163 



inflow of persons in seasonal residences in the bay area during the 

 summer months is much greater than the costs incurred by municipali- 

 ties in providing services to such seasonal residences. If it is assumed 

 that 5 percent of the investment in property is expended annually to 

 cover repairs, maintenance, and insurance, and if it is further assumed 

 that the total assessed value of the bay summer property represents 

 70 percent of the actual investment, then the total assessment of 

 $27,418,059 would represent an investment of $39,168,600 with annual 

 expenses of $1,958,430. Adding the expenses to the tax revenues gives 

 an estimated annual net addition to the area of $2,870,875. 



BAY TRANSPORTATION 



Narragansett Bay is both an obstacle to and an avenue of commerce. 

 The transstate movement of people and goods is blocked by the same 

 body of water that serves as a natural well-sheltered roadway for 

 waterborne commerce. However, the income, employment, and expen- 

 ditures generated in construction, operation, and maintenance of ocean 

 port facilities, bridges, and ferry facilities justify the inclusion of 

 transportation as an economic factor. 



The Port of Providence is Rhode Island's major port and ranks 

 third in overall importance for the New England States. The eco- 

 nomic impact of the port can be measured through all three categories 

 of activities — primary, secondary, and marginal (see fig. IV.3.1). 

 Table IV.3.11 shows estimates of economic impact of various com- 

 modities passing through the port and multiplier factors from a 

 nationwide study of the Maritime Administration. 



TABLE IV.3.11.-ESTIMATES OF ECONOMIC IMPACT OF VARIOUS COMMODITY TYPES PASSING THROUGH THE 



PORT OF PROVIDENCE, R.I., 1968 



Income pro- 

 Volume 1 duction 2 

 Type of cargo (short tons) per ton Totalimpact 



General 3509,353 $18.46 $9,402,656 



Tanker (crude or refined) 8,280,954 4.38 36,270,579 



Coal _-.. 416,391 3.02 1,257,501 



Total economicimpact 46,930,736 



1 Waterborne Commerce of the United States, calendar year 1966, Op. CIL, p. 26. 



2 From correspondence with Chief, Division of Ports and Systems, Office of Maritime Promotion, Maritime Administration, 

 U.S. Department of Commerce, dated Sept. 27, 1968. 



3 Includes: 156,611 short tons of iron and steel scrap; 183,506 short tons of building cement 



Ta.ble IV.3.12 shows the construction of the port in terms of marine- 

 related employment. This table emphasizes the importance of the 

 marginal activities. 



The value of port improvement in facilities and navigational aids 

 must also be considered. Where cargo facilities are concerned, past 

 expenditures in the Port of Providence may be considered normal, 

 given the size of the port and the complex of facilities for general or 

 specialized cargo handling. Based on an estimated straight line depre- 

 ciation over a 17-year period, the average addition to the value of the 

 port is approximately $235,000 annually. 



The value of channel improvements is more diiRcult to assess. With 

 expenditures totaling only 4 million over the lifetime of the various 



