Page 9 - Port of Baltimore Magazine Nov/Dec 2011

To subscribe or renew, visitwww.marylandports.com November/December 2011 ■ The Port of Baltimore [7]
governor’s Message
Focusing Attention on Labor Contract and Dredging Funds
As we close the books on 2011 and look ahead to 2012,
two national maritime issues that I will be watching very
closely in the coming months are the status of a new
longshoremen’s contract and dredging.
Negotiations for a new contract with the International
Longshoremen’s Association will open sometime in the next few
months. The last coast-wide negotiations occurred in 2008 when a
two-year extension to the then-existing contract set the expiration
date as September 30, 2012.
Both sides understand that the maritime industry is at its best
when management and labor work together. We cannot afford any
business interruptions. Ports are among the very best economic
generators in the world and provide good-paying, family-supporting
jobs. To keep that momentum going and sustain all of those jobs,
we need a contract fair to all parties.
Another hot button issue is dredging. Almost all West Coast
ports have deep natural water. Channels into East Coast ports need
to be continuously cleared to accommodate ships that are grow-
ing in size. However, in recent years, federal funding for expensive
dredging projects has decreased while costs of fuel, steel and
labor have increased. The federal government has collected fees
on imports in the form of the Harbor Maintenance Tax (HMT), but
they are not allowing those funds to be devoted to keeping U.S.
marine highways deep and clear.
It is estimated that presently about $6 billion has been collected
in the HMT but not spent on dredging. Several members of Congress
are disturbed over the government’s failure to allow the entire HMT
to be used for dredging and have introduced legislation to require
that all HMT collections be directed exclusively for dredging.
The Army Corps of Engineers needs the funding to perform
its obligations. Ports need dredging in order to accommodate the
expanding size of international vessels. At present, many U.S. ports
are not continuously maintained to their fully authorized depth and
width. That is simply not enough to ensure the continued growth
of our business. Deep channels are as critical to our industry as
ships themselves. Without deep channels, not only are U.S. ports
disadvantaged, but so is the U.S. economy.
James J. White, Executive Director
Port Proves Instrumental for Job Creation
There is no bigger priority in the O’Malley-Brown
administration than job creation. Since January,
Maryland’s businesses have created 18,600 jobs.
Last month alone, Maryland businesses created
10,000 new jobs at a faster rate than all but two states.
Maryland’s unemployment rate remains 20 percent lower than
the nation as a whole — but we’re working to do even better.
As one of Maryland’s key economic generators, the Port of
Baltimore plays an important role in our economy. There are about
50,700 jobs in Maryland that are generated by Port of Baltimore
activity. About 16,700 of those are direct jobs at the Port — jobs with
railroads, trucking companies, cargo handling, manufacturing and
ocean carriers. Another 34,000 jobs are indirect or induced jobs —
jobs that would be lost if the direct jobs were lost. Examples of these
include sales clerks, mechanics, teachers and people who provide
utility, communications or repair services.
Approximately 68,300 other jobs in Maryland are directly related
to employment activities at the Port of Baltimore. These are jobs
with Maryland companies that choose to import and export their
cargo through the Port of Baltimore instead of other ports, such as
manufacturing firms, auto dealers and distributors. If the Port of
Baltimore did not exist or was not available to these companies,
they could choose another port for their business but they could
also see higher costs, especially in transportation and logistics for
their company.
Combining direct, indirect, induced and related jobs, there
are a total of about 120,000 jobs in Maryland linked to the Port of
Baltimore. Many of these jobs are good-paying positions that support
Maryland families. In these very challenging economic times, in
Maryland we are fortunate to have one of the busiest seaports in
America in our own backyard — a port that welcomes big ships
bringing huge amounts of cargo to Maryland, but also a port that
since its inception in 1706 is first and foremost a provider of jobs.
Martin O’Malley, Governor
executive View