Ex-US maritime commissioner urges port investment in Puerto Rico
Carl Bentzel sees the island as part of a U.S. strategy to nearshore manufacturing and reduce reliance on China. #NewsismyBusiness
Puerto Rico could become a key player in the United States’ strategy to address China’s dominance in global trade and manufacturing, according to a report by Seatrade Maritime News and its Europe correspondent Nick Savvides.
In an interview with the U.K.-based publication, former U.S. Federal Maritime Commissioner Carl Bentzel proposed investing in Puerto Rico’s port infrastructure and surrounding industrial zones as part of a broader U.S. plan to reestablish domestic manufacturing and shipping capabilities.
Bentzel, who is now president of the National Association of Waterfront Employers, testified Wednesday before the Office of the U.S. Trade Representative (USTR) as part of an ongoing investigation into China’s trade practices.
During preliminary hearings, several industry groups voiced concern that proposed tariffs on Chinese-built vessels could raise shipping costs and fuel inflation. However, Bentzel continued to advocate for the policy, framing it as an opportunity to reinvest in U.S. port infrastructure — including in Puerto Rico — and reduce reliance on foreign shipbuilding.
As reported by Seatrade Maritime News, Bentzel said, “Puerto Rico would be exempt from the penalties levied on Chinese shipping,” positioning it as an attractive destination for manufacturers seeking proximity to the U.S. mainland without exposure to new tariffs and fees. This exemption, according to the report, could generate interest in expanding operations around San Juan and Ponce, whose ports currently handle about 600,000 20-foot equivalent units (TEUs) annually.
Bentzel envisions fines imposed on Chinese-built vessels and equipment being redirected into Puerto Rico’s port infrastructure, including terminal upgrades and improvements to accommodate larger ships.
“Reducing the distance goods must travel allows for quicker responses to disruptions and addresses America’s vulnerabilities to relying on Chinese manufacturers,” Bentzel wrote in a November 2023 letter to President Joe Biden, as cited by Seatrade Maritime News.
He also argued that Puerto Rico offers “a compelling alternative to Mexico and other non-U.S. options for the nearshoring of manufacturing,” particularly as the U.S. administration continues to impose import duties on goods from Mexico.
The shift is part of a wider U.S. effort to regain control over key industries such as shipbuilding, once dominated by American firms. As Seatrade Maritime News noted, the U.S. produced 75% of the world’s ships in the 1950s before ceding leadership to Japan and later South Korea. Today, China leads the global shipbuilding market.
Bentzel told the outlet that he supports imposing significant tariffs — reportedly $1.5 million per port call — on Chinese vessels entering U.S. ports. While some carriers estimate such fees could cost billions, Bentzel said the revenue could help rebuild the U.S. commercial shipbuilding sector. He estimated that “within 15 years we could move from building 1% of ships to 10% globally, and that’s probably all we’d need.”
French carrier CMA CGM has committed to building 15 ships in the U.S., according to Bentzel, signaling growing interest in domestic shipbuilding.
He also raised national security concerns involving Taiwan, telling Seatrade Maritime News that if China were to take control of the island, nearly 40% of U.S. imports could fall under Beijing’s influence.
“Taiwan is at the root of all these U.S. concerns,” Bentzel said. “The Chinese would like to do [to Taiwan] what the Russians are doing in Ukraine, to make it [Taiwan] a vassal state.”
Bentzel has discussed other concerns about China’s role in global supply chains. He warned that reliance on a single country for critical goods had proven risky, especially during the COVID-19 pandemic.
While the USTR’s investigation is ongoing, the idea of positioning Puerto Rico as a logistics and manufacturing hub is drawing attention as part of the United States’ evolving economic strategy. The island’s legal framework, proximity to the mainland and infrastructure may position it as an alternative to offshore manufacturing in Asia or Latin America.
