While maritime trade can be traced back to ancient civilizations in previous millennia, sea freight and ports have never been more important than they are today.
The lifeblood of global commerce, seaports handle almost 811 million TEUs every year, supporting industries of all shapes and sizes all over the world. Indeed, many of the United States’ maritime logistics hubs are some of the largest, their associated economic development corporations (EDCs) having helped to accelerate their growth and value to regional, national and global economies.
In this 2021 roundup of 15 U.S. port cities, we analyze the role of some of the country’s key logistics hubs—as well as the role their economic development engines play in ensuring their continual progression.
Los Angeles, California
Los Angeles is arguably the West Coast’s most important intermodal transport hub, the beating heart of which is the Port of Los Angeles–a seaport covering 7,500 acres of land and water along 43 miles of waterfront. It is the nation’s No. 1 container port, with its state-of-the-art facilities seeing it move 9.2 million TEUs in 2020. Port of Los Angeles also adjoins to the Port of Long Beach, another one of the busiest seaports in the world, moving around 7.5 million TEUs every year. Both ports are supported by the efforts of the Los Angeles County Economic Development Corporation, the regional EDC combining economic research with industry programs, workforce development, business assistance and policy changes that promote a thriving local economy, for which these two ports are vital.
New York City, New York
New York City Economic Development Corp. (NYCEDC) is the EDC for the nation’s most highly populated city, home to more than 8 million people. A mission-driven non-profit, it aims to support the city by creating prosperity through investing in neighborhoods, building sustainably, creating workforce opportunities and advancing company growth. In achieving these goals, it works closely with the Port of New York and New Jersey. Recently, it has been helping to develop a visionary freight system, supported the major South Brooklyn Marine Terminal project and completed a 2019 survey of the NYC and NJ maritime community. “Through PortNYC and other initiatives, we’re working to ensure both the long-term health of the maritime industry in NYC and the city’s economy as a whole,” NYCEDC states.
New Orleans, Louisiana
With the simple mission of creating a region with a thriving economy and an excellent quality of life, Greater New Orleans (GNO) pursues a two-pronged strategy as the EDC for the region. This includes helping to attract, retain and develop key businesses (Business Development), and propose, promote and facilitate policies and programs that improve business conditions (Business Environment). Such efforts have assisted in securing a new ground-breaking Lineage Logistics project at the Port of New Orleans, the organization having committed $42 million to the expansion of the Jourdan Road cold-storage facility in New Orleans East in April 2021. “The cold-storage complex at Jourdan Road along the Inner Harbor Navigation Canal will grow from 160,000 square feet to 304,000 square feet,” an announcement from GNO reads.
While Oakland is home to fewer than half a million people, its maritime logistics hub–Port of Oakland–is renowned as a key gateway to U.S. commerce. It oversees 1,300 acres of maritime-related facilities serving a local market of more than 14.5 million consumers, with 34 million people located within a seven-hour drive of its facilities. Supporting Port of Oakland’s thriving economic activity is the East Bay Economic Development Alliance (EDA). The two have an intertwined relationship, the EDA having previously supported harbor dredging activities in 1991 and 2009, and assisted stakeholders in resolving the transportation impacts created by the port’s growth in 2003. In 2020, it also recognized the port at its Innovation Awards for its significant contributions as a long-standing generator of jobs and economic vitality in the region.
The city of Norfolk, Virginia, is home to a vibrant intermodal transport scene, in large part thanks to a formidable maritime history centered around the enormous naval base on Chesapeake Bay and the Port of Virginia. The port boasts of the largest percentage of rail arrivals and departures on the East Coast, is directly responsible for nearly 40,000 jobs, and managed 2,327 vessel calls and departures in 2019, equating to around 3 million TEUs and 55 million tons of cargo worth almost $75 billion. The Hampton Roads Economic Development Alliance (EDA) has long assisted both domestic and international firms wishing to invest in the Norfolk area, offering three lucrative tax incentives to companies using the port: The Port Volume Increase Tax Credit, Barge and Rail Use Tax Credit and International Trade Facility Tax Credit.
The Savannah Economic Development Authority (SEDA) is the EDC for Savannah, its goal being to help create, grow and attract new job opportunities and investment in the region. It attracts and supports a variety of organizations through customized services that include anything from infrastructure and real estate opportunities to incentives and tax abatements. Much of Savannah’s draw stems from the Port of Savannah, where 85% of the world’s top 3PLs operate in Georgia. To maintain this competitive advantage, SEDA actively supports several logistics-related projects, including the Savannah Harbor Expansion Project, the Mid-American Arc Initiative & International, and The Center of Innovation for Logistics for the state of Georgia.
Originally founded in 1840, the Greater Houston Partnership (GHP) strives to make the region the best place to live, work and build a business, serving a thousand-member companies and 7.1 million people in the 12-county Houston region. It is a fervent supporter of the Port of Houston, hosting an annual State of the Port conference, outlining the logistics hub’s performance, future growth opportunities and capital investment plans to regional economic players. The overall impact of the port on a national level includes 3.2 million jobs, $801.9 billion in economic value and more than $38.1 billion in tax revenue. “As the largest port in foreign tonnage in the nation, Port Houston is an economic engine supporting the Houston region, the state of Texas, and the nation,” GHP states.
The Tampa Bay Economic Development Council (EDC) has remained the designated economic development agency for Hillsborough County for 12 years, also serving the surrounding cities of Tampa, Plant City and Temple Terrace. Currently it is delivering upon a 2020-2022 strategic action plan geared toward achieving business development, talent attraction and placemaking. As part of this vision, the EDC provides several incentives to business, creating high-wage jobs in high-value industries. In terms of its engagements with the ports, logistics and supply chain industry, it supports those organizations seeking real estate opportunities not only at the Port of Tampa Bay, but equally in Port Redwing and Port Ybor.
The Windy City is extremely well connected, in large part thanks to what is North America’s largest inland port–the CenterPoint Intermodal Center. Located in the Joilet and Elwood area, it is a 6,400-acre, master-planned intermodal development which handles approximately three million TEUs every year. The site is also home to more than 30 economic powerhouse tenant companies that between them occupy over 14 million square feet of space. The Chicago Regional Growth Corporation plays a key role in supporting the city and region’s buoyant logistics activities, priding itself on a “history of working together” with key partners to developed projects leading to growth, investment and the creation of quality jobs.
The Port of Philadelphia, also known as PhilaPort, holds several impressive accolades. Not only is it the fastest growing port in the U.S., having achieved a 7% increase in container volumes in 2020. Equally, it generates roughly 55,000 jobs for the local region, handles 6.4 million metric tons annually, is the largest refrigerated port in the country and helps to generate $30.5 billion in trade every year. The Philadelphia Industrial Development Corp. (PIDC) continues to play a crucial role in helping the port to reach new heights. The city’s EDC, the PIDC has leveraged $30 billion in total investment and assisted in retaining and creating hundreds of thousands of jobs in Philadelphia since its foundation 62 years ago. The local seaport industry’s latest venture, announced March 2021, will see the development of a $23 million distribution center that is set to add more than 200,000 square feet of flexible, food-grade storage within one mile of Packer Avenue Marine Terminal.
The Port of Mobile is a significant contributor to the city’s economy. Indeed, the figures speak for themselves. According to the Alabama State Port Authority, its economic impact includes roughly 155,000 direct and indirect jobs, $559.3 million in direct and indirect tax impact, and a total economic value $25.4 billion. The Economic Development Partnership of Alabama (EDPA) has supported the growth of these numbers over many years, having worked to support companies compete not only locally but on a global stage. The EDPA helps various free trade zones (FTZs) to flourish while also providing tax incentives, support for startups and management of the region’s transport links that are vital to its intermodal abilities and more.
Matagorda County, Texas
Matagorda County is privileged enough to be the home of two ports: Port of Bay City and Port of Palacios. The former has approximately 150 acres of land available for commercial development, providing access to the Colorado River Channel, while the latter equally provides opportunities and parcels for long-term lease and development. Both ports are backed by the Matagorda County EDC that provides key economic contributors with incentives including employee recruitment and training, tailored services to help locate or expand, tax abatement policies and tax-free industrial and environmental bonds.
The City of Baltimore is home to one of Maryland’s four FTZs. Serving as the administrator of the FTZ is the Baltimore Development Corporation (BDC), which is mandated to grow the city’s economy in an inclusive manner by retaining, expanding and attracting businesses and promoting investment. Port of Baltimore forms a large part of these activities, being one of the 10 busiest ports in the U.S. and serving a significant part of the East Coast. The bulk of the products that pass through the port, and indeed the FTZ, includes cars, paper and steel, with BDC itself reporting that the total value of shipments through Baltimore’s FTZ was more than $19.9 billion in 2017.
The Greater Cleveland Partnership (GCP) is a particularly active EDC, supporting the city and its 12,000 members as a catalyst for business growth and development in its various forms. It works closely with the Port of Cleveland, the latter responsible for more than 20,000 jobs and $3.5 billion in annual economic activity tied to the 13 million tons of cargo it handles per annum. With support from GCP, the port announced in May 2012 that it would be moving ahead with $20 million in projects that will include dock improvements, main gate enhancements and the construction of a state-of-the-art customs processing facility. This latest investment follows the completion of a $1.1 million cruise terminal processing center and $10.36 million extension of the Cleveland Bulk Terminal iron ore tunnel in 2020, the latter anticipated to bring another 1 million tons of cargo each year to the port.
Memphis is an interesting proposition, being the home of one of the country’s most active intermodal freight hubs and the thriving Port of Memphis, despite being in a landlocked state in Tennessee. The port serves 150 industries and handles a rich variety of goods, from petroleum and cement to grain and steel. It is able to connect these vital goods with the rest of the country thanks to the Mississippi River, five Class 1 railroads, major north-south and east-west interstate highways, and the nearby airport. Such is its critical role in accelerating economic activity, it carries an annual economic impact of more than $9.2 billion. Created in 2011, the Economic and Development Growth Engine (EDGE) for Memphis and Shelby County helps to support the region’s buoyant logistics industry, managing its foreign trade zone, providing business loans and tax incentives, and overseeing the Memphis Port Commission.