Transportation and Logistics (Formerly Global Agility) –
The global agility system links buyers and sellers through a host of transportation and distribution options, including deep-water shipping, inland waterway transportation, ports and harbors, warehousing, railways, trucking, air freight, and space logistics. Since the Industrial Revolution, the U.S. set the standard in global logistics, distribution, and supply chain management. However, today many global agility industries are mature, resistant to change, lack pressure from the competitive forces that prod firms to innovate, and stagnant due to government policies. Common challenges include ossifying industries, outdated regulatory environment, resistant workforce, and aging infrastructure.
While the reemergence of great power competition illuminates the need for balance among of all instruments of national power, the global agility network primarily fortifies the links and nodes that connect the military and economic instruments. To this point, the U.S. has enjoyed a large lead in both domains, but resurgent Russia and revisionist China challenge U.S. prosperity and security by staking claims in logistics industries traditionally dominated by American firms. The U.S. must sustain its lead in the industries it currently dominates, remove barriers in the industries in which it is falling behind, and provide incentives for industry to innovate across the global agility enterprise through the following policy recommendations:
Deep-water
1. Modify the Jones Act to allow U.S. shipping firms to purchase foreign-built vessels.
2. Permit Maritime Security Program carriers to use non-U.S.-flagged vessels domestically.
3. Establish the U.S. Merchant Marine as the ninth federal uniformed service.
Inland Waterways
1. Repeal or amend the Jones and Foreign Dredge Acts.
2. Reevaluate distribution of the Inland Waterways and Harbor Maintenance Trust Funds.
3. Restructure inland waterway industry funding via demand-risk public-private partnerships.
Ports and Harbors
1. Expand U.S. dredging fleet capacity.
2. Link ports and harbors with national security.
3. Establish incentives for increased private investment in port modernization and maintenance.
4. Explore methods to modernize facilities to combat rising sea-levels.
Railways
1. Remove regulatory barriers to industry innovations in safety, efficiency, and maintenance.
2. Restrict government-sponsored rail contracts that subcontract to foreign firms.
3. Establish robust standards for cyber and data integrity.
Trucking
1. Create a national apprenticeship program to increase the driver pool for the trucking industry.
2. Modify the Highway Tax Fund to support comprehensive road and bridge improvements.
Air Freight
1. Implement a new Transportation Security Administration security plan that balances risk against efficiency.
2. Continue technology development for the U.S. air cargo industry to augment the Civil Reserve Air Fleet.
Warehousing
1. Model industry best-practices in warehouse location and design, especially for mobilization.
2. Develop a nationwide data exchange platform to standardize across government and industry.
3. Retrofit existing warehouse space to promote downsizing, sub-leasing, or consolidation.
Space
1. Quantify and charge commercial launch customers for holistic launch services.
2. Shift the focus of the hypersonic strategy from offensive long-range artillery to logistics.
3. Negotiate an orbital use-fee treaty among space-faring nations to mitigate space debris.
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