Seaports play a very important role in the trade, especially for international trade. The shipping cost by sea is far lower than by air, because the vessel could carry large amount of products to lower its shipping cost per unit. The decline of the shipping cost could keep the comparative advantage of the products sell to other countries. With the development of the sea transportation, some new business appeared, such as port service, security service, shipping insurance and truck shipping. This has contributed to local economy.
When we talk about the comparative advantage of the economy, it is usually between countries. But it also can be applied to the region’s economy. Such as port in the Rhode Island, it creates a lot of jobs and makes a great contribution to the local economy. The products which are shipped to the RI directly has lower costs than the other states which don’t have ports and need to deliver the products by truck from these ports. Also the consumption increase when a lot of people work at the port such as restaurants and hotels.
Because of the status of the seaport to local economy, the government should focus on develop the seaport. As a citizen whose work is not related to the sea transportation may not concern about the economy effect of sea transportation. Local people complaint about the nosey of the port, and prefer the recreational boating which could affect the sea traffic in the seaport. This is conflict with the development of the seaport economy. The government should build enough waterfront recreational area to fulfill people’s needs. Increase the service of the communities around the seaport to decrease the complaint. In addition, RI seaport has a long history, the government need consider to built a museum to raise the people’s attention to importance of the seaport to local economy.
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