Philly Port Expansion Hits Roadblock: ‘Buy America’ Mandate Clashes with Global Supply Chain Reality
PhilaPort, the authority managing the Port of Philadelphia, finds itself in a paradoxical bind that threatens to stall critical infrastructure upgrades at the Tioga Marine Terminal. While the port has secured millions in federal grant funding to purchase two new electric ship-to-shore (STS) cranes, strict “Build America, Buy America” (BABA) laws effectively prohibit them from spending it. The core issue is stark: the United States government requires the cranes to be American-made, but no American company currently manufactures them.
The “Buy America” Dilemma
The conflict centers on a grant intended to help the port replace 50-year-old diesel cranes with modern, zero-emission electric models. Under the BABA provisions attached to these federal funds, the equipment must be produced domestically. However, the last major ship-to-shore crane manufactured on U.S. soil was completed decades ago.
Since then, the global market has been entirely cornered by foreign entities, specifically Shanghai Zhenhua Heavy Industries (ZPMC), a Chinese state-owned manufacturer that currently supplies approximately 80% of the cranes used at U.S. ports. Port officials are now forced to petition the federal government for a waiver, arguing that complying with the law is physically impossible because the required industry simply does not exist within American borders.
Security Objections and Economic Tension
The request for a waiver has ignited a fierce debate between economic pragmatists and national security hawks.
The Security Objection: Opponents of the waiver argue that relying on ZPMC poses a severe national security threat. A recent Congressional investigation labeled the Chinese-made cranes a “Trojan horse,” citing the discovery of unauthorized cellular modems and potential “backdoors” that could allow the Chinese Communist Party to spy on logistics data or even remotely paralyze U.S. commerce. Security experts warn that bypassing BABA rules to buy Chinese equipment undermines the very resilience the law was designed to build.
The Port’s Rebuttal: PhilaPort officials and maritime trade groups counter that the security concerns, while valid, do not solve the immediate operational crisis. They argue that blocking the purchase of foreign cranes—when no domestic alternative exists—punishes American ports, reduces their competitiveness against foreign rivals, and risks slowing down the supply chain. Without the waiver, the port cannot upgrade its aging infrastructure, potentially threatening local jobs and revenue.
Background: A Hollowed-Out Industry
The predicament in Philadelphia highlights a decades-long erosion of U.S. industrial capacity. The U.S. ceased domestic production of these massive cranes in the late 1980s and early 1990s as manufacturing shifted to cheaper overseas markets.
While the federal government recently announced a $20 billion investment initiative to “reshore” crane manufacturing—including a partnership with PACECO Corp. to eventually restart American production—industry analysts caution that this capacity is years away from coming online. Until domestic factories are operational, ports like Philadelphia remain stuck in regulatory limbo, caught between a mandate to buy American and a market where “Made in the USA” is not yet an option.
seatrade-maritime.com
inquirer.com
worldcargonews.com
cms-plus.com
marubeni.com
house.gov
