>> Florida’s ports will not be able to compete with their giant east coast competitors as trade patterns shift with the Panama Canal expansion. Panamax ships will head for the Port of New York/New Jersey, to Norfolk and to one port in the Southeast -- probably Savannah, perhaps Charleston. Governor Scott and the Florida Chamber of Commerce are misguided in thinking that Miami will catch up to the East Coast giants, let alone become “the Singapore of the Western Hemisphere” in the view of the head of a national port association. However, Florida’s ports will continue to flourish as trade with Latin America continues to grow. -- St. Petersburg Times: Gov Rick Scott has loftly goals for Florida ports. (Steve Huettel), 05June2011 >> Florida’s ports will not be well positioned to become regional shipping hubs for super-cargo ships arriving from the enlarged Panama Canal. Jacksonville will have a better chance than Miami because it is closer to major East Coast cities and has good rail and interstate connections. But Norfolk will have an even better chance. Dredging all of Florida’s ports will cost almost a billion dollars. Billions more will be needed for docks, cranes, rail lines, roads and storage facilities. A huge increase of shipping will overburden Florida’s already congested highways and Interstates, requiring massive investment in road building. This makes putting Florida taxpayer money into port infrastructure a highly speculative venture. There is another wild card: The Canal itself could see competition if China decides to build a railroad across Colombia that would transfer cargo containers from the Pacific side to the Atlantic. A “dry canal” has been long discussed and China has the muscle to make it happen at last. -- Florida Independent: Scott gives Miami port $77 million for dredging. (Travis Pillow), 04March2011 Orlando Sentinel: Diverting rail cash to ports needs planning Scott hasn’t considered (Mike Thomas), 01March2011 Orlando Sentinel: Experts question Gov. Rick Scott’s port-dredging plan (Dan Tracy), 16March2011 >> A planned airline hub in Central America will threaten MIA’s regional role. “Central American will eventually have a major hub. It’s a question of where, not if” predicts economist Paul Romer. His proposed hub in Honduras will bring “Central America and Latin America into the world-wide >> Florida’s coastal communities will see port expansion as a way to diversify local economies away from construction and tourism. Port authorities will diversify so that they are less reliant on the fortunes of a single sector. With diminished demand for construction materials, Port Manatee diversified into fresh fruits, vegetables and other perishable products by building refrigerated warehouses. The port also went after fuel-related businesses with the construction of a fuel tank farm and a land-side terminus for offshore natural gas. As the closest deep water port to the Panama Canal, Manatee installed a second large crane for handling the sharp increase in container shipping expected once the Canal expansion is completed in 2014. More Port business will follow when trade with Cuba eventually resumes. Improved access to rail lines and I-75 will make Manatee competitive as a regional distribution hub. – Florida Chamber of Commerce: The potential for doubling international trade activity to accelerate the economic development of Florida. (J. Antonio Villamil, Washington Economic Group) 12Apr10; St. Petersburg Times:Florida business leaders peg economic recovery on international trade(Jeff Harrington), 20May10; Sarasota Herald Tribune: Port offers good examples of diversification's benefits. (Eric Basinger), 02Aug2010 >> Port projects in Florida will be more difficult and expensive to finance as disappointing revenues threaten bond ratings. Plans for a new cruise terminal in Jacksonville must be scaled back because a decline in shipping has reduced the port’s revenue below expectations. Revenue must be one and a half times greater than the annual debt service to qualify for a high bond rating. Debt service is outpacing revenue growth at other U.S. ports. Of Moody’s 20 U.S. port related ratings, five have negative outlooks or are on the watch list for potential downgrades. Moody’s put the entire sector on a negative watch because recovery is expected to take several years. Although the Port of Jacksonville was one of five North American ports to increase container handling during the international trade slump, its revenue fell short of its budget by about $900,000 in fiscal 2009. -- Jacksonville Business Journal: Bond rating to affect Jacksonville's cruise terminal plans. (Mark Szakonyi), 04June10 >> Florida will not become a major exporting state without manufacturers who sell abroad. When metro areas are ranked for the importance of exporting to their local economies, Florida is near the bottom of the list of 100 compiled by the Brookings Institute. Having something to sell will be important to future economic growth because a thriving export economy will tend to create better paying jobs. While Florida is hampered by the absence of large scale manufacturing, its smaller companies are boosting the volume of exports. Among the leading categories of goods sold overseas are aviation equipment, computers, telecommunications gear, hospital and medical equipment, and agriculture products. Top destinations for Florida’s exports include Brazil, Venezuela, Switzerland, Canada and Columbia.. -- St. Petersburg Times: Tampa Bay area has major room for improvement on exports. (Robert Trigaux), 26July2010 >> State efforts to promote more Florida exports will tend to create more service sector jobs. Almost 40 percent of all jobs related to exporting are actually in service companies. Exports by the service sector itself are the most promising – including contributions to the balance of payments such as fees for the use of intellectual property. Miami, for example, will try to exploit its strategic position as the gateway to the $4 trillion Latin American Market. The newly opened China Sourcing Center at the Miami Free Zone will provide a single showcase for thousands of Chinese manufacturers to display their products for potential buyers from Latin America and the Caribbean, who will be spared the expense of traveling to Asia. Chinese goods destined for Latin markets will pass through Miami duty free as they are trans-shipped through MIA and the Port of Miami. – Financial Times: Promoting exports full of risk for world economy (Alan Beattie), 10Aug2010; Miami Herald: Miami center links China, Latin America (Mimi Whitefield), 10Aug2010; Slate: Trade is the new plastics – international trade will be the best way for young Americans to seek their fortune. (Daniel Gross), 15Aug2010 >> Miami’s relationship with Tallahassee, as well as Washington, will become increasingly frayed as government policies impede the expansion of commercial and cultural ties with the Hemisphere. Miami is one of a unique group of world cities that are emerging as independent centers of economic and political power. “Cities rather than states are becoming the islands of governance on which the future world order will be built,” predicts Parag Khanna of New America Foundation. Miami currently ranks 33 in the Global Cities index, between Geneva and Munich worldwide, and above Houston and Atlanta in the U.S. – See Foreign Policy: Beyond city limits (Parag Khanna), Sept/Oct 2010 |
Trade and Shipping |