Michigan outlines maritime strategy, spotlights port grant program and limited state ownership

The Subcommittee on Appropriations — Transportation heard an overview of Michigan’s maritime ports on Oct. 12, when Alicia Wolf, freight policy specialist with the Michigan Department of Transportation, told members the state’s 33 active cargo ports handle “approximately 46,100,000 tons of cargo annually” and that waterborne commerce accounts for about 9% of the state’s freight tonnage and about 1% of freight value.

Wolf said the maritime system is a public–private partnership: the federal government generally maintains navigation channels while private operators provide terminals, dredging and vessels. “The ports in Michigan handle approximately 46,100,000 tons of cargo annually,” Wolf said.

Why it matters: Members of the subcommittee — which controls parts of the state budget — heard that Michigan’s ports carry high-weight, bulk commodities such as salt, stone, coal and limestone and that state and federal grants are the primary public funding sources to improve port infrastructure.

Wolf described a Michigan Maritime and Port Facility Assistance Grant Program created by Senate Bill 744 (2022) and funded with a one-time $5,000,000 appropriation in fiscal 2024. The department awarded five maritime projects from that fund, she said, and those awards helped leverage more than $25,000,000 in additional investment. Two of the largest awards cited were for an innovation terminal at the Detroit Wayne County Port Authority and a roll-on/roll-off dock at the Port of Monroe.

Wolf told the panel the Port Infrastructure Development Program administered by the federal Maritime Administration (MARAD) is the main federal grant source for ports, and advocates have urged that more MARAD dollars be directed to Great Lakes ports. “When they looked at the overall life of that program over the last five years, only 8% of those funds went to Great Lakes ports,” she said.

On state ownership and budgets, Wolf said MDOT does not own or operate Michigan ports. “As MDOT, we do not own or operate any of the ports in the state of Michigan,” she said. The only exception MDOT funds is a 50% capital and operating contribution to the Detroit Wayne County Port Authority; Wolf said MDOT’s share is $200,000. She also said she is the only MDOT staff member whose position is dedicated solely to maritime work, though other MDOT units touch maritime issues.

Committee members pressed for additional detail on funding sources and ownership. Wolf said ports also pursue grants from the Michigan Economic Development Corporation (MEDC) and the Department of Environment, Great Lakes, and Energy (EGLE). She said the state is working with MEDC and EGLE and has contracted the University of Michigan to help develop a Michigan maritime strategy; MDOT convenes a maritime work group for stakeholder coordination.

The presentation noted continued national interest in the new Soo Locks and called federal funding for that project “critically important” to the state and national economy.

Ending: Committee members asked MDOT to return with additional detail and stakeholder presenters who use maritime shipping. No formal policy vote was taken; the committee approved routine minutes and adjourned by unanimous consent.