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Economic Value of Shipping in Cleveland tops $4.7 billion, Up $1 billion from 2015
Economic Value of Shipping in Cleveland tops $4.7 billion, Up $1 billion from 2015
Development Financing Supports $4.8 billion in Personal Income since 2010
Cleveland, OH (November 3, 2022) – The Cleveland-Cuyahoga Port Authority (Port Authority), also known as the Port of Cleveland, has completed an update to a key report on the economic value of cargo shipping through Cleveland Harbor including the Port Authority docks and private industry on the Cuyahoga River. The report also assesses the economic impacts of development financing services offered by the Port Authority.
The economic analysis of maritime cargo used data from 2021, which was compared to the Port’s last economic impact report released in 2016 using 2015 data. The methodology and data from the two reports are highly comparable.* Both reports were prepared by Martin Associates, the nation’s leading provider of seaport economic impact assessments.
The report finds that the total value of economic activity in the region that depends on or is related to maritime shipping increased by more than $1 billion compared to 2015, reaching $4.7 billion in 2021. The total number of jobs attributable to shipping topped 22,000 in 2021, a 10% increase from 2015. Total personal income in 2021 increased $368 million to $1.8 billion, up 25% from 2015. Business revenue earned by firms providing cargo and vessel handling services totaled $691 million in 2021, up from $514 million in 2015, a 34% jump. Taxes paid to state and local governments attributable to cargo shipping topped $240 million in 2021.
Stefan Holmes, Chair of the Port Authority board of directors, said, “we are very pleased to see these numbers up sharply from 2015, even in the face of the pandemic and supply chain disruptions. The Port’s mission is to grow jobs and commerce and foster economic vitality. This report card shows progress on all fronts”.
The report also calculated the construction employment person-hours, personal earnings, and taxes based on the total construction cost of projects that received Port Authority financing via the issuance of project revenue bonds and other types of Port-issued bonds. Since 2010, the total construction cost of projects financed utilizing Port bonds totals $6.2 billion**. This construction spending generated 161,283 person-hours of work in the construction industry, $4.8 billion in personal earnings, and $614 million in taxes paid to state and local governments from 2010 to 2021.
Will Friedman, President and CEO of the Port Authority, commented, “This report shows, once again, that commerce through Cleveland Harbor remains a pillar of the regional economy and is growing. Shipping and construction jobs that are catalyzed by Port bonds pay good wages and support families throughout our County and region. We’re proud to support these sectors and we are committed to increasing diversity, equity, and inclusion within the Port-related economy in every way we can.
*The methodology used to calculate taxes paid was changed from 2015, therefore these figures are not strictly comparable between 2015 and 2021.
**The total cost of construction on projects financed by the Port is used to calculate economic impacts. This total exceeds the amount of funds raised by Port bonds due to other sources of debt and equity for most transactions. In most cases, Port bonds are the largest source of capital for the project.
Port of Cleveland Awarded $27 Million Federal Infrastructure Improvement Grant
Port of Cleveland Awarded $27 Million Federal Infrastructure Improvement Grant
Cleveland, OH (October 28, 2022) – The Cleveland-Cuyahoga County Port Authority (Port of Cleveland) announced it has been awarded a $27,223,711 grant to improve cargo handling efficiencies, modernize and expand its electric, and stormwater infrastructure. The grant was awarded by the U.S. Department of Transportation’s (DOT) Port Infrastructure Development Program, which is administered by the U.S. Maritime Administration.
“We appreciate Northeast Ohio’s congressional delegation, Secretary Buttigieg, and MARAD Administrator Rear Admiral Phillips (US Navy, Ret.) for recognizing the importance of investing in the Port of Cleveland, and more broadly, Northeast Ohio’s economy,” said William D. Friedman, President and CEO of the Port of Cleveland. “By enhancing our port’s operations and improving our infrastructure, this grant will help create quality local jobs while bolstering our region’s competitiveness on the global stage.”
The Project will improve the Port’s largest warehouse (Warehouse A), continue the implementation of the Port Authority’s Stormwater Master Plan that seeks to improve the quality of stormwater discharging into Lake Erie, make necessary electrification investments to prepare the Port for a zero-emissions future, and construct a new on-Port maritime learning and resource center to support hands-on learning programs that prepare Davis Aerospace & Maritime High School students for employment opportunities in the maritime industry.
“This project will make key steps towards improving the quality of stormwater discharging from the Terminal into Lake Erie and lay the groundwork for the Port’s electrification and emissions reduction efforts,” said Nicholas LaPointe, Director of Planning & Capital Development at the Port of Cleveland.
This funding will have a significant regional economic impact given that the Port of Cleveland is the first major U.S. port of call on the Great Lakes. For ships transiting the St. Lawrence Seaway System, Cleveland is a gateway to major Midwest markets such as Columbus, Cincinnati, Pittsburgh, Indianapolis, and Chicago.
CHEERS Project Advances to Design Phase
CHEERS project advances to design phase
Transformational lakefront project enters design phase following Port of Cleveland board’s contract approval
Cleveland, OH (October 12, 2022) – In its October board meeting on Thursday, the Port of Cleveland’s Board of Directors approved a $3.75 million contract with Arup Engineering to undertake the design and permitting services needed to proceed with the transformational Cleveland Harbor Eastern Embayment Resilience Strategy (CHEERS) project.
“We’re excited to be moving forward into the design phase of this transformational and vital project that will benefit Northeast Ohio communities for generations to come,” said William D. Friedman, President and CEO of the Port.
CHEERS project partners include the City of Cleveland, Ohio Department of Transportation, Ohio Department of Natural Resources, Black Environmental Leaders Association, Cleveland Metroparks and the Port of Cleveland. Work is funded through a combination of matching funds provided by each partner and grant funding from the National Fish and Wildlife Foundation’s National Coastal Resilience Fund and the Maritime Assistance Program.
“We’re thrilled to move the CHEERS project into the design phase and create a more resilient, equitable and prosperous lakefront,” said Cleveland Metroparks CEO Brian M. Zimmerman. “The CHEERS project will be transformational for Cleveland’s East Side by protecting critical infrastructure, improving park access, and expanding natural habitat along the Lake Erie shoreline.
Arup was chosen after a request for proposal was released in March and a review of the submissions was made by CHEERS partner organizations, determining that Arup was the most qualified firm for the project.
Ohio Supreme Court affirms siting board ruling that allows Lake Erie wind turbine project to proceed
Cleveland – August 10, 2022 – A proposed six-turbine wind energy project in Lake Erie received a favorable decision from the Ohio Supreme Court which today ruled the project may proceed. The Court held the Ohio Power Siting Board properly issued a permit that allows construction of the project, dubbed Icebreaker Wind, to move ahead. Icebreaker is projected to have a $253 million local economic impact and create more than 500 jobs.
Writing for the Court’s 6-1 majority decision, Justice Jennifer Brunner explained that the siting board collected the necessary research to allow Icebreaker to begin construction, while also requiring more data before the company can operate the turbines.
“Rather than requiring Icebreaker to resolve those matters before issuing the certificate, the board determined that the conditions on its grant of the application were sufficient to protect birds and bats and to ensure that the facility represented the minimum adverse environmental impact,” Justice Brunner wrote.
Today’s ruling provides the Lake Erie Energy Development Corp. (LEEDCo) additional certainty so that it can market Icebreaker’s power to potential customers. One-third of the power is already under contract with the City of Cleveland and Cuyahoga County and with its permit secure, LEEDCo can now focus on marketing the remaining two-thirds of the electricity it will produce.
Will Friedman, President and CEO of the Cleveland-Cuyahoga County Port Authority, said the ruling – while expected – was nonetheless welcome news.
“The Court’s decision preserves the economic potential this project can unlock for the region.” Friedman said. By one estimate, there will be $70 billion in the offshore wind business pipeline in the U.S. by 2030.
“Other states are nipping at our heels to attract offshore wind and its economic benefits. We don’t want to squander this opportunity and let 15 years of work slip away to other states eager to capture market share.”
Icebreaker Wind has faced unprecedented review from regulators for over a decade, and has now received the necessary approvals from more than a dozen local, state and federal agencies—as well as sign-off from the state’s highest court. The project has also overcome a number of obstacles – many of them placed in the project’s path by fossil fuel interests.
The Supreme Court challenge was presented by two residents which, as exposed in court records, were bankrolled by Murray Energy, which prior to bankruptcy billed itself as the biggest coal company in the country. Today’s opinion stated that the residents “have not shown that the (Power Siting) board’s decision to issue the certificate subject to conditions was unlawful or unreasonable.”
Cleveland Mayor Justin Bibb said he believes renewables like Icebreaker Wind bring “a great opportunity to grow the wind industry locally as well as provide access to renewable energy for businesses and residents of Cleveland and the region. This project has always been a win-win for our economy and for our environment. Let’s position ourselves to be a leader, not a follower, to other states.”
LEEDCo Board Chairman Ronn Richard, CEO of the Cleveland Foundation, said Ohio has no choice but to embrace the energy transition to meet the state’s power needs. He noted Intel’s decision to build the world’s largest computer chip factory near Columbus includes a commitment to power 100% of its operations with renewable energy. Other companies in Northeast Ohio and throughout the state have also set ambitious renewable targets.
“We’re pleased with today’s ruling from the Ohio Supreme Court,” Richard said. “The Cleveland Foundation has supported Project Icebreaker from its inception because this is about more than clean energy – this is about a healthy economy and a healthy community. Project Icebreaker shows that Northeast Ohio – and the entire state of Ohio for that matter – is open for businesses.
“This decision will create jobs, attract talent from outside our region and retain the best and brightest minds from right here in Ohio,” he added. “It also shows that we’re committed to improving health outcomes for Ohioans by cleaning up the air we breathe and the water we drink. It’s our hope that LEEDCo can now resume selling the remainder of the power and turn this dream into a reality.
About Icebreaker Wind
Icebreaker Wind is anticipated to create over 500 jobs and pump $253 million into the region’s economy. Ohio already has the largest wind energy manufacturing base of any state in the US, according to the American Wind Energy Association. More than 275 manufacturing companies have expressed interest in being part of the project.
The project has received approvals from agencies including the Ohio EPA, the US Department of Energy, the Federal Aviation Administration, the US Coast Guard, the US Army Corps of Engineers, the US Fish and Wildlife Service, the Ohio Department of Natural Resources, and the Ohio Power Siting Board. It is endorsed by the Ohio Environmental Council, the Sierra Club and the Environmental Defense Fund, bipartisan officials from around the state, and others.
Nine miles from shore, the turbines would have minimal visual impact and not be visible on most days. On a clear day, a person standing on the downtown Cleveland lakeshore holding their arm out would see turbines no taller than half a thumbnail. The small project would only occupy .000002% of Lake Erie’s surface area.
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Port Announces 2021 Tonnage Numbers
Shippers Partner with Port of Cleveland to Solve Supply Chain Woes Port of Cleveland Volumes Surge in 2021 Due to Innovation, Planning & Execution
Cleveland, OH (January 26, 2022) - The Port of Cleveland saw a 69% increase in tonnage across its docks in 2021 compared to 2020. This surge was attributed to significant increases in non-containerized goods, containerized cargo, and iron ore shipments to the Cleveland-Cliffs Cleveland Works steel mill.
Early in 2021, the Port completed two major infrastructure projects that paved the way for the increased cargo volumes. First, the Port expanded its iron ore tunnel at the Cleveland-Bulk Terminal, providing additional capacity for the movement of iron ore. Additionally, the Port opened a new modernized and expanded main gate at its general cargo facility, which allows for the more efficient movement of trucks, decreases wait times for drivers, and more efficiently moves cargo on/off Port property. The Port also reactivated the Foreign Trade Zone space at the general cargo terminal, leading to additional volumes and cost savings for numerous Port clients.
Cargo owners sought new solutions with the Port of Cleveland in 2021 due to continuing issues in the global supply chain. Container volume doubled compared to 2020 as shippers changed their routings from large coastal ports to alternative ports such as Cleveland.
General Cargo Terminal Volume
Includes steel, containers, project cargo, salt, and cement
- A 57% increase over 2020 numbers
- 649,324 metric tons - 2nd highest in last 10 years (only slightly behind 2015)
- Containers handled doubled compared to 2020
Cleveland Bulk Terminal Volume
Includes iron ore and limestone throughput
- A 71% increase over 2020 numbers
- 6,943,139 metric tons
“Our cargo volumes bounced back in a big way in 2021 across the board, which indicates business is up at regional firms that depend on our Port,” said William Friedman, President, and CEO, Port of Cleveland. “We are particularly pleased to see containerized cargo grow significantly because we’ve worked for years to position Cleveland as an alternative to congested coastal ports. Our momentum continues as we continue expanding Port capacity and services to meet the shipping needs of Northeast Ohio and beyond.”
Discussing Alternative Supply Chain Solutions with Spliethoff
In this episode of Great Lakes Forward, our host Jade Davis, Vice President of External Affairs, is joined by Claus Sorensen, Vice President of Spliethoff Cleveland. They discuss how they are positioning themselves as a solution to the supply chain crisis in 2022 and beyond.
Great Lakes Forward is a podcast series by the Port of Cleveland that tells the untold story of maritime and tackles topics of shipping, logistics, and trade.
Find us on the web at www.portofcleveland.com and on Facebook, Twitter, Instagram, and LinkedIn we are @portofcleveland Email us with comments and questions at info@portofcleveland.com
Port of Cleveland Awarded $10.52m in State Maritime Grant Funding
Cleveland, OH (December 8, 2021) – The Cleveland-Cuyahoga County Port Authority (Port of Cleveland) announces it has been awarded $10.52 million in infrastructure development grants from the Ohio Department of Transportation’s (ODOT) Maritime Assistance Program (MAP). The grants will be utilized for the following projects in the amounts indicated and will provide leverage and match for more than $80 million in total funding for these five projects:
- The Irishtown Bend Stabilization and Rehabilitation Project | $5,000,000
- Rehabilitation of Docks 26 West and 24 | $946,884
- S. Customs and Border Protection Facility | $870,933
- Dock 20 North Paved Container Yard | $1,737,500
- CHEERS Project planning & design | $1,970,000
“We applaud the Ohio Department of Transportation’s Maritime Assistance Program for supporting Ohio’s ports,” said William Friedman, President and CEO, Port of Cleveland. “With these investments we will continue to modernize our Port, making our region more competitive, mitigate urgent public safety concerns and enable major, new public amenities on our shorelines.”
Irishtown Bend Stabilization and Rehabilitation Project
The Port of Cleveland is leading the effort to stabilize Irishtown Bend to protect people, preserve jobs and enable development of a transformative new park on the banks of the Cuyahoga River. The $5 million Ohio MAP grant, combined with other funding now secured, enables the Port to construct the stabilization elements in one phase and begin the work in 2022. Total cost of the stabilization is estimated to be $50 million.
Rehabilitation of Docks 26 West and 24
The Port of Cleveland has embarked on a comprehensive modernization of Docks 26 West and 24, the heart of the Port’s General Cargo Terminal. Key elements of the modernization include critical maritime infrastructure investments, installation of fiber communications backbone, and elements which will allow the Port to advance efforts to decarbonize and electrify the terminal in the future.
The Ohio MAP funding enables the Port to complete important work related to storm water management which allows for the capturing and treatment of effluent storm water prior to being discharged into Lake Erie. Total project cost is $23.1 million.
U.S. Customs and Border Protection Facility
Due to the growth in container cargo volumes moving in and out of the Port Cleveland, the Port must provide upgraded operational facilities for use by U.S. Customs and Border Protection (USCBP) adjacent to the cargo terminals. This dedicated space will allow for USCBP staff to more efficiently clear imported cargo into the country, solidifying Cleveland as the preferred port for international trade on the Great Lakes. Total project cost is $2.0 million.
Dock 20 North Paved Container Yard
The Port will use this funding to modernize Dock 20 North as an additional container yard, increasing the Port’s container throughput capacity. The Port of Cleveland is already the only container port on the Great Lakes and this project will enhance Cleveland’s competitive advantage in handling containerized cargo. Total project cost is $3.8 million.
CHEERS Project to Ensure Sufficient Dredge Disposal Capacity
The Cleveland Harbor Eastern Embayment Resilience Study (CHEERS) is a major shoreline rehabilitation and resiliency project envisioned along Cleveland’s east side Lake Erie shoreline. The Port of Cleveland, along with its partners (City of Cleveland, Ohio Department of Natural Resources, Ohio Department of Transportation, Cleveland Metroparks, and Black Environmental Leaders) crafted a plan to utilize the beneficial use of dredge material to build the public open space and habitat, as well as protect critical infrastructure in the area. This funding, together with additional funds through the National Fish and Wildlife Foundation, will be used for further planning of the design and engineering of this vision. Total funds now available for the next phase of planning and design is $3.9 million.
“This investment from the Ohio Department of Transportation will help us, along with our partners, bring the CHEERS vision closer to reality,” said Linda Sternheimer, Director, Urban Planning and Engagement, Port of Cleveland. “Our vision is centered around embracing Lake Erie as a key asset for future generations, connecting Cleveland’s east side neighborhoods to the lakefront making the area resilient to our changing climate while ensuring our lakefront is safe for all to enjoy.”
Port of Cleveland to Provide Bond Financing for Fairfax Market
Cleveland, OH (November 10, 2021) – The Cleveland-Cuyahoga County Port Authority (Port of Cleveland) Board of Directors unanimously approved financing for the newly announced Fairfax Market project. This project is part of the Innovation Square Fairfax Renaissance Plan for Fairfax Renaissance Development Corporation (FRDC). The plan, to be developed on the 2.9 acres located at E. 105th Street and Cedar Avenue, comprises:
• 1st floor: A 40,000 sq. ft. grocery store
• 2nd-5th floors: Residential units
• 200-space parking garage
Of the total project cost ($59m), the Port of Cleveland will provide privately placed bond financing that raises $37m. Project partners include FRDC and Cleveland Clinic (who will support apartment leasing), in partnership with Meijer who will be entering the urban Cleveland market with this location. Cleveland-based Fairmount Properties will develop the project.
“This is exactly the type of project that is needed to support current residents,” said Pat Ramsey, Chair of the Port of Cleveland Board of Directors. “It fills a critical need in the marketplace and community while adding essential workforce housing to support our region’s largest job center. Overall, this is a transformative project for the Fairfax neighborhood.”
Exclusive Great Lakes Forward Episode: Cleveland Europe Express - More Cargo, More Capacity
In this exclusive episode of Great Lakes Forward, our host Jade Davis, Vice President of External Affairs, is joined by David Gutheil, Chief Commercial Officer, to announce that the Cleveland-Europe Express service is growing with the addition of the PEYTON LYNN C, a container-only vessel that further connects Europe directly to Cleveland. This additional vessel gives cargo owners more options to avoid coastal congestion and to move their cargo directly in and out of America's heartland.
Great Lakes Forward is a podcast series by the Port of Cleveland that tells the untold story of maritime and tackles topics of shipping, logistics and trade. Find us on the web at www.portofcleveland.com and on Facebook, Twitter, Instagram, LinkedIn and YouTube we are @portofcleveland Email us with comments and questions at info@portofcleveland.com
Global Visibility & Smart Logistics
Proudly celebrating its 60th anniversary, on the shores of Lake Erie, World Shipping Inc., has grown to become an international organization managing complex international supply chains. In this episode of Great Lakes Forward, our host Jade Davis, Vice President of External Affairs, is joined by Jackie Csiszar, Vice President, World Group. Together they discuss the creative solutions required to navigate the global supply chain, as coastal ports experience congestion and delays
Great Lakes Forward is a podcast series by the Port of Cleveland that tells the untold story of maritime and tackles topics of shipping, logistics and trade. Find us on the web at www.portofcleveland.com and on Facebook, Twitter, Instagram, LinkedIn and YouTube we are @portofcleveland Email us with comments and questions at info@portofcleveland.com