Economic Development Impacts of the Port of Miami

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Economic 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.
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POM 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.

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POM 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.

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POM 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
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POM 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.

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Comparison 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.
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POM Impact by Commission Districts Household
Income and Jobs
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POM Impact by Commission Districts Household
Income and Jobs
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POM 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.

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POM 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.