Economic Impact Analysis for Gulfport Area of New Rice Bran Supplier Alternative Lorenzo Capobianco and Tami Monk University of southern Mississippi LOGISTICS, TRADE AND TRANSPORTATION SYMPOSIUM February 25,

Introduction  Mississippi’s poultry sector exceeded $ 2.4 billion in sales at the farm’s gate in  Mississippi produced 757 million broilers in 2010, at a rate of 1,441 broilers per minute.  Mississippi chickens ate 9 billion pounds of feed in (Dr Hood, Al, & Dr Peebles, 2012)  Rice Bran’s average percentage inclusion in feed is around 10 to 12 percent  Potential use of this product is 1 billion pounds or 450,000 MT per year  This product is regionally provided by rice mills located mainly in Louisiana, Texas and Arkansas.

Analysis of Potential International Supply Locations FACTORS TO BE CONSIDERED Product Availability. Comparative transportation and handling needs. Total cost at the customer’s warehouse. Proximity to the market served. Operational aspects of both alternatives. Product quality. Ease of doing business.

Prospective Countries  The best possible alternative is to find a supplier located in the Caribbean and the northern coast of South America. These alternatives have to be compared to rice mills locations in the sates surrounding Mississippi with transit time restrictions.  Within the transit time of two weeks, the potential suppliers are rice mills located in Dominican Republic, Belize, Guyana and Surinam. Among these countries the one that has more probabilities of having export surplus for rice bran is Guyana.  Guyana may have a maximum of Metric Tons per year available for exports, which is 20 pct of local demand

Cost Analysis of Alternatives

Comparative Total Costs For LC = 230 and IC = 195

Average Driving Distances DRIVING DISTANCE IN MILES CROWLEY TO MOBILE TODIFFERENCE FOREST HATTIESBURG WAYNESBORO SEBASTOPOL BROOKSVILLE BAY SPRINGS CANTON CARTHAGE LAUREL SUMMIT HAZLEHURST PEARL JACKSON VICKSBURG AVERAGE277173

What is This in Terms of Logistics 3,200 40’ or 6400 TEU loads per year or 260 per month. 640,000 miles round trip for truck loads transportation within the State of Mississippi at an average of 200 miles round trip. Potential new business for shipping companies New Back Hauling alternative for Mississippi export industry.

Economic Impact for Gulfport $ 17 Million per year CIF value imports if this process could be done through Gulfport. $ 1.5 Million per year in port related income expenses, like THC, container storage and other fees. $ 1.4 Million per year in inland transportation income. 200 new jobs between direct and indirect related to the activity.

Following Steps I.Deeper analysis of supply and demand issues related to the imported alternative. II.Economic Analysis from potential customers. III.Contact different authorities that are involved in imports to confirm feasibility and determine any type of import control. IV.Involve present or potential freight shipping lines with Gulfport as a port of call to study potential route including Georgetown (CROWLEY, ZIM, Others)

Conclusions  There is an alternative supply to be considered.  This alternative may have an important economic impact on Gulfport.  There is still a lot of work to do in order to consider Gulfport as the landing port.  Thanks for your attention. Questions?