Port cities serve as entry points to the international market. The presence of logistics and trade-related businesses and the growth of globalization directly impact our regional and national economies.
In 2018 alone, 2.2 million jobs were created in the port sector, and marine cargo ventures accounted for $5.4 trillion of the gross economic activity.
Thus, a large market is available to be utilized in port cities, such as loading docks, beaches, fishing, and water sports. Here is a list of ideas that you can use to get your business up and running.
1. Export Management
An export management company (EMC) helps companies distribute their products to international markets. Typically, these businesses export items on behalf of several different companies. Setting up an EMC might be difficult because it requires prior shipping knowledge and the willingness to take a considerable risk. However, it is one of the most profitable businesses in any country. In addition, some countries have rules that require export enterprises to pay customs taxes or tariffs, and others prohibit firms from importing specific types of items.
2. Lumper Services
You can hire and train a group of individuals who can load and unload cargo at the port. Over 80% of global freight is delivered by ship, and port cities assist in transporting these items to their final destinations in communities worldwide. Your clients will include giant corporations who import their supplies, mainly from the food industry. This business model can earn you a hefty profit. However, specialized equipment and proper certification are necessary to start a lumper service.
3. Boat Rentals
A boat rental business can be profitable but requires a thorough understanding of how to manage it. If you enjoy the beach, boats, and other water activities, this is a business opportunity you should look into. To establish a boat rental business, you’ll need to identify the appropriate location, such as a yacht or fishing club, as well as the correct boat to hire. Buying expensive boats when you first start may not be the best choice.
4. Ferry Services
Many port cities have a large population that is dispersed around the city and possibly on other islands. To carry passengers to and from the port, you can start a ferry service. Although this is a prevalent business, it is only profitable if the quality is maintained. Ensure that the ferry is cleaned and repaired by professionals. Offering low rates and guaranteeing on-time departure and arrival could be your unique selling point.
You can invest in hotel construction or refurbishment to accommodate various customers. For example, decision-makers travel from multiple organizations to port cities to inspect vital cargo, and your hotel can accommodate them. Ensure that your hotel offers business-class amenities such as a conference room, high-speed internet, and convenient access to downtown and the city port.
A specialized skill set and expertise are essential to establish the businesses described above successfully. If you are passionate about any of the ideas we covered, you should conduct extensive research before taking action. A cost-benefit analysis can assist you in determining whether or not it is fair to accept risk.