Transcript The US Port.ppt

Role of Ports in Trade
Angela Morley
Jensen Yip
Jake Norquist
Lee Robles
Ryan Martin
The US Port system
Waterways & Ports
–More than 1,000 harbor channels
–25,000 miles of inland, intracoastal, and coastal
waterways.
–Serving over 300 ports with more than 3,700 terminals
–Links to 152,000 miles of rail
460,000 miles of pipeline
45,000 miles of interstate highways
Intermodal connections
–Vessels, vehicles, and system users
Decision making driven by marketplace
National, State, local all participate
Logistics
Importance of U.S. Ports
 Provides American businesses with competitive
access to suppliers/ markets
– Mainstay of global economic growth
– Enables U.S. to be worlds largest trading partner
 Provides cost effective mean for moving bulk
commodities
– Grain, coal, petroleum, etc.
– >95% of overseas trade in/ out moves by ship
 Includes 9 million barrels of oil daily
 Key strengths and issues
– Flexibility/ ability to adapt to rapidly shifting market
demands
– No other system can accommodate future growth in
overseas trade
Other Importance
 National security
– Vital role in mobilizing/ maintaining national security
– Lifeline for equipment and supplies
 Environmental value
– Coastal and marine ecosystems crucial for commercial
and rec. fishing, wildlife watching, boating, drinking
water
– Environmentally responsible method of transportation
 Recreational value
– Passenger vessels provide sightseeing, excursion,
dining, gaming, cruises, etc.
Questions
 What area of the government participates in
the management, financing and operation of
the U.S. port system?
 What is an issue that the ports are facing
due to overseas trade growth?
Ports and Jobs
4 Million Americans
Wages are 13 - 17% higher
$44 billion in personal income
$16.1 billion was paid in taxes
Exportation and Companies
 Companies are more profitable
 Produce twice as much
 Overall productivity up 12 – 16%
North American Cruise Industry
 Very dependent on ports
 30.06 billion in economic activity was
generated
 9 million people went on cruises
 77% of global cruise embarkations were
from US ports
Questions
 Name one reason ports help jobs.
Questions
 How does exportation help companies?
Top Trading Partners
Exports (Goods)
Imports (Goods)
Products from Top 3 Importers
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Canada 18.2%
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Passenger cars, new and used $36.3 (in millions)
Gas-natural $26.8
Crude oil $24.1
China 14.0%
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Computer accessories, peripherals and parts $25.7
Computers $14.4
Apparel and household goods-other textiles $13.1
Mexico 10.7%
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Crude oil $23
Auto parts and accessories $20.6
Passenger cars, new and used $10.8
Goods the U.S. exports to the top three
trading partners
 Canada 22.8%
– Parts and accessories of vehicles $23.5 (in millions)
– Passenger cars, new and used $12
– Trucks, buses and special purpose vehicles $10
 Mexico 13.5%
– Electric apparatus $8.7
– Computer accessories $6.2
– Plastic materials $5.8
 China 5.0%
– Civilian aircraft $3.8
– Semiconductors $3.3
– Soybeans $2.2
Questions
 What country imports the most to the United
States?
 What is the #1 good Imported from Canada?
Current Issues
Amount of trade and cargo dramatically
increasing
– Due to globalization
– High consumption of Americans
– Demand is so large that it is hard handle
everything being sent to U.S.
Current Issues
 Greater need for capital
investment in port infrastructure
– Shared costs between public and private
sectors
– 2003-Public invested $1.7B to meet shipping
industry needs
– Likely to increase as trade continues to
increase
Current Issues
 Vessel sizes are increasing
and require larger channels
– Bigger = better
– Most ports have depths of 35-45 ft. Today’s
large ships require depths of 45-53 ft.
– Dredging adds costs and implicates the
environment
 Disposal?
 Disruption to environment
Current Issues
 Security
– Ports handle essential cargoes for military
operations
– Gateway into the country
 Management of 6 U.S. ports and Dubai Ports World
conflict
 Updating with radiation monitors, detection systems,
and ID systems
Questions?
 Name 1 reason why the amount of trade has
increased with ports?
 Globalization, U.S. demand and
consumption
Questions?
 Why are people concerned with the
environment when talking about ports?
 Dredging, harmful effects on natural ecosystems, disposal of dredged material
Why managers should care
 Ports serve as a gateway to goods
– Both coming in and going out
– 95% of goods are in same way linked to ports
 A part
 A raw material, etc.
 Can cause major problems
– Possibility of bottlenecks
– Strikes
 A strike could put an entire company out of business
Summary
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Type of products
Volume of trade
Imports
Exports
Sources
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