Tuesday, 29 January 2013

America Can Learn From Port of Long Beach Shipping Investment

Recently, The Port of Long Beach officially approved a budget worth $1.2 billion, to convert two aging terminals into one giant super terminal, that will have the capacity to handle over 2 million additional shipping containers; on the site. The Middle Harbor Project, which began in 2011, will end up covering 342 acres when completed; sometime in 2019. The Port of Long Beach is the second busiest seaport in the United States and generates close to $5 billion in local, state and federal taxes, annually.

This investment is a classic example of the commitment that is needed in many regions of the United States, in order to stimulate local economies, create much-needed jobs and build the necessary infrastructures that will be required, if the U.S. is going to put itself into a strong position to contribute to economic growth and compete in the global economy; of the future. Just recently,  the American Society of Civil Engineers reported that the American infrastructure deficit now stands at $1.6 trillion and is expected to grow to at least $2.75 trillion over the next ten years; putting the country at a severe competitive disadvantage. The report also states that if this identified investment gap is not addressed throughout the nation’s infrastructure sectors by the year 2020, the country’s economy could be expected to lose close to $1 trillion in business sales, resulting in a loss of 3.5 million jobs; across the nation.

While the United States continues to struggle with it’s past financial/investment mistakes, it is becoming increasingly clear that investors will have to look at making the right investments now, if they are going to give themselves any kind of chance to re-build their future. While the Port of Long Beach forges ahead with their economic plans for greater prosperity, the rest of the country can take a look and see what it will take for them to follow suit. Of course, it will take enormous investments and foresight along with a strong commitment to make the right investments for the right reasons. That being said, the United States has done it before, namely in the Great Depression, and it worked out just fine back then.

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