The Port of Miami sees itself as a port in “exciting transformation.” Please explain.
The most fundamental thing is that the Port is in an incredible growth boom which goes back to recent infrastructure investment of over half a billion dollars. And we’re spending another USD2 billion to make us one of the more modern ports in the USA and globally.
The Port is preparing for the opening of an expanded Panama Canal in 2014 with its own major work projects. Just what are they?
It’s all about efficiency these days. You have to be an effective port with great infrastructure, great customer service, and you have to be competitive. We have what we call the Big 3 projects that will transform the Port of Miami by 2014 into one of the mega container ports on the East Coast. In a State of Florida led project we have a new road tunnel being built by Bouygues Civil Works who built the Chunnel. It’s the largest capital works project now underway in the southeast US, a direct four-lane access to Interstate 395 and without a single traffic light between the port and the freeway. We also have an on-dock rail project thanks to USD23 million in Tiger 2 funding from the Federal Government and the State. Our partners Florida East Coast Rail will be able to take containers from Miami to the American heartland with significant savings. I like it when participation is at all levels – federal, state and private. Our new rail link will allow us to reach the vast majority of the US population in one to three days – safely, efficiently and in a timely fashion. Time is dollars in this business and this rail link represents significant savings. And we have the Deep Dredge Project which will give us a 50 foot deep shipping channel by 2014 – the same depth as the Panama Canal – with easy access in and out. We’ll bring in the world’s largest container vessels up to 14,000 TEU (20-foot equivalent units) compared to the 4,000 TEU ships we handle now.
How much of this work would have happened without federal stimulus funds?
There is not much federal stimulus money overall. In fact Florida Governor Rick Scott and the State Legislature stepped in and paid the federal shortfall of USD77 million because Washington was slow to react. He’s been a champion of trade and creating jobs through the Port. By 2020 the Port will generate between USD32-$36 billion in revenues and 33,000 more permanent new jobs.
Miami bills itself as the “Cargo Gateway of the Americas”. Isn’t this a bit ambitious as total cargo throughput is relatively small by major port standards?
Not really. We moved from 12th to 11th in US port rankings last year and we’ll be in the Top 5 by the end of the decade as we continue to grow throughput. We are a true international port with a balance of trade. Some 52% of our trade through the State goes to the Caribbean, but Brazil is the largest single customer of the Port of Miami and Florida.
Cargo tonnage appears to have peaked in 2005 at 9.4 million tons, but is trending back. How will the expansion of the Panama Canal help the Port?
It is significant that we get some of the largest shipping lines in the world. CMA CGM has signed on for another 25 years and we have APL, and Maersk all interested in bringing in superpost panamax ships. CMA CGM brought in the 8,500 TEU Don Carlos last November as a show of support. We are going to grow in leaps and bounds. The improved Panama Canal will be a game changer for us.
What makes the Port of Miami a better choice for Panama Canal shippers than other East Coast ports?
It all comes down to time to market and the Port of Miami will be an incredible platform to do business whether by truck or rail into the American heartland thanks to our Big 3 projects.
Cruise ships and Miami are synonymous. Even during the global recession Miami attracted over 4 million passengers. Please explain your secret.
We offer great customer service and facilities. At 4.3 million passengers last year we were one million ahead of our nearest rival anywhere in the world. But it’s not just passenger numbers, we offer some of the best cruise facilities in the world. Everyone of our cruise employees does customer service training. And don’t forget Miami is a destination in its own right. I believe the port which you travel to should be as enticing as the port you travel from. That’s Miami.
Ports the world over are trying to “Go Green”. What is the Port of Miami doing in this crucial environmental area?
We have successfully pursued Environmental Protection Agency funding to convert all 11 gantry cranes to electric power by the summer’s end. By 2020 we will have over 20 gantry cranes and all will be electric to cut pollution. Our tractors will all be hybrid to bring more fuel efficiency. And all of our Port buildings meet the highest in green building standards. We are also exploring solar power. Our trucks are all processed in 1 ½ minutes or less and that cuts down on idling time and means less air pollution. While we are focused on growth we have also done the right things to protect the surroundings in Biscayne Bay. We take our responsibility to be a good steward of the environment very seriously in all respects.