The Economic Impact of The New York-New Jersey Port and Maritime Industry [STUDY]
The following are the results of a study that was conducted to provide updated estimates on the economic impacts that the Port of New York and New Jersey has upon the region in an attempt to educated policymakers, decision makers and citizens about the importance of the industry. The results of the study, as you can imagine, should turn some heads.
More than 279,200 jobs generated by activity in the Port of New York and New Jersey, according to a study released today. The independent economic impact study of port operations, prepared by A. Strauss-Wieder Inc., of Westfield, New Jersey, showed that jobs directly associated with port activity increased by nearly 3.5 percent, despite turbulent economic conditions, since the last time a similar comprehensive economic impact analysis was conducted in 2008. The assessment also shows the significant economic value that the port and maritime industry has and continues to generate through investments in the Region’s maritime infrastructure and through the capital markets.
The analysis was prepared for the New York Shipping Association, Inc. (NYSA) and New York Maritime, Inc. (NYMAR) and reflects the economic impacts associated with the port and maritime industry in New York and New Jersey as it operated in the year 2010. The report summarizes the maritime movement of goods and people through the region, the substantial capital investments that have and continue to be made in the region’s port infrastructure, and the extent of the maritime-related capital market activity that occurs in the New York-New Jersey area.
“This study, commissioned by the membership of NYSA and NYMAR shows us how the cargo and passengers flowing through the terminals of the Port of New York and New Jersey positively impact the economy of the region. The employers and employees of the port community support the businesses and population of the largest and wealthiest consumer market in the world. Further, the public and private sectors have collectively invested billions of dollars to enable the Region to handle the growing amount of international trade. We have a state-of-the-art Port and, through our investments, have also generated significant and ongoing economic value,” said Joseph C. Curto, President of the New York Shipping Association.
“The significant results of this study make it very clear that the maritime industry continues to play a critical role in the business of this region. We are an international hub of maritime movement and maritime related investment businesses and both directly through the movement of goods and services, and through the ship owning, banking, insurance and legal infrastructure which exists in New York to support the global maritime-related investment businesses. The combination attracts international companies to our cluster,” said Peter Shaerf, Chairman of NYMAR.
The Port of New York and New Jersey is the largest port on the East Coast, the third largest port in the United States by volume, and the second largest in value; serving more than 35% of the entire population of our country.
General highlights of the study show that port operations provide:
- a total of 279,200 full-time jobs in the NY-NJ region;
- 170,770 direct jobs
- $11.6 billion in annual personal income;
- Nearly $37.1 billion in annual business income
- Almost $5.2 billion in federal, state and local tax payments
The purpose of the study is to update the estimate of economic impacts of the port upon the region, thereby educating policymakers, decision makers and citizens about the importance of the industry. In addition, the report describes how the investment of public agencies and private industry invested substantially in the port since 2006, resulting in state of the art facilities, deeper channels and multimodal access to North America. It also takes into account the aggressive capital program planned for the port region and the jobs and revenue anticipated from that work.
“Ocean shipping is the most economically efficient, safest and environmentally sound method for the shipment of import and export cargo. Because of its efficiency and continued relative obscurity people generally do not see the benefits,” said Curto. “This study hopefully will continue to bring awareness and support for the continued use and development of this port, and for using the region as a nexus for corporate location and activities. The capital investments in this industry from within New York in both the private and public domain are substantial and should hopefully make people more aware of the vitality of our industry” Shaerf concluded.
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