Florida's Seaports Can Deliver Needed Economic Boost
- By Phil AllenFollowing is testimony given to the Senate Select Committee on Florida's Economy on January 22, 2009
By PhillipC. Allen
Port Director, Port Everglades and Chairman,
Florida Seaport Transportation & Economic Development Council
Thank you for this opportunity to provide testimony to your very important committee undertaking.
To paraphrase a well known quote, today represents both the worst of times and the best of times. From the worst of times side, today this nation and this state are mired in a global recession we have not seen in recent times. People are losing their jobs, consumer consumption is at very low levels, global trade volumes are declining, and the State of Florida is facing a significant budget deficit. Yet it is also the best of times. It's time we focus ourselves on the longer term, throw out our old operating philosophies, and address the future economic vitality of our great state.
This State's diverse seaports represent a major contribution to our economy but are hampered by outdated, duplicative laws, and a lack of funds to meet future demands as the world economy returns to its prerecession vitality. I congratulate Senate President Atwater's foresight and charge to this Select Committee. Now is the time to get our house in order to realize our potential.
Florida's seaports generate more than 350,000 good paying jobs. The average salary for a port-related job is approximately $45,000 a year, which is about $10,000 higher than the average salary in Florida. And, our seaports contribute more than $74 billion annually to the State's economy, and $1.6 billion in state and local taxes.
Frankly Senators, the State of Florida is having its clock cleaned by our neighboring states in terms of being prepared to meet future economic opportunities represented by our rightful place as a leader in economic trade. The geography of Florida is basically an island with a small isthmus in north Florida to the rest of the United States. As an island we must rely upon our 14 deepwater ports to provide the imports and exports the state and world require. Over 70% of the goods consumed within the state come thru ports, yet more and more are arriving and departing from ports outside our state. And we spend less than 2% of our transportation funds on our own ports.
The out-of-state ports in Virginia, Georgia, and South Carolina are realizing the investment of their states and the recognition of the key role of ports in their economic futures. Jobs which should be benefiting Florida residents are being exported to those other states, and the trucks that bring the goods to Florida consumers are polluting our air and creating traffic congestion on our roads.
According to a report completed last year by FDOT, the state investment in seaport projects yields almost $7.00 return in economic activity for each $1.00 of state investment.
Florida ports individually and collectively through the Florida Ports Council would be pleased to work with your committee to refine and expand on those recommendations.
During the mid 1990s, the Florida Legislature and Florida Seaports entered into a partnership to increase jobs and economic activity. The Legislature invested $25 million a year in the partnership to support $370 million in state infrastructure bonds and your ports invested even more as match. We delivered what we promised. The results included among other projects:
• Cargo and cruise terminals and dredging at Port of Miami
• Expanded containerized cargo facilities at Port Everglades that have increased international trade by over 90 percent
• New berths and navigational improvements to handle larger ships at the Port of Tampa and Port Manatee
• New cruise terminals and dredging at Port of Canaveral
• New berths and container cranes at the Port of Panama City
• A cargo transfer facility at the Port of Palm Beach
• Purchase of land and construction of new containerized cargo facilities at the Port of Jacksonville
Further, as a direct result of our combined investments that program is more than paying the debt service from increased levels of state tax receipts.
In another partnership in 2007 the Legislature appropriated another $50 million in non-recurring state funds matched by your Florida ports for specific priority projects. These projects now underway are providing over 3,000 construction jobs today. Further when completed shortly these projects will produce another $56.5 million annually of State and Local Taxes.
Mr. Chairman, on behalf of Florida's Deepwater Ports, I offer you a similar partnership today to meet our current challenges. We are prepared to match a State's investment of $25 million a year to issue bonds to produce another $700 million to $800 million of job-generating capital projects over the next three to five years. We have delivered our commitments in the past and are prepared to perform in the future. Let your Florida ports assist in the State's economic revival.
I would also like to bring to your attention another specific request for a matter that you can deal with in this upcoming session which would result in a significant cost savings to Florida seaports and the businesses that use our ports. I would ask that you support elimination of the sections of Chapter 311 Florida Statutes that deal with port security.
This Chapter is out of date and duplicates the requirements imposed by the Federal Government for port security. This statute was passed before 9/11 and prior to the implementation of new Federal requirements in 2004 and not only duplicates but in many cases contradicts the more recent Federal requirements. Florida is the only state requiring this duplication and redundancy which places Florida Ports at a competitive disadvantage to other states. Chapter 311 has outlived its usefulness and thus has failed to keep pace with the reality of 21st Century security needs. Further, the waste of funds to comply with an outdated Chapter 311 takes away from a more strategic effort to enhance security at Florida ports in an efficient and effective manner.
With the elimination of the Chapter 311 port security provisions including the Florida seaport ID requirements Florida ports will still be subject to the Maritime Transportation Security Act (MTSA) just like all other U.S. ports, must develop and maintain port security plans under the jurisdiction of the United States Coast Guard, and are subject to civil penalties for non-compliance up to and including a closure of the port. My fellow Port Directors are committed and fully cognizant of our security responsibilities.
And with that, let me conclude my remarks. I am available for questions and follow-up either today or I can meet with you any time in the future individually or collectively to move your agenda forward. On my partnership offer, we would be pleased to present you with a framework and a definitive work plan including specific economic impacts within the next 30 days. I ask you to again allow your ports to deliver prosperity to the State of Florida.
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