1. The Port of Boston
“Connecting New England to the World”
Chris Landers, Vivek Mukkavalli, Kamuran Sokmensuer
2. Itinerary
History of the Port of Boston
Boston Port: Fact Sheet
Economic Impact of the Port of Boston
Issues the Port Is Facing
How Boston is Combating These Issues
What is Dredging
The Advantages and Disadvantages of Dredging
Moving Forward: Not Just Your “Post Card Port”
3. History of the Port of Boston
1630
Est. by John Winthrop
Serves as main port for colonies in
trade with England
▫ Timber
▫ Seafood
▫ Rum
▫ Finished Vessels
1773
Boston Tea
Party
1956
Massport
Created
1966
Rise of containerized shipping causes
Maersk to establish first container
port in Boston (Conley Terminal)
1996
Dredging in Boston Harbor
to accommodate new road
access created via “Big Dig”
4. Port of Boston: Fact Sheet
60 Acres for
Containerized Cargo
Operations
100 Total Acres
Direct access to 14 million
customers
1,000 workers
<2 miles from I-90 and I-93
7,000 TEUs
Generated revenue of $1.2 in
2012, and created $4.6 in
economic value
6 Low-Profile STS cranes
1,850 ft of continuous
berths
(11 – 12 berths)
30 Acres for reefers and
equipment repair and
storage
10 Lane truck gate
(approx. turn time of 30 min.)
5. Economic Impact of the Port of Boston
Jobs in some way related to cargo,
cruise, seafood, processing, etc.
50,042
Indirect Direct Induced
2,000
4,000
6,000
8,000
Direct Business Revenue
1.25B
2.7B
Related Economic Output
Re-Spending/Local Consumption
0.66B
Total Port of Boston Economic Value
$4.61 B
6. Current Problems
Proximity to the airport restricts the height of cranes
Depth (especially during low-tide) prohibits container ships with deep draw from
entering the Port
Width of the canal and intense aggregation of small islands causes a bottleneck
where ships must wait for a pilot (11 nautical miles from Conley Terminal)
Unkempt nature of Boston infrastructure makes for difficult passage to and from
the terminal
▫ Congestion
▫ Damage to vehicles
Space and capacity restraints in and around the port
Ability to handle certain shipments (which may now beheading to NYC or
Baltimore)
New England weather
7. How Is Boston Combating These Issues
There are several ways that Boston is
minimizing common current logistics
issues and also preparing for the
imminent growth of global shipping
demand…
Integration of
Coastal Oil Site
Usage of higher
capacity cranes
Dredging
Buffer Open Space
Dedicated Freight
Corridor
230,000 sq. ft
frozen storage
warehouse space
8. What Is Dredging?
DREDGE: Clean out the bed of a harbor, river or other area of water, by scooping
out mud, weeds and rubbing with a dredge
Main Channel
-40ft to -47ft
North Entrance
-45ft. to -51ft.
Berths
-50ft.
Panama Canal Expansion
▫ $5.3B
▫ 13,000 ships/annually; $18B of goods to U.S.
▫ 2015 = 2x capacity; 25% longer, 50% wider
Obama signs the Water Resources Reform and
Development Act = $12.3B for water projects in the U.S
Total Cost of $310 M
Local cost of $130M
Will take about 5 years
9. Advantages and Disadvantages of Dredging
DREDGING
ADVANTAGES DISADVANTAGES
Handle more/larger ships (increase TEUs by 43%)
Capture cargo that currently goes through NYC
▫ 1/3 of NYC/NJ landed cargo = $100M/annually
Allow Boston to maintain a working port/remain
competitive
▫ Worse problems if it wasn’t a working port
Economic development opportunities
Less risk for Harbor pilots guiding ships in
Strain capacity at the Port – Boston may not be able
to support the influx of ships
▫ $30M to lengthen berths
▫ $25M to replace cranes
Even if they can support the ships in the port, can
they support the trucks
Boston infrastructure prohibits fluid traffic flow
Environmental issues surrounding dredging
▫ Pollution
Every $1 spent will generate $9 worth of economic activity
10. Not Just A “Postcard Port”
Although we agree that dredging is the best course of action for Boston moving
forward, there are certain things that Boston can do (and might already be doing)
that will allow them to mitigate their risk and minimize disruption to the New
England area
Charge An Impact Fee
(eg. Amazon)
Begin Construction on
the Dedicated Freight
Corridor
Continue to Work With
Other Agencies to
Ensure Efficiencies
11. Back Up
• TEU Growth Year to Year
• Truck Turnaround Times
• References
A deep water port such as Boston contributes to the local, regional, and national economies by providing employment and income to individuals, tax revenues to local and state governments, customs fees to the Federal Government, and revenue to businesses engaged in handling, shipping, and receiving cargo via the port.
2,601 indirect jobs were created by the firms directly dependent upon the acticity at the public and private facilities at the Port of Boston
7.091 direct jobs were created by cargo, cruise, fish processing and harbor tours activity at the public and private terminals at the Port of Boston
6,665 induced were supported by the local purchases by those directly employed
And not shown here 33,686 are related jobs (for example the importers and exporters using the public and private marine terminals)
This economic value represents economic value of the marine cargo, seafood processing, cruise and harbor tour activity at a given point in time, 2012, and consists of the direct business revenue impact generated by maritime activity at the MASSPORT public and private terminals, $1.2 billion, plus the related economic value of $2.7 billion, and the re-spending /local consumption impact generated by the maritime activity at the public and private terminals, $657.9 million.
Width of the canal and intense aggregation of small, submerged “islands” causes a bottleneck where ships must wait f
XXX of Boston infrastruction makes for difficult passage to and from the terminal, let alone traffic congestion and damage to vehicles
Number of ships entering will stay the same, but they will get larger
Can capture some of the bigger ships that carry goods to New England but currently use NYC as their port
Without dredging Bostonw ould not be able to support a working Port because larger ships would be deferred to ports large enough to support their size and their load
Freight would have to be trucked up from NY or Baltimore. Traffic would go from bad to worse, with an estimated 450 trucks per day. Also, driving cargo from NY adds about $1,000/container which would be passed on to consumers.
Not only will the port encourage economic growth in the form of construction in the direct NE area, but it will also create jobs and subsequently contribute to deceasing the 4.6% unemploiyment rate in boston
Also ships currently wait for high tide to either dock in or move out of the port. A deeper port assures that ships move faster in and out than ever before (lead by a pilot)
Lastly for ever $1 spent ….
On the other hand…
Charge an Impact Free (eg. Amazon) to help support infrastructure development
Dedicated Freight Corridor
Continue to work with other agencies to ensure efficiency at the port
Logan Airport for crane height
Mass DOT for city footprint and direct trucking routes