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Editorial: JaxPort’s diversification efforts could play a key role in the region’s economy

JAXPORT

Posted on January 11, 2022

JaxPort, a local independent authority and one of Florida’s 15 seaports, plays a large role in creating jobs and business opportunities for Northeast Florida residents. And that role is expected to grow next year.

In 2022, the Jacksonville Harbor Deepening Project, which includes dredging the 40-foot St. Johns River to a depth of 47-feet, is expected to be completed by summer, about six months earlier than the latest changed date. The deepening, which is now expected to be complete by summer, will allow for bigger ships from destinations around the world.

Nationwide, ports across the country have recently reported backlogs of shipping containers stuck at sea, in part because ships have continually gotten bigger in the last 10 to 15 years. Meanwhile, more trucks, trains and warehouses are needed to house and transport the cargo. A shortage of workers, equipment and coordination challenges in the transportation industry during the pandemic caused a ripple effect at ports throughout the country.

Things were different in Jacksonville. JaxPort set a record for cargo containers the past year. And it wasn’t among ports with a backlog of containers, since ships can get in and out without facing slowdowns that other ports are facing.

With more cargo ships reaching out to Florida seaports in order to try to avoid logjams at ports on the West Coast and the upper East Coast, the national crisis actually ended up being a great opportunity to convince shippers to give JaxPort a shot.

“One of the biggest shipping lines recently diverted some business to Jacksonville, so that the ship is not just sitting on the Atlantic ocean,” said Robert Peek, director and general manager of business development at JaxPort. “We just had another German shipping line that normally goes to Savannah to come here instead.”

JaxPort reports that it supports more than 138,000 jobs statewide and its facilities serve nearly 40 ocean carriers.

In the Freedom First Budget for 2022-2023, Gov. DeSantis proposes $9.27 billion to go to the State Transportation Work Program, an ongoing five-year plan that includes construction and maintenance of Florida’s roads, bridges, rails and seaports. The proposal also includes $117.3 million allocated to seaport infrastructure improvements, to ensure Florida’s ports continue to have capacity while the rest of the nation struggles from supply chain backups at seaports.

The Florida Ports Council, the nonprofit corporation that serves as a professional association for Florida’s ports, reports the 15 ports support 900,000 direct and indirect jobs and contribute almost $118 billion to the state’s economy through cargo and cruise activities.

An important part of JaxPort’s strategy is diversification. The Carnival cruise line which is expected to return to Jacksonville in March, accounts for about eight percent of the port’s annual budget. Half of the cargo that comes here is in big cargo containers filled with consumer goods. The No. 1 commodity at Jaxport is furniture, and Jacksonville is the second-largest vehicle port in the United States. It’s also the top port in the nation for trade with Puerto Rico.

“Our geographical location is a big reason we’re successful,”  Peek said. “A one-day truck drive can reach 100 million people…. Both 1-95 and 1-10 intersect at the port of Jacksonville, plus three railroads serve our port.”

Peek said JaxPort is not trying to become such a massive port. They’re proud to be among one of the most diverse ports in the nation.

“The business that we’re doing now is in a relatively shallow harbor,” he said. “With the harbor deepening project nearly complete, we’ll be able to show shipping lines that we can accommodate larger ships.”

Every city relies on transportation and logistics for their daily lives, so enhancing Jacksonville’s port, is an asset that helps the community.

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