Posted on February 8, 2018
By Will Robinson, Jacksonville Business Journal
Jaxport saw strong gains in the first quarter of its fiscal year, CFO Michael Poole noted during Monday’s board meeting.
The port authority had 14 percent more vessel calls, 16 percent more tons of cargo and 16 percent more revenue than last year’s first quarter. Jaxport also handled 27 percent more containers.
– Vessel calls: 479
– Tons: 2.7 million
– Revenue: $16.7 million
Poole reported one negative for the quarter: maintenance dredging is more than $1 million, or 153 percent, over budget. The port authority has had to dredge nearly 40,000 cubic yards more than it anticipated as a result of Hurricane Irma. Poole said he was confident Jaxport could find enough savings elsewhere to offset the overages rather than be forced to ask for extra funds later in the year.
Roy Schleicher, Jaxport chief commercial officer, told the board that the port authority would see much faster growth once the shipping channel is deepened to 47 feet, a process that is now underway. The largest vessels that currently call on the port of Jacksonville carry 10,000 containers, but 14,000-container vessels will be able to enter the port once deepened.
“When the 14,000s start coming in when the dredging is done, our container numbers are going to go through the roof,” he said.
Schleicher informed the board that one of the shipping lines that used to call on Jacksonville via the Suez Canal would no longer do so because the port was not deep enough. However, Jaxport picked up a new shipping line through the Suez and is also served by two shipping lines via the Panama Canal.
“We’re really excited,” Schleicher said of the new shipping line from Asia, noting that Jaxport was getting access to Thailand and Singapore for the first time. “All new opportunities.”
Board members noted the possibility that the lost shipping line would return when the port is deeper. Former chairman Jim Citrano further noted that the value of property along the river should rise once the port is 47 feet deep, so Jaxport should consider buying more real estate in the near future.
Board member John Newman further expressed that the economic value of the deepening project was beyond dispute.
“How anyone could question the economic viability of the dredge, to me, is intellectual dishonesty,” Newman said.
The first phase of the deepening project, which will deepen the first three miles of the river, is fully funded, and Jaxport is working to procure federal and local funds for the second phase, which will deepen miles three through eight, according to Jaxport CEO Eric Green.
Source: Jacksonville Business Journal
