GROWTH OF THE MARITIME INDUSTRY
IN THE GULF REGION AND THE DEMAND
FOR QUALIFIED MARITIME
PROFESSIONALS
AMERICA’S ENERGY COAST LEADERSHIP HEARING
GALVESTON, TEXAS
MAY 25-26, 2010
WILLIAM T. MC MULLEN, PH.D.
PROFESSOR OF MARITIME ADMINISTRATION AND OF MARINE SCIENCES
Head of the Department of Maritime Administration
Interim Head of the Department of Marine Transportation
TEXAS A&M UNIVERSITY AT GALVESTON
THE GENERAL DEVELOPMENT OF
WORLD TRADE
• BETWEEN 2000 AND 2020, WORLD TRADE WILL
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DOUBLE.
IMPORTANCE OF INCREASED ECONOMIC AND
POLITICAL STABILITY WHICH STIMULATES FOREIGN
DIRECT INVESTMENT, AND GLOBALIZATION.
IMPORTANCE OF THE MIDDLE CLASS IN CREATING
DEMAND FOR GOODS AND SERVICES.
DIFFERENTIAL IMPACT ON AMERICAN COASTS –
CARGO MOVEMENTS ON THE GULF COAST ARE
EXPECTED TO TRIPLE
REGIONAL IMPACT OF THE NEW
LOCKS OF THE PANAMA CANAL
• NEW LOCKS WILL OPEN IN 2014 AND WILL DOUBLE THE PRESENT
CAPACITY, ALLOWING LARGER AND MORE VESSELS
• SMALLEST PRESENT LOCK IS 110’ WIDE, 1,050 FEET LONG AND 85’
DEEP. NEW LOCKS ARE 180’ WIDE,1400 FEET LONG AND 60’ DEEP.
• BETWEEN 2005 AND 2025 CARGO VOLUME WILL DOUBLE.
PRESENTLY ABOUT 15% OF THE CONTAINERS FROM ASIA THAT
TRANSIT THE CANAL COME TO HOUSTON; THIS WILL INCREASE
TO 35% WHEN THE FULL IMPACT OF THE LARGER LOCKS IS FELT.
• COASTWISE DISTRIBUTION OF CARGO BY SHIP/BARGE WILL BE
ESSENTIAL. ROAD AND RAIL SYSTEMS WILL BE INADEQUATE.
EXPANDING OIL AND GAS INDUSTRIES
IN THE GULF OF MEXICO
• STARTING IN 2000 AND CONTINUING THROUGH
•
•
ABOUT 2040, THERE WILL BE APPROXIMATELY $400
BILLION IN DIRECT INVESTMENT IN DEEP GULF
DRILLING OFF THE CONTINENTAL SHELF.
TECHNOLOGY OF RECOVERY HAS OVERTAKEN THE
TECHNOLOGY OF EXPLORATION
ECONOMIC MULTIPLIER EFFECT ON THE COASTAL
ZONE IS 5-7 TIMES THE VALUE OF THE OFFSHORE
INVESTMENT: TOTAL IMPACT APPROACHES $3
TRILLION. MOST IMPACT WILL BE WEST OF THE
MISSISSIPPI RIVER.
ECONOMIC ACTIVITY IN THE
COASTAL ZONE
• 12 COASTAL COUNTIES IN TEXAS AND 26 COUNTIES COMPRISE
•
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THE COASTAL ZONE - THE AREA WITHIN ABOUT 100 MILES OF
THE COAST.
ONE-THIRD OF THE POPULATION AND ONE-THIRD OF THE
ECONOMIC ACTIVITY OF THE STATE OCCURS IN THE COASTAL
ZONE.
THE PORT OF HOUSTON GENERATES MORE THAN 785,000 JOBS IN
THE STATE OF TEXAS AND APPROXIMATELY $117.6 BILLION OF
ECONOMIC ACTIVITY IN TEXAS.
THE PORT OF HOUSTON GENERATES ABOUT 9.6% OF THE GROSS
STATE PRODUCT OF TEXAS WHICH WAS $1.228 TRILLION IN 2008.
THE ECONOMY OF THE STATE WILL BENEFIT ENORMOUSLY FROM
INCREASED FOREIGN TRADE. THE SIGNIFICANCE OF PORTS WILL
INCREASE.
THE MARITIME LABOR POOL
• THERE IS PRESENTLY A SUBSTANTIAL INTERNATIONAL SHORTAGE OF
•
•
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MARITIME PROFESSIONALS AT SEA AND ASHORE. SHORTAGES WILL
INCREASE AS MARITIME-BASED ECONOMIC ACTIVITY EXPANDS. 90% OF
INTERNATIONAL TRADE IS BY SEA. WORLD WIDE SHORTAGE OF
APPROXIMATELY 46,000 OFFICERS.
INTERNATIONAL AND DOMESTIC TRAINING AND CERTIFICATION
REQUIREMENTS ARE INCREASING. THIS INCREASES TRAINING COSTS
AND COSTS OF RE-CERTIFICATION OF SERVING MARINERS. THIS
CONSTRAINS EXPANSION OF THE LABOR POOL AND ESTABLISHMENT OF
NEW PROGRAMS.
TEXAS A&M UNIVERSITY AT GALVESTON, TEXAS SOUTHERN UNIVERSITY,
THE UNIVERSITY OF HOUSTON, SAN JACINTO COLLEGE, HOUSTON
COMMUNITY COLLEGE, AUSTIN AND YATES HIGH SCHOOLS IN HISD, AND
HIGH SCHOOLS IN PASADENA AND LA PORTE ARE JOINTLY ADDRESSING
THE NEEDS OF THE REGIONAL LABOR MARKET.
REGIONAL INLAND WATERS PERSONNEL DEMANDS ARE SUBSTANTIAL
WITH TUGS AND BARGES TIED UP FOR LACK OF CREWS