1. Presentation to Annual Conference Ports Association of Louisiana
Ports of Louisiana 1. Connecting Louisiana to Global and National Markets and/or 2. Creating Economic Development Zones Throughout the State
Presentation to Annual Conference
Ports Association of Louisiana
Dr. Jim Richardson
March 3, 2016

2. PORTS IN LOUISIANA
ports with diversity in size, mission, and responsibility and touching all regional labor markets 2. more ports than Texas, New York, Virginia, and Florida 3. Washington, Maine, and California have more ports 4. Navigable waterways extend to all corners of state 5. Mississippi River—largest port complex in world-importance of dredging

4. TOP 11 PORTS IN U.S. in CARGO
Five in Louisiana

5. Port Activities and Diversity
PORT FOURCHON, 250 companies use as base of operations; vital to U.S. energy
PORT OF IBERIA, approximately 5,000 employees and providing offshore drilling
CADDO-BOSSIER, over 1,000 employees with 20 companies with latest a major steel facility
KROTZ SPRINGS, over 300 employees with refinery
LAKE PROVIDENCE, over 60 employees & improving environment
PORT OF LAKE CHARLES, 80% of manufacturing employment tied to Waterways and supporting major developments in Southwest Louisiana such as Sasol

6. Port Activities and Diversity
PORT OF GREATER BATON ROUGE, 23 companies located at port from coffee to energy
PORT OF NEW ORLEANS, containerized and breakbulk cargo and hosting cruise ships
MORGAN CITY HARBOR AND TERMINAL DISTRICT, 175 privately owned facilities along district with focus on inland and offshore oil and gas drilling
PORT OF SOUTH LOUISIANA, ranks #1 in United States for facilitating the most tons of cargo transported through its docks, bigger than ports in Houston, New York, and Los Angeles

7. Ports and the Louisiana Economy Ports Connecting and Enhancing Markets
Economic Impact: dollars that would not be spent in the state
except for the presence of the ports
Direct Spending by the Ports:
operations and capital investments
Direct Spending by the
Providers of Services and Businesses on Port Property
and other Port-Sensitive Business
Steamship Companies, Navigational Services, Custom House Brokers, Stevedoring Companies, etc.
Transportation Services
Port-sensitive Industry: Need water access and special services provided by Ports
And as we considered how to evaluate the economic impact and importance of ports in the state, we needed to consider the many services and roles that the ports have in the economy. Foremost, we focused upon the dollars that would not be spent in the state but for the ports themselves. This includes the direct spending by the ports, such as capital investments and operations, as well as the direct spending by service providers and businesses on port property a well as other port-sensitive business - that is, those industries that require or whose activities are made far easier by access to water transportation. And then we considered the particular effect of Cruise Ships because, were it not for the Port of New Orleans, the cruise ships would not be in the state, at least as presently conceived.
Cruise Ship Spending:
direct spending by ships and patrons

8. Impact of Port Activity on State Economy
Activities
Jobs
Personal Earnings
State Tax Collections
Local Tax Collections
In millions of dollars,
Ongoing operations of Ports
1,105
$61.8
$4.52
$3.51
Firms on Port Property and Providing Services to Ports
70,050
$3,900.0
$284.0
$224.0
Cruise Ships
5,639
$141.5
$10.4
$8.01
Total Port Activity
76,794
$4,103.3
$298.9
$235.5

9. Ports and the Louisiana Economy Ports Connecting and Enhancing Markets
Economic Impact: dollars that are much more likely to be spent in Louisiana
because the ports are available for moving products
Port users in Louisiana
Exporters with Operations in the state
Importers with Operations in the state
Other impacts must consider those dollars spent that are made more likely by the presence of the ports. These are dollars spent by exporters and importers in the state. And like any other service, the ports attract business and strengthen established businesses. So an economic evaluation must consider how important industries are strengthened by the ports and the services that they provide. And indeed this is where the impact of ports really impresses, although it should in no way diminish the importance of the ports in the impact that the direct activity can have, as we will see momentarily.
Economic Impact: activities that will increase direct spending
of ports and maritime industry
Port users outside of the state
Export industries of the state: Chemicals, Agriculture, Petroleum and Coal
Import industries of the state: Oil and Gas

10. Leading Commodities Shipped for Domestic and Foreign Trade*
Crude Petroleum and petroleum Products
Chemicals and related products
Coal
Food and farm products—
wheat, corn, soybeans, rice, cotton, coffee, and others
Forest Products
Iron and steel
Soil, sand, gravel, rock, and stone
Others
Automobiles
Auto parts
Machinery
Consumer products
*American Association of Port Authorities

11. Let us focus upon four major industries in the state: Mining, Transportation and Warehousing, Agriculture, and Manufacturing. The circles on this graphic represent the relative size of the employment in the industry within a given economic region. As you can see, industries are region-specific. Agriculture is predominately in the northern part of the state. Mining is along the coast from Lafayette, where nearly half of all mining jobs are located, through Houma into New Orleans.Manufacturing is largely in new Orleans and Baton Rouge, as is Transportation and Warehousing. Shreveport-Bossier is interesting in that it has a modest presence in all the industries we focused upon.

12. Trade Needs Ports and Local Industries Need Trade
Ports Connecting Global and National Economies
to the Louisiana Economy
Oil and Gas, Petrochemical, Refineries, Fabricated Metals, Agricultural Products, Coffee, Steel, and other consumer products
Direct Spending of Trade Industries in Louisiana
$96.1 Billion
Economic Transactions in Louisiana
$182.1 Billion
Personal Earnings
$32.9 Billion
Louisiana Jobs
524,960
State and Local Tax Receipts
$4.2 Billion
1 out of 5 jobs in State Connected to Trade-oriented Industries

13. Like any successful industry, ports attract business to Louisiana
Concluding Remarks
Direct spending by ports and providers of services account for 77,000 jobs in the state
Industry users of ports (those that are transportation sensitive) account for 1 out of 5 jobs in the state
Like any successful industry, ports attract business to Louisiana
So, to quickly summarize, we considered three impact potentials of the ports. The first is the direct impact throuhg spending. This spurs roughly 73,000 jobs in the state. And again, this is nothing to scoff at - this makes the ports a larger industry than the Mining sector.
The users of ports - that is, those industries that are senstitive to transportation options - account for about 1 out of 5 jobs in the state. We are not suggesting that these jobs would disappear if the ports were not present and strong - although some of them would. Instead, we should consider how much more difficult the industrial activity would be without the ports. This is an impact and starkly illustrates the ports’ importance.
Finally, we considered how ports are an important infrastructure for the attraction of new industries, and we tried to show that Louisiana is ripe for new investment and greater economic diversification. The ports are not sifficient to accomplish this, but they are an important component.
Let me leave you with a simply economic illustration - the loop. As new jobs are created, growth ensues. This growth then creates the ability to invest further, which in turn creates more jobs. The ports, as a network of services, fit nicely into this process.
Economic Loop -
attracting new business increases direct jobs, which enables more growth, which attracts new business

14. Ports of Louisiana Questions???
Presentation to Annual Conference
Ports Association of Louisiana
Dr. Jim Richardson
March 3, 2016
Thank you very much for your time and your patience. Again, my name is Roy Heidelberg, and I would be happy to answer any questions.