High Value Added Port Operations

23.05.2011

Every euro generated by port operations generates 1.12 euro of value added at the state level, and each employment post within the company engenders 1.6 private sector jobs outside the company. Considering this perspective, it would make sense to allocate additional investments into port activities, in particular as regards expansion of the port and the construction of the second Sežana-Divača railway track in order to improve communications links, as well as foster diversification in the provision of logistics services in Slovenia. These are also the principal findings of a study performed by Dr. Jože P. Damijan at the Institute of Economic Research in Ljubljana.
 
The study's author calculated that the total direct impact of port activities in Slovenia amounted to 94.5 million euros in value added in 2008. The indirect impact of other activities, such as road and rail transport, forwarding services, construction, financial and other services stood at 115.8 million euros. Thus in 2008, the total (direct and indirect) impact of port operations added over 200 million euros to the nation’s economy.
 
The volume of port operations recorded a downturn in 2009 as a consequence of the global recession, which was even more evident in transport and forwarding services, as well as other related activities. Indeed, the overall impact fell by eighteen percent (from 200 to 164 million euros).
 
In 2008, port activities generated 4,218 jobs, of which less than fifty percent (1,582) were in port operations and its ancillary services, thus over the following year the numbers of those directly or indirectly employed as a consequence of port operations declined due to the recession. Nevertheless, as a consequence of the rigidity of the labour market, the downturn in number of jobs was significantly lower than that of cargo throughput volumes and transport services (only 3.1%).

The methodology used in the study was conservative; indeed for reasons of statistical significance, a number of indirect impacts of port activity couldn't have been adequately assessed without a risk of statistical error. The method applied was similar to that of the Belgian central bank in its estimation of the macro-economic impacts of Belgian ports. Dr. Damijan thus established that the multiplication influences of Slovenia’s sole seaport were of a magnitude similar to those in Belgium, which proves that its efficacy may be compared to that of other ports in Europe whose maritime traditions are more deeply rooted.