Port of Cleveland harbor activity creates jobs and economic impact

Summer traffic in seaway surging Activity out of Cleveland port buoys navigation seaway from F1

The Fortunagracht, the lead ship in the Cleveland-Europe Express, sailed into Cleveland Harbor for the fifth time during the 2014 shipping season. It was was being loaded in the Port of Cleveland in September 2014. Officials from the Port of Cleveland and local politicians are scheduled to stress the Port's importance at an event Thursday in Cleveland.

(Robert L. Smith, The Plain Dealer )

CLEVELAND, Ohio - For many in Northeast Ohio, the return of warm weather conjures up swimming, fishing and other recreational activities on Lake Erie.

But the Port of Cleveland and some local politicians want local residents to see the lake as more than a platform for recreation. Through shipping, it - like most of the Great Lakes -- serves as an economic force for the region.

Port of Cleveland officials and area public officials, business and labor leaders are scheduled to hold an event in Cleveland on Thursday to announce early shipping numbers for the Port and to highlight its economic importance to the region.

For example, since 2010, bulk tonnage has increased by 82 percent. Bulk tonnage includes iron ore pellets, limestone and other items that typically aren't shipped in containers.

That statistic is more than a trivia item. It is an indication of the region's improving economic health, said David Gutheil, the Port's vice-president of Maritime and Logistics. The increase at the Cleveland Bulk Terminal on Whiskey Island was due to an uptick in production at ArcelorMittal in Cleveland. Bulk tonnage went from 2.1 million tons in 2010 to 3.8 million in 2014.

UPDATE:

At Thursday's meeting, the Port released figures on these increases, which are projections for 2015 based on an economic model done for the Port by an economist:

  • Jobs -- Up by 7,066, a 60 percent increase since 2010. (Figure, which includes jobs directly and indirectly created through shipping, does not include all private terminals.)
  • Personal income -- Up by nearly $422 million, a 60 percent increase since 2008.
  • Total value of economic activity -- Up by about $1.1 billion, a 58 percent increase, since 2008.
  • Local purchases - Up by more than $177 million, or 56 percent, since 2008 State and local tax receipts -- Up by more than $36 million, or 65 percent,  annually.

These are some other examples of the Port's economic impact resulting from harbor activity, according to the Port:

  • More than $112 million in state and local taxes - This includes taxes paid by individuals and companies dependent on port cargo activity.
  • Nearly $1.1 billion in personal income - This includes the salary and wages of people employed by businesses directly involved in Harbor activities as well as those that indirectly benefit from such activity.
  • More than $1.81 billion in economic activity - This includes total business receipts of companies providing services supporting harbor activity.

"As the demand for steel went up, so did the bulk tonnage," he said. "As demand goes up in construction, for automobile parts, etc., that means cargo through our bulk terminal is also going to go up."

U.S. Rep. Marcia L. Fudge, D- Warrensville Heights, said higher demand translates in to jobs.

"The Port of Cleveland is a job creator, supporting nearly 18,000 jobs directly and indirectly," she wrote in an email. "Pursuing a sound business plan over the last few years, the Port has been able to attract more ships and more cargo. That's resulted in more jobs and helped Northeast Ohio companies reach new markets.

"I applaud those efforts and encourage the Port to continue pursuing new opportunities, especially in exporting," wrote Fudge, who is scheduled to be at the Thursday news conference. "Studies have shown, companies that are export-intensive pay higher wages than those that are not."

U.S. Marcy Kaptur, D-Toledo, also is scheduled to be at the news conference telling of the Port's importance.

"The Port of Cleveland connects our region to the world, delivering locally-made goods and products manufactured in our region to markets in more than 50 countries," she wrote in an email. "Investments in this facility support thousands of good jobs and almost $2 billion in annual economic activity, numbers that continue to grow. In particular, exports through the Port have grown since the facility became the only Great Lakes port with a direct line to Europe. Without this facility, our economy would not reach its full potential."

Kaptur was referring to the Cleveland-Europe Express, begun last year. Gutheil said offering such freighter service has potential.

"It is important just because it gives shippers a direct connection for both containerized and non-containerized cargo between the Port of Cleveland and an European port," he said. "It is scheduled, so the shippers and cargo owners know on a monthly basis when the vessels are going to be in, how much capacity we have, and it gives them a better connection to markets around the world."

Kaptur said she never wants the importance of the Port overlooked.

"We have a responsibility to keep this Port staffed and operational," she wrote in an email. "That means keeping the Port and river dredged and ensuring the appropriate and safe disposal of dredged materials.

"A loss of just two feet of channel depth would add millions of dollars in transportation costs, shrink the quantity being shipped, and cut off support for jobs here and throughout the region," Kaptur continued. "Shipping through the St. Lawrence Seaway is also one of the most environmentally sustainable shipping methods available."

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