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New study reveals major economic impact of Haven Gateway’s ports, shipping and logistics sector
Friday, 21 May 2010 09:01

The major economic impact of the Haven Gateway’s ports, shipping and logistics sector has been demonstrated in a new study which shows that the sector has an annual turnover of about £3 billion and directly employs 32,200 people in the subregion. Not only does the ports, shipping and logistics sector directly provide 11.3% of total employee jobs in the Haven Gateway, it also buys £100 million of services in the area, thus creating another 1,000 jobs in local service sectors, the study has revealed.

The Haven Gateway includes the Port of Felixstowe, Britain’s largest container port; Harwich, one of the country’s top ro-ro and cruise ports; Ipswich, the country’s most important grain export facility and a major dry bulks port; and the niche ports of Harwich Navyard, Mistley and Brightlingsea.

The new study, commissioned by the Haven Gateway Partnership, shows that ports and logistics employees earned an average £29,000 p/a in 2009 – about 20% above the Haven Gateway average.

Salsa Shipping  The 32,200 employees have an after-tax income of approximately £740 million, which equates to the generation of a further 10,000 to 12,000 jobs across the rest of the local economy, the study shows.

As well as establishing the significance of the industry to the area, the study looks ahead to the needs of the sector, particularly as additional container handling facilities come on stream in Felixstowe and, further into the future, at Harwich.

The study concluded that the Haven Gateway will need 165 new employees in the sector each year over the next few years – but more significantly, it will also need 1,250 people to replace those employees that retire or move to other jobs.

The Felixstowe South port expansion will create 600 direct jobs and is likely to create another 860 jobs locally in other service industries. The Bathside Bay development at Harwich could create 772 new jobs directly, and another 928 indirectly.

“Ports and logistics can continue to generate wealth for the local economy but it is essential that we ensure we have the right skills in place to serve the needs of the sector, and that our hospitality, professional and business services sectors recognise and act on the opportunities,” said Haven Gateway projects manager Richard Morton.

“Our cruise and ferry passengers spend locally in restaurants, hotels and retail outlets, while the sector makes a huge call on professional services such as accountancy & audit; advertising; transport, engineering & maintenance services; insurance; IT and legal services; and training.”

Continuous growth is needed if the area is not to be ‘left behind’ by the impact of globalised trading, said Mr Morton.

“Our participation in the European Union’s Dryport project, in which we are a core partner, is another example of the Haven Gateway’s proactive approach. Dryport is the ideal platform for exploring innovative logistics solutions which are efficient, cost-effective and environmentally friendly.

“Through Dryport we are sharing experiences with colleagues across Europe and working individually on specific Haven Gateway initiatives which will support the continuing growth of our ports and logistics sector.”