Port of Boston: A Vital Economic Engine

Posted by Michelle Howard
Monday, July 21, 2014

Port of Boston is Vital Economic Engine and Job Generator for Region.

The Port of Boston generated $4.6 billion in 2012 and more than 50,000 jobs are supported by the port, including more than 7,000 direct jobs, according to a report released by the Massachusetts Port Authority (Massport).


This economic impact and the jobs created by the working seaport help to keep Boston competitive among other U.S. East Coast ports. Operation of the maritime terminals ensures that the more cost-efficient waterborne cargo lands in Boston rather than other ports like New York/New Jersey or Baltimore, where it then must be trucked into the region, significantly adding to the traffic on the I-95 corridor. It is very likely that shoes on your feet or the fuel that warms your home in the winter came through the Port of Boston. This not only allows for items to be sold to the public at a lower cost, but the waterborne shipping of cargo also reduces the amount of truck traffic. This means that there is less traffic congestion, less roadway maintenance, fewer emissions, and that the additional money it would cost to import and export goods from a different port stays in the region.


Of the 7,091 direct jobs created by maritime activity in the Port of Boston, 2,885 of these direct jobs that were created by activity at Massport facilities.


“This study confirms that the Port of Boston continues to be a job generator and economic engine for the New England region,” said Thomas P. Glynn, Massport’s CEO. “The most significant contribution comes from activity at Conley Terminal. With the expansion of the Panama Canal and approval of federal funds for the Boston Harbor Dredging Project  through the WRRDA bill, the Port of Boston has the unique opportunity to capture additional business that the larger ships coming thorough the Canal will bring to East Coast ports, allowing job growth and economic impact to continue.”


“It’s very important that we continue to invest in the port,” said Deborah Hadden, Port Director for Massport. “Even during the recession, the number of jobs and the economic impact increased by nearly 50-percent, which is astounding. We need to continue to this upward climb while we have momentum.”


The study reports that in 2012, $1.2 billion of the $4.6 billion was generated by maritime activity at Massport’s public terminals, as well as private marine terminals in the port. When a study of this caliber was last conducted, in 2005, $1 billion was generated by maritime activity. This growth was driven by a number of factors related to containerized cargo, seafood processing, and the cruise business in the Port of Boston.


Cargo activity generated the majority of economic impacts in 2012 with $2.7 billion representing the value that cargo adds to the New England region and the 4,574 direct jobs the terminals create. Essentially, the Port of Boston can be likened to entities like Massachusetts General Hospital, Boston University, and Fidelity Investments in terms of the Commonwealth’s largest employment providers.


Martin Associates, whose studies have been reviewed and used by organizations like International Trade Commission to set national policy, used a more robust and sophisticated analysis method with the 2012 data than they used in 2005. Martin Associates included nearly 1,000 U.S. Coast Guard employees which drove the biggest increase in cargo-generated jobs in the 2012. In the 2005 impact analysis, only 47 of these jobs were included. After further discussion with the Coast Guard during the 2012 analysis, it was recommended that these jobs are counted as being directly depended upon the Port of Boston. Without the inclusion of the Coast Guard jobs, cargo-generated jobs still grew by 3,621 total jobs.


Seafood processing operations showed the next largest revenue impact. Fish and seafood processing tenants of Massport facilities support 868 total jobs, 412 of which are direct jobs. In the 2005 impact analysis, there were 531 total jobs including 271 direct seafood processing jobs at Massport facilities. Processing activity at Massport generated $196.9 million of annual business revenue and $47.9 million of total personal income and local consumption expenditures. Compare this to the $90.5 million in business revenue and $34.8 million in total personal income and consumption expenditures reported in the 2005 survey. This significant increase is attributed to a combination of growth in activity and employment levels at these operations. Boston Logan International Airport is located about three miles from the working seaport. This proximity allows for the efficient and timely distribution of seafood. Chances are that a piece of haddock served in a restaurant in Chicago came from a seafood processor in the Port of Boston and was flown out of Logan Airport.


Cruiseport Boston saw an increase in cruise passengers, larger ships, and more ships that began and ended itineraries in Boston versus visiting as a port of call. In the seven-year period between studies, cruise passenger numbers nearly doubled, growing from 199,453 to 380,000. The number of sailings also grew from 95 in 2005 to 117. The types of vessels calling the cruise terminal have evolved since 2005, when the majority of vessels calling the port were smaller coastal ships. These vessels also made Boston a port of call instead of a homeport, like many vessels do today. Cruise operations at Massport created 971 direct jobs, and supported about 990 jobs. The 2005 study found that Massport’s cruise operations created 418 direct jobs and supported another 287. Total income and local consumption expenditures relevant to cruise operations generated $79.5 million in 2012. This is a nearly $12 million increase in total cruise-generated income and local consumption expenditures since the 2005 study was conducted.


The report was based on telephone surveys of port tenants and firms providing services to the marine terminals, cruise vessels and their associated passengers, and seafood processors. The telephone interviews achieved a more than 95-percent response rate. A total 315 firms and 1,010 passengers and crew contributed data to the study.

 


Cruise Ship Trends

Vard Bags Hapag-Lloyd Cruises contract for 2 Vessels

Vard Holdings Limited (“VARD”), one of the major global designers and shipbuilders of specialized vessels, is pleased to announce that it has secured contracts

Lucas Marine, Harbor Breeze Cruises Partner to Cut Fuel Costs

Lucas Marine is partnering with Harbor Breeze Corporation to help reduce the yacht charter and cruise company's fuel costs, maintenance and environmental impact in Los Angeles and Long Beach Harbors.

Pods Versus Water Lubricated Props

Thordon Bearings has called on the marine industry to investigate the characteristics of both conventional seawater-lubricated propeller shaft systems and podded

Ports

Vitol's Malaysia Terminal Suspends Ops after Spill

VTTI, the storage unit of world's largest oil trader Vitol, has suspended operations at its terminal in southern Malaysia following an oil spill, two industry sources said on Friday.

Shenzhen Port to Adopt China ECA Regulation

China's Shenzhen port is set to to adopt requirements for ships at berth requiring to burn marine fuel with sulfur content not exceeding 0.5 percent starting October this year,

Cochin Port Gets a Little 'Breathing Space'

The Cabinet Committee on Economic Affairs of India, chaired by the Prime Minister Narendra Modi, has given its approval for waiver of penal interest on Government

Finance

NParks, Keppel in S$2.08 mln Partnership for Restoring Singapore Forest Wetlands

The National Parks Board (NParks) and Keppel Corporation today unveiled plans for a partnership to restore the freshwater forest wetland ecosystem historically

Skaugen Goes to Red Again

Norwegian Marine Transportation Service Company I.M. Skaugen SE reported interim losses but cautiously positive and expecting a gradual recovery of trading opportunities

Kongsberg Performs Well in Q2

Norwegian defence and marine technology company Kongsberg Gruppen's second quarter 2016 (Q2) financial results shows sales performance broadly in line with recent trends,

News

NParks, Keppel in S$2.08 mln Partnership for Restoring Singapore Forest Wetlands

The National Parks Board (NParks) and Keppel Corporation today unveiled plans for a partnership to restore the freshwater forest wetland ecosystem historically

Zumaia Offshore Acqires MPP Workboat Aitana B

In April 2016 Zumaia Offshore, S.L., leading workboat owner and operator based in the Basque Country, took delivery of the Cummins-powered MPP workboat “Aitana

Skaugen Goes to Red Again

Norwegian Marine Transportation Service Company I.M. Skaugen SE reported interim losses but cautiously positive and expecting a gradual recovery of trading opportunities

Vessels

C-Job Designs Flettner Freighter for Switijnk

The Dutch shipping company family Switijnk has contracted C-Job Naval Architects to develop a Rotor Sail-equipped design to meet their specific loading and sailing profile.

Damen Trading Sale hits 500th Vessel

30 years and 500 vessels later, Damen Trading is just getting started. Damen Trading’s story begins in 1986, with Damen Shipyards Group responding to growing market demand for used vessels.

Matson Orders Two ConRo Ships from NASSCO

Matson Navigation Company, Inc., a subsidiary of container shipper Matson, Inc., has signed a contract with U.S. shipbuilder General Dynamics NASSCO to build two

Logistics

How Rapid is the Fleet Growth?

During July 2016, the containership fleet reached a landmark 20 million TEU in terms of aggregate capacity, says Clarksons Research.   To many it only seems

Maersk Line's Innovative Smart Reefers

Have you heard about Maersk Line's smart reefers that can listen and talk? Cutting edge technology that reduces risk in customer supply chain, claims Maersk Line.

Rickmers Holding, E.R. Capital Drop Merger Plan

Rickmers Holding AG and E.R. Capital Holding have jointly decided not to pursue the merger of their ship management activities.   For many years the companies

 
 
Maritime Contracts Maritime Standards Naval Architecture Navigation Pipelines Pod Propulsion Port Authority Ship Repair Ship Simulators Sonar
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1300 sec (8 req/sec)