Posted on March 2, 2020
The Jacksonville Port Authority will be asking the city to issue $70 million in bonds to help fund its harbor deepening project as well as lend the port millions more from city reserves.
The $484 million project to deepen the St. Johns River shipping channel has already received significant funding from both the state and federal government, as well as private partners.
The port would like the city to bond out $60 million in 2020 and $10 million more next year. The bonds would be paid off by the city increasing the amount of money it directs to the port to $14 million from about $10 million now.
The port is also asking to borrow $46 million from city reserves, with Jaxport repaying that money with interest within two years. That money has already been allocated by the Florida Department of Transportation on a reimbursement basis.
The harbor deepening project is two years ahead of schedule, with completion expected in 2023, in large part due to Jaxport’s success in finding funding.
Harbor deepening is divided into four segments, contracts A through D, which make up the full length of the 13-mile federally authorized project. The current funding model covers only the first 11 miles through Blount Island, which excludes contract D.
Contractors for the U.S. Army Corps of Engineers are scheduled to complete the first 5.5 miles in spring 2020, marking the halfway point for this portion of the project.
Contract A and B will complete the first eight miles. Contract C will deepen the three miles of the channel leading up to Blount Island. Contract D would deepen the final two miles to Dames Point.
Harbor deepening began in February 2018.
The construction project is the culmination of more than a decade of work. The Port Authority has long said that having deeper water is vital to the port’s continued growth.
The federal government has contributed, though, and another $93 million is making its way through Congress.
To date, the federal government, the state of Florida, Jaxport and port tenants have contributed or pledged more than $394 million for the project, including $57.7 million from Jaxport and $28 million in tenant contributions, as part of the port’s public-private partnership with SSA Atlantic.
The port is deepening the harbor to accommodate larger ships in the channel — a move Jaxport believes will facilitate its growth, as the size of container ships have swelled over the years. The project deepens the harbor from 40 feet to 47 feet.
Source: bizjournals.com
