Title: Economic Development Impacts of the Port of Miami
1Economic Development Impacts of the Port of Miami
- J. Antonio Villamil and Robert D. Cruz, Ph.D
- The Washington Economics Group
- September 27, 2006
9/25/06 1150 A.M.
2POM Economic Development Enabler The Broader
Context
- The Port of Miami is a key enabler of economic
development in Miami-Dade County. - Port economic impacts reach deeply into nearly
every household of the County and every
Commission District. - The Port is not only an important generator of
income, jobs, and economic output, but it is also
an important catalyst for attracting high-wage
industries. - High-wage industries generate economic benefits
for all industries through B2B relationships and
create jobs (directly or indirectly) at all
occupational levels.
3POM Economic Development Impacts A Systems
Approach
- The economic development contribution of the Port
consists of both quantifiable impacts and
intangible benefits. - The quantifiable contributions are measured in
terms of jobs, income, local government revenues
and similar economic indicators. - The intangible benefits include synergies with
other industries that increase productivity and
create a positive brand image that attract new
investments. - The intangible benefits, though difficult to
quantify, are essential for sustaining regional
economic growth and development.
4POM Economic Development Impacts A Systems
Approach
Quantification of output, jobs, labor income and
fiscal revenues generated in Miami-Dade and
sub-county levels
Direct, Indirect Induced Economic Impacts
Port of Miami Operations and Expansion
Enhance Ability to Attract High-Wage Industries
(recruitment and expansions)
Positive Impacts on Related Industries
(logistics, banking, multinationals)
Brand Enhancement of Miami as Business Center of
the Americas
Externality Benefits
Port of Miami Externality Benefits Quantifiable
Economic Impacts Comprehensive Economic
Development Benefits to Miami-Dade and Sub-County
Regions
5POM 2005 Economic Impact
- Port commissioned economic impact study from the
Four Gates Company. - Countywide economic impacts from Port in 2005
were significant - 5 billion in labor compensation (about 10 of
county total) - 81,800 jobs (6 of county total)
- 12 billion in economic output (about 8 of
county total) - Port impacts contributed to higher average labor
earnings across county commission districts.
6Comparison of Port of Miami Impacts with
Household Income of Largest Local Cities
Absence of POM would be equivalent to losing the
combined household income of Hialeah and Miami
Beach.
Source Income of cities from the American
Community Survey, port impact from Four Gates Co.
7POM Impact by Commission Districts Household
Income and Jobs
8POM Impact by Commission Districts Household
Income and Jobs
9POM Essential infrastructure for growth of
Miami-Dade economy
- Recent study indicates that Miami-Dade County
will need to add 157,000 jobs between 2005 and
2015 to accommodate anticipated population
growth. - The growth of international trade is necessary to
achieve these job growth projections, and
increasing port efficiency and capacity are
essential for the growth of trade. - A healthy Port is essential for sustaining
viability and growth in key sectors such as
manufacturing, wholesale trade and distribution,
land-based freight transportation, and
international trade-related finance.
10POM Summarizing Economic Impact
- Port of Miami generated a significant local
economic impact in 2005 - 5 billion in labor compensation
- 81,800 jobs
- 12 billion in economic output
- Contributed to higher average labor income in
Miami-Dade - Port yields intangible economic benefits that
help sustain long term economic growth. - An efficient and economically viable Port is
essential to the long run economic vitality of
the County.