects.

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In fiscal year 2010, for instance, the fund grew by $1.3 billion, but only $828.6 million was spent. At the current pace, the fund will reach a whopping $6.93 billion at the end of fiscal year 2012, according to House Transportation and Infrastructure Committee Chairman John Mica, Republican-Florida.

But money for dredging the Mississippi River dropped from $181 million in 2009 to $118 million in 2010.

The five ports on the Mississippi River handle about 25%-30% of US oil exports, according to Associated Branch Pilots president Mike Lorino, who oversees ocean-going vessels. In 2010, 12.8 million st of coal passed through the mouth of the Mississippi.

"Waterborne trade at our nation's ports is vital to the American economy, and millions of jobs throughout the country are dependent upon the commercial shipping industry," Mica stated in the bill summary. "The American Energy & Infrastructure Jobs Act encourages funds collected for the maintenance of our nation's harbors to be invested for that purpose."

Mica also said the bill creates a faster application process for Rail Rehabilitation and Improvement Financing loans often used by short-line rails.

The bill pushes back the deadline to implement anti-collision software and hardware known as Positive Train Control from 2015 to 2020. Union Pacific said in its earnings call last week that PTC implementation will cost it $2 billion.

--Darren Epps, darren_epps@platts.com

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