Florida’s Seaports:Florida’s Seaports:A Dynamic Economic A Dynamic Economic

SystemSystem

Presented toPresented toFlorida League of CitiesFlorida League of Cities

August 11, 2011August 11, 2011Florida Ports CouncilFlorida Ports Council

Florida’s Lifestyle Flows through Florida’s Lifestyle Flows through Florida’s 14 SeaportsFlorida’s 14 Seaports

Almost everything Floridians wear, eat or use in their daily lives flows through our seaports.

Goods shipped through our Goods shipped through our seaports include:seaports include:

Aggregates, Asphalt, Automobiles, Automotive Parts, Aggregates, Asphalt, Automobiles, Automotive Parts, Aviation Fuel, Aviation Fuel,

Building Materials, Clothing, Coffee, Concrete, Copper, Building Materials, Clothing, Coffee, Concrete, Copper, Dairy Products, Feeds, Fertilizers, Fruits, Furniture, Dairy Products, Feeds, Fertilizers, Fruits, Furniture,

Gasoline, Grain, Household Appliances, Leather Gasoline, Grain, Household Appliances, Leather Goods, Lumber, Newsprint, andGoods, Lumber, Newsprint, and

Orange Juice, Paper Products, Power Plant Fuel, Orange Juice, Paper Products, Power Plant Fuel, Refrigerated Products, Salt, Steel.Refrigerated Products, Salt, Steel.

International TradeInternational Trade

In 2010, Florida ranked fourth among In 2010, Florida ranked fourth among the nation’s top exporting states.the nation’s top exporting states.

Waterborne international trade moving Waterborne international trade moving through Florida seaports was valued at through Florida seaports was valued at $69.7 billion in 2010, $69.7 billion in 2010, accounting for accounting for nearly nearly two-thirdstwo-thirds of our state’s total of our state’s total $126.2 billion $126.2 billion in international trade.in international trade.

Seaport Jobs and WagesSeaport Jobs and Wages

Florida seaports generate Florida seaports generate approximately approximately 550,000550,000 direct and direct and indirect jobs with an indirect jobs with an average annual average annual wage of $54,400, wage of $54,400, more than double more than double the average wage of all other non-the average wage of all other non-advanced degree occupations --advanced degree occupations --$26,933 and $26,933 and overover $15,000 more than $15,000 more than the average annual wage the average annual wage for all for all occupations -- $38,470.occupations -- $38,470.

State and Local Tax State and Local Tax RevenuesRevenues

In 2010, maritime cargo activities at Florida seaports contributed more than $1.7 billion in annual state and local tax revenues.

Florida’s 14 Public Florida’s 14 Public SeaportsSeaports

Florida’s Seaports Are All Different

Some are just a few acres in size; others, Some are just a few acres in size; others, more than 2,000 acres.more than 2,000 acres.

Some are urban ports, locked in the middle Some are urban ports, locked in the middle of busy downtowns; others are in tourist-of busy downtowns; others are in tourist-based communities; still others are rural. based communities; still others are rural.

Some are just a few acres in size; others, Some are just a few acres in size; others, more than 2,000 acres.more than 2,000 acres.

Some are urban ports, locked in the middle Some are urban ports, locked in the middle of busy downtowns; others are in tourist-of busy downtowns; others are in tourist-based communities; still others are rural. based communities; still others are rural.

They Differ in Operations They Differ in Operations and Governance and Governance

Some are Some are “operating”“operating” ports; ports; others are others are “landlords.”“landlords.”

Some control all Some control all port operations in port operations in their area; others their area; others are surrounded by are surrounded by private terminals.private terminals.

Some are Some are “operating”“operating” ports; ports; others are others are “landlords.”“landlords.”

Some control all Some control all port operations in port operations in their area; others their area; others are surrounded by are surrounded by private terminals.private terminals.

Some are single Some are single purpose cargo ports; purpose cargo ports; others have others have diversified to include diversified to include multiple operations.multiple operations.

Some are special Some are special districts; others are districts; others are county or city county or city departments.departments.

Some are single Some are single purpose cargo ports; purpose cargo ports; others have others have diversified to include diversified to include multiple operations.multiple operations.

Some are special Some are special districts; others are districts; others are county or city county or city departments.departments.

They Differ in ResourcesThey Differ in Resources

Adequate Adequate channels and channels and harbors?harbors?

Landlocked or Landlocked or room to grow?room to grow?

Rail and/or Rail and/or interstate interstate access? access?

Supportive Supportive communities? communities?

Sufficient Sufficient revenuesrevenues??

Security needs?Security needs?

But … They Share a Common But … They Share a Common Public Purpose and Public Purpose and

Create Florida’s Dynamic Create Florida’s Dynamic Seaport SystemSeaport System

The The collective mission collective mission of Florida’s seaports is of Florida’s seaports is to “to “enhance the economic vitality and quality enhance the economic vitality and quality of life throughout the state of life throughout the state by fostering the by fostering the growth of domestic and foreign waterborne growth of domestic and foreign waterborne commerce…commerce….”.”

Seaports Operate in Seaports Operate in a Unique Environment …a Unique Environment …

Focused, but dynamic transportation Focused, but dynamic transportation purpose: the purpose: the movement of cargo movement of cargo -- bulk, -- bulk, boxed, or breathing.boxed, or breathing.

Transportation purpose requires physical Transportation purpose requires physical attachment to the water; attachment to the water; seaports cannot pick seaports cannot pick up and move. up and move.

Transportation purpose creates Transportation purpose creates dependency dependency on landside connections,on landside connections, but often no seaport but often no seaport jurisdiction over essential road, rail and air jurisdiction over essential road, rail and air infrastructure.infrastructure.

Seaports Are Hubs in a Logistic Seaports Are Hubs in a Logistic Delivery ChainDelivery Chain

Seaports are dependent upon the Federal Seaports are dependent upon the Federal Government to keep their channels Government to keep their channels dredged. (Waterside)dredged. (Waterside)

Seaports are dependent upon the State to Seaports are dependent upon the State to move goods on port for exports and off port move goods on port for exports and off port to serve Florida’s 18 million consumers. to serve Florida’s 18 million consumers. (Landside)(Landside)

Seaports are dependent upon local balance Seaports are dependent upon local balance sheets to build capacity. sheets to build capacity.

...With Unique Challenges...With Unique Challenges Seaports must -- and do -- Seaports must -- and do -- plan ahead plan ahead toto compete compete

with neighboring states for domestic and with neighboring states for domestic and international market share.international market share.

Surprisingly, Surprisingly, SavannahSavannah delivers a majority of delivers a majority of containerized goods to Florida’s consumers containerized goods to Florida’s consumers north of Orlando taking jobs and revenues from north of Orlando taking jobs and revenues from Floridians.Floridians.

Seaports are Seaports are public entities, public entities, but must function as but must function as entrepreneursentrepreneurs to fulfill their public purpose. to fulfill their public purpose.

Flexibility, diversity, prompt response Flexibility, diversity, prompt response – these are – these are a seaport’s a seaport’s competitive business imperative.competitive business imperative.

……and Unique Obligationsand Unique Obligations

High High economic impact and job creation economic impact and job creation expectations. expectations.

Need to Need to move quickly move quickly to satisfy tenants to satisfy tenants and users.and users.

EducationEducation and and labor force training labor force training and and development.development.

Compliance with Compliance with applicable regulationsapplicable regulations for both waterside expansion and landside for both waterside expansion and landside development. development.

State Funding SourcesState Funding Sources

State Matching Funding Sources (State Matching Funding Sources (over over $117m appropriated in FY 2011/12$117m appropriated in FY 2011/12): ): FSTED Program. FSTED Program. 1996 and 1999 FPFC Bond Programs ($424 1996 and 1999 FPFC Bond Programs ($424

million).million). FDOT Funds – to include SIS Funds, FDOT Funds – to include SIS Funds,

District Funds, Intermodal Funds, and District Funds, Intermodal Funds, and other FDOT discretionary funds.other FDOT discretionary funds.

Federal Funding SourcesFederal Funding Sources

Federal Funding Sources: Federal Funding Sources: Dredging funds allocated by Federal Water Dredging funds allocated by Federal Water

Resource Development Bills (WRDA)?Resource Development Bills (WRDA)? Unlike road, rail, air and transit, Unlike road, rail, air and transit,

NONO Federal funds Federal funds flow through FDOT to flow through FDOT to seaports.seaports.

TIGER Grant Funds?TIGER Grant Funds? Other new federal sources?Other new federal sources?

PORT CANAVERALPORT CANAVERAL Southside Cargo TerminalsSouthside Cargo Terminals

Project Cost: $11M Allocation: $3.7M

South Cargo Pier 1 Widening Pre-Construction

South Cargo Pier 4 Extension Pre-Construction

PORT EVERGLADESPORT EVERGLADESSouthport Phase VIII, Container TerminalSouthport Phase VIII, Container Terminal

. .

Project Cost: $15.5M Allocation: $5.65M

Project Description: Develop a 40-acre container cargo terminal yard along Dania Cut-Off Canal in Southport enabling the port to capture a greater portion of the expanding Far East market for which it competes with other US East Coast Ports such as Charleston and Savannah.

PORT OF JACKSONVILLEPORT OF JACKSONVILLE Mitsui O.S.K. Lines/TraPac Container TerminalMitsui O.S.K. Lines/TraPac Container Terminal

Project Cost: $220M Allocation: $17.6M

Project Description: Construction of 160-acre container terminal including bulkhead, utilities, berth construction, and dredging creating an estimated increase of 800,000 twenty-foot equivalent units (TEUs) from major global carrier.

PORT OF JACKSONVILLEPORT OF JACKSONVILLE Mitsui O.S.K. Lines/TraPac Container TerminalMitsui O.S.K. Lines/TraPac Container Terminal

Project Cost: $220M Allocation: $17.6M

PORT OF MIAMIPORT OF MIAMI Seaboard Marine Terminal ImprovementsSeaboard Marine Terminal Improvements

Project Cost: $4M Allocation: $2M

Project Description: Infrastructure improvements include pavement enhancements and drainage improvements to Seaboard Marine Terminal Yard enabling major port tenant to increase throughput of containers by 5% annually (150,000 tons or 18,463 TEUs).

PORT OF MIAMIPORT OF MIAMI Cruise Terminal B & CCruise Terminal B & C

Project Cost: $13.1M Allocation: $4M

Project Description: Design and construction of Cruise Terminal B & C improvements to include gantry modifications, fencing, ticket counters, partitions, reconfiguration of Customs and Border Protection facilities, carpet, tiles, drainage upgrades, security upgrades, sidewalk, runway modifications and anchor relocation. Improvements anticipated to facilitate increase volume of cruise line passengers by 75% (334,000 to 777,000), an additional homeported ship, increase of projected size of new cruise ships – 150,000 GRT – 4300 passengers.

PORT OF PALM BEACHPORT OF PALM BEACHCargo Transfer Facility ImprovementsCargo Transfer Facility Improvements

Project Cost: $4.51M Allocation: $2.25M

PORT PANAMA CITYPORT PANAMA CITY Bulk Warehouse ExpansionBulk Warehouse Expansion

Project Cost: $12.5M Allocation: $1.9M

Green Circle

Bio-Energy Plant in Jackson County

Port Panama City Bulk Warehouse

PORT OF TAMPAPORT OF TAMPAHookers Point Improvements – Phase IHookers Point Improvements – Phase I

Project Cost: $40M Allocation: $10.45M

Berth 213 Extension

Regular Session 2011 Regular Session 2011 Seaport Policy ChangesSeaport Policy Changes

Duplicative and costly state security Duplicative and costly state security regulations repealed (311.12, F.S.)regulations repealed (311.12, F.S.)

Seaport investment identified as Seaport investment identified as priority -- $100 million plus over the priority -- $100 million plus over the next five years? SEED Fund?next five years? SEED Fund?

Permitting issues still an issue? Permitting issues still an issue? Dredging, Storm-Water permits, growth Dredging, Storm-Water permits, growth management planning. management planning.

What’s Next?What’s Next?

FPC websiteFPC website

www.flaports.orgwww.flaports.org

The EndThe End