Texas Ports contribute more than $713.9 billion in economic activity for the State accounting for 28% of Texas’ gross domestic product (GDP), further advancing Ports as a catalyst for state economic growth and job generation, according to a recent economic impact study by the Texas Ports Association (TPA).
TPA’s most recent economic impact study was conducted by Martin & Associates, using data from fiscal year 2023. Since the association’s last report, also conducted by Martin & Associates in 2018, Texas Ports experienced statewide growth in tonnage, revenue generated and job growth.
Total tonnage handled by public and private marine terminals increased by 130.3 million tons. As a result of this growth, 2.5 million jobs are supported by the 2023 marine cargo activity within the state of Texas, an increase of 728,741 jobs since 2018. Total economic value of the Texas marine cargo activity grew from $449.6 billion in 2018 to $713.9 billion they boast today.
“The Martin study paints a clear picture of what a great job Texas ports do as an economic engine and creator of jobs for the entire state. Texas ports and the movement of goods to and from ports impact jobs and economic activity in all 254 counties in Texas. Our ports support Texas based manufacturers, defense, energy movement, cruise and most of the consumer goods found in every Texas household.” Said Larry Kelley, (TPA President and Port Director/CEO of Port of Port Arthur.”
Job growth by Ports is further amplified by an increase in average annual salary received by directly employed workers from $67,611 in 2018 to $81,845 in 2023, also generating $17.1 billion in state and local taxes supported by the port activity. The most impressive statistic, Kelley said, is that Ports are more than a method to move goods, Texas Ports have become a spending multiplier. For every $1 invested in Texas Ports, $53.46 is returned to the State of Texas.
“There is an incredible return on investment for all of Texas. Port growth does not happen in a vacuum; we understand that we impact the lives of all Texans and the nation. We also are aware of the challenges we face where other states and nations are making massive investments in port infrastructure. For Texas and Texas ports to remain strong, strategic capital investments are needed.” Kent Britton, CEO, Port of Corpus Christi.
An interesting Texas impact is the role of cruise passenger activity as well as commercial and marina activity. In 2023, 354 cruise vessel calls carrying 2.97 million passengers created 4,547 direct, induced and indirect jobs, generating $291.3 million on income, $732.5 million in business revenue, and $25.3 million in local and state taxes. Commercial and Marina activity brought in an additional 300 direct, induced and indirect jobs earning approximately $15.1 million in total personal income and generated an estimated $70.2 million in business revenue. $1.3 million of state and local tax revenue collected.
