Texas Border Business
Texas is a major player in the global economy. As one important example, the state is home to an enormous and crucial component of the nation’s maritime transportation infrastructure. Texas boasts 19 commercial seaports, 11 of which are deepwater, and more cargo moves through the Lone Star State than any other by far. These ports also support a large component of the economy, both here and elsewhere.
In 2022, almost 2.4 billion tons were shipped through US ports, with 651.7 million of them passing through Texas (well over one-fourth of the total). Of that amount, about 374.9 million tons represented exports to foreign markets, with another 56.8 million to domestic markets. Of the tonnage received, 127.6 million tons arrived from foreign countries and 25.5 million were domestic.
There are about 150 commercial ports in the United States, and six of the 20 largest (measured by tonnage) are located in Texas. Houston tops the list by a significant margin, while Corpus Christi is ranked third and rising rapidly. Other high-volume ports include Beaumont (ranked seventh), Port Arthur (15th), Texas City (17th), and Freeport (19th). Several others, including Galveston and Brownsville, also see notable cargo volumes.
Ports generate a substantial economic stimulus through their operations and capital expenditures. However, far larger impacts on business activity occur through the industries they facilitate through cargo imports and exports.
For exports, economic benefits reflect the value of production of the exported goods to the US economy. As an illustration, goods sold into world markets which are manufactured in the United States support the manufacture of the good and its components as well as leading to ripple effects through supply chains and payrolls throughout the economy.
For imports, economic benefits emanate from the value of downstream domestic activity which is generated. Many products are used as inputs to domestic output, supporting substantial activity. For example, components may be imported and later assembled and sold, generating value in the US economy. Some imports are finished goods, which lead to notable logistics and retail activity and provide consumers with desired products.
Ports are also vital to key drivers of the Texas economy such as the energy sector. Ongoing and planned infrastructure improvements such as offshore terminals and deeper channels will enhance the capacity for petroleum, petrochemical, and LNG exports. At the same time, wind turbine and solar panels for installation across the country arrive via cargo ships. A wide variety of Texas products are shipped to foreign markets, from agricultural commodities to manufactured goods.
Global trade not only generates economic activity; it also enhances the quality of life and prosperity of people around the globe. Texas ports make much of this happen, and their influence is expanding. Stay safe!
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Dr. M. Ray Perryman is President and Chief Executive Officer of The Perryman Group (www.perrymangroup.com), which has served the needs of over 3,000 clients over the past four decades.
