EXECUTIVE SUMMARY

The Port of Chicago consists of public marine terminals owned by the Illinois International Port District (IIPD) as well as private marine terminals within the corporate city limits of Chicago. The Port of Chicago’s public marine terminals include facilities at Lake Calumet and Iroquois Landing. Primary commodities handled by the public and private docks include steel, cement, liquid bulk, coal, salt, aggregates, sugar, scrap and other dry bulk commodities. It is the purpose of this study to quantify the regional economic impacts generated by the cargo, barge and vessel activity at these marine terminals.In calendar year 2002, nearly 30,000 jobs in the Chicago metropolitan region and the state of Illinois were in some way related to the activity at the Port of Chicago. Of the 30,000 jobs:

• 3,367 are direct jobs, in that these jobs are generated by activities at the Port, and if such activities should cease, these jobs would be discontinued over the short term. It is these jobs that are most directly dependent upon the barge and vessel and cargo activity at the Port of Chicago. These jobs are with the terminal operators, stevedores, International Longshoreman’s Association trucking firms, railroads, steamship agents, freight forwarders and customhouse brokers, warehousemen, federal government agencies, towing companies, pilot organizations, and marine construction companies. Nearly seventy-three percent of these jobs are held by residents of Illinois. Of those, nearly 35% are held by residents of the City of Chicago. Activity at the IIPD’s owned marine terminals created 47% of these direct jobs.

• 1,741 are induced jobs, or those jobs supporting the local purchases made by the 3,367 individuals holding the direct jobs due to port activity. Should the direct jobs be lost from the economy, the induced jobs supporting the purchases of the direct jobs would also be lost. These jobs are with local grocery stores, retail outlets, restaurants, transportation services, local government services, schools, hospitals, etc. The IIPD’s public terminals are responsible for 800 of these 1,741 jobs.

• The firms dependent upon the marine activity in the Port of Chicago made $248.3 million of local purchases for office supplies, equipment, utilities, communications, maintenance and repair services, transportation services, professional services, and goods and services. These purchases supported 3,423 indirect jobs in the Chicago economy. The public terminals account for about 72% of these indirect jobs.

• In addition to the direct, induced and indirect job impacts, 21,000 are with tenants of the Port operated Foreign Trade Zone (FTZ). These jobs are to be considered related to the Port of Chicago, but the degree of dependence on the port is difficult to estimate. The majority of the of these 21,000 are not dependent upon cargo moving over the marine terminals within the Port District, but are related to the Port since the Port is the operator of the FTZ.

Marine activity created nearly $398 million of personal wage and salary income for Chicago area residents.

• The 3,367 directly employed individuals received $125.6 million of personal wage and salary income, for an average salary of nearly $37,300. As the result of using a portion of this income for local purchases (which creates the induced jobs), $140.9 million of additional income and consumption expenditures were created in the state.

• Those 3,423 indirectly employed received $131.9 million of indirect income.

Businesses providing maritime services in the Port of Chicago received $685.3 million of revenue.

• The $685.3 million of revenue received by the businesses providing the services in the Port of Chicago does not include the value of the cargo moving over the marine terminals, since the value of the cargo is determined by the demand for the cargo, not the use of the marine terminals.

• Of the $685.3 million, $248.3 million was used for local purchases by those firms directly dependent upon port activity, and $125.6 million was paid out in terms of direct salaries to the area residents employed by these firms. It is to be emphasized that the value of sales or output by the directly dependent shippers/consignees is not included in the business revenue impact, even though the direct jobs and personal income with these shippers/consignees is included as a local impact.

A total of $39.8 million of state and local tax revenue was generated by maritime activity in the Port of Chicago in calendar year 2002.

• Of the $39.8 million of taxes generated by the maritime activity, $21.6 million was generated by the public facilities.