Maritime Trade and Transport - HWWI

2. The macroeconomic significance
of the transport sector
Providing transport-related infrastructure is still considered one of government’s genuine
responsibilities. After all, a fully functional port, rail and road system ensures a high degree of
productivity, growth and employment for an economy. The situation is similar for the matter
of “security,” which has assumed an altered, indeed a global dimension, at least since the events
that took place in the United States on September 11, 2001.
According to World Bank estimates, depending on the country, as much as 10% of the
GDP accrue along the logistics chain. It should be kept in mind that economies without
direct access to the sea often incur 50% higher logistics costs than seafaring nations. The absolute
figures are therefore not always as significant as a tightly-meshed, well-functioning transportation
network.
Closely connected with the added value potential is the effect on employment. Between
2.5% and 11.5% of all employees work in the freight and shipping industry. In Germany, 2.6
million people are employed by 60,000 companies in this sector. Not only was Germany the
world champion in exports in 2005, but its logistics sector was the world’s largest. On a national
level, only the retail trade and the automotive industry were more important (Federal
Statistical Office). As an example, the Port of Hamburg provides work directly or indirectly for
some 154,000 people. Investments planned up to the year 2015, amounting to up to €1.5 bn,
could result in an additional 14,000 jobs.
The relative importance of this sector is also high in the USA. In 2005, according to
figures published by the American Association of Port Authorities, the port sector alone provided
approximately 4 million jobs. Added value of $723 bn, or 6.6 % of the GDP, accrued.
This means that investments in ports, roads, railroad systems and airports are particularly
relevant, generally amounting to 1.5%–2.5% of the GDP. The classic investment multiplier
generates additional growth through mushrooming effects. Figures have shown steadily over a
long period of time that the demand for transport services increases 1.5 times as quickly as
the GDP itself. For many countries, it is therefore of paramount macroeconomic importance
to solve the bottleneck problems in their ports and land connections as quickly as possible.
Berenberg Bank · HWWI: Strategy 2030 · No. 4
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