Why marine transportation?
Mississippi’s ports are critical to the state’s economic well being. They provide essential marine transportation and other services to some of the state’s largest and most important industries including petroleum, chemical manufacturing, steel and metal manufacturing, agriculture and ship building to name a few.
In a world of global markets, businesses must have access to cost effective and efficient means of moving its supplies and inputs as well as its finished goods both domestically and internationally. Marine transportation is an important element of the global supply chain, and maintaining and enhancing that system is critical for continued economic vitality in Mississippi.
The purpose of this study is to examine the economic impact of ports in Mississippi and their role in enhancing the State’s economic vitality by connecting businesses, ports and farms to global markets, thus providing competitive access to suppliers and customers.
There are 16 public ports in Mississippi. They include:
· Gulf Coast ports – Gulfport, Biloxi, Bienville, and Pascagoula;
· Mississippi River ports – Rosedale, Greenville, Vicksburg, Claiborne County, and Natchez;
· Tenn-Tom ports – Yellow Creek State Inland Port, Itawamba, Amory, Aberdeen, Clay County, and Lowndes County; and
· Yazoo River Port, located in Yazoo County.
6 / Cambridge Systematics, Inc.How much freight is transported VIA Ports in mississippi?
About 55 million tons of freight is shipped through Mississippi ports annually, including shipments by water to, from, and within individual ports. More than half of these shipments (about 31 million tons) are cargo receipts (shipments into a port). Another 37 percent (about 20 million tons) are goods being shipped out of the state’s ports, while the remaining 3.7 million tons is cargo being transferred within the same port.[1]
Cargo Passing Through Mississippi’s coastal and river ports
what businesses rely on Ports and Marine Transportation in mississippi?
The top industries depending on the state’s ports include petroleum and coal products, chemical manufacturing, primary metal, and agricultural production. These industries are the state’s most port dependent industries and they are located throughout the state, not just at the ports. In fact, 67, or 82%, of the counties in Mississippi is home to at least one port dependent industry.
location of port dependent industries in mississippi
What is the economic impact of Mississippi’s ports?
In general, ports and marine transportation impacts economic development in the following ways:
· Direct impacts are the result of port operations and port dependent industries. Port dependent companies seek the best place to do business at the lowest possible cost – and, marine transportation is a must have for these companies.
· Indirect and multiplier impacts result from local purchases by port dependent companies and their employees. As these firms and their employees make purchases from other Mississippi businesses, they support additional jobs, generating additional income, output and tax revenue.
For this study, the economic impact of ports is based primarily on the economic impact of businesses that rely on the State’s port services. In total, Mississippi’s ports support over 125,700 jobs and $16.8 billion in economic activity annually.
SUMMARY of the annual economic impact of Mississippi’s ports
HOW ARE PORTS FUNDED IN MISSISSIPPI?
Ports in Mississippi are funded primarily through self generated revenue and local governments. Other funding sources include Federal grants and programs, state funding from Mississippi Development Authority (MDA), Mississippi Department of Transportation (MDOT) and private sector investment. Funding from MDOT is limited, with the only dedicated funding source being the Multi-modal Transportation Improvement Program (MTIP).
HOW DO THE PORTS POSITION FOR THE FUTURE?
Ports have an essential role to play in facilitation of business and commerce, which is a key driver of economic growth. As a result of this role, there is increasing interest in how investment decisions are made at the State and local levels. Future investments are expected to concentrate on preserving existing facilities, maintaining adequate channel depths and increasing connectivity. Specifically, ports have an opportunities to modernize by increasing multimodal connectivity as well as improving the marketability and competitiveness of individual ports. Strategic needs and investments include:
· Reliable and continuous funding source - The ports in Mississippi are valuable assets that support agriculture and manufacturing businesses throughout the state. Because of this, state and local investment is sometimes needed and appropriate. In addition, Mississippi ports, stakeholders, and MDOT should work closely with their congressional delegation to improve funding for ports, including obtaining an equitable share of funds from the Harbor Maintenance Trust Fund.
· Business plans, physical facilities master plans, or strategic marketing assessments- Ports should have plans to help support efficient and strategic spending for current and future development and improvements. Only a handful of Mississippi ports have developed these documents. Due to the impact of ports on freight transportation and economic development, it is important to the entire state that short term and long range planning take place. As an example, planning for
future needs is particularly important due to the upcoming completion of the Panama Canal widening. This change in international shipping patterns may be an opportunity to take advantage of potential new demand, but Mississippi ports must be ready to accommodate these shipments.
· Maintaining the water depth of channels and berth areas- This is critical for both inland river ports and the Gulf Coast ports. Many ports would also benefit from
Long-Term Dredge Management Plans (LTDMP).
· Access to highway and rail connections – Intermodal connectors are a concern for ports along the Mississippi and Tenn-Tom Waterway. Many Mississippi ports are located in proximity to multilane roadways with access to state highways, but the “last mile” connections between the ports and the highways could be improved. In addition, improvements to rail connectivity will position ports for new opportunities. Both of these approaches should include collaborating with State, regional or local partners.
· Expansion projects – To more efficiently accommodate existing traffic as well as prepare for future traffic, several ports will need to invest in expansion projects including construction of facilities, new roadways or rail spurs, and purchasing of land.
6 / Cambridge Systematics, Inc.[1] Data are for 2011 and were drawn from the U.S. Army Corps of Engineers Waterborne Commerce of the United States.