the big picture globalization, containers, and ports

THE BIG PICTURE

Globalization, Containers, And Ports

OBJECTIVE: Moving imported goods as quickly and cheaply as possiblefrom the point of production to the point of consumption

Think Wal-Mart

GETTING THE GOODSFrom Landbridge to All-Water

Widening the Panama Canal

Rail

Landbridge

All-Water

Jacksonville Harbor Deepening Project

Deepen the Channel to 45-47 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 2035. Not just direct private sector port jobs, but also estimated induced jobs and indirect

jobs.

Data from Martin Associates research commissioned by Jaxport

2020: 5402035: 841

2020: 32742035: 5587

Job Claims

65,000 jobs supported by the port

Includes “related jobs” that do not depend on Jaxport --- 42,647 (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)