Study: Port of Virginia a Key Economic Driver
Study shows Port of Virginia’s economic impact is statewide and significant; 374,000 jobs, $60 billion in spending
The Port of Virginia continues to be a significant economic force in the Commonwealth’s economy, according to an economic impact study conducted by The College of William & Mary. This fall, the port contracted with the college’s Raymond A. Mason School of Business to measure the economic impact the port had on the Commonwealth during fiscal 2013 (July 1, 2012 – June 20, 2013). The results of the 36-page study were released by the port today following three months of research by a team led by professors Roy L. Pearson and K. Scott Swan.
The study said the port contributes to Virginia’s economy in three ways: the transportation of export and import cargo within Virginia and across it from other states and countries; the export of goods made in Virginia; and the added processing and distribution of imports retained in the Commonwealth.
“The total economic impact in Virginia in FY 2013 directly and indirectly attributable to The Port of Virginia was $60.3 billion in spending,” the report said.
“It is clear The Port of Virginia is having positive effects on spending, employee compensation, employment and taxes,” said John F. Reinhart, CEO and executive director of the Virginia Port Authority. “As the port grows, so do its benefits to the businesses and taxpayers of Virginia.”
The last economic impact study, also conducted by William & Mary, assessed the port’s economic impact during fiscal 2006 (July 1, 2005 – June 20, 2006). The comparison of fiscal 2006 and fiscal 2013 showed:
2006 // 2013 // Change
Spending: $41.1B // $60.3B // 47%
Employee Compensation: $13.5B // $17.5B // 30%
Selected Virginia Taxes: $1.2B // $1.4B // 17%
Employment: 343,000 // 374,646 // 9%
“The findings of this work emphasize the importance of The Port of Virginia and further underscore why a healthy port is critical to so many sectors of the economy as we go forward,” Reinhart said. “The governor seeks to build a robust, diversified, twenty-first century economy that will benefit all Virginians. It is in our stated mission to foster and stimulate growth for Virginia’s economy. So, the port is meeting its mission and helping to execute the governor’s vision of a progressive economy.” Other select highlights from the study:
- $17.5 billion was paid to 374,646 employees who are residents of Virginia.
- Those jobs (direct, indirect or induced) accounted for 9.4 percent of the resident Virginia workforce.
- The port moved nearly 18 million tons of cargo valued at $53.2 billion.
- The made-in-Virginia cargo tallied 4.5 million tons worth $10.9 billion.
- The port’s contribution to the state’s Gross State Product was $30.5 billion, which is equal to 6.8 percent of the estimated $448.8 billion in GSP in fiscal 2013.
