GROWTH OF THE MARITIME INDUSTRYIN THE GULF REGION AND THE DEMANDFOR QUALIFIED MARITIMEPROFESSIONALSGROWTH OF THE MARITIME INDUSTRYIN THE GULF REGION AND THE DEMANDFOR QUALIFIED MARITIMEPROFESSIONALS
AMERICA’S ENERGY COAST LEADERSHIP HEARINGAMERICA’S ENERGY COAST LEADERSHIP HEARING
GALVESTON, TEXASGALVESTON, TEXAS
MAY 25-26, 2010MAY 25-26, 2010
WILLIAM T. MC MULLEN, PH.D.WILLIAM T. MC MULLEN, PH.D.
PROFESSOR OF MARITIME ADMINISTRATION AND OF MARINE SCIENCESPROFESSOR OF MARITIME ADMINISTRATION AND OF MARINE SCIENCES
Head of the Department of Maritime AdministrationHead of the Department of Maritime Administration
Interim Head of the Department of Marine TransportationInterim Head of the Department of Marine Transportation
TEXAS A&M UNIVERSITY AT GALVESTONTEXAS A&M UNIVERSITY AT GALVESTON
THE GENERAL DEVELOPMENT OFWORLD TRADETHE GENERAL DEVELOPMENT OFWORLD TRADE
•BETWEEN 2000 AND 2020, WORLD TRADE WILLDOUBLE.•BETWEEN 2000 AND 2020, WORLD TRADE WILLDOUBLE.
•IMPORTANCE OF INCREASED ECONOMIC ANDPOLITICAL STABILITY WHICH STIMULATES FOREIGNDIRECT INVESTMENT, AND GLOBALIZATION.•IMPORTANCE OF INCREASED ECONOMIC ANDPOLITICAL STABILITY WHICH STIMULATES FOREIGNDIRECT INVESTMENT, AND GLOBALIZATION.
•IMPORTANCE OF THE MIDDLE CLASS IN CREATINGDEMAND FOR GOODS AND SERVICES.•IMPORTANCE OF THE MIDDLE CLASS IN CREATINGDEMAND FOR GOODS AND SERVICES.
•DIFFERENTIAL IMPACT ON AMERICAN COASTS –CARGO MOVEMENTS ON THE GULF COAST AREEXPECTED TO TRIPLE•DIFFERENTIAL IMPACT ON AMERICAN COASTS –CARGO MOVEMENTS ON THE GULF COAST AREEXPECTED TO TRIPLE
REGIONAL IMPACT OF THE NEWLOCKS OF THE PANAMA CANALREGIONAL IMPACT OF THE NEWLOCKS OF THE PANAMA CANAL
•NEW LOCKS WILL OPEN IN 2014 AND WILL DOUBLE THE PRESENTCAPACITY, ALLOWING LARGER AND MORE VESSELS•NEW LOCKS WILL OPEN IN 2014 AND WILL DOUBLE THE PRESENTCAPACITY, ALLOWING LARGER AND MORE VESSELS
•SMALLEST PRESENT LOCK IS 110’ WIDE, 1,050 FEET LONG AND85’ DEEP. NEW LOCKS ARE 180’ WIDE,1400 FEET LONG AND 60’DEEP.•SMALLEST PRESENT LOCK IS 110’ WIDE, 1,050 FEET LONG AND85’ DEEP. NEW LOCKS ARE 180’ WIDE,1400 FEET LONG AND 60’DEEP.
•BETWEEN 2005 AND 2025 CARGO VOLUME WILL DOUBLE.PRESENTLY ABOUT 15% OF THE CONTAINERS FROM ASIA THATTRANSIT THE CANAL COME TO HOUSTON; THIS WILL INCREASETO 35% WHEN THE FULL IMPACT OF THE LARGER LOCKS IS FELT.•BETWEEN 2005 AND 2025 CARGO VOLUME WILL DOUBLE.PRESENTLY ABOUT 15% OF THE CONTAINERS FROM ASIA THATTRANSIT THE CANAL COME TO HOUSTON; THIS WILL INCREASETO 35% WHEN THE FULL IMPACT OF THE LARGER LOCKS IS FELT.
•COASTWISE DISTRIBUTION OF CARGO BY SHIP/BARGE WILL BEESSENTIAL. ROAD AND RAIL SYSTEMS WILL BE INADEQUATE.•COASTWISE DISTRIBUTION OF CARGO BY SHIP/BARGE WILL BEESSENTIAL. ROAD AND RAIL SYSTEMS WILL BE INADEQUATE.
EXPANDING OIL AND GAS INDUSTRIESIN THE GULF OF MEXICOEXPANDING OIL AND GAS INDUSTRIESIN THE GULF OF MEXICO
•STARTING IN 2000 AND CONTINUING THROUGHABOUT 2040, THERE WILL BE APPROXIMATELY $400BILLION IN DIRECT INVESTMENT IN DEEP GULFDRILLING OFF THE CONTINENTAL SHELF.•STARTING IN 2000 AND CONTINUING THROUGHABOUT 2040, THERE WILL BE APPROXIMATELY $400BILLION IN DIRECT INVESTMENT IN DEEP GULFDRILLING OFF THE CONTINENTAL SHELF.
•TECHNOLOGY OF RECOVERY HAS OVERTAKEN THETECHNOLOGY OF EXPLORATION•TECHNOLOGY OF RECOVERY HAS OVERTAKEN THETECHNOLOGY OF EXPLORATION
•ECONOMIC MULTIPLIER EFFECT ON THE COASTALZONE IS 5-7 TIMES THE VALUE OF THE OFFSHOREINVESTMENT: TOTAL IMPACT APPROACHES $3TRILLION. MOST IMPACT WILL BE WEST OF THEMISSISSIPPI RIVER.•ECONOMIC MULTIPLIER EFFECT ON THE COASTALZONE IS 5-7 TIMES THE VALUE OF THE OFFSHOREINVESTMENT: TOTAL IMPACT APPROACHES $3TRILLION. MOST IMPACT WILL BE WEST OF THEMISSISSIPPI RIVER.
ECONOMIC ACTIVITY IN THECOASTAL ZONEECONOMIC ACTIVITY IN THECOASTAL ZONE
•12 COASTAL COUNTIES IN TEXAS AND 26 COUNTIES COMPRISETHE COASTAL ZONE - THE AREA WITHIN ABOUT 100 MILES OFTHE COAST.•12 COASTAL COUNTIES IN TEXAS AND 26 COUNTIES COMPRISETHE COASTAL ZONE - THE AREA WITHIN ABOUT 100 MILES OFTHE COAST.
•ONE-THIRD OF THE POPULATION AND ONE-THIRD OF THEECONOMIC ACTIVITY OF THE STATE OCCURS IN THE COASTALZONE.•ONE-THIRD OF THE POPULATION AND ONE-THIRD OF THEECONOMIC ACTIVITY OF THE STATE OCCURS IN THE COASTALZONE.
•THE PORT OF HOUSTON GENERATES MORE THAN 785,000 JOBS INTHE STATE OF TEXAS AND APPROXIMATELY $117.6 BILLION OFECONOMIC ACTIVITY IN TEXAS.•THE PORT OF HOUSTON GENERATES MORE THAN 785,000 JOBS INTHE STATE OF TEXAS AND APPROXIMATELY $117.6 BILLION OFECONOMIC ACTIVITY IN TEXAS.
•THE PORT OF HOUSTON GENERATES ABOUT 9.6% OF THE GROSSSTATE PRODUCT OF TEXAS WHICH WAS $1.228 TRILLION IN2008.•THE PORT OF HOUSTON GENERATES ABOUT 9.6% OF THE GROSSSTATE PRODUCT OF TEXAS WHICH WAS $1.228 TRILLION IN2008.
•THE ECONOMY OF THE STATE WILL BENEFIT ENORMOUSLY FROMINCREASED FOREIGN TRADE. THE SIGNIFICANCE OF PORTS WILLINCREASE.•THE ECONOMY OF THE STATE WILL BENEFIT ENORMOUSLY FROMINCREASED FOREIGN TRADE. THE SIGNIFICANCE OF PORTS WILLINCREASE.
THE MARITIME LABOR POOLTHE MARITIME LABOR POOL
•THERE IS PRESENTLY A SUBSTANTIAL INTERNATIONAL SHORTAGE OFMARITIME PROFESSIONALS AT SEA AND ASHORE. SHORTAGES WILLINCREASE AS MARITIME-BASED ECONOMIC ACTIVITY EXPANDS. 90% OFINTERNATIONAL TRADE IS BY SEA. WORLD WIDE SHORTAGE OFAPPROXIMATELY 46,000 OFFICERS.•THERE IS PRESENTLY A SUBSTANTIAL INTERNATIONAL SHORTAGE OFMARITIME PROFESSIONALS AT SEA AND ASHORE. SHORTAGES WILLINCREASE AS MARITIME-BASED ECONOMIC ACTIVITY EXPANDS. 90% OFINTERNATIONAL TRADE IS BY SEA. WORLD WIDE SHORTAGE OFAPPROXIMATELY 46,000 OFFICERS.
•INTERNATIONAL AND DOMESTIC TRAINING AND CERTIFICATIONREQUIREMENTS ARE INCREASING. THIS INCREASES TRAINING COSTSAND COSTS OF RE-CERTIFICATION OF SERVING MARINERS. THISCONSTRAINS EXPANSION OF THE LABOR POOL AND ESTABLISHMENT OFNEW PROGRAMS.•INTERNATIONAL AND DOMESTIC TRAINING AND CERTIFICATIONREQUIREMENTS ARE INCREASING. THIS INCREASES TRAINING COSTSAND COSTS OF RE-CERTIFICATION OF SERVING MARINERS. THISCONSTRAINS EXPANSION OF THE LABOR POOL AND ESTABLISHMENT OFNEW PROGRAMS.
•TEXAS A&M UNIVERSITY AT GALVESTON, TEXAS SOUTHERN UNIVERSITY,THE UNIVERSITY OF HOUSTON, SAN JACINTO COLLEGE, HOUSTONCOMMUNITY COLLEGE, AUSTIN AND YATES HIGH SCHOOLS IN HISD, ANDHIGH SCHOOLS IN PASADENA AND LA PORTE ARE JOINTLY ADDRESSINGTHE NEEDS OF THE REGIONAL LABOR MARKET.•TEXAS A&M UNIVERSITY AT GALVESTON, TEXAS SOUTHERN UNIVERSITY,THE UNIVERSITY OF HOUSTON, SAN JACINTO COLLEGE, HOUSTONCOMMUNITY COLLEGE, AUSTIN AND YATES HIGH SCHOOLS IN HISD, ANDHIGH SCHOOLS IN PASADENA AND LA PORTE ARE JOINTLY ADDRESSINGTHE NEEDS OF THE REGIONAL LABOR MARKET.
•REGIONAL INLAND WATERS PERSONNEL DEMANDS ARE SUBSTANTIALWITH TUGS AND BARGES TIED UP FOR LACK OF CREWS•REGIONAL INLAND WATERS PERSONNEL DEMANDS ARE SUBSTANTIALWITH TUGS AND BARGES TIED UP FOR LACK OF CREWS
