Ports: Gateways to
Economic Development

By Zanetta Doyle, Digest Editor

The efficient and swift movement of goods through ports contributes to local and regional economic growth, including job creation according to the American Association of Port Authorities (AAPA). Statistics from AAPA revealed that almost 16 million Americans work in port related jobs – jobs that result in $515 billion in annual income and $210 billion in federal, state and local taxes. More than 11 million US jobs now depend on exports, and jobs created by exports pay 13 to 17 percent higher wages than non-trade jobs in the economy.

Realizing the economic impact that ports can have, federal, state and local organizations are taking steps to develop new ports as well as redevelop existing land by turning it into environmentally sound ports.

Missouri Port to Bring Economic Opportunities

The Southeast Missouri Regional Planning and Economic Development District (RP&EDD) in Perryville, Missouri, and Economic Development Administration funded district, is assisting with the development of the Port of New Bourbon, which will serve as a gateway for shipping freight such as grain, fertilizers, iron ore and various types of stone through the northern most lock free port on the Mississippi River.

Chauncy Buchheit, Deputy Director of the RP&EDD, explained, “Our primary role in the development includes assisting in securing funding for the port, as well as providing staff support for marketing and coordinating development activities.”

Based on an ongoing feasibility study, conducted by the regional organization, the project, which has been in development for several years, is expected to have a significant economic impact. “It is estimated that within ten years of the port’s completion, more than 334 indirect jobs will be created which is estimated to generate $10 million a year in salaries, and more than 152 jobs directly related to the port, generating $8.6 million in salaries,” Buchheit said.

In addition, it is also projected that there will be an additional $3.3 million industry profits, an additional $450,000 in state sales tax and an additional $765,000 in state income tax as a result of the port’s presence. The total cost of the project is estimated to cost at least $5 - $6 million.

The region is seeking funding for the project from various grants, the Delta Regional Authority, the Economic Development Administration and Community Development Block Grant, as well as the Corps of Engineers, and the State of Missouri. They are also working to secure funding for the development of a river boat ferry that will coincide with the Port of New Bourbon and will travel through Missouri and Illinois.

Buchheit added that the process has been long, explaining that it took seven years to obtain the construction permit alone, but the economic benefits that are expected to result from this endeavor, will be worth it. “It is not an overnight success. A lot of time and planning has gone into the project, and it is an ongoing process, as the dynamics surrounding the development of a port are never really complete. However the economic benefits will be long term,” Buchheit said.

For more information contact:

Chauncy Buchheit at 573/547-8357 or email cbuchheit@semorpc.org;

Visit the American Association of Port Authorities Web site at www.aapa-ports.org

Turning Brownfields Into Ports

Through a 2002 Federal Brownfield Action Agenda, 22 federal departments and agencies have committed to encouraging communication and partnership in the brownfields arena by various practices, including the Department of Commerce’s National Oceanic and Atmospheric Administration’s (NOAA) Portfields Initiative. This will help coastal communities focus on the redevelopment and reuse of brownfields in or around ports, harbors and marine transportation hubs with emphasis on development of environmentally sound port facilities. Additional goals of the initiative are to:

Expedite port brownfields redevelopment by working with numerous stakeholders, while balancing environmental, economic and social concerns such as job creation;

Improve coordination among federal, state and local partners with interests in redeveloping and revitalizing port communities with brownfields issues;

Transfer lessons learned to other port communities.

For more information on the Portfields Initiative contact Amy Merten or David Holst at NOAA at 301/713-2989 or email amy.merten@noaa.gov or david.hols@noaa.gov or LaKisha Odom of EPA’s Office of Brownfields Cleanup and Redevelopment at 202/566-2772.

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