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NYC Economic Development Corporation Announces Findings of Study

Published Jan 20, 2011 11:24 AM by The Maritime Executive

Findings and Recommendations of Maritime Support Services Location Study indicate "Maritime support services represent a significant share of the region's economic activity, generating more than $2 billion each year for the region and supporting approximately 12,000 jobs, of which 7,000 are waterborne."

Staten Island, N.Y., June 13, 2008 – New York City Economic Development Corporation (NYCEDC) today announced the findings and recommendations of its Maritime Support Services Location Study. SUNY Maritime College was commissioned by NYCEDC and the Brooklyn Navy Yard to conduct the study to examine the economic impact of New York City's maritime industry and associated support services. It was funded in part by New York State's Department of State through its Environmental Protection Fund. The presentation took place at Caddell Dry Dock and Repair Co. Inc. in Staten Island, which has been serving the maritime industry for over one hundred years.

"Maritime support services represent a significant share of the region's economic activity, generating more than $2 billion each year for the region and supporting approximately 12,000 jobs, of which 7,000 are waterborne," said NYCEDC Executive Vice President Madelyn Wils. "Finding innovative ways to support this important industry sector, which takes 3.1 million trucks off New York City roads annually, is consistent with the Bloomberg Administration's PlaNYC."

Maritime support services are environmentally desirable. One standard barge is the equivalent of 60 trucks, and one tugboat is capable of handling as many as six barges at a time, resulting in the elimination of more than three million truck trips from New York City roads a year. Increasing use of our waterways to transport freight also reduces wear and tear on roadway infrastructure and serves to alleviate regional transportation congestion.

"The maritime support services industry is a valuable economic resource and vital to the Staten Island economy," said Councilmember Michael E. McMahon. "The savings the maritime industry provides in both fuel and reduced commercial truck traffic congestion is priceless to our economy and environment. I commend EDC and SUNY Maritime College for the work they have completed and support EDC's future efforts to implement the findings of this study in order to create a stronger harbor that meets the needs of both residents and the maritime industry."

Based on the expected increase in port activities in New York Harbor, the study found that it is likely that additional dry-dock capacity will be needed to meet future growth. Currently, there is an 18 month waiting time for repair and maintenance for the East Coast tug fleet, forcing many to go out of the region for service. According to the study, about 25 single occupancy dry docks will be needed by 2016. As a direct result of the study and recognizing the need for ship repair facilities, the Brooklyn Navy Yard recently extended its lease with GMD Shipyard for an additional 10 years.

Councilmember James S. Oddo said, "Staten Island should enjoy all the benefits of our geography. We are an island and we should have a thriving and vibrant maritime sector that provides good, high-paying jobs for Staten Islanders. I am hopeful that this study, along with others, will help guide us as we work toward utilizing our waterfront to its maximum economic advantage."

The study also recommends:

• Development of Maritime Support Service Hubs (MSSH) for auxiliary services to provide all workboat needs in one location and collect vessel parking fees to be used for pier maintenance and development. The first facility will be developed by SUNY Maritime College at its Throggs Neck facility in the Bronx.
• Preservation and strengthening support the six existing significant maritime industrial zones;
• Improve and create necessary additional infrastructure;
• Establish an additional mooring buoy zone to meet tie-up and berthing space shortage;
• Encourage private investment in City-owned properties that can be used for maritime support services by offering them for long-term lease.

New York City is home to more than 200 tugboats, representing 98% of the total fleet within New York Harbor, primarily based on the north shore of Staten Island and Erie Basin in Brooklyn. New York City serves as a hub for tugboat services for the region, which stretches from Boston to Virginia, with one quarter of the U.S. East Coast tugboat fleet located here. The tugboat fleet has grown by 37 percent since 1991, and the demand for their services continues to grow. Demand for barge services has also grown. The New York barge fleet represents almost one third of the total U.S. East Coast fleet. The New York region offers a system of navigable waterways that allows materials to be transported via barge more economically than by truck. Demand for barge service has increased by 20 percent, growing from 1,000 to 1,200 since 1991.
"The release of the Maritime Support Services Location Study is a pivotal moment for New York's waterfront and economy as we recognize the need to support our vital and growing maritime industry," said Metropolitan Waterfront Alliance President & CEO Roland Lewis. "The Metropolitan Waterfront Alliance applauds the City's and State's focus on growing this industry that will not only diversify our economy with good paying jobs, but improve air quality by moving more goods by boat rather than trucks."

Edward J. Kelly, Executive Director of the NYNJ Maritime Association said, "This study is a confirming proof of the vital maritime industry that is thriving within New York City and providing high-paying jobs with career opportunities, while stimulating the economic engine of international and domestic waterborne trade."

The Port of New York and New Jersey is the largest port on the East Coast and the third largest port in the United States. For each of the past eight years, the Port has grown at an average of seven percent, representing an overall growth rate in container trades of 54 percent. This increase leads directly to increased demand for maritime support services.

To download a copy of the full study, please visit http://www.nycedc.com/Web/AboutUs/OurProjects/CurrentProjects/MaritimeStudy.

About NYCEDC

New York City Economic Development Corporation is the City's primary vehicle for promoting economic growth in each of the five boroughs. NYCEDC's mission is to stimulate growth through expansion and redevelopment programs that encourage investment, generate prosperity and strengthen the City's competitive position. NYCEDC serves as an advocate to the business community by building relationships with companies that allow them to take advantage of New York City's many opportunities.


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