Role of Ports in TradeRole of Ports in Trade
Angela MorleyAngela MorleyJensen YipJensen Yip
Jake NorquistJake NorquistLee Robles Lee Robles Ryan MartinRyan Martin
The US Port systemThe US Port systemWaterways & PortsWaterways & Ports
–More than 1,000 harbor channelsMore than 1,000 harbor channels–25,000 miles of inland, intracoastal, and coastal 25,000 miles of inland, intracoastal, and coastal waterways.waterways.–Serving over 300 ports with more than 3,700 terminalsServing over 300 ports with more than 3,700 terminals–Links to 152,000 miles of railLinks to 152,000 miles of rail
460,000 miles of pipeline460,000 miles of pipeline45,000 miles of interstate highways45,000 miles of interstate highways
Intermodal connectionsIntermodal connections–Vessels, vehicles, and system usersVessels, vehicles, and system users
Decision making driven by marketplaceDecision making driven by marketplaceNational, State, local all participateNational, State, local all participate
Importance of U.S. PortsImportance of U.S. Ports Provides American businesses with competitive Provides American businesses with competitive
access to suppliers/ marketsaccess to suppliers/ markets– Mainstay of global economic growthMainstay of global economic growth– Enables U.S. to be worlds largest trading partnerEnables U.S. to be worlds largest trading partner
Provides cost effective mean for moving bulk Provides cost effective mean for moving bulk commoditiescommodities– Grain, coal, petroleum, etc.Grain, coal, petroleum, etc.– >95% of overseas trade in/ out moves by ship>95% of overseas trade in/ out moves by ship
Includes 9 million barrels of oil dailyIncludes 9 million barrels of oil daily Key strengths and issuesKey strengths and issues
– Flexibility/ ability to adapt to rapidly shifting market Flexibility/ ability to adapt to rapidly shifting market demandsdemands
– No other system can accommodate future growth in No other system can accommodate future growth in overseas tradeoverseas trade
Other ImportanceOther Importance
National securityNational security– Vital role in mobilizing/ maintaining national securityVital role in mobilizing/ maintaining national security– Lifeline for equipment and suppliesLifeline for equipment and supplies
Environmental valueEnvironmental value– Coastal and marine ecosystems crucial for commercial Coastal and marine ecosystems crucial for commercial
and rec. fishing, wildlife watching, boating, drinking and rec. fishing, wildlife watching, boating, drinking waterwater
– Environmentally responsible method of transportationEnvironmentally responsible method of transportation Recreational valueRecreational value
– Passenger vessels provide sightseeing, excursion, Passenger vessels provide sightseeing, excursion, dining, gaming, cruises, etc.dining, gaming, cruises, etc.
QuestionsQuestions
What area of the government participates in What area of the government participates in the management, financing and operation of the management, financing and operation of the U.S. port system?the U.S. port system?
What is an issue that the ports are facing What is an issue that the ports are facing due to overseas trade growth?due to overseas trade growth?
Ports and JobsPorts and Jobs
4 Million Americans4 Million AmericansWages are 13 - 17% higherWages are 13 - 17% higher$44 billion in personal income$44 billion in personal income$16.1 billion was paid in taxes$16.1 billion was paid in taxes
Exportation and CompaniesExportation and Companies
Companies are more profitableCompanies are more profitable Produce twice as muchProduce twice as much Overall productivity up 12 – 16% Overall productivity up 12 – 16%
North American Cruise IndustryNorth American Cruise Industry
Very dependent on portsVery dependent on ports 30.06 billion in economic activity was 30.06 billion in economic activity was
generatedgenerated 9 million people went on cruises9 million people went on cruises 77% of global cruise embarkations were 77% of global cruise embarkations were
from US portsfrom US ports
Products from Top 3 ImportersProducts from Top 3 Importers Canada 18.2%
– Passenger cars, new and used $36.3 (in millions)– Gas-natural $26.8– Crude oil $24.1
China 14.0%– Computer accessories, peripherals and parts $25.7– Computers $14.4– Apparel and household goods-other textiles $13.1
Mexico 10.7%– Crude oil $23– Auto parts and accessories $20.6 – Passenger cars, new and used $10.8
Goods the U.S. exports to the top three Goods the U.S. exports to the top three trading partnerstrading partners
Canada 22.8%Canada 22.8%– Parts and accessories of vehicles $23.5 (in millions)Parts and accessories of vehicles $23.5 (in millions)– Passenger cars, new and used $12Passenger cars, new and used $12– Trucks, buses and special purpose vehicles $10Trucks, buses and special purpose vehicles $10
Mexico 13.5%Mexico 13.5%– Electric apparatus $8.7Electric apparatus $8.7– Computer accessories $6.2 Computer accessories $6.2 – Plastic materials $5.8 Plastic materials $5.8
China 5.0%China 5.0%– Civilian aircraft $3.8 Civilian aircraft $3.8 – Semiconductors $3.3 Semiconductors $3.3 – Soybeans $2.2 Soybeans $2.2
QuestionsQuestions
What country imports the most to the United What country imports the most to the United States? States?
What is the #1 good Imported from Canada? What is the #1 good Imported from Canada?
Current IssuesCurrent Issues
Amount of trade and cargo dramatically Amount of trade and cargo dramatically increasingincreasing
– Due to globalizationDue to globalization– High consumption of AmericansHigh consumption of Americans– Demand is so large that it is hard handle Demand is so large that it is hard handle everything being sent to U.S.everything being sent to U.S.
Current IssuesCurrent Issues
Greater need for capital Greater need for capital
investment in port infrastructureinvestment in port infrastructure– Shared costs between public and private Shared costs between public and private
sectorssectors– 2003-Public invested $1.7B to meet shipping 2003-Public invested $1.7B to meet shipping
industry needsindustry needs– Likely to increase as trade continues to Likely to increase as trade continues to
increaseincrease
Current IssuesCurrent Issues
Vessel sizes are increasing Vessel sizes are increasing and require larger channelsand require larger channels– Bigger = betterBigger = better– Most ports have depths of 35-45 ft. Today’s Most ports have depths of 35-45 ft. Today’s
large ships require depths of 45-53 ft. large ships require depths of 45-53 ft. – Dredging adds costs and implicates the Dredging adds costs and implicates the
environmentenvironment Disposal?Disposal? Disruption to environmentDisruption to environment
Current IssuesCurrent Issues
SecuritySecurity– Ports handle essential cargoes for military Ports handle essential cargoes for military
operationsoperations– Gateway into the countryGateway into the country
Management of 6 U.S. ports and Dubai Ports World Management of 6 U.S. ports and Dubai Ports World conflictconflict
Updating with radiation monitors, detection systems, Updating with radiation monitors, detection systems, and ID systemsand ID systems
Questions?Questions?
Name 1 reason why the amount of trade has Name 1 reason why the amount of trade has increased with ports?increased with ports?
Globalization, U.S. demand and Globalization, U.S. demand and consumptionconsumption
Questions?Questions?
Why are people concerned with the Why are people concerned with the environment when talking about ports?environment when talking about ports?
Dredging, harmful effects on natural eco-Dredging, harmful effects on natural eco-systems, disposal of dredged materialsystems, disposal of dredged material
Why managers should careWhy managers should care Ports serve as a gateway to goodsPorts serve as a gateway to goods
– Both coming in and going outBoth coming in and going out– 95% of goods are in same way linked to ports95% of goods are in same way linked to ports
A partA part A raw material, etc.A raw material, etc.
Can cause major problemsCan cause major problems– Possibility of bottlenecksPossibility of bottlenecks– StrikesStrikes
A strike could put an entire company out of businessA strike could put an entire company out of business
SummarySummary
Type of productsType of products Volume of tradeVolume of trade ImportsImports ExportsExports
SourcesSources Meserve, Jeanne. "Ports Company Will Delay Takeover." Meserve, Jeanne. "Ports Company Will Delay Takeover." CNN.ComCNN.Com. 24 Feb. 2006. . 24 Feb. 2006.
CNN. 29 Apr. 2006 <http://www.cnn.com/2006/POLITICS/02/23/port.security/?CNN. 29 Apr. 2006 <http://www.cnn.com/2006/POLITICS/02/23/port.security/?section=cnn_us>.section=cnn_us>.
"Press Room." "Press Room." US Department of Homeland SecurityUS Department of Homeland Security. 22 Feb. 2006. 29 Apr. 2006 . 22 Feb. 2006. 29 Apr. 2006 http://www.dhs.gov/dhspublic/display?content=5437http://www.dhs.gov/dhspublic/display?content=5437..
"The Dredging Process." "The Dredging Process." EPAEPA. 15 Mar. 2006. 29 Apr. 2006 . 15 Mar. 2006. 29 Apr. 2006 <http://www.epa.gov/owow/oceans/ndt/s1.html>.<http://www.epa.gov/owow/oceans/ndt/s1.html>.
"US Public Port Facts." "US Public Port Facts." AAPAAAPA. 2006. American Association of Port Authorities. 29 . 2006. American Association of Port Authorities. 29 Apr. 2006 <http://www.aapa-ports.org/industryinfo/portfact.htm>.Apr. 2006 <http://www.aapa-ports.org/industryinfo/portfact.htm>.
"Mineta Underscores Role of Ports in Global Transportation." "Mineta Underscores Role of Ports in Global Transportation." PrimezonePrimezone. 7 Oct. 2005. 29 . 7 Oct. 2005. 29 Apr. 2006 <http://www.primezone.com/newsroom/news.html?d=87533>. Apr. 2006 <http://www.primezone.com/newsroom/news.html?d=87533>.
"Business Services." "Business Services." U.S. Department of Transportation Maritime AdministrationU.S. Department of Transportation Maritime Administration. 5 Oct. . 5 Oct. 2005. 29 Apr. 2006 <http://www.marad.dot.gov/business/index.html>. 2005. 29 Apr. 2006 <http://www.marad.dot.gov/business/index.html>.
"Marine Transportation System." "Marine Transportation System." Department of TransportationDepartment of Transportation. Sept. 1999. 28 Apr. 2006 . Sept. 1999. 28 Apr. 2006 <http://www.dot.gov/mts/report/mtslinks.pdf>. <http://www.dot.gov/mts/report/mtslinks.pdf>.