| Abstract |
The newest version of the MARAD Port Kit is a self-contained, PC-based model in a user-friendly, menu-driven format. It allows U.S. deep-draft ports and other organizations to assess the economic impact of maritime-related construction and on-going activities at the national, state, and local levels. The new Port Kit: Quantifies the economic value of U.S. deep-draft port activities in readily understandable terms, such as jobs, income, and tax revenues generated; Demonstrates how a deep-draft port is linked to other industries; Undertakes 'what if' policy simulations; and Assesses the economic implications of potential investments and new business activity. On-going maritime activities modeled include container, liquid and dry bulk, breakbulk, auto transport, cruise, project cargo, and passenger ferry operations. All activities directly needed to handle each specific movement are considered, including maritime construction and dredging. The model allows users to create a defined region, that is, a tailored definition of the geographical hinterland of their port. The MARAD Port Kit uses an adaptation of Input-Output (I-O) Analysis, a proven economic approach. I-O analysis is a widely established tool for undertaking economic impact assessments. The approach focuses on the interrelationships among sectors in an economy and, through a series of mathematical procedures, calculates the total economic impacts or multiplier effect of deep-draft port activities and potential investments. The multiplier effect in the Kit consists of direct, indirect, and induced impacts. The direct effect consists of the direct expenditures of the U.S. deep-draft port industry. The indirect effect reflects the expenditures made by the supplying firms to meet the requirements of the deep-draft port industry, as well as the expenditures by firms stocking the supplying firms and so forth. The induced effect is the change in consumer spending that is generated by changes in labor income accruing to the workers in the deep-draft port industry, as well as increased employment in the supplying businesses. This model was developed using economic and expenditure data from the U.S. |
