Port generates jobs, revenue, economic activity for region

Port of Seattle transportation facilities supported nearly 200,000 jobs in the Puget Sound region in 2003 and generated more than $12 billion in business revenue and $626 million in state and local taxes, according to a new study of the Port's economic impact.

The vast majority of those work for companies who do business in the Seaport and Seattle-Tacoma International Airport. The resulting economic activity is equivalent to that created by a company larger than either Microsoft or the University of Washington, or about half the size of Boeing.

"The study highlights the Port's role as a major economic engine for the region," said Bob Edwards, president of the Seattle Port Commission. "Seattle-Tacoma International Airport, our shipping and cruise terminals and our real estate holdings are a key creator of employment and wealth in this area."

"This is an important planning tool," said Port CEO M.R. Dinsmore. "In addition to giving a snapshot of the economic activity generated by the Port, the study will help guide Port commissioners and executives when they decide whether to expand or build new capital facilities."

The report was written by Martin Associates, of Lancaster, PA., a national consulting firm which specializes in analysis of port districts. Information for the study came, in part, from interviews with 1,150 firms providing services at Port facilities and with 1,000 airport passengers.

The study measures the impact of maritime cargo operations, the cruise industry, fishing, recreational boating and the seaport's real estate portfolio. It considers direct impact, or jobs and wages produced directly by the Port's operations, as well as induced impact, or the jobs and economic activity than can be attributed to purchases by those holding direct jobs. Finally, the report also includes indirect jobs and impacts - or those attributable to purchases by firms that are directly dependent on the Seaport.

At Sea-Tac, the economic analysis considers jobs related to passenger travel and air cargo, as well as the on-going construction of new facilities, including a new Central Terminal building, which will open later this year, and the Third Runway, which is due to be completed in 2008.

The Martin study found that 34,501 jobs were supported by the Seaport, including17,927 jobs directly attributable to Seaport activity, 11,198 "induced" jobs that are attributable to purchases by those holding direct jobs, and 5,376 "indirect" jobs generated in the local economy. In addition to these impacts, the Martin study found that about 148,5000 jobs in the state of Washington are related to the marine cargo moving through the Seattle harbor.

The study found 160,174 jobs related to the airport, including 97,999 jobs directly resulting from activity at the airport and local purchases by visitors arriving in the area. In addition, 40,131 jobs result from local purchases by those employees. Finally, 22,044 "indirect" jobs result from purchases by firms that depend on Sea-Tac. Martin said 143,700 jobs are related to the airfreight shipped through Sea-Tac.

Interviews of air passengers indicated Sea-Tac is an important destination not only for local residents but also residents of British Columbia. It found that of the 13.4 million passengers who boarded flights at Sea-Tac in 2003, about 6.3 million were visitors to the area. The study reflects a decline in air travel at Sea-Tac between 1999 and 2003, in part due to the Sept. 11, 2001, terrorist attacks. In 2004, however, passenger activity returned to record levels.

Dinsmore noted that the Port will be able to do annual updates of the economic-impact report from now on.