Study Finds Increased Economic Impact From Port Of Mobile
The Port of Mobile delivered $85 billion in economic impact to the state of Alabama last year, the Alabama Port Authority announced October 24.
The figure was the result of the port authority’s 2021 Economic Impact Study.
Additionally, the study found that economic activity at the port creates about one in seven jobs statewide, with a total of 312,896 jobs across the state. The economic activity from the port and related businesses also provides $2 billion in tax revenue to the state and local governments each year.
The economic impact study was conducted by Martin Associates, an economic research and consulting firm specializing in economic studies for ports worldwide.
Compared to the most recent study covering the calendar year 2019, study results showed a 217 percent increase in overall economic impact, a 94 percent increase in jobs and a 225 percent increase in tax revenues to state and local governments.
“These results are cause for celebration throughout Alabama,” said U.S. Sen. Richard Shelby, vice chairman of the Senate Appropriations Committee. “The impact that the Port of Mobile has already had on Alabama’s economy is remarkable. I am proud to witness this great news and believe these numbers will continue to improve. I have long known that Alabama’s largest port could have a pivotal impact on the growth of our state. Throughout my career, I’ve focused on projects that aim to position Alabama for long-term success, and the port has been one of those priorities. Its rise is attributable to everyone who has been involved in promoting its growth and the many ways it benefits Alabama. This is just the beginning.”
John C. Driscoll, director and CEO of the Alabama Port Authority, said the study results provide hard evidence of the port’s value.
“These numbers make it clear that the Port of Mobile is a tremendous asset to the state of Alabama,” he said. “Economic activity at the port radiates across the entire state. Whether it’s auto manufacturing, agriculture, logistics, space and defense, forest products, energy or any of the myriad of other industries that make Alabama great, every corner of the state sees some benefit from the port’s work.”
He continued, “We believe that the Port of Mobile is the most dynamic, compelling port in America, and as we look ahead to an expanded container terminal, a deeper and wider ship channel, intermodal rail and inland ports, these numbers will only grow. While these results are a sign of the progress made to date, we know there is more room for growth in our future and look forward to continuing to deliver for our customers and the entire state of Alabama.”
The Martin Associates report, which analyzed the direct, indirect and induced economic impacts of the Port of Mobile and the related private-sector port businesses for the 2021 calendar year, showed increased growth compared to 2019 in nearly every business line, according to the Alabama Port Authority. The highest growth was in the container cargo, lumber and liquid bulk sectors.
The full economic impact report and executive summary are available online at www.alports.com/economic-impact.