Great editorial in the Orlando Sentinel is equally applicable to all Florida seaports
- By Martha HarbinThe Orlando Sentinel ran a great editorial on Wednesday entitled "What we think: Don't neglect the port." Though it specially addresses the state's lack of support for infrastructure improvement needs at Port Canaveral, a similar crisis is unfolding at all of Florida's public seaports, threatening our ability to compete against more modern ports in other states for lucractive trade contracts.
While our more recognized economic engines of growth - real estate, construction and tourism - tanked last year, international trade was one of the few bright spots in Florida's economy. It is a mistake, however, for state leaders to take for granted this vital industry, of which the cargo sector alone contributed $66 billion to Florida's economy in 2008. A quick review of a few of our recently posted news articles clearly indicates that the worldwide recession is beginning to hit global trade.
Yet, there seems to be an attitude among state leaders that seaports are a local issue, despite the economic ripples they send throughout Florida's economy. Over the past several years, less than 2 percent of the state's transportation dollars have been dedicated to needed on-port infrastructure improvements, yet 70 percent of the goods consumed in Florida arrive via a state seaport.
Now the situation has gotten worse: The state's federal stimulus funding request lacked any mention of seaports; the DOT has slashed $25 million of slated spending from its budget - bringing to a halt scheduled, permitted projects at some of Florida's ports that already had in place required local and private matching funds; and the sweep of the transportation trust funds that Governor Crist failed to veto means even further cuts. (Considering every state dollar invested in a public seaport is matched by the port, these cuts present a double whammy to taxpayers who benefit from our vibrant international trade industry, i.e., everyone.)
The stakes are particularly high at this time. The Panama Canal Authority recently announced it is running ahead of its scheduled 2014 opening of the wider channel. Already, freight forwarders and logistics companies are entering contracts with ports along the Gulf Coast and Eastern Seaboard for cargo deliveries from the huge Post-Panamax container ships that before now were limited to delivering to ports on the West Coast of the United States.
States like Georgia and Alabama have been investing hundreds of millions of dollars to ensure that their ports can accept this cargo. Plans have been made to facilitate ship to rail cargo transfers, allowing goods to bypass Florida's port and arrive by rail to centralized distribution facilities.
To date, none of Florida's port have the infrastructure in place to compete for this ship traffic. Make no mistake; The types of projects needed are not those that may be hastily slapped together once the scale of the impending crisis registers with the state. These are complex, long-term projects requiring permitting, engineering, planning and sophisticated funding.
Fortunately, we are seeing leadership at the local level. Port management is seeking creative solutions to meeting infrastructure needs, while local government have been seeking their own federal stimulus funding grants. The Port of Jacksonville is exploring the feasibility of assisting the Hanjin Corporation with securing lower interest rate bonds to fund needed terminal expansion. Port Manatee is discussing asking for a loan from Manatee County to help fund its dredging and terminal upgrade needs, and the port recently inked a two-year strategic alliance, known as a memorandum of understanding, with the Panama Canal, which enables collaborative marketing and information sharing to increase business for both. In the Panhandle, the Port of Pensacola may receive an economic shot in the arm similar to that received in the past few years by the Port of Panama City if it is successful in negotiating a two-year lease with Pate Stevedore Co., for a wood chip export terminal. This is just a small sample of what our 14 public seaport are persuing.
Local governments, and not just those with ports in their jurisdications, also are working collaboratively on regional initiatives designed to increase international trade opportunities. What at times seems so difficult for legislators from interior districts to grasp is not missed by interior economic development agencies. Throughout the state, cities, counties, chambers of commerce and the private sector are forming regional collaboratives to plan how best to attract international trade and industry to their area.
The downside to all of the local efforts underway is the very real possibility that regions will compete against each other for the same business opportunities, wasting money on redundant infrastructure while allowing other opportunities to slip away. This is why vision at the state level is so needed.
While the state cuts port infrastructure funding by $25 million, which - remember - is actually a $50 million loss to the state because no matching funds are generated, it earmarks $10 million to promote the film industry and budgets $25 million to conduct seminars to help small business learn how to generate international business.
We understand that a film production injects a lot of money into a particular local economy during the time it is being filmed, but it will never replace the hundreds of billions of dollars the state generates in international trade. And those small businesses willing to put in the time to attend a seminar on trade also have the option of working with the federal trade office, any of the many consulates based in Miami, or their local chamber.
Finally, in the news this week, Enterprise Florida, our state's lead economic development agency, announced it will conduct a series of hearings around the state to solicit ideas on how to shift the state away from an economy relying on agriculture, tourism and construction. Enterprise Florida has never focused on seaports as an economic engine of the state.
Seaports are mentioned along with airports and the spaceport in their marketing materials as an asset, but have never been a featured part of the "Roadmap to Florida's Future" that is published every three years. Instead, past roadmaps have focused on enticing new and promising industries, like biotech, while ignoring the care needed to preserve our existing industries. Hopefully, they will hear the maritime industry's message that investment in seaports is critical for Florida to continue to compete in the global marketplace. Hopefully our next governor will be listening.
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