Port Pascagoula drives $18.3 billion in economic impact for Mississippi – Magnolia Tribune

 

Economic Impact Analysis of Port Pascagoula and its Alignment with Sustainable Development Goals (SDGs)

Executive Summary

A comprehensive study for fiscal year 2024, conducted by the University of Southern Mississippi’s Trent Lott National Center, reveals Port Pascagoula’s significant economic contributions to Mississippi. The report highlights the port’s role as a critical driver for economic growth, job creation, and infrastructure development, directly supporting several United Nations Sustainable Development Goals (SDGs), particularly SDG 8 (Decent Work and Economic Growth) and SDG 9 (Industry, Innovation, and Infrastructure).

Contribution to SDG 8: Decent Work and Economic Growth

Port Pascagoula is a major catalyst for economic activity and employment in Mississippi, embodying the principles of SDG 8. The port’s operations and associated industries foster sustained, inclusive, and sustainable economic growth, full and productive employment, and decent work for all.

Key Economic and Employment Metrics

• Total Economic Output: $18.25 billion
• State Manufacturing GDP Contribution: Approximately 22.5%
• Total Jobs Supported: 28,345 statewide
• Annual Labor Income: $1.88 billion
• Value Added (GDP) Contribution: $5.22 billion

Direct and Indirect Employment Impact

The port’s economic influence extends beyond its direct operations, creating a ripple effect throughout the state’s economy.

• Direct Employment (Port and Tenants): Nearly 13,000 jobs, generating $1.14 billion in direct labor income.
• Port Perimeter Industries: Account for approximately 12,000 direct jobs with over $1 billion in annual wages. These include petroleum refineries, shipbuilding facilities, and transportation companies.

Alignment with SDG 9: Industry, Innovation, and Infrastructure

As a vital piece of resilient infrastructure, Port Pascagoula promotes inclusive and sustainable industrialization and fosters innovation, directly aligning with the objectives of SDG 9. Its strategic location and multimodal connectivity are foundational to regional and national supply chains.

Infrastructure and Industrial Operations

• Cargo Operations: Handled over 845,000 tons of freight in 2024, supporting 569 jobs and generating $44.5 million in economic output.
• Multimodal Connectivity: Provides access to rail, truck, and pipeline networks, enabling efficient goods movement.
• Industrial Footprint: Major on-port industries generated nearly $15 billion in direct economic output in 2024.

Capital Investment and Future Development

Ongoing investment in the port’s infrastructure demonstrates a commitment to long-term industrial development and modernization.

• Total Capital Investment (FY 2024): $144 million
• Investment Breakdown:
  • Construction: $29.6 million
  • Equipment Purchases: $114.4 million
• Economic Impact of Investment: Supported an additional 562 jobs and generated $95.3 million in economic output.

Support for SDG 11: Sustainable Cities and Communities

The port’s economic activity generates substantial tax revenue, which is critical for funding public services and developing sustainable communities in Jackson County and across Mississippi, contributing to the aims of SDG 11.

Tax Revenue Generation

• Total Combined Tax Revenues: $879 million
• Revenue Distribution:
  1. Local: $155.4 million
  2. State: $229.7 million
  3. Federal: $494.2 million

The majority of the port’s economic benefits are concentrated in Jackson County, which sees 23,572 jobs and $17.3 billion in total economic output, reinforcing the local economic base.

Strategic Recommendations for Sustained Growth

The study concludes with recommendations to enhance the port’s impact, ensuring its continued contribution to regional sustainable development.

1. Expand value-added activities to attract new investment into the region.
2. Recruit new firms that benefit from seaport proximity.
3. Increase utilization of the port by Mississippi-based shippers.
4. Focus on reducing end-to-end logistics costs to improve competitiveness.

Sustained momentum will require disciplined planning, proactive market development, and timely activation of all feasible sites to ensure Port Pascagoula continues to serve as an anchor for manufacturing, logistics, and trade in Mississippi.

Analysis of Sustainable Development Goals in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

The article on Port Pascagoula’s economic impact directly addresses or connects to the following Sustainable Development Goals (SDGs):

• SDG 8: Decent Work and Economic Growth: The core theme of the article is the port’s massive contribution to economic growth, job creation, and labor income in Mississippi.
• SDG 9: Industry, Innovation and Infrastructure: The article focuses on a major piece of infrastructure (the port) and its role in fostering industrial development, including manufacturing, shipbuilding, and logistics.
• SDG 11: Sustainable Cities and Communities: The port’s economic activity generates significant local tax revenue, which supports the local community and its services, thereby contributing to the economic sustainability of Jackson County.
• SDG 17: Partnerships for the Goals: The operation of the port and the creation of the economic impact study itself are examples of partnerships between public entities, private companies, and academic institutions.

2. What specific targets under those SDGs can be identified based on the article’s content?

Based on the article’s content, the following specific SDG targets can be identified:

1. Target 8.1: Sustain per capita economic growth in accordance with national circumstances and, in particular, at least 7 per cent gross domestic product growth per annum in the least developed countries.
   • The article details the port’s significant contribution to the state’s economy, stating it “generates more than $18.25 billion in total economic output” and contributes “$5.22 billion in value added (GDP)”. This directly relates to sustaining economic growth.
2. Target 8.5: By 2030, achieve full and productive employment and decent work for all women and men, including for young people and persons with disabilities, and equal pay for work of equal value.
   • The report highlights that the port supports “28,345 jobs” and generates “$1.88 billion in labor income annually,” directly addressing the goal of creating employment.
3. Target 9.1: Develop quality, reliable, sustainable and resilient infrastructure, including regional and transborder infrastructure, to support economic development and human well-being, with a focus on affordable and equitable access for all.
   • The article describes Port Pascagoula as a “deep-water facility” with “multimodal connectivity” including “rail, truck, and pipeline connections,” which is a clear example of developing quality infrastructure to support economic development.
4. Target 9.2: Promote inclusive and sustainable industrialization and, by 2030, significantly raise industry’s share of employment and gross domestic product, in line with national circumstances, and double its share in least developed countries.
   • The article states that the port contributes “approximately 22.5 percent of the state’s entire manufacturing GDP” and its industrial footprint includes major operations like “petroleum refineries… shipbuilding and repair facilities,” demonstrating its role in promoting industrialization.
5. Target 11.a: Support positive economic, social and environmental links between urban, peri-urban and rural areas by strengthening national and regional development planning.
   • The article notes that while Jackson County captures the majority of the benefits, the “port’s influence extends statewide through supply chain connections and worker spending patterns,” highlighting the creation of positive economic links between different areas.
6. Target 17.17: Encourage and promote effective public, public-private and civil society partnerships, building on the experience and resourcing strategies of partnerships.
   • The port is operated by a public entity (Jackson County Port Authority), involves private terminals and tenant companies, and the study was conducted by a university (University of Southern Mississippi). This structure is a clear example of a public-private-civil society partnership.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

Yes, the article mentions several quantitative and qualitative indicators that can be used to measure progress:

• For SDG 8:
  • GDP Contribution: The article provides a specific value of “$5.22 billion in value added (GDP) contribution.” This is a direct indicator for Target 8.1.
  • Total Economic Output: The figure of “$18.25 billion in total economic output” serves as a measure of overall economic activity.
  • Number of Jobs Supported: The article states the port supports “28,345 jobs,” which is a key indicator for Target 8.5.
  • Labor Income: The “$1.88 billion in labor income annually” is an indicator of the quality and financial benefit of the employment created.
• For SDG 9:
  • Manufacturing’s Share of GDP: The statement that the port contributes “22.5 percent of the state’s entire manufacturing GDP” is a direct indicator for Target 9.2.
  • Freight Volume: The article mentions that “Cargo operations handled more than 845,000 tons of freight in 2024,” which measures the usage and capacity of the infrastructure (Indicator 9.1.2).
  • Investment in Infrastructure: The “$144 million in capital projects during fiscal 2024” is a clear indicator of ongoing investment to upgrade and develop infrastructure.
• For SDG 11:
  • Local and State Tax Revenue: The article specifies that the port generates “$155.4 million in local tax revenues” and “$229.7 million in state tax revenues.” These figures are indicators of the port’s contribution to the local economic base, which funds community services.
• For SDG 17:
  • Existence of Partnerships: The article’s description of the port’s operation by the “Jackson County Port Authority” (public) with “public and private terminals” and the study’s completion by the “University of Southern Mississippi’s Trent Lott National Center” (civil society/academia) serves as a qualitative indicator of a functioning multi-stakeholder partnership.

4. Summary Table of SDGs, Targets, and Indicators

SDGs	Targets	Indicators
SDG 8: Decent Work and Economic Growth	8.1: Sustain per capita economic growth. 8.5: Achieve full and productive employment and decent work.	– Total economic output: $18.25 billion – Value added (GDP) contribution: $5.22 billion – Total jobs supported: 28,345 – Annual labor income: $1.88 billion
SDG 9: Industry, Innovation and Infrastructure	9.1: Develop quality, reliable, sustainable and resilient infrastructure. 9.2: Promote inclusive and sustainable industrialization.	– Investment in capital projects: $144 million – Contribution to state manufacturing GDP: 22.5% – Freight handled: 845,000 tons – Presence of multimodal connectivity (rail, truck, pipeline)
SDG 11: Sustainable Cities and Communities	11.a: Support positive economic links between urban, peri-urban and rural areas.	– Local tax revenues generated: $155.4 million – State tax revenues generated: $229.7 million – Statewide economic influence through supply chains
SDG 17: Partnerships for the Goals	17.17: Encourage and promote effective public, public-private and civil society partnerships.	– Operation by a public Port Authority with private tenants. – Collaboration with a university for the economic impact study.

Source: magnoliatribune.com