South Carolina’s Private Marine Terminals Generate $6.5 Billion Economic Impact

News Summary

A new study highlights the significant economic role of private marine terminals in South Carolina, contributing nearly $6.5 billion. The report indicates that terminals also generate about $99 million in annual tax revenue and provide substantial employment opportunities, with salaries averaging $77,346, well above the state’s average. The findings emphasize the interconnectedness of the maritime industry with various sectors, underscoring the importance of ongoing support for these terminals to ensure future economic stability.

South Carolina’s Private Marine Terminals Generate Nearly $6.5 Billion Economic Impact, New Study Reveals

Private marine terminals in South Carolina play a significant role in the state’s economy, contributing approximately $6.5 billion in economic impact, according to a recent study presented at the Maritime Association of South Carolina’s Logistics Summit. This financial boost is essential for the state, particularly as it seeks to navigate post-pandemic economic growth.

The maritime industry is not only a financial pillar but also a vital source of tax revenue for South Carolina, generating about $99 million annually. This revenue comes from the direct operations of terminals, as well as indirect contributions from related businesses and suppliers that benefit from terminal activities.

Direct operations of the terminals alone account for approximately $4 billion of the total economic impact. Additionally, increases in business activity due to terminal operations lead to multiplier effects, contributing around $2.6 billion to the state’s economy. Each job created through terminal operations has a cascading effect; for every position, an estimated 2.5 jobs are generated in other sectors around the state.

Employment and Salaries in Private Marine Terminals

The average salary for employees at these private marine terminals stands at $77,346, highlighting a significant disparity compared to the state’s average wage of $57,932, which indicates a salary difference of 33%. This difference not only reflects the economic importance of the marine terminals but also the potential for better living standards for those employed in the sector.

As South Carolina grapples with an unemployment rate of approximately 6%, the jobs created in the maritime sector can play a critical role in lowering this figure and providing stable employment to the local workforce.

Future Economic Outlook

The study comes as South Carolina looks toward achieving sustainable growth. Experts anticipates these economic shifts will reshape the landscape by 2025, moving away from the rapid growth patterns seen during the pandemic. Joey Von Nessen, a research economist at the University of South Carolina, assessed the state’s economy as receiving a B+ grade, reflecting improvements in import and export volumes following a decline experienced in 2023.

The economic impact of the marine terminals extends beyond direct port operations. It connects directly with various sectors, including manufacturing, health care, and retail, which hire workers and procure necessary materials through these terminals. Consequently, the influence of marine terminals creates a ripple effect across various sectors, bolstering the overall economy of South Carolina.

Comprehensive Study of Private Marine Terminals

This assessment of the economic impact was based on a study that encompassed all 19 private marine terminals operating within South Carolina. As one of the largest ports on the East Coast, the data highlights the critical role these terminals play in facilitating trade and boosting the local economy.

As the state moves forward, maintaining a focus on industries that benefit from the maritime sector is essential for continuing economic growth and stability. The economics of the state’s marine terminals underline the interconnectedness of the maritime industry with broader economic trends and job creation, emphasizing the need for ongoing support and development in this sector.

Deeper Dive: News & Info About This Topic

• Charleston Business: Economic Impact of South Carolina’s Private Maritime Terminals
• Wikipedia: Port of Charleston
• Marine Log: SC Ports Completes Wando Welch Terminal Upgrades
• Encyclopedia Britannica: Seaport
• gCaptain: South Carolina Ports Reopens New Leatherman Terminal
• Google Search: South Carolina Ports
• Supply Chain Dive: ILA Ports Strike Cargo Operations
• Google Scholar: South Carolina Economy