Ports in the South

Sujit M. CanagaRetna The Council of State Governments Southern Legislative Conference Atlanta, Georgia

Presentation to the Warrior-TomBigbee Waterway Association 54th Anniversary Meeting - Mobile, Alabama April 30, 2004

“For whomsoever commands the sea commands the trade; Whomsoever commands the trade of the world commands the riches of the world, and consequently the world itself.”

Sir Walter Raleigh, The Invention of Ships (early 1600s) Presentation’s Five Main Areas

1. Ports in Our Economy 2. Link Between Global Economic Trends and Maritime Transportation 3. Record of Southern Ports 4. Challenges Faced by Ports 5. Maritime Security Alabama State Docks

• Dedicated: 1928 • Berths: 37 • Channel Depth: 40 to 45 feet • Vessel Calls: 997 in FY 2003 • Docks Tonnage in FY 2003: 19.4 million tons; 23,960 TEUs • Economic Impact: $3 billion; $467 million in state taxes; 118,000 jobs • Revenue: $66.7 million • Top Imports: Coal, Aluminum, Iron, Steel, Lumber, Woodpulp, Chemicals • Top Exports: Forest Products, Iron, Steel, Chemicals Port of South Louisiana

• Stretches 54 miles along Mississippi River • Third largest tonnage port in the world and largest in the Western Hemisphere • Handled almost 240 million tons of cargo in 2003 • Over 53,000 barges and 3,750 ocean-going vessels call each year • Top ranked port in the country for export tonnage and total tonnage • Port accounts for 15 percent of total U.S. exports • Port is served by three trunk railroads, three major Interstate highways connect the Port to major U.S. markets, more than 50 piers and docks on deep-water frontage on both sides of the Mississippi, six major oil and gas pipelines serve the Port and the New Orleans International Airport is minutes away • Top export: Grain (53 million short tons in FY 2003) • Top import: Crude Oil (58 million short tons in FY 2003) Economic Contribution of Ports

• 2 Billion tons of Cargo • $780 Billion to GDP • 16 Million Port-Related Jobs • $515 Billion in Personal Income • $1.5 Trillion in Business Sales • $210 Billion in Taxes at All Levels • $111 Billion to State Economies Annually – via Commercial and Recreational Fishing Georgia Ports Authority (GPA)

• GPA owns and operates the ports of Savannah, Brunswick, Bainbridge & Columbus • In FY 2003, a record 1.5 million TEUs shipped through GPA, a 32% increase the over prior year • New container berth in Savannah, enhancing what is already the largest single terminal container facility from Maine to Texas • Brunswick experienced a dramatic 25% growth in the movement of automobiles and machine units in FY 2003 • In FY 2003, GPA’s economic impact included $35.4 billion in sales (7% of GA total); $17.1 billion in gross state product (6% of GA total GSP); $10.8 billion in income (4% of GA total); 275,968 full- and part-time jobs (7% of GA total); $3.2 billion in federal taxes; and $1.4 billion in state and local taxes Port of Houston

• First opened to deep-water vessels in 1914 • Latest figures (2000) show that the Port generated $10.9 billion in business revenues and 287,454 jobs in Texas and 714,000 jobs nationwide • Ranks first in the U.S. in foreign tonnage, 2nd in total tonnage and 6th worldwide in total tonnage • Handled 194 million short tons in 2001 with 6,613 ships calling at the Port • 130.3 million short tons valued at $44.5 billion moved in foreign trade in 2001 • Top 5 trading partners (tonnage): Mexico, Venezuela, Saudi Arabia, Iraq, Algeria • Top Import and Export Commodities (tonnage): Petroleum and Petroleum Products, Crude Fertilizers and Minerals, Iron and Steel, Cereals and Cereal Products; Organic Chemicals Jacksonville Port Authority

• Three marine terminals handled 7.3 million tons of cargo in FY 2003 • Handled more than 544,000 automobiles, ranks in the top 3 vehicle handling ports in the country • 1,539 vessel calls in FY 2003 • $1.3 billion annually in economic impact • 45,081 jobs in northeast Florida related to Port • In 2001, $997.8 million in wages, $67.1 million in local taxes, $61.4 million in state taxes and $230.8 million in federal taxes related to Port activity Port of Charleston

• In 2003, Charleston was the busiest container port in the Southeast and Gulf coasts and ranked fourth nationwide • Port handled 1.7 million TEUs, 613,000 tons of break bulk cargo and 34,700 tons of bulk grain shipments • Top Commodities: Agriculture and Forest Products Consumer Goods, Machinery, Metals, Vehicles, Chemicals and Clay Products • The Charleston Customs district ranks as the nation’s sixth largest in the dollar value of international shipments with cargo valued at $33 billion annually • The South Carolina State Ports Authority (SPA) has three major projects to enhance its capabilities: a $150 million harbor deepening project, a $128 million project to improve existing terminals and, the construction of a new marine terminal • Economic Impact: International trade through the SPA’s facilities provides 281,660 jobs paying $9.4 billion in wages to South Carolinians. Trade pumps $23 billion into the state economy and generates $2.5 billion in state and local taxes U.S. International Trade in Goods and Services

Year Exports Imports 1960 $25.9 $22.4 1970 $56.6 $54.4 1980 $271.8 $291.2 1990 $537.2 $618.4 2000 $1,070.1 $1,445.4 2003 $1,018.6 $1,507.9

Billions of Dollars Total U.S. Waterborne Commerce

Foreign Domestic Year Total Waterborne Waterborne 1963 385,658,999 788,107,965 1,173,766,964 (33%) (67%) 1983 751,140,194 956,520,817 1,707,661,011 (44%) (56%) 2002 1,319,290,931 1,021,000,982 2,340,291,913 (56%) (44%)

Short Tons of 2000 Pounds Port of Miami

• The Port remains the undisputed “Cruise Capital of the World” • In FY 2003, Miami “homeported” 18 cruise ships and nearly 4 million passengers • Miami is the largest container port in Florida, surpassing both the 1 million TEU mark and 9 million total tons in FY 2003 • The Port’s economic impact stood at $12 billion annually with more than 90,000 direct and indirect jobs generated Port of New Orleans

• Located at the mouth of the Mississippi River, the Port’s facilities include 22 million square feet of cargo handling area and more than 6 million square feet of covered storage area • Port accommodates an average of 2,000 vessel calls per year • Major commodities: Steel (more than five million tons per year); Natural Rubber (nation’s top port); Coffee (nation’s premier coffee-handling port) • General cargo has averaged 11.1 million tons (1998-2002) with a record 14.1 million tons in 1998 • World’s longest wharf (2.01 mile long quay) that can accommodate 15 vessels simultaneously • Nation’s most intermodal port served by six Class-One rail lines, 50 ocean carriers and 75 truck lines • Cruise port with more than 700,000 passengers sailing through annually • Port responsible for more than 107,000 jobs, $2 billion in earnings, $13 billion in spending and $231 million in taxes statewide U.S. Foreign Waterborne Commerce by Region, 2001

% of Total Region Total Trade (Exports & Imports) Trade Southeast 408,816 34.8% Southwest (TX) 282,994 24.1% Mid-Atlantic 169,075 14.4% California 184,151 15.7% Puerto Rico/VI 34,075 2.9% Northeast 30,475 2.6% Other 65,703 5.6% Total 1,175,289 100% Tonnage in Thousands of Metric Tons U.S. Waterborne Tonnage by State Calendar Year 2002

Rank State Total

1 Louisiana 484,927

2 Texas 442,251 In 1000 of Units Tons 3 California 190,093 4 Florida 122,516 5 Illinois 120,349 6 Ohio 119,362 7 Pennsylvania 115,316 8 New Jersey 110,120 9 Washington 100,894 10 Kentucky 100,082 All Other States 434,382 Total All States 2,340,292 Top 10 U.S. Port Rankings 2002 Cargo Volume

Rank Port Total Tons 1 South Louisiana (LA) 216,396,497 2 Houston (TX) 177,560,719 3 New York/New Jersey (NY/NJ) 134,504,511 4 Beaumont (TX) 85,910,947 5 New Orleans (LA) 85,000,428 6 Huntington (WV) 81,063,663 7 Corpus Christi (TX) 72,000,304 8 Long Beach (CA) 67,872,469 9 Baton Rouge (LA) 60,582,710 10 Plaquemines (LA) 59,110,736 U.S. Waterborne Foreign Trade Containerized Cargo, CY 2003

Rank U.S. Port Total 1 Los Angeles 4,664 2 Long Beach 3,091 3 New York 2,803 In Thousand TEUs 4 Charleston, SC 1,250 5 Savannah 1,124 6 Norfolk 1,093 7 Oakland 1,064 8 Houston 933 9 Tacoma 931 10 Seattle 815 All Other Ports 3,521 Total All Ports 21,289 Port of Baltimore

• Founded in 1706, the Port has become one of the busiest in the East Coast • From automobiles to zinc, from Akron to Zhenjiang, the Port handles more than 30 million tons annually of all types of cargoes from around the world • Port’s strategic Mid-Atlantic location helped surpass 7 million tons of general cargo in FY 2003, highest level in 60 years • Port of Baltimore is one of the major ports in specialized steel- handling program and one of the leading automobile ports in the U.S. • 3 new mobile gantry crains from Finland just installed to boost container business • Economic impact of the Port is significant, generating $2 billion in income, $216 million in state & local taxes, and 16,000 direct and 113,000 indirect jobs Virginia Ports Authority (VPA)

• VPA includes four general cargo terminals and a cruise terminal • Strategic Mid-Atlantic location and excellent intermodal transportation infrastructure • Arguably the best natural deepwater harbor on the U.S. East Coast-50 foot deep, unobstructed channels • In FY 2003, VPA’s general cargo was 13.9 million tons, up 9% from prior year and up from 7.9 million tons in FY 1994 • Also, in FY 2003, VPA’s container movements amounted to 1.6 million TEUs, up 15% from prior year and higher than the 1 million TEUs reached in FY 1995 • Top import in FY 2002 was crude oil in tonnage and machinery in value • Top export in FY 2002 was coal in tonnage and once again, machinery in value • $450 million, 300-acre container yard terminal to be built at Hampton Roads, increasing port’s container capacity by 50 percent Transitioning to Megaships

Regina Maersk, the first container ship in the world to carry 6,000 twenty-foot containers Transitioning to Megaships

A.P. Moeller, built in 2000, one of several ships owned by Maersk- Sealand that can carry more than 6,600 containers Transitioning to Megaships: Minimum Requirements

• 2,500 linear feet of berthing for megaships (This amounts to two 1,250-foot megaship berths); • 3,000 linear feet of berthing for mixed vessels (This amounts to three 1,000-foot Post-Panamax berths, or a greater quantity of smaller vessels); • 50-foot water depths in channel and at berths, 800-to-1,000-foot channel widths, 1,430-to-1,650-foot turning basin; • High rates of berth occupancy (targeted at 50 percent or greater). Given two berths, this means that both would be occupied 25 percent of the time, one occupied 50 percent of the time, and both empty 25 percent of the time; • Three or more large, heavy-lift Beyond Post-Panamax (BPP) cranes per berth. (This means that given the berth occupancy targets above, there will be three cranes available per vessel 33 percent of the time and six cranes per vessel 67 percent of the time, for an average of five cranes per vessel; three BPP cranes will provide an adequate vessel turnaround time) Cont.Transitioning to Megaships: Minimum Requirements

• Stronger wharves to support more and heavier load-bearing cranes, accommodate deeper drafts at berths, permit more yard equipment such as trucks and rail cars; • Projected annual “throughput” (cargo transported through the gate less possible transshipment) should range from a minimum of 450,000 TEUs per year (3,000 TEUs per acre) to 900,000 TEUs per year (6,000 TEUs per acre); • Rail connections should be on-dock, or an adjacent intermodal rail yard, with 2-4 unit train calls per day (40 percent intermodal split); • Truck traffic on a typical day should accommodate 1,730 to 3,460 trips per day (40 percent split with a rail system) or 2,880 to 5,770 trips per day (with no rail transportation); • 75 acres of terminal space per megaship berth and 50 acres per standard berth (This translates to 150 acres per 3,000 linear feet of berthing); and • A gate complex and dockside rail system using the latest available technologies U.S. Port Security

• Over 17,000 containers carrying nearly 2 billion tons of cargo arrive daily at the nation’s 361 deep water ports • About 6% of cargo containers now get screened for content at U.S. ports • Vehicle and Cargo Inspection Systems, VACIS, a mobile, non-intrusive detection system using gamma rays, like x- rays, to produce an image are being used increasingly at ports from Baltimore to Houston Cont. U.S. Port Security

• $92 million in September 2002 • $75 million to 13 critical national seaports • $170 million in June 2003 to 387 ports and facilities • $179 million in December 2003 to 326 facilities U.S. Port Security Grant Awards Selected Southern Ports, Dec. 2003 Grantee Award Location

Alabama State Port Authority $580,000 Mobile, AL Jacksonville Port Authority $1,140,000 Jacksonville, FL Miami-Dade County $1,258,343 Miami, FL Georgia Ports Authority $2,245,058 Brunswick & Savannah, GA Paducah Riverboat Authority $1,000,000 Paducah, KY Greater Baton Rouge Port Commission $1,652,600 Baton Rouge & Port Allen, LA Maryland Port Administration $4,283,452 Baltimore, MD Mississippi State Port Authority $829,740 Gulfport, MS North Carolina State Ports Authority $1,881,583 Wilmington & Morehead City, NC South Carolina State Ports Authority $2,758,594 Charleston & North Charleston, SC Port of Corpus Christi Authority $3,237,840 Corpus Christi, TX Port of Houston Authority $1,521,283 Galena Park, TX Port of Galveston $2,059,000 Galveston, TX Virginia Port Authority $754,600 Front Royal & Newport News, VA Thank You

For Additional Information or Questions Please Call Sujit CanagaRetna The Council of State Governments Southern Legislative Conference 404/633-1866 or [email protected]