THE BIG PICTURE Globalization, Containers, And Ports OBJECTIVE: Moving imported goods as quickly and cheaply as possible from the point of production to.

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Presentation transcript:

THE BIG PICTURE Globalization, Containers, And Ports OBJECTIVE: Moving imported goods as quickly and cheaply as possible from the point of production to the point of consumption Think Wal-Mart

GETTING THE GOODS From Landbridge to All-Water Widening the Panama Canal Rail Landbridge All-Water

Jacksonville Harbor Deepening Project Deepen the Channel to feet – dredging/blasting

Post-Panamax vessel – up to 15,000 TEU containers The Ebba Maersk

USACE Jacksonville Harbor Deepening Report Deepen the Channel = Larger Post Panamax Vessels= Reduction in Transportation Costs This is the only “benefit” that the report calculates These benefits accrue to retailers, shippers and carriers What about economic benefits to the community?

“The increased traffic with deepening at JAXPORT is expected to provide RED benefits as follows: Create 22,748 for the 45 foot NED plan or 34,508 for the 47 foot LPP new private sector port jobs in Jacksonville” (p. 164) The figures are projections for all jobs generated in the year Not just direct private sector port jobs, but also estimated induced jobs and indirect jobs. Data from Martin Associates research commissioned by Jaxport 2020: : : : 5587

Job Claims 65,000 jobs supported by the port Includes “related jobs” that do not depend on Jaxport ,647 (66%) – and should not be included Leaves 22,352 Of which 8,965 are “direct jobs” ~8,845 are “induced” ~4,400 “indirect” Based on Martin Associates report

Job Quality My analysis of 18 logistics occupations in Jacksonville* Wide range of mean income: Captains/Mates/Pilots of Vessels - $74,000 Crane and Tower Operators - $50,000 Packers and Packagers – $20,000 Vast majority of logistics jobs at lower end. 61% of logistics employment in trucking and warehouse/distribution center activity Mean income = $25,460 * Bureau of Labor Statistics’ Occupational Employment Statistics (OES)

East Coast Port Competition

MEGA-PROJECTS RESEARCH The Secret to Project Approval PROJECT APPROVAL = (underestimate costs) + (overestimate revenues) + (undervalue environmental impacts) + (overvalue economic development effects)