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Study: Indiana ports add $8.2B to economy, Hoosiers hold 90% of jobs

A recent study found that maritime and industrial operations at Indiana’s three ports — including the port at Burns Harbor — contribute $8.2 billion per year to the economy and support 51,000 direct, indirect and related jobs.

More than 10,300 of those jobs are direct jobs, which paid an average yearly salary of $54,700 in 2019, higher than the $46,770 annual mean wage for all occupations in Indiana that year, according to the study.

Indiana residents held 90% of the direct jobs, defined as those generated by the vessel and barge activity at the Burns Harbor, Jeffersonville and Mount Vernon ports.

The study, which was based on 2019 data, also reported that the ports generate more than $552 million in state and local taxes. The study was conducted by Martin Associates, a provider of economic and strategic assessments of the world’s transportation systems. A study is completed every five years.

“Maritime plays a large part in our state’s economy,” said Ports of Indiana CEO Vanta E. Coda II. “2021 looks to be another strong year and we hope to see international shipments grow. Transportation is all about bigger, better, faster; that’s always our goal.”

According to the study, the Ports of Indiana harbors handled nearly 16.4 million tons of waterborne cargo including key commodities such as coal, iron ore, steel products, grain, soybean products, ethanol, DDG, fertilizer, dry bulks and minerals.

Michael Hsu, assistant professor of economic at Valparaiso University, said the Burns Harbor port primarily serves as a port for importing inputs for steel production, such as iron ore, limestone and coal.

“As the report suggests, steel-related bulk commodities account for the majority of the jobs and revenues created by the Northern Indiana port. In addition to serving the steel mills in the region, the port also created job opportunities in cargo handling, transportation and warehouse/storage, and solidified the region as an important transportation hub,” Hsu said.

He said area farmers are also beneficiaries of the port, as grain, soybeans and fertilizer are among the top commodities shipped from Burns Harbor.

Hsu said 92% of the jobs created from the Burns Harbor port are held by Northwest Indiana residents.

While the Burns Harbor port has handled products shipped from overseas, such as wind turbines, Hsu said the numbers suggest domestic trade is much more important for Indiana ports. He cited a report from the American Association of Port Authorities, which stated that more than 95% of total tonnage coming into and out of Indiana ports are to and from domestic locations.

Breaking down the job holders, the Martin study said of the 51,275 total jobs cited, only 33,429 direct, induced or indirect jobs are generated by the ports’ maritime and industrial activity.

The 17,850 related jobs are users of the Ports of Indiana’s marine terminals.

The12,948 indirect jobs are supported by $1.3 billion of local purchases and capital expenses by businesses supplying services at the terminals and by businesses dependent upon Ports of Indiana facilities for the shipment and receipt of cargo.

The inbound and outbound cargo moving via Ports of Indiana facilities supports 17,850 related user jobs with the state’s manufacturing, farming, wholesale and distribution industries, and the in-state industries supporting the processing, movement and distribution of all commodities, specifically ore, steel, grain and fertilizer using the port terminals for shipment and receipt of cargo.

In total, about $2.4 billion of direct, induced and indirect personal wages and salaries were generated by vessel and cargo activity at the Ports of Indiana’s public terminals.

In addition, the 17,850 related user job holders received $684.1 million in personal income.

In 2019, businesses providing services to the cargo terminals as well as the industrial port companies received $696 million of revenue. Revenue from port companies and on-site dependent shippers and consignees totaled $3.7 billion. In addition, the cargo activity at the Ports created an additional $3.8 billion of related economic output in Indiana, the majority of which is created by the movement of steel, grain, ethanol, DDG, fertilizer and dry bulks, and the in-state industries supporting these industries.

More than $488 million of state and local taxes were generated by activity at the cargo industry and port companies. Related users generated another $65 million of state and local taxes in the state.

Looking ahead, Ports of Indiana will invest $50 million in infrastructure improvement projects by 2025 including $28 million at Burns Harbor and $22 million in Jeffersonville. In 2019, Mount Vernon completed a $2 million capital improvement project including a new overhead gantry crane.

The Ports of Indiana manages a total of 2,800 acres with more than 75 companies operating. More than 900 acres of available land are ready to develop or lease.

“Simply put, Ports of Indiana is a longtime supporter of Indiana and will continue to play a vital role in supporting our state’s economy, jobs, tax resources and their respective communities,” Vanta said.

Karen Caffarini is a freelance reporter for the Post-Tribune.