OCEAN TRADE: An engine of economic growth.

Since their colonial days, the nations of the Western Hemisphere have relied on ocean trade. Harbors along the Atlantic and Pacific coasts provided entry points for early settlers and frequently grew into major cities.

Today, the hundreds of ports in North, Central and South America, as well as the Caribbean, play a major economic role in their communities. In addition to handling ocean borne cargo, the ports of the Western Hemisphere provide facilities to transfer cargo between ships, barges, trucks and railroads.

Many ports also provide terminals that serve the growing cruise passenger industry. Nearly five million North Americans take cruise vacations each year.

Ports are also centers for warehousing, storage and manufacturing operations. Trade zones, which are frequently located near major ports, allow industrial companies to import materials, assemble products and export them at greatly reduced tariff rates, providing jobs for area residents. Many ports are also involved in regional economic development projects.

In keeping with trends in world trade, ports are continually updating their facilities. For instance, today's larger vessels need deeper harbors and channels. Other improvements include larger gantry cranes and more efficient customs clearing procedures.

Trade represented 13% of the U.S. gross domestic product (GDP) in 1970, according to the American Association of Port Authorities (AAPA), a trade group based in Alexandria, Virginia, that represents more than 140 port agencies throughout the Western Hemisphere. By 1996, that U.S. figure had risen to 30% of GDP, or about US$2.3 trillion. In keeping with that growth, U.S. ports have invested more than $16 billion in infrastructure improvements since World War II and continue to invest more than $1 billion each year.

Much of the growth has occurred in container traffic, which allows goods to be shipped by water and then conveniently transferred to trucks or rail lines. North America container traffic reached 31.7 million TEUs in 1999, the highest in the five years of AAPA statistical record-keeping, and a 7.4% increase from the 29.5 million TEUs in 1998. Last year's total included 27.9 million TEUs in U.S. ports, 1.1 million in Mexican ports and 1 million in Canadian ports.

In Latin America, the top five container ports were Buenos Aires, Argentina; Colon, Panama; Santos, Brazil; Kingston, Jamaica; and Puerto Cabello, Venezuela. Both Buenos Aires and Colon handled more than 1 million TEUs in 1999.

In the next decade, ocean trade will continue to play a key role in the development of the hemisphere's economies, especially in agricultural cargo, petroleum and chemicals, and a wide array of manufactured goods, including technology goods. In fact, the amount of cargo shipped by water is expected to triple by 2020. As a result, the ports and transportation lines serving the Western Hemisphere will continue to invest in new equipment and cargo handling and storage facilities.

Port of Houston 

For nearly a decade, more foreign cargo has been shipped through the Port of Houston than any other U.S. port. Today, Houston is the largest U.S. port in foreign tonnage and second in total tonnage, handling approximately 169 million tons per year. Mexico, Venezuela and Brazil are the port's largest Latin American trading partners.

With general cargo, container, liquid bulk and dry bulk handling facilities, as well as a foreign trade zone, the Port of Houston offers efficient service and convenient access to America's markets. Rapid growth in the containerized cargo and cruise business has stimulated expansion to keep pace with customer demands.

For example, new rail service is now available from the Port of Houston Authority's Barbours Cut Terminal to the Port of Los Angeles. A new container facility is planned at the Bayport Terminal, and another container terminal has been leased at the nearby Port of Galveston.

"We hope to start building another dedicated container complex at Bayport south of Barbours Cut, and a merger with the Port of Galveston is being discussed," says Rosie Barrera, director of public affairs. "We are also actively pursuing new business opportunities in Mexico and other Latin nations."

For more information, visit www.portofhouston.com.

Port Everglades

As one of South Florida's strongest economic engines, Port Everglades serves as a gateway to Latin America and the Caribbean through cargo connections and exotic cruises, offering full-service facilities to accommodate a wide variety of maritime activities.

Containerized cargo tonnage has been making impressive gains since 1990, growing 78% from 1990 through 1999, when total waterborne commerce tonnage exceeded 23.6 million tons.

Emerging markets in Latin America, as a result of privatization and the influx of foreign capital, has fueled this growth. As most of Port Everglades' trade is in growing Latin American markets, the long-term projections of reaching 6 million tons by 2005 and up to 8 million tons by 2010 are reasonable estimates.

"Steel imports and automobile exports have increased dramatically over the last 12 months," says Port Director Paul D. DeMariano. "Our steel tonnage imports nearly doubled when compared to the previous year, reaching 213,000 short tons. This year, we are expecting to exceed fiscal year 1999 throughput. In addition, automobile exports have grown exponentially over prior years and are expected to exceed approximately 45,000 units, which is a relatively small volume, but unusual nonetheless. We attribute these trends to South Florida's growth and our logistical strength."

Port of Miami

The Port of Miami is the leading cruise port in the world and ranks among the top 10 container ports in the United States. The seaport is also a major generator of economic activity for Miami-Dade County, contributing over $8 billion annually to the local economy and supporting approximately 45,000 jobs in the South Florida area.

Coming out of a flat 1999, the port is now enjoying double-digit growth in almost all its trade lanes. The resiliency of Central and South America is manifest in the respective 23% and 27% tonnage increases so far in fiscal 2000. Trade with Europe is also growing at a healthy rate, exceeding 25% over this time last year.

Geographic proximity and cultural links to Latin America and the Caribbean have been key contributors to the growth of the port, and they continue to play a major role when contemplating future trends at the Port of Miami. At the same time, Miami's seaport is laying the foundation for a flourishing trade with emerging markets in the south and west coasts of Africa, as evidenced by the over 50% growth in cargo traffic with the region.