Economic Benefits

California Ports - Gateways to America

International trade is a major force in California's economy, currently accounting for nearly 25 percent of the state's economy. With major port facilities in the San Francisco and Los Angeles areas, California is a major gateway for products entering and leaving the United States. Many goods moving through California ports, such as industrial and postconsumer secondary materials, originated in other states. According to the California Trade and Commerce Agency, California exports of secondary materials have typically exceeded $1 billion annually. California’s public ports are a vital component of our local, regional, state and national economic well-being.

According to the California Marine and Intermodal Transportation System Advisory Council (CalMITSAC), in 2007, more than 40% of the total containerized cargo entering the United States, arrived at California ports; and almost 30% of the nation’s exports flowed through ports in the Golden State. Port activities employ more than half-a-million people in California and generate an estimated $7 billion in state and local tax revenues annually. Nationwide, more than 2 million jobs are linked to California’s public ports. In Long Beach alone, port activity generates one in every 22 jobs in Southern California and provides some $14.3 billion annually in regional wages and salaries.

When cargo operations at west coast ports were shut down for ten days during the Fall of 2002, due to disagreement between waterfront labor and management, the Pacific Maritime Association estimated loses to the national economy at nearly one billion dollars per day. California’s ports also provide non-cargo related services and facilities, such as passenger cruise line services, restaurant and hotel accommodations, entertainment, and tourist attractions. In San Francisco, for example, the port has day and nighttime activities on the waterfront. The Port of San Francisco’s Waterfront Land Use Plan encourages creation of new public access and recreation. The Port of San Diego boasts sixteen parks and numerous bike paths within its trust properties, as well as boating, dinning, lodging, fishing, shopping and touring accommodations.

Cruise ship operations provide tremendous economic benefit to local economies as cruise passengers stay and play in port cities before, during and after enjoying world-class cruises arriving at, and departing from, California’s ports. Many ports also develop and maintain commercial fishing facilities and recreational harbors and marinas.