ProvPort

On Tuesday, January 22^nd, 2013, I had the chance of visiting the Moran Shipping Agency with my professor and classmates from Global Economic Environments class. I feel so thankful to our professor, Dr. Elizabeth Robson who gave us the opportunity of discovering an industry whose details are often ignored, and visiting the beautiful and (old) historic building of Moran Shipping Agencies, Inc.

During our visit, our host Mr. Jason E. Kelly made a remarkable presentation about Moran Shipping Agencies, and maritime industry. During his presentation, Mr. Jason mentioned the economic importance of ProvPort on the local economy. So, as an international student from JWU, I chose to write about ProvPort and its participation in the regional economic growth.

ProvPort is located at the convergence of Narragansett Bay and the Providence River, which makes from it is one of America’s most strategically located port facilities.

The ProvPort campus is more than 105 acres, and the facility offers in excess of 1 mile of linear berthing capable of working 6 vessels at any one time. The Port provides both domestic and international bulk, break bulk and project cargo clients. ProvPort is the only two deep-water ports in New England. It was created in 1994 as a non-profit, public-private partnership after it purchased the Port from the City of Providence. Cargo volume reached 750,000 tons annually by the year 2000. That year, Waterson Stevedoring was established and began operations. Investments were made in expansion of equipment including the operation of floating cranes. Since September 11, 2001, approximately $500,000 has been invested to expand port security.

In addition, ProvPort is one of the busiest ports in America’s northeast. As an example of ProvPort’s potential, Rhode Island exports grew 13 percent in May of 2010, reflecting a seasonally–adjusted foreign sales increase of 62.3 percent over May 2009.

As quoted in the Providence Business News, “Rhode Island’s exports are a key contributor to local production and jobs. Thus, it is expected to keep the state economy afloat from sinking again into a new recession,” said Evangelos Simos, chief economist of eforecasting.com, pointing to developing countries like China, Brazil and India to drive demand. The importance of exports for RI state explains the importance of ProvPort as well. Actually, ProvPort is a critical economic engine for New England, generating an estimated $200 million total economic impact on the region. The port is host to more than a dozen of America’s most respected companies. Combined, the activities at ProvPort provide more than $60 million in direct business revenues and $16 million in revenue to local and state government. ProvPort makes a substantial contribution to the area's local economy.  During the past decade the direct and indirect jobs created by ProvPort have grown by more than 300 percent according to a study 5 completed by the national maritime research firm, Martin Associates.  Jobs created by ProvPort activities now exceed 2,400 high paying jobs. The appendix briefly represents ProvPort Employment and Output Model Projections.

On the long term, the value and strength of ProvPort’s contribution to the local community and the region is very impressive, even on the simplest level of analysis. When in full operation, the Port will directly generate $29.8 million in output of services with employment of up to 630 at the facility. In Rhode Island alone, this will lead to more than 967 jobs and a total of over $33 million in new income. For the Northeastern Corridor Region this will multiply to nearly 1,100 jobs and more than $39 million in new income. Carrying this new annual activity to its national impact, the proposed ProvPort project, when it is up and in full production, will create more than 1,600 new jobs and advance income by approximately $63 million.

            On Monday, December 10, 2012, Governor Lincoln D. Chafee, the Rhode Island Congressional delegation, Providence Mayor Angel Taveras, and ProvPort officials today announced two new state-of-the art mobile harbor cranes for the Port of Providence have been ordered and are now being manufactured by Austria-based Liebherr Group. The two cranes are part of a $20-million enhancement project funded by a federal TIGER II grant secured by the Rhode Island Congressional delegation and private investment by the non-profit ProvPort. The new cranes will replace two leased cranes from New Jersey that are more than 30 years old. “These new cranes are a critical step toward protecting the existing jobs at ProvPort and allowing this key asset to enter its next phase of growth,” said Governor Chafee. “The Ports of Providence and Boston are the only two deep-water ports in New England, and the new cranes will enable ProvPort to expand both its services and its efficiency. Strengthening Rhode Island’s infrastructure is one of the wisest investments we can make for both near-term and long-term job creation and economic growth.”

Sources:

·                     Raymond W. Fogarty and Dr. Josheph A. Illacqua, ProvPort The Renewable Port, Benefit Cost Analysis. Available from: http://provport.com/tiger_docs/Bryant_BenefitCost082010FINAL.pdf

·                     Martin Associates, Rhode Island’s Ports: Opportunities for Growth. Available from: http://www.dem.ri.gov/bayteam/documents/riports.pdf

·                     http://www.golocalprov.com/news/new-edc-provport-bring-two-upgraded-mobile-cranes-to-port-of-providence/