ECONOMIC IMPACTS OF MARITIME SHIPPING in the GREAT LAKES - ST. LAWRENCE REGION JULY 2018 • MARTIN ASSOCIATES • LANCASTER, PA TABLE OF CONTENTS LIST OF EXHIBITS ................................................................................................V ORGANIZATION OF STUDY RESULTS ........................................................................IX ABOUT THE SPONSORS .........................................................................................X ABOUT MARTIN ASSOCIATES ..................................................................................X EXECUTIVE SUMMARY ...........................................................................................................................................1 Chapter I – METHODOLOGY .................................................................................................................................23 1. Flow of Impacts ........................................................................................................................................... 25 2. Impact Structure .......................................................................................................................................... 27 3. Summary of Methodology ........................................................................................................................... 28 4. Commodities Included in the Analysis ......................................................................................................... 29 5. Estimate of Tonnage..................................................................................................................................... 29 6. Expansion of the 40-Port Impact Models to Measure System-Wide Impacts .............................................. 30 Chapter II – GREAT LAKES-ST. LAWRENCE SEAWAY SYSTEM IMPACTS ............................................................31 Total Cargo Volumes ........................................................................................................................................ 33 1. Total Economic Impacts ............................................................................................................................... 34 2. Job Impacts ................................................................................................................................................. 36 3. Revenue Impacts ......................................................................................................................................... 38 4. Personal Income and Local Consumption Impacts ...................................................................................... 38 5. Federal, State/Provincial and Local Tax Impacts .......................................................................................... 40 6. Impacts by State and Province .................................................................................................................... 40 7. Impacts by Vessel Flag ................................................................................................................................ 43 Chapter III – GREAT LAKES-ST. LAWRENCE RIVER WATERWAY IMPACTS ...........................................................55 Total Cargo Volumes ........................................................................................................................................ 57 1. Total Economic Impacts ............................................................................................................................... 58 2. Job Impacts ................................................................................................................................................. 60 3. Revenue Impacts ......................................................................................................................................... 62 4. Personal Income and Local Consumption Impacts ...................................................................................... 63 5. Federal, State/Provincial and Local Tax Impacts .......................................................................................... 64 6. Impacts by State and Province .................................................................................................................... 64 7. Impacts by Vessel Flag ................................................................................................................................ 67 Economic Impacts of Maritime Shipping in the Great Lakes-St. Lawrence Region iii Chapter IV – ST. LAWRENCE SEAWAY IMPACTS ..................................................................................................79 Total Cargo Volumes ........................................................................................................................................ 81 1. Total Economic Impacts ............................................................................................................................... 82 2. Job Impacts ................................................................................................................................................. 84 3. Revenue Impacts ......................................................................................................................................... 86 4. Personal Income and Local Consumption Impacts ...................................................................................... 87 5. Federal, State/Provincial and Local Tax Impacts .......................................................................................... 88 6. Impacts by State and Province .................................................................................................................... 88 7. Impacts by Vessel Flag ................................................................................................................................ 91 Chapter V – SOO LOCKS IMPACTS .....................................................................................................................103 Total Cargo Volumes ...................................................................................................................................... 105 1. Total Economic Impacts ............................................................................................................................. 106 2. Job Impacts ............................................................................................................................................... 108 3. Revenue Impacts ....................................................................................................................................... 110 4. Personal Income and Local Consumption Impacts .................................................................................... 111 5. Federal, State/Provincial and Local Tax Impacts ........................................................................................ 112 6. Impacts by State and Province .................................................................................................................. 112 7. Impacts by Vessel Flag .............................................................................................................................. 115 iv Economic Impacts of Maritime Shipping in the Great Lakes-St. Lawrence Region List of Exhibits Chapter I – METHODOLOGY EXHIBIT I-1 Individual Ports Modelled ................................................................................................................................24 EXHIBIT I-2 Flow of Economic Impacts Generated by Marine Activity .................................................................................25 Chapter II – GREAT LAKES-ST. LAWRENCE SEAWAY SYSTEM IMPACTS EXHIBIT II-1 Great Lakes-St. Lawrence Seaway System ......................................................................................................33 EXHIBIT II-2 Economic Impacts – Regional Level ................................................................................................................34 EXHIBIT II-3 Economic Impacts – Country Level..................................................................................................................35 EXHIBIT II-4 Direct Jobs by Commodity – Regional Level ....................................................................................................36 EXHIBIT II-5 Direct Jobs by Commodity – Country Level .....................................................................................................37 EXHIBIT II-6 Direct Jobs Impacts by Category – Regional Level ..........................................................................................37 EXHIBIT II-7 Direct Jobs Impacts by Category – Country Level ...........................................................................................38 EXHIBIT II-8 Revenue Impact by Category – Regional Level ................................................................................................39 EXHIBIT II-9 Revenue Impact by Category – Country Level .................................................................................................39 EXHIBIT II-10 Economic Impacts by State .............................................................................................................................41 EXHIBIT II-11 Economic Impacts by Province ........................................................................................................................42