Texas Ports contribute significantly to the state’s economic vitality, generating more than $713.9 billion in economic activity. This figure accounts for an impressive 28% of Texas’ gross domestic product (GDP), solidifying the role of ports as a pivotal driver of state economic growth and job creation, according to a recent economic impact study by the Texas Ports Association (TPA).
The latest study, conducted by Martin & Associates, utilizes data from fiscal year 2023 and highlights substantial growth across several metrics since the last report in 2018. During this five-year span, Texas witnessed considerable increases in tonnage handled, revenue generated, and employment supported by port activities. Public and private marine terminals in Texas processed 130.3 million more tons of cargo compared to 2018, a testament to the rapid expansion and efficiency improvements in port operations.
Employment linked to Texas’ marine cargo activity has surged. In 2023, the state’s supported approximately 2.5 million jobs, reflecting an increase of 728,741 positions since 2018. These jobs span various sectors, including logistics, manufacturing, energy, and retail, demonstrating the far-reaching impact of port activities. Additionally, the economic value tied to marine cargo operations grew from $449.6 billion in 2018 to the current $713.9 billion, underscoring the significant role of ports in Texas’ economy.
“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,” remarked Larry Kelley, TPA President and Port Director/CEO of the Port of Port Arthur. “Texas ports and the movement of goods to and from impact jobs and economic activity in all 254 counties in Texas. Our support Texas-based manufacturers, defense, energy movement, cruise operations, and most of the consumer goods found in every Texas household.”
One of the most notable findings is the growth in wages among workers directly employed by port-related activities. The average annual salary for these workers rose from $67,611 in 2018 to $81,845 in 2023. This growth in earnings reflects the value of skilled labor in port operations and the broader economic benefits provided to the state’s workforce. Moreover, port activity generated $17.1 billion in state and local tax revenue, further demonstrating the fiscal benefits to communities across Texas.
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Perhaps the most striking statistic is the return on investment that Texas ports provide. According to the study, every $1 invested in Texas ports yields $53.46 in economic return to the state. This multiplier effect showcases the ports’ efficiency and their role as a catalyst for economic prosperity.
“There is an incredible return on investment for all of Texas,” said Kent Britton, CEO of the Port of Corpus Christi. “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.”
In addition to cargo operations, Texas have made significant contributions through cruise passenger activity and commercial marina operations. In 2023, 354 cruise vessel calls brought nearly 2.97 million passengers through Texas ports, creating 4,547 direct, induced, and indirect jobs. This segment alone generated $291.3 million in income, $732.5 million in business revenue, and $25.3 million in local and state taxes. Meanwhile, commercial and marina activity supported an additional 300 jobs, producing $15.1 million in personal income and $70.2 million in business revenue, along with $1.3 million in tax contributions.
The report highlights the multifaceted role of Texas ports in driving economic growth and emphasizes the need for continued investment in port infrastructure. While the ports have demonstrated remarkable efficiency and economic contributions, maintaining competitiveness in a global market requires strategic enhancements. Investments in modernizing facilities, expanding capacity, and integrating advanced technologies will ensure that Texas remain a leader in the maritime industry.
As Kelley noted, “Ports are more than a method to move goods. Texas Ports have become a spending multiplier that benefits the entire state and its residents.” This sentiment encapsulates the essential role thatplay in sustaining Texas’ economic strength and securing its position as a hub of global commerce. Moving forward, the state’s ability to harness the full potential of its will depend on collaborative efforts to address challenges and seize opportunities in a rapidly evolving economic landscape.