With international trade barriers being reformed and relaxed and more and more countries emerging as viable contributors to the global economy, many industry analysts are predicting that an economic boom is just on the horizon. But, along with the good financial news, comes bad. Regions that fail to prepare for the future demands of the shipping industry, are likely to find themselves in a weak competitive position, versus the prospering regions that have committed to the necessary investments early on.
Although there are countless reasons why so many countries and regions around the world should invest in their port infrastructures, the biggest seems to be the financial benefits it provides to local economies. In the United States for example, the Port of New Orleans contributes more than $8 billion in earnings annually and generates $800 million in Louisiana state taxes, while at the same time supporting over 160,000 jobs. Like the economic benefits experienced in New Orleans, many other shipping ports across Europe are widely considered their region’s economic lifeline and are relied upon to deliver prosperity.
With that being said, every smart investment is made with the intention of generating a positive return and delivering investment profits to investors. Port investments are no different. Governments around the world are making investments into their shipping industry, in an effort to put their own region in a competitive trade position today, so that they are more likely to profit in tomorrow’s market and well into the future.