CHOCTAW POINT TERMINAL PROJECT IMPACTS MOBILE ECONOMY
ALABAMA STATE PORT AUTHORITY RELEASES STUDY

The Alabama State Port Authority released today Mobile area estimates on the economic impact derived from the Authority's Choctaw Point Terminal project.   Dr. Semoon Chang, Director for the Center of Business and Economic Research at the University of South Alabama (USA), conducted the study, titled Economic Impact of the Choctaw Point Intermodal Facility on the Mobile Area.  The study identifies project related jobs creation, tax receipts and retail sales expenditures.    James K. Lyons, Director and CEO, Alabama State Port Authority, advised, "earlier studies conducted on the Choctaw Point project did not address local economic impact. We had also received numerous inquiries during our environmental impact study process on the project's local benefit potential.  In that these question needed addressing, we asked Dr. Chang to assess the intermodal facility project and produce his findings." 

The USA study identifies Mobile area impacts on construction of the Choctaw Point Terminal site, container yard and multi-user intermodal facility only.  Lyons added, "this study measures only the impact of initial phases of Choctaw Point Terminal and does not address the impacts generated from ongoing Alabama State Docks cargo activities or its expansion and modernization programs elsewhere in the Port."

Between the years 2002 and 2006, Dr. Chang estimates the project will create over $83 million in retail expenditures and 552 in 2003, 1,345 in 2004, 1,425 in 2005 and 596 in 2006 construction-related jobs.  Total tax revenues for Mobile County, City of Mobile, State of Alabama, and public schools are estimated to exceed $7.5 Million over the five-year construction period, the study reported. 

The USA study also projects long-range employment and tax benefits to the community based on the operations of the container yard and intermodal facility only.  Dr. Chang estimates by the year 2015 the direct and indirect employment created by the Alabama State Docks alone for operation of the Choctaw Point container and intermodal facility is estimated to be 483 with an annual wage impact of $16,295,454.  By that same year, annual tax revenues from the 483 jobs are projected to exceed $421,000 per year for the City of Mobile and Mobile County coffers with an additional $861,552 tax revenues for the State of Alabama and public schools.  Dr. Chang also cites additional impacts on newly created private sector service industries.  By 2015, these service sector industries will create 1,696 jobs including the multiplier effect, with annual wages totaling over $57 million and combined state and local tax benefits of over $4.5 million per year.   Service sector industries include shipping lines, trucking companies, service and repair industries, logistics firms and suppliers.  Although not estimated in the study to avoid any speculation, Dr. Chang says, “I strongly believe that new businesses with additional economic impact will be attracted to the Value-Added & Distribution area of the facility once the facility is fully operational.”