Houston Ship Channel’s economic value nears $1 trillion

Houston Ship Channel's economic value nears $1 trillion

The economic impact of the Houston Ship Channel and Port Houston continues to be significant, according to a recent study unveiled by the Port Authority.

Ric Campo, Chairman of Port Houston, emphasized the channel’s role as a major economic generator for both Texas and the US.

The study conducted by John Martin Associates revealed that in 2022 the Houston Ship Channel generated an impressive $906 billion of economic value for the US, marking a 13 per cent increase since the last study conducted in 2018.

The marine cargo activity at the shipping channel terminals also generated $439 billion of economic value for the state of Texas.

Furthermore, the Houston Ship Channel and its terminals played a vital role in supporting 3.4 million jobs across the nation in 2022, with 1.5 million of those jobs located in Texas.

Since 2018, the growth in marine cargo activity, particularly in container activity at Port Houston’s public terminals, has resulted in the creation of almost 190,000 new jobs in Texas. Additionally, it has contributed to an increase of over $100 billion in economic value for the state.

READ: Port Houston issues $430 million to dredge shipping channel

Chairman Campo expressed his gratitude to various stakeholders, partners, and industry players who have supported this trajectory of growth, including the Port Houston staff, the International Longshoremen’s Association, the U.S. Coast Guard, and the U.S. Army Corps of Engineers.

The positive findings of the study have reinforced the Port Commission’s commitment to invest in the future of Port Houston, and the data from the report will assist in planning future facilities and infrastructure, according to the port authority.

Port Houston’s Executive Director, Roger Guenther, presented a report to the Port Commission that echoed the study’s positive results.

He noted that Port Houston’s container exports continued to exceed historic volumes from 2022. The two public container terminals at Port Houston handled over 1 million loaded TEU through April, surpassing the previous year’s record.

However, Guenther also acknowledged a slight softening in import container cargo compared to the record-breaking volumes of 2022, but he anticipated that container cargo would normalise as projected and budgeted for the year.

In February, the Port of Houston Authority announced that the Houston Ship Channel expansion project was making substantial progress towards its completion goal in 2025.

The authority reported that dredging of the first segment, Segment 1A, from Bolivar Roads to Redfish, had been completed on schedule and within budget.

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