A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2008/ /2013

Transcription

1 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2008/ /2013 i

2 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2008/ /2013 ii A FIVE-YEAR PLAN TO ACHIEVE THE MISSION OF FLORIDA'S SEAPORTS 2008/ /2013 The Mission of Florida s Seaports: Enhance the economic vitality and quality of life in the state of Florida by fostering the growth of domestic and foreign waterborne commerce Build capacity-enhancing intermodal infrastructure to sustain forecasted growth on Florida s trade lanes Implement a multi-year financing plan to leverage state funds with local funds from seaports and other transportation entities and federal funds. Amass the capital required for infrastructure enhancement, retaining the flexibility to prioritize strategic investments so that funds can flow in response to market demands. Create wellpaying jobs and local, regional, and statewide economic development

3 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2008/ /2013 iii Contents Chairmen s Messages: Resetting Our Course as We Confront Global Headwinds...vi Summary of Seaports Achievements, Continuing Challenges, and Strategic Objectives... x Eight Elements of Success...xxiii Chapter I. Florida s International Trade Trends... 1 Chapter II. Cargo and Cruise Operations at Florida s Seaports...21 Chapter III. Investing in the Seaports 2016 Vision of Success Appendix Collective Goals and Objectives of Florida's Seaports... Appendix A Port Profiles... Appendix B Port Canaveral... B-1 Port Everglades... B-4 Port Fernandina... B-9 Port of Fort Pierce... B-11 Port of Jacksonville...B-13 Port of Key West...B-17 Port Manatee... B-20 Port of Miami... B-22 Port of Palm Beach... B-25 Port Panama City... B-27 Port of Pensacola... B-29 Port of Port St. Joe...B-31 Port of St. Petersburg... B-33 Port of Tampa... B-35 Executive Summary of Martin Associates Economic Impact Study... Appendix C

4 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2008/ /2013 iv Exhibits Letter/Number Title Page A Florida s International Trade ix B Florida s Forecasted and Actual International Trade... x C Percent Change in Florida's Share of U.S. Trade January December xi D Global Regions Comparative Shares of Florida s International Trade xi E Global Regions Comparative Shares of Florida s Imports and Exports xii F Florida s Trade Characteristics xiii G Tonnage at Florida s Seaports FY 98/99-FY 07/08...xiv H Container Movements at Florida s Seaports FY 98/99-FY 07/08... xv I Revenue Cruise Passengers at Florida s Seaports 98/99-FY 07/08... xv 1 Florida's International Trade Percent Change in $ Value of Florida s International Trade to Florida's Trade with Global Regions Comparison of Florida s Global Trade by Region in 2006, 2007, and Florida's Import and Export Trade with Global Regions Value of Florida s International Trade with Its Top Ten Trading Partners Florida s Top Ten Commodities (Imports and Exports) Florida s Top Ten Import Commodities Florida s Top Ten Export Commodities Tonnage at Florida's Seaports FY 98/99 FY 07/ Import, Export, and Domestic Tonnage Percentages FY 07/08 (with FY 06/07 and FY 05/06 Comparisons) Percentages of Cargo Types at Florida s Seaports FY 07/ Container Movements at Florida's Seaports FY 98/99 FY 07/ Revenue Cruise Passengers at Florida s Seaports FY 98/99 FY 07/ Comparison of One-Day and Multi-Day Cruise Passengers FY 07/08 and FY 06/ Collective Florida Seaport Five-Year Capital Improvement Program by Year FY 08/09 FY 12/ Collective Florida Seaport Five-Year Capital Improvement Program by Port FY 08/09 FY 12/ Types of Projects in Florida Seaports $2.6 Billion Collective Five-Year Capital Improvement Program FY 08/09-FY 12/

5 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2008/ /2013 v Tables Number Title Page 1 Florida Import and Export Percentages U.S. Imports and Exports Florida s Trade by Global Region in 2008 (with 2007 and 2006 Comparisons) Florida s Import and Export Trade with Global Regions 2008 (with 2007 Comparison) Florida's Top Twenty Trading Partners in 2008 (with 2007 and 2006 Comparisons) Florida's Top Twenty Import Trading Partners in 2008 (with 2007 and 2006 Comparisons) Florida's Top Twenty Export Trading Partners in 2008 (with 2007 and 2006 Comparisons) Florida's Top Ten Commodities (Import and Export) in 2008 (with 2007 and 2006 Comparisons) Florida's Top Ten Import Commodities in 2008 (with 2007 and 2006 Comparisons) Florida's Top Ten Export Commodities in 2008 (with 2007 and 2006 Comparisons) Woven Apparel Exports from Florida Total Value and Containerized Cargo Value of Florida s Waterborne International Trade 2008 (with 2007 Comparison) Dollar Value of Florida's Waterborne Imports and Exports by Port 2008 (with 2007 Comparison) Florida's Total Waterborne Tonnage by Port FY 07/08 (with FY 06/07 and FY 05/06 Comparisons) and FY 12/13 Projections) Florida s Waterborne Import, Export, and Domestic Tonnage by Port FY 07/08 (with FY 06/07 and FY 05/06 Comparisons) Cargo Types Carried at Florida s Seaports FY 07/08 (with FY 06/07 Comparison) Summary Comparison of Cargo Types Carried at Florida s Seaports FY 07/08 and FY 06/ Container Movements at Florida's Seaports FY 07/08 (with FY 06/07 and FY 05/06 Comparisons and FY 12/13 Projections) U.S. Mainland Port Container Volumes, 2008 and Comparison of Florida with Other Container-handling States Revenue Cruise Passengers at Florida s Seaports in FY 07/08 (with FY 06/07 Comparison and FY 12/13 Projections) Summary Comparison of Cruise Passenger Operations at Florida s Seaports FY 07/08 and FY 06/ Summary of 2007 Cruise Industry Impacts in Florida Summary of the Statewide Impacts of Maritime Cargo Handled at Florida s Seaports Florida s Port-Related User Jobs in the Supply Chain Collective Seaport Capital Improvement Program FY 08/09 through FY 12/

6 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2008/ /2013 Chairmen s Messages: Resetting Our Course As We Confront Global Headwinds vi In these volatile times, when the global financial meltdown is affecting all sectors of the economy, Florida s fourteen public deepwater seaports are committed to resetting their course, adjusting their business models as required to navigate through the temporary headwinds, and using this lull to ready themselves for the new job-creating opportunities on the horizon. The following messages from the respective Chairmen of the Florida Seaport Transportation and Economic Development Council (FSTED), the Florida Ports Financing Commission (FPFC), and the Florida Ports Council share a common viewpoint: International trade is sustaining our state s economy. Florida s seaports and the myriad of port-related businesses involved in global commerce are the driving force behind this positive outcome. So now is the time to advance the future economic vitality of our great state and its unique seaport resources. Phil Allen - Chairman, FSTED Council, and Director, Port Everglades To paraphrase a well-known quotation, these are both the worst of times and the best of times. From the worst of times perspective, this nation and this state are experiencing a global recession unlike any seen in recent times. People are losing their jobs, consumer consumption is at very low levels, global trade volumes are declining, and the State of Florida is facing a significant budget deficit. And yet, it is also the best of times: Time to focus ourselves on the longer term. Time to throw out our old operating philosophies. And time to advance the future economic vitality of our great state and its unique seaport resources. In a March 2009 visit to the Port of Jacksonville, Governor Crist confirmed that international trade was the state s strongest economic sector last year, stating, Florida s international trade has remained strong, in spite of challenges in other business sectors. In a March 2009 visit to the Port of Indeed, Florida s international trade reached a Jacksonville, Governor Crist confirmed that record $130.5 billion in 2008, $82.5 billion of which international trade was the state s strongest flowed through the state s seaports. Exports economic sector last year, stating, Florida s increased by 23.9 percent in 2008, significantly international trade has remained strong, in spite greater than the national increase of 11.8 percent. of challenges in other business sectors. Florida continues to have one of the nation s best export-over-import surpluses and the Miami Customs District is the only U.S. District to have had a trade surplus for 16 consecutive years. A just-released analysis of our seaports impact on Florida s economy determined that our maritime cargo operations generate more than 550,000 good-paying jobs, including the port-related jobs at the many businesses whose operations depend on the proximity of Florida s seaport system. 1 The average salary for a port-related job is approximately $45,000 a year, which is about $10,000 higher than the average salary in our state. And our seaports contribute more than $66 billion annually to our state s economy and $1.7 billion in state and local taxes. According to a report completed by the Florida Department of Transportation 1 The Statewide Economic Impacts of Maritime Cargo Handled at Florida s Public Seaports , Martin Associates, March 30, 2009.

7 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2008/ /2013 vii (FDOT), the state s investment in seaport projects yields $6.90 in economic activity for every $1.00 of state expenditure. Nevertheless, despite their major contribution to our statewide economy, Florida s diverse seaports are hampered by outdated, duplicative laws and insufficient funds to meet future demands once the world returns to its pre-recession vitality -- as it certainly will. They are also beset by increasing operational costs, including outdated security requirements that duplicate those of the federal government. Florida s geography is basically that of an island, with a narrow strip of land in the northern part of the state connecting us to the rest of the country. As an island, we must rely on our seaports and airports to import the products our citizens need and export the goods we produce and our neighbors and other nations utilize. Nevertheless, only an estimated 30 percent of the containerized goods consumed within our state come through our ports. While Florida is spending less than 2 percent of our transportation funds on our own ports, competing states such as Virginia, Georgia, and South Carolina, recognizing the key role their ports play in their economic futures, have made significant investments in these facilities and now these ports are realizing the benefits of their states investments. During the mid-1990s, in an extension of the FSTED Chapter 311 Program created in 1990, the Florida Legislature and Florida seaports expanded their partnership to increase jobs and economic activity throughout the state. The Legislature invested $25 million a year in the partnership to support $370 million in state infrastructure bonds; 2 for which our ports provided at least a match. And we delivered what we promised! Among the seminal projects implemented around the state as a result of the investment partnership were: Channel deepening and navigational improvements. New berths and cranes to handle larger ships. State-of-the art cargo and cruise terminals. Expanded container-handling facilities. Purchases of land for future expansion. These projects have all created positive results for Florida. They not only allowed the respective ports to increase their cargo and cruise operations, but also set the stage for continuing growth. For example, the expanded containerized cargo facilities at Port Everglades, built with matching bond program funds, have increased international trade by over 90 percent and brought the port close to 1 million TEUs (20-foot equivalent container units) annually. The Port of Jacksonville s land purchase and construction facilitated by the bond program allowed them to build the container terminal needed to serve the major Asian carrier that has just initiated operations there. Furthermore, as a direct result of these combined investments, the bond program is more than paying for the state debt service from increased levels of state tax revenues. This kind of return on investment is the cornerstone of port development opportunities. In a more recent investment in the state-seaport partnership, the Legislature appropriated another $50 million in non-recurring state funds, matched by our ports for specific priority projects. These projects are now underway and providing 3,000 construction jobs. When completed shortly, these projects will produce $56.5 million in state and local taxes annually. 2 Chapter (3) and (4), F.S., Series 1996 and Series 1999 bonds.

8 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2008/ /2013 viii Now, today, our seaports are proposing to reset our state-seaport partnership to meet current and future competitive challenges. The five-year collective capital improvement program of Florida s fourteen deepwater public ports is $2.6 billion. Most of this budget is for expanded cargo and cruise terminals to meet future opportunities, including the expansion of the Panama Canal in 2014, now only five years away. We are prepared to match a state investment of $25 million a year to leverage bonds that would produce another $700 to $800 million of job-generating capitol projects over the next three to five years. In today s constrained environment, one might ask, Is it appropriate to invest in port expansion? Our answer is Once the economic situation stabilizes, trade will expand faster than either the nation s gross domestic product or even our state s domestic product. It typically has. And we need to be ready. This is not an abstract concept. As I look around Port Everglades every morning, and see the hundreds of workers earning good wages as they upgrade our cruise terminals for the next generation of cruise ship, or improve our roads, or expand our freight transfer yards -- scenes that are repeated daily at each of our seaports -- I have tangible proof why the maritime industry and the international trade it facilitates remain so important to our state. And now, using the breathing room provided by the current global downturn, we have the opportunity to accelerate our development, building the strategic assets we need for the future, and, in so doing, help quicken Florida s economic revival. Land Acquisition 10% Types of Projects in Florida Seaports $2.6 Billion Collective Five-Year Capital Improvement Program (FY 08/09-FY 12/13) Intermodal Road and Rail 8% Other (Environmental, Studies / Miscellaneous Projects and Repairs/ Fees) 11% Cruise Terminals Channel and Harbor Deepening 9% Berth Rehabilitation and Repairs 6% At Jaxport, for example, we have just opened our MOL/TraPac container terminal, which will double our container activity and generate 5,600 permanent local, regional, and statewide jobs and new tax revenues. Additionally, we recently signed a lease agreement with the South Korean shipping line, Hanjin. This new 13% Rick Ferrin - Chairman, FPFC, and Director, Port of Jacksonville Cargo Terminals 43% The stunning meltdown of the wider financial markets after the previous crash of the mortgage industry is heralding some novel challenges for the port industry, especially for the Gulf and East Coast ports, such as those in Florida, which have been eyeing the opening of the expanded Panama Canal in As we complete the first quarter of calendar year 2009, many of the trends that occurred in 2008 still exist. These trends include the credit crisis and the long-term solvency issues of the banking industry; the resulting decrease in the demand for products, and the accompanying decrease in shipping activity. As documented in this Seaport Mission Plan, Florida s seaports weathered most of 2008 in a comparatively positive manner; but in the last quarter of the year, the global trends began to catch up with us. Nevertheless, we believe it is vital to the continuing success of our endeavors to proceed as expeditiously as possible on our planned course of development. Our major ports have each embarked on strategic capital improvement programs. These improvements will allow us to continue serving our local and regional communities and provide the jobs our citizens need.

9 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2008/ /2013 ix terminal will provide a second Asian carrier service to Florida, tripling container activity and also generating comparable permanent jobs and revenues. While our Asian partners at Jacksonville and other private-sector partners elsewhere in the state help finance terminal construction and crane acquisition, they fully expect the port or local/state government to provide the related transportation infrastructure essential to freight mobility. The desired intermodal infrastructure includes deepened harbors to accommodate the new generation of ships coming through the expanded Panama Canal and easy access to highways and rail lines. Our ports view one of our roles as economic engines that can produce shovel-ready projects that will not only produce new employment during construction, but also permanent jobs when terminals are complete and operational. Like every other industry, however, ports are currently nearing their financial borrowing capacity and they cannot finance their capital needs from their balance sheets alone. Nevertheless, we are poised to facilitate the turnaround and will be in prime position to flourish when the economic upswing occurs. The question commonly asked is How long will this situation last? With the active participation of the federal government through both fiscal and monetary stimulus policies, most experts are predicting that economic conditions will improve in late 2009 or early In the interim, Florida s port directors all realize that to freeze in place is the worst option. We must continue to strategically build our infrastructure, with the greatest emphasis on strategically. The picture we faced 18 to 24 months ago with robust capital plans is now being pared down by financial reality. Instead of seeing ports build their entire wish list or a large part thereof, we will see very specific and strategically selected projects move forward. This is not a bad thing; however, it is imperative that we continue to build our international trade capability. Recession or not, the global economy is still very much alive and we cannot let it pass us by. Stan Payne - Chairman, Florida Ports Council, and Executive Director, Port Canaveral Ports, as the record shows, are vital economic engines that fuel job creation and spending, enrich tax bases, and have ripple effects across entire geographic regions. Like all engines, ports need to be carefully maintained, sometimes rebuilt, and often supercharged as demand grows. The best time to accomplish this is often in periods of economic lulls and unspectacular growth. And so it is with Florida s fourteen deepwater ports, its fourteen economic engines, in 2009, Like all engines, ports need to be carefully as we work through uncertain economic times maintained, sometimes rebuilt, and often supercharged toward a much more certain future that will as demand grows. The best time to accomplish this is place great demands on our capacity and often in periods of economic lulls and unspectacular multimodal freight and cruise infrastructure. The unique location of our state, a peninsula at the crossroads of East-West and North-South trade spanning continents, makes the responsibility for planning for the future, and the execution of those plans, vital to our respective regions, our state, and our country. It is a challenge we accept Florida s future demands no less.

10 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2008/ /2013 Summary of Seaports Achievements, Continuing Challenges, and Strategic Objectives x Florida s international trade in 2008 swung dramatically upward, reaching $130.5 billion and surpassing the record $114.9 billion in 2007 by 13.7 percent (see Exhibit A). Given worldwide and national economic fluctuations, 2008 can be considered a particularly solid and welcome achievement for Florida s international commerce. The state has a consistent and diversified base of regional and national trading partners from around the globe, which enabled the state s seaports to weather the brewing changes in the global economy. Continuing downturns in the residential and construction industry caused a serious decline in imports; but the weakened value of the U.S. dollar against most other currencies created a favorable export environment. Exhibit A: Florida s International Trade $ Waterborne Airborne Total $109.7 $ $ $70.5 $73.8 $70.9 $70.1 $73.2 $ Value of Florida's 20 International Trade in $ Billions Data source for Exhibits A, C, D, E, and F: U.S. Bureau of the Census, Foreign Trade Division, February In this transitional time, with constrained and uncertain financial resources at all levels of the economy, Florida s seaports emphasized operational efficiencies and productivity in serving their tenants and users, looking to adjust their business models to accommodate any declines in their throughput as well as the changing economic conditions among their vendors and service providers. They also prioritized their strategic development and expansion plans to make the most of the scarce resources. These efforts will continue into 2009 and beyond, as further deterioration of the economic situation slows international trade. Although forecasts for the next few years vary, positive developments in international trade remain on the horizon for Florida, with the opening of the expanded Panama Canal in 2014, the anticipated resilience of

11 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2008/ /2013 xi Florida s traditional trading partners -- the state s neighbors in Central America, South America, and the Caribbean -- and the continued diversification of the state s global partners. To make the most of these opportunities and achieve their vision of success and strategic objectives, the seaports must acquire the capital to build the efficient transportation infrastructure needed to accommodate the larger ships in the worldwide fleet and the flow of commodities those ships will carry once the recession is behind us. With the help of their state and federal partners, they hope to acquire the essential adequate and reliable revenue stream to complement their own limited financial resources. The Achievements Significant Increase in the Value of International Trade. The value of Florida s total international trade again exceeded forecasts in 2008: Originally projected to reach $97.6 billion by 2008, the state s imports and exports grew by 13.7 percent in 2008, reaching $130.5 billion (see Exhibit B). Of the $130.5 billion in Florida s international trade in 2008, $57.5 billion were imports and $73.0 billion were exports, creating a $15.5 billion trading surplus. Florida's International Trade (in $Billions) The value of Florida s waterborne cargo increased to $82.5 billion, a 12.5 increase over the $73.4 billion recorded in At $37.1 billion, containerized cargo represented 44.9 percent of this value. Waterborne cargo accounted for approximately two-thirds of the state s total international trade. Exhibit B: Florida s Forecasted and Actual International Trade $150 $100 $50 $ Forecast Trade $68.2 $72.8 $78.3 $84.2 $90.7 $97.6 Actual Trade $72.9 $81.4 $95.3 $109.7 $114.9 $ Data source: Forecasted Trade from The Washington Economics Group, A Forecast of Florida's International Trade Flows and the Economic Impact of Florida Seaports, November 2003; Actual Trade from Enterprise Florida, U.S. Census Bureau, February Predominance of Exports over Imports. Florida continues to have one of the nation s best export-overimport surpluses. In fact, the Miami Customs District, one of the two Customs Districts in Florida (Tampa is the other), recorded the largest trade surplus in U.S. history, $19.6 billion, whereas the U.S. trade deficit topped $800 billion. Miami is the only Customs District to have had a trade surplus for 16 consecutive years. The state s $57.5 billion in imports by sea and air in 2008 represented 44.1 percent of the state s total international trade, a continuing decline in share from the 48.7 percent in 2007, 52.3 percent in 2006, and 53.7 percent in By contrast, the state s $73.0 billion in exports represented 55.9 percent of the total, considerably more than the 51.3 percent share in 2007, 47.7 percent in 2006, and 46.2 percent in 2005.

12 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2008/ /2013 xii Nationwide the import-to-export proportion is 61.8 percent imports to 38.2 percent exports. Florida s continuing strong waterborne export trade with its neighbors to the south is the primary reason for the state s more balanced proportion. The value of Florida s imports increased by 2.8 percent over 2007, reversing last year s 2.5 percent decrease. Exports increased by 23.9 percent, almost twice the increase in 2007 (12.6 percent), and significantly greater than the national increase of 11.8 percent. Exhibit C: Percent Change in Florida s Share of U.S. Trade January 1999 December 2008 Florida s share of the nation s international trade also increased slightly in 2008 (see Exhibit C). Diversity of Trading Regions. Florida s international trade comprises both traditional regions and comparative newcomers. Percent Change 4.20% 4.10% 4.00% 3.90% 3.80% 3.70% 3.60% 3.50% 3.40% 1999/ % 2000/ % 3.81% 3.84% 3.79% 3.73% 3.69% 3.70% 3.69% The state trades with twelve global regions; four of these South America, Western Europe, Central America, and Asia -- had double-digit shares of the state s international trade in 2008, as shown on Exhibit D. Other smaller regions also enlarged their shares of Florida s trade. 2001/ / / / / / /2008 Exhibit D: Global Regions Comparative Shares of Florida s International Trade 2008 Middle East Southern Africa Indian Subcontinent 3.6% 1.4% 2.1% Central and Eastern Europe 1.3% North America 3.5% Caribbean 9.8% Central America 11.9% Oceania 0.5% North Africa 0.4% Asia 13.9% Western Europe 17.2% South America 34.3% Asia Western Europe South America Central America Caribbean North America Central and Eastern Europe Indian Subcontinent Southern Africa Middle East Oceania North Africa

13 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2008/ /2013 xiii Thirty-one countries each contribute more than $1 billion to the state s international trade. In addition, the state s domestic trade encompasses goods to and from Puerto Rico and other states. The regional shares of imports and exports differ, as shown in Exhibit E. Exhibit E: Global Regions Comparative Shares of Florida s Imports and Exports % 45.0% 40.0% 45.0% 35.0% 30.0% Imports Exports 25.0% 20.0% 15.0% 27.8% 23.1% 20.8% 13.2% 11.7% 5.1% 2.1% 3.0% 1.7% 6.1% 0.7% 0.6% 10.0% 5.0% 3.0% 12.5% 10.3% 7.3% 2.3% 0.6% 1.0% 1.0% 0.5% 0.3% 0.2% 0.0% Share of Total Asia Western Europe South America Central America Caribbean North America Central/Eastern Europea Indian Subcontinenta Southern Africa Middle East Oceania North Africa Consistency of Top Trading Countries and Commodities. The diversity of the state s regional trade is complemented by the comparative consistency of its top trading partners. Florida s long-time top trading partners include Brazil, Japan, Venezuela, Colombia, Germany, Chile, the Dominican Republic, Costa Rica, Honduras and, more recently, mainland China. The commodities moving through the state s gateways are also comparatively Florida recorded a large trade surplus with its trading partners to the south in 2008, exporting $30 billion more to these neighbors than it imported from them. Trade deficits with Europe and Asia continued in 2008, as the state imported $18 billion more in goods from these regions than it exported. Florida s largest deficit again was with China, importing about $17 in goods for each dollar it exported, resulting in more than a $5.8 billion deficit. consistent, particularly the top ten commodities, which vary only slightly from year to year and include electrical machinery, industrial machinery, fuels, and vehicles.

14 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2008/ /2013 Exhibit F summarizes the salient characteristics of Florida s international trade by dollar value in xiv Exhibit F: Florida s Trade Characteristics 2008 (By $ Value) Florida s Total Trade 2008 Waterborne, Airborne, and Overland* Florida s Waterborne Imports and Exports 2008* 32.9% 2.9% Waterborne Airborne Overland 50.3% 49.7% Waterborne Imports Waterborne Exports 64.2% Imports Airborne Imports 55.9% 44.1% Exports 72.6% 27.4% Airborne Exports Florida s Total Trade 2008 Imports and Exports Florida s Airborne Imports and Exports 2008* *These waterborne and airborne numbers total $ billion, based on the port level data obtained from the U.S. Census Bureau, Foreign Trade Division, which uses the District of Unlading methodology and obtains slightly different results from the Enterprise Florida methodology. These data also include 3.7 billion in overland movements, such as goods trucked from Canada and Mexico or moving by other means. Moving Goods and People. The business of ports is to move goods and people: In FY 07/08, Florida seaports moved million total tons of cargo, handled 2.9 million TEUs (20- foot equivalent container units), and carried 13.2 million cruise passengers, of which 11.1 million sailed on multi-day cruises.

15 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2008/ /2013 xv The cargo crossing seaport docks in Florida decreased from million tons in 2007, a 7 million ton decline (5.8 percent). This tonnage decline is comparable to that experienced at many ports across the country in the face of global economic fluctuations. The number of containers handled by Florida s seaports remained comparatively steady at 2,895,371 TEUs, consistent with the last few years (2,949,546 in 2007, 2,991,465 in 2006, and 2,970,545 in 2005). For the third year in a row, Port Everglades led the increases, with a 3.8 percent growth. Several of the smaller seaports saw growth as well. In FY 07/08, the 13.2 million revenue cruise passengers who embarked and disembarked from Florida's ports represent a 6.3 percent decline from the 14.1 million in FY 06/07. The number of multi-day cruise passengers remained constant; but the number of one-day cruise passengers continued to decline, dropping by 27.3 percent, the result primarily of other entertainment opportunities. Exhibits G, H, and I summarize, respectively, the historic records through FY 07/08 of tonnage crossing seaports docks, container movements, and revenue cruise passengers. The data in these exhibits are derived from individual seaport records. Exhibit G: Tonnage at Florida s Seaports FY 98/99-FY 07/08 (In millions of tone) Projected Tonnage Difference FY 06/07 and FY 07/08: -5.8% FY FY FY FY FY FY FY FY FY FY FY 98/99 99/00 00/01 01/02 02/03 03/04 04/05 05/06 06/07 07/08 12/13

16 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2008/ /2013 xvi Exhibit H: Container Movements at Florida s Seaports FY 98/99-FY 07/08 6,000,000 5,000,000 4,000,000 3,000,000 Projected TEUs Difference FY 06/07 and FY 07/08: 1.8% 5,084,054. 2,000,000 1,000,000 TEUs 0 2,514,256. 2,514,986. 2,511,810. 2,489,570. 2,564,976. 2,671,927. 2,970,545. 2,991,465. 2,949,546. 2,895,371. FY 98/99 FY 99/00 FY 00/01 FY 01/02 FY 02/03 FY 03/04 FY 04/05 FY 05/06 FY 06/07 FY 07/08 FY 12/13 Exhibit I: Revenue Cruise Passengers at Florida s Seaports FY 98/99-FY 07/08 (In millions of cruise passengers) Projected Cruise Passengers Difference FY 06/07 and FY 07/08: -5.7% Total Multi-Day One-Day FY 98/ FY 99/ FY 00/ FY 01/ FY 02/ FY 03/ FY 04/ FY 05/ FY 06/ FY 07/08 FY 12/13

17 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2008/ /2013 xvii Providing Jobs and Generating Local, Regional, and Statewide Economic Impact. Florida s seaports are economic engines that provide hundreds of thousands of good jobs and generate billions of dollars of economic impact to their local, regional, and statewide economies: In November 2003, the annual economic impact of Florida s seaports was forecasted to include 348,290 jobs, $43 billion in gross economic output, and $1.3 billion in annual state and local tax revenues by As shown in Exhibit B previously, Florida s international trade has surpassed that economic forecast. The 2008 Economic Impact of Florida s Maritime Cargo Operations 554,347 jobs $66.3 billion in statewide economic value 9 percent of the 2008 Florida gross domestic product of $734.5 billion $1.7 billion annual state and local tax revenues A just-released analysis by Martin Associates of the statewide economic impacts of Florida seaports maritime cargo operations on the state s economy determined that the seaports now generate more than 550,000 good-paying jobs, including the port-related jobs at the many businesses whose operations depend on the proximity of Florida s seaport system. 7 Source: The Statewide Economic Impacts of Maritime Cargo Handled at Florida s Public Seaports , Martin Associates, March 30, In Florida, the average annual wage for individuals employed in transportation and material-moving occupations in 2006 (the latest available data) is $44,760 double the average pay for all other nonadvance degree occupations ($23,254) and $10,000 more than the average annual wage for all occupations ($34,420). 8 The previously cited Martin Associates study determined that direct port jobs pay an even higher annual average salary of $48,013. As determined in the Martin Associates study, the 2008 economic activities generated by the maritime cargo operations at Florida s seaports have resulted in statewide economic value that exceeds $66 billion. State and local taxes generated by maritime cargo activities total $1.7 billion. In addition to the above maritime cargo impacts, Florida benefits from the seaports cruise operations. In 2007 (the latest data available), fifty-four percent of all U.S. cruise passengers boarded their cruises from one of Florida s cruise ports. Florida businesses received 32.4 percent of the direct expenditures ($6.1 billion) the cruise industry generated in the U.S., 36 percent of jobs (126,546), and 34 percent of wages ($5.0 billion). All the top cruise lines have either headquarters or regional offices located in Florida; as a result, 41 percent of cruise line direct employment occurs in this state (14,500 jobs). 9 7 The Statewide Economic Impacts of Maritime Cargo Handled at Florida s Public Seaports , Martin Associates, March 30, U.S. Bureau of Labor Statistics. 9 The Contributions of the North American Cruise Industry to the U.S. Economy in 2007, Cruise Lines International Association, August 2008.

18 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2008/ /2013 xviii State-level seaport investments are estimated to yield $6.90 worth of economic and transportation benefits to Florida for every $1.00 in expenditures, resulting in a net present value of $3.6 billion. 10 State-level seaport investments over the next few years are estimated to generate an additional $1.6 billion in business output, 15,650 permanent jobs in the Florida economy, and $491 million in personal income for Florida residents by The 2016 Vision of Success Our Statewide Seaport System: Fourteen Ports, All Different, but All Significant Economic Generators with a Common Public Purpose and Vision of Success. Florida s fourteen public deepwater seaports, arrayed along the state s multiple coasts, are quite diverse. This diversity includes size, governance, operational characteristics, domestic markets served, and geographic trading partners. Within this diversity, however, the seaports share strategic perspectives that frame their business models and drive their successes: A common public purpose: service to local and regional communities with benefit to the state and the nation. Creation of well-paying jobs across all disciplines. SECURITY TRANSPORTATION Generation of substantial statewide economic benefits. The need to be efficient and cost-effective to compete in today s marketplace. The need for dollars to build competitive infrastructure. The need to be secure in today s world. Public understanding as to what a port does and why it is a good thing for a community to have a port. INTERNATIONAL TRADE AND COMMERCE FLORIDA'S PROVEN BUSINESS MODEL JOBS & STATE AND LOCAL TAX REVENUES In 2006, the seaports crafted a 2016 vision of success with their tenants and other maritime industry stakeholders as well as public agency representatives. That vision of success -- supported in a statewide summit and Maritime Leadership Conference -- was built on the five key premises outlined in the box on the next page and elaborated in the eight elements of success that are described in the next section. Today, after a year that ended with an even more serious downturn than before in the housing and construction industries as well as an accelerating economic decline, Florida s seaports continue to be proactive in planning for the future to achieve their 2016 vision of success: Seaports large and small -- Port Everglades, the Port of Tampa, Port Manatee, Port Panama City, the Port of Port St. Joe, and others -- developed new strategic master plans to reflect the expected 10 Cambridge Systematics study for FDOT, Evaluate Florida s 14 Deepwater Seaports Economic Development and Return on Investment, Ibid.

19 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2008/ /2013 xix doubling of international trade, the changes the expanded Panama Canal will bring after its completion in 2014, and the needs of Florida s population - the primary consumers they serve. Lacking sufficient financial resources on their own, several seaports were able to enter into innovative public/private partnership agreements to help build terminals to serve the next generation of cargo and cruise ships and attract new business to Florida. The seaports are participating in the Florida Department of Transportation s (FDOT) modal initiatives to create a Seaport System Plan for inclusion in the state s Transportation Plan. During this process, the participating public and private-sector stakeholders are gaining a greater appreciation for the regional synergies that can be created by an integrated approach to the state s multimodal transportation system. The Continuing Challenges to Seaport Success As they look to achieve their 2016 vision of success, Florida s seaports face continuing challenges. In addition to the effects of the global economic downturn, Florida s economic development through its seaport resources is being threatened as never before by the state s competitors, all of which have long-range strategies to take advantage of changing trade patterns. To echo what is stated in the Chairmen s 2016 Vision of Success The 2016 vision of success that emerged from the visioning process builds on five key premises that are critical to the statewide seaport system s sustaining its competitive edge in messages introducing this edition of the the global marketplace. Seaport Mission Plan, the primary challenges By 2016: Florida s seaport face include: Public and private partnerships will have increased Increasing competition on the dynamic investments in seaport growth. global stage. Florida s seaports must New freight and passenger transportation corridors improve cargo and passenger capacity, provide facilities and services that address port users needs, develop will have created seamless intermodal connectivity, improving landside and waterside access. adequate land, support transportationcorridor Port capacity will have expanded to allow for new development for efficient business opportunities. freight and passenger mobility and The values of and synergies among ports, connectivity, and maintain and improve communities, and industries for economic waterside navigation compatible with development will have been recognized and environmental stewardship. supported. Strained financial resources for Regional and statewide cooperation will be enabling infrastructure investment. With their the optimization of port assets. current collective capital needs of $2.6 billion for vital improvements to The eight elements that are keys to seaport success are channels, berths, terminals, and other described in the following section. components of the logistics chain, the seaports are looking for new ways to acquire the resources they need to implement their forwardlooking port master plans and continue competing effectively in the global marketplace. Many of

20 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2008/ /2013 xx their most strategic projects are production-ready and could be implemented quickly if the seaports were to receive the appropriate funding. Escalating operational costs, including security. Balancing the elements of a secure, sustainable, and cost-effective logistics chain challenges all of Florida s seaports as they strive not only to comply with and harmonize state and federal mandates without impeding the flow of commerce, but also to respond to the troubling circumstances facing their vendors and service providers who have been impacted by the economic downturn. Building an These challenges are compounded by several serious structural impediments interconnected multimodal to the flexibility seaports require to meet customer needs: transportation system to compete in global Modal silos that complicate the delivery of available funds needed for markets is essential efficient access across Florida s intermodal transportation system. to Florida's continued economic development. Complex permitting processes and other red tape that delay timely project implementation. Eligibility criteria limiting the use of Strategic Intermodal System (SIS) funds for certain critical seaport projects. Financial constraints and uncertainties at all levels of government which limit the seaports ability to plan for and fund critical projects. Inadequate annual state funding through the Florida Seaport Transportation and Economic Development (FSTED) Program for seaport maintenance and expansion projects needed to meet market demand for both cargo and cruise industry growth. Redundant state security laws for Florida s seaports that create burdensome and unnecessary costs for seaport users now that the federal security program is in place nationwide. Florida s seaports play a significant role in the daily lives of every resident in the state. The seaports supply aggregates, petroleum products, and building materials for state road and other public and private construction projects as well as the consumer goods Floridians use every day. To continue supplying these essential commodities while creating well-paying jobs and local, regional, and statewide economic development, they must have both the capital and the investment flexibility. Strategic Objectives To address the challenges they face, the seaports have made several recommendations to the Florida s Legislature and governmental partners. 12 These include the following, all of which are intended to enhance the state s ability to use its seaports, airports, and rail as economic development tools and incentives for job growth and revenue enhancement: Enact legislation to enhance the Governor s ability to implement priority intermodal economic development projects at Florida s seaports, airports, and rail facilities. 12 As excerpted from a White Paper the Florida Ports Council presented to the Governor s Office of Tourism, Trade, and Economic Development in November 2008.

21 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2008/ /2013 xxi Create an intermodal advocate/ombudsman within the Governor s Office of Tourism, Trade, and Economic Development (OTTED) that has the authority to expedite, reduce, or find constructive solutions to bureaucratic red tape impediments, including complex permitting processes, that unnecessarily delay priority intermodal economic development projects at Florida s seaports, airports, and rail facilities. Increase the annual funding allocated to priority economic development projects identified by the FSTED Council. Remove the inflexibility currently restricting the use of SIS funds on projects that enhance access to global markets and major transportation facilities. In addition to these recommendations, the seaports continue to pursue an array of strategic objectives to sustain their roles as economic engines for Florida s regions and local communities. Partnership, Coordination, and Public Outreach Objectives. At all levels of government and in both the public and private sectors, the seaports strategic objectives include: Strengthen intermodal transportation partnerships to provide innovative market service strategies. Increase regional cooperation and coordination. Work with the executive and legislative branches, addressing constraints to Florida's competitiveness and growth of international trade, including the rationalization of seaport security operational costs, which continue to take a substantial bite out of the seaports budgets. Continue collaborating with FDOT in developing a Seaport System Plan that addresses the seaports strategic freight and passenger mobility needs. Increase public awareness and support for the maritime industry through the newly created Florida Maritime Leadership Coalition. Continue educating federal policymakers about Florida s role in the nation s commerce. Financial Objectives. The urgent challenges to Florida s economic growth through international trade and tourism can be met only with coordinated new investments in infrastructure development. To accommodate the forecasted growth on Florida s trade lanes both the traditional routes between the state and its neighbors to the south and the growing direct routes between the state and the Far East -- the seaports have identified layered financial objectives: Maintain a list of production-ready strategic projects for a quick response to economic stimulus money made available through the state. Work with FDOT and the Florida Legislature to create a new revenue stream -- a five-year investment fund or new bonding capability -- for market-driven, priority seaport projects, enhancing the state-seaport partnership to achieve the maximum matching funds for seaport infrastructure. Continue working with FDOT to identify additional funding for the seaports and their connectors within the SIS programs, particularly as the federal government releases additional discretionary economic stimulus funds.

22 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2008/ /2013 xxii Continue implementing an active Congressional outreach program to position Florida and the seaports for their share of the forthcoming discretionary economic stimulus funds. Develop a strategic plan to obtain funding for regional multimodal projects in the federal transportation reauthorization legislation. Help accelerate the process by which harbor-deepening project funds are authorized and allocated. Leverage state funds with local funding from seaports and other transportation entities and federal funding from grants and loans. Achieving these objectives requires the collaboration of all those involved in Florida's trade, including all levels of government -- federal, state, regional, and local -- private-sector users of Florida's trade and transport system, and all transportation modes. Resetting the Course Efficient freight mobility is a competitive advantage in the Trade flows over the cheapest, fastest, global playing field, where value is created by the timely and most direct route from point of origin to point of destination. cost-efficient movement of goods to market. In partnership with FDOT, the Department of Community Affairs, and OTTED, Florida s seaports have been working for almost two decades to expand seaport capacity and efficiency so that international trade can flourish throughout the state. The state s demographics, geography, and cultural connections -- combined with its role as a commercial hub for trade with South America, Central America, and the Caribbean -- provide opportunities for international trade growth. Regional trade agreements are facilitating this growth and will continue to do so. International trade opportunities will increase with the widening of the Panama Canal and the expansion of all-water service to East Coast and Gulf ports. While the Panama Canal expansion will have the greatest impact on Florida s largest seaports -- Miami, Everglades, Jacksonville, and Tampa -- the ripple effect of larger ships plus new routes for smaller feeder ships will spread to all of the state s seaports and strengthen Florida s connections to growing global economies in China, India, and elsewhere. Opportunities to trade with a free Cuba also cannot be ignored in planning for the future. The future challenges of the competitive global arena can be met only with an integrated statewide strategic plan that addresses the state s multimodal infrastructure needs and commits the investment necessary to implement the plan and improve freight mobility. Acquiring capital and retaining investment flexibility to fund the seaports vision and meet dynamic global changes are the essential prerequisites of this process. Florida s intermodal transportation system is one of the state s most dynamic and proven catalysts for economic growth. Given the lead-time required to permit, fund, and build the new infrastructure needed to meet the forecast demand, there is no time to waste. As the Chairmen s messages state, the breathing room provided by the current global downturn provides a unique opportunity to accelerate seaport development, building the strategic assets needed for the future, and, in so doing, quickening Florida s economic revival. The breathing room provided by the current global downturn provides a unique opportunity to accelerate seaport development, building the strategic assets needed for the future, and, in so doing, quickening Florida s economic revival.

23 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2008/ /2013 xxiii Eight Elements of Seaport Success To achieve the 2016 vision of success, our seaports collectively identified eight specific elements to be addressed in our respective planning and development initiatives: Element 1: Strategic Port Planning Locally, Regionally, and Statewide Solid, forward-looking planning has been responsible for the seaports successes to date and will continue to guide our future, providing a balance of environmental stewardship and economic benefits. State statutes require that each Florida seaport have an approved port master plan, incorporated into the comprehensive plan of its local government. The planning process provides an open public opportunity for the seaports and their partners to assess the goals, objectives, and policies needed to achieve the seaports strategic regional market and community needs. The resulting plans guide the future of the seaports -- locally, regionally, and statewide. Element 2: Deepwater Access Without adequate navigational access, seaports cannot meet expanding market and vessel requirements. Consequently, developing and maintaining adequate deepwater berths, navigation channels, and turning basins is essential to the seaports competitive future and vision of success. Element 3: Efficient Landside Access Just as adequate navigational access for vessels is essential to a seaport s growth, road and rail systems must be able to move cargo and passengers efficiently on and off the ports. Good market access through a seamless connection from the water, through the port, and onto the highway, air, and rail systems is a prerequisite for efficient and cost-effective services to global shippers and other maritime users. Through the funding provided under the state s Strategic Intermodal System (SIS) and SIS Growth Management programs, Florida s seaports have made significant headway in connecting their facilities to the major trade corridors that carry goods the length and breadth of Florida s peninsula. Funding has been programmed over the fiveyear period for designated seaport connectors and it is hoped that the state will be able not only to fund additional road and rail links, but also to accelerate construction. To make an even greater difference in today's competitive environment, however, Florida needs to promote its strategic statewide significant trade corridors for both federal and state funding. Element 4: Capacity for Port Growth Locally and Regionally One seamless intermodal system moving goods and people between the channel and the marketplace Limited land for capacity expansion constrains growth at many of our seaports. Through more efficient and effective use of the limited land we do have, the seaports hope to overcome this constraint. Among SHIP SEAPORT RAIL PLANE TRUCK

24 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2008/ /2013 xxiv the tools at our disposal are implementation of appropriate new development and redevelopment strategies and the use of new technologies to be more productive in stacking full containers and storing empty ones, for example, or in receiving bulk cargoes. Element 5: Balance between User Needs and the Cost of Maritime Operations Mandated security continues to impose a costly burden on the seaports, as we strive to achieve our goals. Achieving the balance between commerce Having deferred vital capital projects to pay for our and security has created enormous financial and operational challenges at all security infrastructure, we have continued to realign of the seaports. our budgets to address the recurring operational costs of maintaining the required level of alert. Seaports must be efficient, cost-effective, and secure to be competitive. At the same time, the industry requires that seaports remain flexible and offer services and facilities to their users at a cost that is sensitive to market demand and serves to reduce the cost of consumer goods in the marketplace. Balancing commerce and security has created enormous financial and operational challenges at all of the seaports. Element 6: Ability to Build and Sustain Key Partnerships Since the creation of the FSTED program in 1990, Florida s transportation system providers and users have been partners in creating efficient statewide transportation services. Today the need for efficient services is greater than ever and our seaports, with their local, state, federal, and private sector partners, require infrastructure funding strategies that effectively meet the market demands of our capital improvement programs. Continued local, state, and federal government support is critical to the on-going success of our seaports and Florida s economy. Element 7: Value of Investing in Florida Seaports and Serving Florida s Population Florida seaports and users provide critical services to the state s population in terms of accessing global freight and cruise markets. Most of the consumer goods serving our growing population and the construction materials building the state s infrastructure flow through Florida s seaports. Florida residents thus accrue daily benefits from their proximity to one or more of our state s seaports as consumers purchase the goods transported across seaport docks, entrepreneurs sustain diversified businesses serving the maritime industry, and employees enjoy the well-paying jobs the seaports create. Element 8: Enhanced Public Understanding and Support for Florida s Seaports Despite the economic benefits our seaports bring to their respective communities and the state, these benefits are not generally understood by the public at large. Consequently, the seaports determined that we should individually and collectively promote public understanding of our value and importance to Florida s economic vitality and prosperity. These eight elements provide the framework for achieving our 2016 vision of success. To continue the work of this comprehensive planning initiative, however, our seaports, users, and partners must continue engaging in a cooperative planning process to build consensus on our shared vision of success and on the needs, policies, and strategies to implement that vision.

25 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2008/ / Chapter I. Florida's International Trade Trends Florida s Total International Trade. In 2008, Florida's The value of Florida's total international trade, which includes waterborne and airborne international trade in 2008 grew by commodities moving through the state's gateways as well as 13.7 percent over 2007, reaching a record $130.5 billion. commodities moving over land, totaled $130.5 billion, a $15.6 billion increase (13.7 percent) over the previous record of $114.9 billion in Exhibit 1 shows the state's ten-year international trade record for both waterborne and airborne cargo. (Overland cargo, which represents just a small portion of the total, is not shown in this chart.) Exhibit 1: Florida s International Trade $ Waterborne Airborne Total $109.7 $ $ $70.5 $73.8 $70.9 $70.1 $73.2 $ Value of Florida's 20 International Trade in $ Billions Data source: U.S. Bureau of the Census, Foreign Trade Division (see Footnotes 1 below and 2 on the next page). Florida s 13.7 percent growth in international trade between 2007 and 2008 was significantly greater than the 4.7 percent in 2007, but less than the state s previous 15.2 percent and 17.2 percent growth rates in 2006 and 2005, respectively. Exhibit 2, on the next page, shows the state s international trade growth rates over the decade. 1 These waterborne and airborne numbers total $128.5 billion, based on the port-level data obtained from the U.S. Census Bureau, Foreign Trade Division, which uses the District of Unlading methodology and obtains slightly different results from Enterprise Florida s District of Entry methodology. These data also include approximately 3.7 billion in overland movements, such as goods trucked from Canada and Mexico or moving by other means.

26 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2008/ / Exhibit 2: Percent Change in $ Value of Florida s International Trade to % 15.0% 17.1% 15.2% 13.60% 10.0% 11.7% Percent 5.0% 5.3% 4.7% 0.0% -5.0% -10.0% -5.2% -3.0% Data source: Enterprise Florida Inc. and U.S. Bureau of the Census, Foreign Trade Division. Dollar Value of Florida s Waterborne and Airborne International Commerce. Goods moving through Florida s seaport gateways in 2008 were valued at approximately $82.5 billion, or approximately twothirds of the state's total international trade; goods moving through the state s airport gateways were valued at $42.3 billion, or approximately one-third of the Table 1: Florida Import and Export Percentages total. 2 These respective waterborne and airborne shares of the state s international trade have remained comparatively consistent over the years. Imports Exports Import-Export Balance. Of the $130.5 billion in Florida s international trade in 2008, $57.5 billion were imports and $73.0 billion were exports. The $57.5 billion in imports by sea and air represented 44 percent of the state s total international trade, considerably less than in previous years. By contrast, the $73.0 billion in exports represented 56 percent of the total, considerably more than in previous years. Table 1 shows Florida's import-export ratios since % 47% % 44% % 46% % 46% % 48% % 51% % 56% 2 Again, these valuations are based on the port-level data total of $128.5 billion, which also includes approximately $3.7 billion of goods moving over land. The Enterprise Florida total of $130.5 billion, based on the District of Entry methodology is, however, the valuation used in the following calculations of the state s various international trade parameters.

27 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2008/ / Florida s imports decreased in value by 2.9 percent in 2008, continuing the decline first experienced in 2007, whereas exports increased 23.9 percent, substantially more of an increase than in the last few years. Nationwide, imports and exports increased by 7.5 and 11.8 percent, respectively, as Table 2 shows. U.S. imports continued to dominate exports in 2008, although the proportion of imports to exports decreased slightly. A comparison of Tables 1 and 2 confirms Florida s history of a more balanced importexport ratio than that at the national level. The deteriorating economic situation, with the flattening of the state s housing market and the supporting construction industry -- as well as decreasing fuel consumption -- all helped boost Florida s exports over its imports. As the U.S. dollar fluctuates against other currencies, and the state s traditional markets lose some of their purchasing power, this trend may modulate in Year Total U.S. Merchandise Trade Change over Prior Year 2002 $1,854, % Table 2: U.S Imports and Exports ($ millions) Imports Change over Prior Year Share of Total U.S. Trade Exports Change over Prior Year Share of Total U.S. Trade $1,161, % 62.6% $693, % 37.4% 2003 $1,981, % $1,257, % 63.4% $724, % 36.6% 2004 $2,289, % $1,470, % 64.2% $819, % 35.8% 2005 $2,575, % $1,670, % 64.9% $904, % 35.1% 2006 $2,892, % $1,855, % 64.1% $1,037, % 35.9% 2007 $3,116, % $1,953, % 62.7% $1,162, % 37.3% 2008 $3,400, % $2,100, % 61.8% $1,300, % 38.2% Data source: U.S. Bureau of the Census, Foreign Trade Division. Global Distribution of Florida s International Commerce. Florida trades with more than 225 partners from all parts of the globe. The regional distribution of the state s global commerce in 2008 is illustrated in Exhibit 3, on the next page. Florida s neighbors to the south South America, Central America, and the Caribbean accounted for 56.1 percent of the state s international trade in 2008, comparable to their 55.9 percent market share in 2007 and similar percentages in recent years.

28 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2008/ / Exhibit 3: Florida s Trade with Global Regions 2008 (Percent share of Florida market) Middle East Southern Africa 3.6% Indian Subcontinent 1.4% 2.1% Central and Eastern Europe 1.3% North America 3.5% Caribbean 9.8% Central America 11.9% Oceania 0.5% North Africa 0.4% Asia 13.9% Western Europe 17.2% South America 34.3% Asia Western Europe South America Central America Caribbean North America Central and Eastern Europe Indian Subcontinent Southern Africa Middle East Oceania North Africa Data source: Exhibits 3 and 4: Enterprise Florida Inc., based on U.S. Bureau of the Census, Foreign Trade Division. The changes in Florida s trade with most regions in 2008 were modest, except for South America, as illustrated in Exhibit 4 and detailed in Table 3 on the next page. Exhibit 4: Comparison of Florida s Global Trade by Region in 2006, 2007, and 2008 $50,000,000,000 $45,000,000,000 $40,000,000,000 $35,000,000, $30,000,000,000 $25,000,000,000 $20,000,000, $15,000,000,000 $10,000,000,000 $5,000,000,000 $ Value $0 Asia Western Europe South America Central America Caribbean North America Central/Eastern European Indian Subcontinenta Southern Africa Middle East Oceania North Africa

29 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2008/ / Table 3 shows the dollar value and parameters of Florida s international trade with each of the global regions in 2008 and compares the 2008 record with those in 2006 and South America, whose trade with Florida retained its dominant role, was the only one of Florida s major trading regions to grow at a doubledigit rate (17.4 percent), increasing its share of Florida s trade by $6.6 billion to 34.3 percent. Table 3: Florida s International Trade by Global Region in 2008 (with 2007 and 2006 Comparisons) Value of Value of Change Value of Change Trade Percent Trade Percent over Trade Percent over Region ($000) of Total ($000) of Total 2007 ($000) of Total 2006 South America $44,812, % $38,171, % 17.4% $34,736, % 9.9% Western Europe 22,450, % 20,694, % 8.5% 20,054, % 3.2% Asia 18,161, % 17,255, % 5.3% 16,528, % 4.4% Central America 15,594, % 14,413, % 8.2% 14,005, % 2.9% Caribbean 12,768, % 11,679, % 9.3% 11,964,318, 10.9% -2.4% North America 4,712, % 4,744, % (2.8)% 4,466, % 6.2% Middle East 4,613, % 2,874, % 63.9% 3,125, % -8.0% Central / Eastern Europe 2,773, % 1,650, % 1.3% 1,805, % -8.6% Indian Subcontinent 1,799, % 1,280, % 116.6% 1,262, % 1.5% Southern Africa 1,671, % 1,263, % 42.4% 1,165, % 8.4% Oceania 693, % 510, % 35.9% 418, % 21.9% North Africa 495, % 357, % 38.7% 212, % 68.0% $130,546, % $114,895, % 13.6% $109,745, % 4.7% Data source: Enterprise Florida Inc., based on U.S. Bureau of the Census, Foreign Trade Division. Other parameters of Florida s 2008 international trade with global regions include the following: All regions but North America increased the dollar value of their trade in Western Europe and Asia, which retained their second and third ranks, respectively, among Florida s primary regional trading partners, experienced single-digit growth rates (3.2 percent and 4.4 percent, respectively) rather than the double-digit growth rates experienced in previous years. Besides South America, the only regions with double-digit growth rates, albeit from small bases, were the regions with the least shares of Florida s trade: the Middle East, the Indian Subcontinent, Southern Africa, Oceania, and North Africa. Market shares were redistributed, with the larger regions, except for South America, losing some of their respective shares and several smaller regions gaining slightly larger shares. Of the trading partners with less than a four percent share of the Florida market, the Middle East and the Indian Subcontinent showed the largest increases in trade, with $1.8 billion (63.9 percent) and $1.5 billion (116.6 percent), respectively.

30 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2008/ / Exhibit 5 illustrates the differences in Florida's import and export markets with its regional trading partners in The value of exports to countries in South America, Central America, and the Caribbean continued to be substantially higher than the value of imports. Florida s exports to Southern Africa, the Indian Subcontinent, and the Middle East also exceeded imports. The import-export situation is reversed in the state's trade with countries in Western Europe and, particularly, in Asia, where imports dominated exports Exhibit 5: Florida s Import and Export Trade with Global Regions ,000,000,000 30,000,000,000 25,000,000,000 20,000,000,000 15,000,000,000 10,000,000,000 5,000,000,000 Imports Exports $ Value 0 Asia Western Europe South America Central America Caribbean North America Central/Eastern Europe Indian Subcontinent Southern Africa Middle East Oceania North Africa Data source: Enterprise Florida Inc., based on U.S. Bureau of the Census, Foreign Trade Division.

31 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2008/ / Table 4 compares the dollar values of imports and exports for each of the regions with which Florida trades. The table also shows the percent changes in these values between 2007 and 2008, with exports growing at a strikingly greater rate than imports (23.9 percent versus 2.8 percent).. Table 4: Florida s Import and Export Trade with Global Regions 2008 (with 2007 Comparison) Imports Percent Exports Percent Change Change Asia $15,999,937,172 $15,455,668, % $2,161,737,205 $1,799,730, % Western Europe 13,294,538,098 13,492,359, % 9,156,388,055 7,202,268, % South America 11,971,586,390 11,510,589, % 32,841,195,207 26,660,922, % Central America 5,949,012,164 5,814,371, % 9,645,187,318 8,598,999, % Caribbean 4,220,346,589 3,780,477, % 8,547,698,269 7,899,155, % North America 2,944,537,646 3,055,208, % 1,668,800,948 1,689,285, % Central / Eastern Europe 1,232,140,648 1,308,928, % 439,101, ,762, % Indian Subcontinent 587,695, ,166, % 2,185,996, ,358, % Southern Africa 564,728, ,371, % 1,235,008,565 1,010,203, % Middle East 269,326, ,520, % 4,442,933,858 2,599,853, % Oceania 172,062, ,743, % 521,460, ,672, % North Africa 318,862, ,888, % 176,283, ,157, % Total $ 57,524,775,490 $55,952,294, % $73,021,791,954 $58,943,370, % Data source: Enterprise Florida Inc., based on U.S. Bureau of the Census, Foreign Trade Division. In 2008, although the value of Florida s trade with Asia increased only slightly, Asia continued to dominate Florida s imports; Western Europe remained as the second strongest import region, having replaced South America in Imports from South America and Central America increased slightly while those from the Caribbean increased by double digits as did imports from several of the smaller regions, as shown in Table 4. In total, imports increased by $1.6 billion, almost the exact reverse of the $1.7 billion decline in On the export side, Florida s trade increased by $14.1 billion in 2008 over Only exports to North America declined; exports to all other regions increased by double digits, except for the Caribbean, which saw more modest increases. Florida s Top Trading Partners. The characteristics of Florida s international trade are better understood by looking at the comparative market shares of individual countries within the respective global regions. The top twenty countries whose commerce contributed to the state's $130.5 billion in international trade in 2008 are ranked in Table 5. This table compares the values of the state s 2008 commerce with these top partners for the previous two years, showing the percentage changes between 2006 and 2007 and between 2007 and 2008.

32 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2008/ / Rank Table 5: Florida's Top Twenty Trading Partners in 2008 (with 2007 and 2006 Comparisons) Country Value of Trade 2008 Change Rank Value of Trade 2007* 2006 Rank Value of Trade 2006* Total all Countries $130,546,567, % $114,895,665,424 $109,745,142, % 1 Brazil $15,457,705, % 1 $13,002,996,878 1 $11,308,995, % 2 Japan 7,692,742, % 2 7,398,702, ,271,878, % 3 Venezuela 7,092,038, % 4 6,329,188, ,131,512, % China (Mainland) 6,508,715, % 5,786,186,358 5,614,985, % 5 Colombia 6,427,890, % 6 5,470,002, ,863,631, % 6 Germany 6,022,243, % 3 6,425,260, ,772,729, % 7 Chile 5,358,080, % 7 4,910,566, ,972,057, % Dominican Republic 4,897,474, % 4,723,938,084 4,828,656, % 9 Costa Rica 4,314,494, % 9 4,011,959, ,182,064, % 10 Honduras $4,066,243, % 10 $3,880,432, $3,558,823, % Change Total Top 10: $67,837,628,747 Top 10 Share of Total $130.5 Billion: 52.0% Previous Total Top 10**: $61,939,233,273 Top 10 Share of Total $114.9 Billion: 53.9 % Previous Total Top 10**: $59,509,276,718 Share not provided, as not all Top 10 countries were the same in 2006 as in Mexico 3,391,917, % 11 3,554,851, ,562,766, % 12 Peru 3,055,178, % 16 2,135,664, ,009,153, % 13 Argentina 3,014,664, ,641,553, ,416,608, % 14 France 2,881,481, % 12 3,070,410, ,603,495, % 15 India 2,627,043, % 1,133,446,690 1,032,807,493 United 16 Kingdom 2,535,973, % 13 2,837,005, ,868,186, % 17 Netherlands 2,447,804, % 20 1,640,366, ,684,567, % 18 Guatemala 2,353,867, %2 15 2,303,899, ,343,714, % 19 Switzerland 2,116,738, % 966,183, ,705, Trinidad and Tobago $1,857,445, % $1,356,127,935 $1,310,502,728 Total Top 20: $94,119,746,318 Top 20 Share of Total $130.5 Billion: 72.1 % Total Top 20: $85,405,778,690 Share not provided, as not all Top 20 countries were the same in 2007 as in Total Top 20: $82,006,356,927 Share not provided, as not all Top 20 countries were the same in 2006 as in * Data released in 2008 have some slightly different updated numbers than the data first released in 2007 and used in the previous edition of the Seaport Mission Plan. ** Individual entries no longer add to the total because new 2008 top ten countries have been added to the 2007 and 2006 columns and percentages may have changed slightly. The totals shown are the totals from previous editions of the Seaport Mission Plans.. Data source: Enterprise Florida Inc., based on U.S. Bureau of the Census, Foreign Trade Division.

33 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2008/ / Consistent with Florida's dominant role in trade with Central and South America and the Caribbean, twelve of the countries on the list of the state s top twenty trading partners are from those regions. Five are from Europe, two are from Asia, and one is from North America. The highlights of Florida s trade with specific countries, as shown in Table 5, include the following: All of the top ten countries remained the same in 2008 as in 2007, with a few position switches (China moving up to fourth place and Germany dropping down to sixth). Brazil, Japan, Venezuela, and China remained among Florida s top five trading partners in 2008, joined by Colombia. Each of the top five, except for Japan, had double-digit increases in the growth rate of their trade with Florida. Brazil s trade with Florida was more than double that of the next ranked country, Japan. India and Switzerland broke into the top twenty, with triple-digit growth rate increases. Other than the Netherlands and Switzerland, Florida s top European trading partners -- Germany, France, and the United Kingdom -- saw declines in the value of their trade with the state. Florida s trade with most of the DR-CAFTA 3 countries -- the Dominican Republic, Costa Rica, Honduras, and Guatemala -- increased by comparatively small amounts. After declining slightly in 2007, the value of Florida s trade with Chile resumed its upward swing; this is assumed to reflect the results of the free trade agreement between Chile and the U.S. Trade with Puerto Rico is also a key part of Florida's overall commerce; but, as this trade is considered domestic rather than international, Puerto Rico is not included in the ranking of international trading partners. Exhibit 6, on the next page, illustrates how Florida s trade with each of its top ten trading partners has evolved during the decade. This exhibit confirms Brazil s domination of the top spot, Japan s continued prominence, China s steady rise, and the continued role of long-time partners such as Venezuela, Colombia, Chile, the Dominican Republic, Costa Rica, and Honduras. The conclusion to be drawn from this analysis is that Florida s top trading partners remain quite consistent; but their growth rates and relative rankings shift from year to year. In addition to this consistency, however, the diversity of Florida s trading partners is an important asset in the state's competitive initiative to retain and expand market share. Overall, thirty-one countries, including eleven not among the top twenty, had more than $1 billion in trade with Florida. These countries cover the globe, from Ecuador, El Salvador, Panama, the Bahamas, Paraguay, and Nicaragua to Canada, to Italy and Spain, to the United Arab Emirates and Saudi Arabia. Also, in addition to the thirty-one countries with more than $1 billion in trade with Florida, the state trades with others from all parts of the world whose double-digit-trade increases exceeded half a billion dollars in The Dominican Republic- Central American Free Trade Agreement (DR-CAFTA), which the U.S. signed in 2005, includes El Salvador, Costa Rica, Guatemala, Honduras, Nicaragua, and the Dominican Republic.

34 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2008/ / Exhibit 6: Value of Florida s International Trade with Its Top Ten Trading Partners ,000,000,000 16,000,000,000 14,000,000,000 12,000,000,000 10,000,000,000 8,000,000,000 6,000,000,000 4,000,000,000 Brazil Japan Venezuela China (Mainland) Colombia Germany Chile Dominican Republic Costa Rica Honduras 2,000,000,000 $ Value Data source: Enterprise Florida Inc., based on U.S. Bureau of the Census, Foreign Trade Division. Florida s Import/Export Markets. The state s trade picture comes into better focus when its import and export partners as well as the goods that make up this trade are looked at more closely. Import Markets: Of Florida's top twenty import partners in 2008, eleven came from Central America, South America, and the Caribbean (two more than in 2007); two were from North America; five were from Europe; and two were from Asia (one fewer than in 2007, as South Korea dropped from the top twenty), as shown in Table 6. Japan continued to be Florida s top import partner, albeit with less than one percent rate of growth, while China, with a higher rate of growth than in 2007, remained in second place. Trinidad and Tobago and El Salvador replaced Russia and South Korea. Florida s top ten import partners represented 56.3 percent of the $57.5 billion total imports, slightly less than in previous years; the value of the top twenty s trade represented 77.2 percent of the total, also slightly less than in previous years. Import highlights in 2008 included: The continued decline in the value of imports from Brazil and Venezuela. The acceleration in the rate of growth of imports from China. The decline in the rate of growth of imports from Japan. Peru s renewed substantial increase in the value of trade with Florida.

35 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2008/ / Import declines from several of the DR-CAFTA countries -- the Dominican Republic, Guatemala, and Costa Rica (which signed the trade pact in November 2008, having resolved lingering details). Increases in the value of imports from two other DR-CAFTA countries: Honduras and El Salvador. With the exception of the Netherlands, declines in the value of imports from the European countries in the top twenty -- Germany, France, the United Kingdom, and Italy -- in some cases by double digits Rank Table 6: Florida's Top Twenty Import Trading Partners in 2008 (with 2007 and 2006 Comparisons) Country Value of Trade 2008 Change Rank Value of Trade 2007* 2006 Rank Value of Trade 2006* Change Total All Countries $57,524,775, % $55,952,294,562 $57,399,779, % 1 Japan $6,815,000, % 1 $6,775,855,307 1 $6,879,187, % 2 China (Mainland) 6,148,419, % 2 5,354,637, ,127,333, % 3 Brazil 3,252,042, % 3 3,304,609, ,590,752, % 4 Chile 2,749,008, % 5 2,829,216, ,257,037, % 5 Germany 2,722,644, % 4 3,154,879, ,305,053, % 6 France 2,524,280, % 6 2,706,130, ,233,473, % 7 Colombia 2,251,058, % 8 2,057,860, ,059,669, % 8 Mexico 1,980,067, % 9 2,042,590, ,971,439, % Dominican 9 Republic 1,979,329, % 10 2,037,844, ,318,511, % 10 Honduras 1,962,351, % 11 1,922,174, ,862,992, % Total Top 10 $32,384,204,264 $32,333,145,210 $32,738,356,575 Top 10 Share of Total $57.5 Billion: 56.3% Top 10 Share of Total $56.0 Billion: 57.7%** Top 10 Share of Total $57.4 Billion: 57.0%** 11 Netherlands $1,810,098, % 15 $1,112,629, $1,277,635, % 12 United Kingdom 1,588,536, % 7 2,069,520, ,995,895, % 13 Venezuela 1,419,145, % 12 1,445,880, ,721,310, % 14 Costa Rica 1,352,934, % 13 1,431,289, ,538,147, % 15 Italy 1,250,714, % 14 1,410,877, ,422,868, % 16 Peru 1,063,129, % ,199, ,338, % 17 Canada 913,288, % ,544, ,499, % 18 Guatemala 907,342, % ,563, ,076,019, % Trinidad And 19 Tobago 885,337, % 568,817, ,163, El Salvador 816,721, % 708,605, ,861,101 Total Top 20 $44,391,451,873 $44,106,084,076 $44,876,027,359 Top 20 Share of Total $57.5 Billion: 77.2% Share not provided as not all Top 20 countries were the same in 2007 as in Share not provided as not all Top 20 countries were the same in 2006 as in * Data released in 2008 have some slightly different updated numbers than the data first released in 2007 and used in the previous edition of the Seaport Mission Plan. ** Individual entries no longer add to the total because new 2008 top ten countries have been added to the 2007 and 2006 columns and percentages may have changed slightly. The totals shown are the totals from previous editions of the Seaport Mission Plans. Data Source: Enterprise Florida Inc., based on U.S. Bureau of the Census, Foreign Trade Division.

36 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2008/ / Export Markets: Florida s export trade continued to tilt much more heavily than its import trade toward South America, Central America, and the Caribbean in As shown in Table 7, fifteen of the top twenty export countries -- including eight of the top ten were from these regions. Several of the top twenty export countries shifted in position between 2007 and 2008; but all but El Salvador and Trinidad and Tobago remained on the list, replaced by newcomers, India and Switzerland. In 2008, Florida s top ten export partners provided 55.6 percent of the $73.0 billion total exports, much less of a percentage than in 2007; the top twenty s trade provided 76.3 percent of the total, which is comparable to Rank Table 7: Florida's Top Twenty Export Trading Partners in 2008 (with 2007 and 2006 Comparisons) Country Value of Trade 2008 Change Rank Value of Trade Rank Value of Trade 2006 Change Total All Countries $73,021,791, % $58,943,370,862 $52,345,362, % 1 Brazil $12,205,662, % 1 $9,698,386,951 1 $7,718,242, % 2 Venezuela 5,672,892, % 2 4,883,308, ,410,202, % 3 Colombia 4,176,831, % 3 3,427,412, ,803,961, % 4 Germany 3,299,599, % 4 3,270,381, ,467,675, % 5 Costa Rica 2,961,560, % 6 2,580,669, ,643,916, % 6 Dominican Republic 2,918,144, % 5 2,686,093, ,510,144, % 7 Chile 2,609,071, % 8 2,081,349, ,715,019, % 8 Argentina 2,504,306, % 7 2,190,758, ,957,157, % 9 India 2,166,819, % 670,616, ,136, Honduras 2,103,892, % 9 1,958,258, ,695,830, % Top 10 Share of Total $73.0 Billion: 55.6 % $40,618,780,860 $34,273,609,406 $30,513,478,270 Top 10 Share of Total $58.9 Billion: 58.2 % Top 10 Share of Total $52.3 Billion: 58.39% 11 Peru 1,992,048, % 11 $1,424,465, $1,239,814, % 12 United Arab Emirates 1,801,980, % 18 $892,780, $981,471, % 13 Switzerland 1,580,417, % 540,994, ,374, Panama 1,531,939, % 13 $1,206,213, $892,885, % 15 Saudi Arabia 1,451,060, % 19 $865,459, $974,055, % 16 Guatemala 1,446,525, % 12 1,377,336, $1,267,695, % 17 Mexico 1,411,850, % 1,497,029,394 1,591,078, Ecuador 1,392,505, % 15 $1,165,472, $962,184, % 19 Paraguay 1,372,550, % 16 $1,125,622, $835,707, % 20 Bahamas 1,066,796, % 14 $1,181,068, $1,201,198, % Top 20 Share of Total $73.0 Billion: 76.3 % 55,666,456,898 $45,312,145,261 $40,752,026,489 Share not provided as not all Top 20 countries were the same in 2007 as in Share not provided as not all Top 20 countries were the same in 2006 as in * Data released in 2008 have some slightly different updated numbers than the data first released in 2007 and used in the previous edition of the Seaport Mission Plan. ** Individual entries no longer add to the total because new 2008 top ten countries have been added to the 2007 and 2006 columns and percentages may have changed slightly. The totals shown are the totals from previous editions of the Seaport Mission Plans. Data source: Enterprise Florida Inc., based on U.S. Bureau of the Census, Foreign Trade Division.

37 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2008/ / Export highlights in 2008 included: Exports to Brazil, Venezuela, Colombia, Argentina, and Chile all continued to increase by double digits, as did exports to Peru, Panama, Ecuador, and Paraguay. Indeed, with the exception of Mexico and the Bahamas, the value of Florida s exports to all of the top twenty countries increased; all of which received more than $1 billion in goods from the state. Top Commodities through Florida s Sea, Air, and Land Gateways. In 2008, as shown in Table 8, ten commodity types accounted for $90.2 billion of Florida s $130.5 billion in international trade, or 69.1 percent of the total. Leading the list of these commodities -- which are the same as in are industrial and electrical machinery, vehicles, fuels, and aircraft Rank Table 8: Florida's Top Ten Commodities (Import and Export) in 2008 (with 2007 and 2006 Comparisons) Commodity Value of Trade 2008 Change Rank Value of Trade 2007*, ** 2006 Rank Value of Trade 2006*, ** Total All Commodities $130,546,567, % $114,895,665,4240 $109,745,142, % Change Industrial machinery, including computers $21,967,300, % 1 $18,701,506, ,903,935, % Vehicles, except railway or tramway, and parts 19,038,456, % 2 17,357,115, ,405,138, % Electric machinery, including sound equipment, TV equipment, parts 15,266,597, % 3 12,546,974,294 3 $1,640,999, % Mineral fuel, oil etc.; bituminous substances; mineral wax 7,510,362, % 4 7,234,853, ,248,283, % Aircraft, spacecraft, and parts thereof 5,473,036, % 5 5,046,400, ,385,765, % Optic, photo, medical, or surgical instruments 5,471,222, % 7 4,542,599, ,194,398, % Natural or cultured pearls and precious or semiprecious stones, etc. 4,598,713, % 8 2,949,563, $2,369,887, % Apparel articles and accessories, knit or crochet 4,331,646, % 6 4,639,886, ,341,247, % 9 Fertilizers 4,009,968, % 2,016,075,919 1,707,330, Special classification provisions, Nesoi 2,551,118, % 1,732,778,369 1,987,558,082 Total Top 10 $90,218,424,389 $77,946,987,634 $74,793,969,152 Top 10 Share of Total $130.5 Billion: 69.1 % Share not provided as not all Top 10 commodities were the same in 2007 as in 2008 Share not provided as not all Top 10 commodities were the same in 2006 as in 2007 * Data released in 2008 have some slightly different updated numbers than the data first released in 2007 and used in the previous edition of the Seaport Mission Plan. ** Individual entries no longer add to the total because new 2008 top ten countries have been added to the 2007 and 2006 columns and percentages may have changed slightly. The totals shown are the totals from previous editions of the Seaport Mission Plans. Data source: Enterprise Florida Inc., based on U.S. Bureau of the Census, Foreign Trade Division.

38 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2008/ / Highlights of Florida s 2008 total commodity imports and exports include: The value of seven of the top ten commodities showed double-digit increases over Apparel articles and accessories, knit or crochet, continued their downward slide, dropping from sixth to eighth place, and decreasing in value by 6.6 percent while apparel articles and accessories, not knit or crochet (i.e., woven), dropped from the top ten list altogether. Copper also dropped from the top ten. Replacing copper and woven apparel, fertilizers and non-specified commodities moved into the top ten. Fertilizers almost doubled in value, increasing by almost $2 billion. Among other commodities just below the top ten whose values equaled more than $1 billion each are copper, plastics, fish and crustaceans, woven apparel, beverages and spirits, pharmaceuticals, perfumery and cosmetics, furniture, paper and paper products, and ships and boats. Exhibit 7 shows the comparative shares of the top ten commodities Florida imports and exports. Exhibit 7: Florida s Top Ten Commodities (Imports and Exports) 2008 Apparel articles and Natural or cultured accessories, knit or pearls and precious or crochet semiprecious stones, 5% etc. 5% Optic, photo, medical, or surgical instruments 6% Aircraft, spacecraft, and parts thereof 6% Mineral fuel, oil etc.; bituminous substances; mineral wax 8% Fertilizers 4% Special classification provisions, Nesoi 3% Industrial machinery, including computers 25% Vehicles, except railway or tramway, and parts 21% Electric machinery, including sound equipment, TV equipment, parts 17% Data source: Enterprise Florida Inc., based on U.S. Bureau of the Census, Foreign Trade Division.

39 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2008/ / Imported Commodities: The top ten commodities Florida imported in 2008 are ranked in Table 9. All of these commodities, except copper (which replaced the special classification provisions in 2006), have been on the top ten lists for several years, although ranking somewhat differently from year to year. These ten commodities represent more than two-thirds of the state's imports Rank Table 9: Florida's Top Ten Import Commodities in 2008 (with 2007 and 2006 Comparisons) Commodity Value of Trade Rank Value of Trade 2007*, ** Change Rank Value of Trade 2006*, ** Total All Imported Commodities $57,524,775,490 $55,952,294, % $57,399,779,749 Change Vehicles, except railway or tramway, and parts $8,237,201,168 1 $8,682,666, % 1 9,249,755, % Mineral fuel, oil etc.; bituminous substances; mineral wax 7,290,773, ,960,131, % 2 7,052,211, % Industrial machinery, including computers 4,300,992, ,841,068, % 5 3,262,812, % Electric machinery: sound equipment, TV equipment, parts 4,064,281, ,428,936, % 4 3,452,112, % Apparel articles and accessories, knit or crochet 4,009,996, ,097,323, % 3 4,553,294, % Natural or cultured pearls and precious or semiprecious stones, etc. 2,454,016, ,917,302, % 10 1,583,263, % Aircraft, spacecraft, and 7 parts thereof 2,438,047, ,277,548, % 8 2,110,739, % 8 Copper and articles thereof 2,230,778,925 6 $,391,190, % 6 3,223,699, % 9 10 Fish, crustaceans and aquatic invertebrates 1,856,450, ,798,608, % 9 1,661,450, % Apparel articles and accessories, not knit or crochet (i.e., woven) 1,816,006, ,262,381, % 7 2,650,230, % Share of Total $57.5 Billion Imports: 67.3% Total Top 10 $38,698,545,826 $37,657,157,370 $38,799,568,440 Share of Total $55.9 Billion Imports: 67.3% Share of Total $57.4 Billion Imports: 67.6% * Data released in 2008 have some slightly different updated numbers than the data first released in 2007 and used in the previous edition of the Seaport Mission Plan. ** Individual entries no longer add to the total because new 2008 top ten countries have been added to the 2007 and 2006 columns and percentages may have changed slightly. The totals shown are the totals from previous editions of the Seaport Mission Plans. Data source: Enterprise Florida Inc., based on U.S. Bureau of the Census, Foreign Trade Division. Highlights of Florida s commodity imports in 2008 include the following: Vehicles have topped the list of Florida s imports for many years, but in 2008, as in 2007, the value of these imports declined slightly. The strongest percentage increases among Florida s 2008 imports occurred with natural or cultured pearls and precious or semiprecious stones, electric machinery, and industrial machinery. Vehicles, fuels, aircraft, and spacecraft as well as fish and crustaceans also had slight increases in value. The other four top imports declined in value in 2008.

40 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2008/ / Knit apparel imports, which had held the second spot for at least six years before 2006, then dropped to third place, dropped again to fifth place in 2008; woven apparel imports continued their now eight-year decline, dropping by 19.8 percent. These two apparel categories are affected by the changes in global trade resulting from the dropping of World Trade Organization (WTO) quotas in January 2005 (see Table 11 later in this section). Exhibit 8 shows the respective percentages of Florida s top ten imports. Exhibit 8: Florida s Top Ten Import Commodities 2008 Copper and articles thereof 6% Fish, crustaceans and aquatic invertebrates 5% Apparel articles and accessories, not knit or crochet (i.e., woven) 5% Aircraft, spacecraft, and parts thereof 6% Natural or cultured pearls and precious or semiprecious stones, etc. 6% Apparel articles and accessories, knit or Electric machinery: sound crochet equipment, TV equipment, 10% parts 11% Vehicles, except railway or tramway, and parts 21% Mineral fuel, oil etc.; bituminous substances; mineral wax 19% Industrial machinery, including computers 11% Data source: Enterprise Florida Inc., U.S. Bureau of the Census, Foreign Trade Division.

41 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2008/ / Exported Commodities. The top ten commodities Florida exported in 2008 are ranked in Table 10. With the exception of the special classification provisions (which replaced cotton, including yarn and woven fabric) and the natural or cultured pearls and precious and semiprecious stones, these commodities have all been among the state s top ten exports for the past few years, ranking in almost identical order. The top ten commodities consistently represent a solid three-fourths of the state's exports and more than a third of its total international trade. With the dramatic increase in the state s exports in 2008, they currently represent 43.5 percent of the total Rank Table 10: Florida's Top Ten Export Commodities in 2008 (with 2007 and 2006 Comparisons) Change Change Commodity Value of Trade Rank Value of Trade 2007*, ** 2006 Rank Value of Trade 2006*, ** Total All Commodities $73,021,791, % $58,943,370,862 $52,345,362, % 1 Industrial machinery, including computers $17,666,308, % 1 $14,860,437,628 1 $12,641,123, % 2 Electric machinery, including sound equipment, TV equipment 11,202,316, % 2 9,118,037, ,188,887, % 3 Vehicles, except railway or tramway, and parts etc 10,801,254, % 3 8,674,448, ,155,382, % 4 Optic, photo, medical, or surgical instruments 4,247,583, % 4 3,429,809, ,055,659, % 5 Fertilizers 3,903,154, % 6 1,911,613, ,619,164, % 6 Aircraft, spacecraft, and parts thereof 3,034,988, % 5 2,768,852, ,275,026, % 7 Natural or cultured pearls and precious or semiprecious stones, etc 2,144,696, % 9 1,032,261, ,575, % 8 Plastics and articles thereof 1,388,048, % 7 1,214,548, ,093,834, % 9 Pharmaceutical products 1,367,495, % 8 $1,067,356, ,743, % 10 Special classification provisions, Nesoi 1,061,382, % 453,258, ,595,096 Total Top 10 56,817,229,089 $44,944,738,766 $39,680,700,271 Share of Total $73.0 Billion Exports: 77.8% Share not provided as not all Top 10 commodities were the same in 2007 as in Share not provided as not all Top 10 commodities were the same in 2006 as in * Data released in 2008 have some slightly different updated numbers than the data first released in 2007 and used in the previous edition of the Seaport Mission Plan. ** Individual entries no longer add to the total because new 2008 top ten countries have been added to the 2007 and 2006 columns and percentages may have changed slightly. The totals shown are the totals from previous editions of the Seaport Mission Plans. Data source: Enterprise Florida Inc., based on U.S. Bureau of the Census, Foreign Trade Division. Highlights of Florida s commodity exports in 2008 include the following: All the export commodities in the 2008 top ten list increased by double digits, except for aircraft. Fertilizers and the natural or cultured pearls and precious and semiprecious stones category actually increased by triple digits, as did the special classification provision category of commodities.

42 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2008/ / As noted above, woven apparel, no longer among Florida s top ten exports, has also continued its steady decline, as shown in Table 11. The decline in 2007 was 50.8 percent; in 2008, the decline was another 15.9 percent. With the elimination of WTO Table 11: Woven Apparel Exports from Florida quotas in January 1, 2005, the drop in Florida's twoway apparel trade, as predicted, has accelerated as China and other Asian countries increase their hold on this once key commodity in Florida s two-way trade with its neighbors to the south. Year Amount ($ Millions) $1,500. $930.7 Exhibit 9 shows the respective percentages of Florida s top ten exports. Exhibit 9: Florida s Top Ten Export Commodities 2008 (Percent share of Florida market) 2002 $ $ $ $ $ $ $96.77 Data source: Enterprise Florida Inc., based on U.S. Bureau of the Census, Foreign Trade Division. Natural or cultured Plastics and articles Pharmaceutical pearls and precious or thereof products d semiprecious stones, etc 4% 2% 2% Special classification provisions, Nesoi 2% Aircraft, spacecraft, and parts thereof Industrial machinery, 5% including computers 32% Fertilizers 7% Optic, photo, medical, or surgical instruments 7% Vehicles, except railway or tramway, and parts etc 19% Electric machinery, including sound equipment, TV equipment 20% Data source: Enterprise Florida Inc., U.S. Bureau of the Census, Foreign Trade Division. Worth noting in the analysis of Florida s import and export commodities is that the top three export commodities -- vehicles, industrial machinery, and electric machinery -- along with aircraft, are also among the top import commodities. Together, these four commodity types, whether imported or exported, represent $61.6 billion or close to half (47.2 percent) of Florida s international trade.

43 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2008/ / The Role of Florida International Trade in Regional Economic Development. Florida lies at the crossroads of international commerce. Its trade with more than 225 global partners encompasses twelve world regions. In the state s distinctive role as the Gateway to Latin America, however, two-way trade, transportation, and jobs come together, strengthening Florida s economy and the developing economies of the state s trading partners to mutual benefit. The trade and tourism relationships Florida has developed with its neighbors to the south have helped improve their economic well-being and stability, although several are now experiencing political changes and economic disruptions. As the economies of these countries strengthen, they are more able to invest in their own infrastructure, create the jobs that will keep their citizens gainfully employed at home, and purchase goods from the U.S. and other countries. This, in turn, given Florida s unique role in transporting goods between markets to the north and the south, helps create jobs in this state. U.S. trade agreements with Florida s trading partners are beginning to show positive results in the state s two-way trade. For example, the U.S. Chile Free Trade Agreement was forecasted to boost trade by $1.8 billion in three years. When the agreement took force on January 1, 2004, tariffs on 90 percent of U.S. exports to Chile and 95 percent of Chilean exports to the United States were eliminated. By the end of 2004, Florida s trade with Chile had increased by 18 percent, from $1.8 billion to $2.1 billion. In 2006, Chile s trade with Florida further increased to $5 billion. Although this trade declined slightly (1.2 percent) in 2007, it resumed its upward swing in 2008, reaching $5.4 billion. This is a positive example of what a free-trade agreement can mean to Florida. Signed on January 1, 1994 the North America Free Trade Agreement (NAFTA), the world s largest freetrade area, is now fifteen years old. In 2008, U.S. trade with its NAFTA partners, Mexico and Canada, totaled $4.5 billion, a slight decline from the $4.6 billion in About 90 percent of U.S. trade among NAFTA partners moves by land and is thus not a significant component of the state s waterborne commerce. Nevertheless, waterborne trade between Mexico and several of Florida s Gulf ports is increasing, as shippers seek to avoid the congestion and delays of overland truck movements by using short sea shipping. The U.S. signed the DR-CAFTA Agreement with Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, and the Dominican Republic in 2005; but the effects of its implementation have been slow, primarily because of the complexities of the agreement. Although apparel imports have been affected by the elimination of the WTO quotas, as noted earlier, in 2008, Florida s trade with the six DR-CAFTA countries showed a 25.6 percent increase over the 2005 level, reaching $18.6 billion. In 2007, the Senate ratified a new free trade agreement with Peru, whose trade with Florida expanded by $1 million since that time, going from $2.1 million in 2007 to $3.1 billion in The U.S. has signed trade agreements with Colombia, South Korea, and Panama; however, ratification by Congress is required before

44 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2008/ / these agreements will take effect. In 2008, Florida s trade with these three countries totaled $9 billion, representing import increases since 2006 from all three countries and export increases from all but South Korea. The Free Trade Area of the Americas (FTAA). Complementing each of these trade agreements is the still dormant FTAA, which was to link 34 countries in the hemisphere -- Florida's dominant markets -- and whose Secretariat might be located in the state. While FTAA implementation has been delayed pending the resolution of differences among participating countries, Florida has been positioning itself to take advantage of the FTAA s eventual benefits. Currently, however, little real progress is being made. Opportunities on the Horizon. In 2014, now just five years away, the Panama Canal expansion will be complete. The opening of the new locks, which will allow bigger ships to traverse the Canal and call at U.S East Coast and Gulf Coast ports, will represent an opportunity for many of Florida s seaports to better serve the state s population -- or, if they have not been able to build the additional capacity needed to serve these ships, it could represent the opposite of an opportunity. New off-shore hubs and expanding U.S. East Coast and Gulf Coast competitors, which are preparing to serve the new generation of ships, could easily capture fully loaded container ships. The result? Goods would cost Florida s consumers more, as commodities would be delivered by truck, over state roads, or by less economic feeder ships. Evolving policies towards Cuba may also result in additional trade with that Caribbean country. In 2008, Florida s trade with Cuba, exports of primarily agricultural products totaled $122.3 million, a 77.6 percent increase over As this overview of Florida's trade trends affirms, the state benefits from the diversity and the consistency of its commerce. The diversity of partners helps stabilize and increase Florida s trade, even in the face of global market shifts. The consistency of imports and exports provides the goods needed for the state s growing population and regional partners. Nevertheless, continuing changes in global trade dynamics reinforce the urgency of expanding the state s trade infrastructure capacity so that it can maintain its competitive edge with its partners around the world while generating revenue and jobs for its residents. Florida s international trade with more than 225 nations reached a record $130.5 billion in This trade comprises diverse commodities that are essential for Florida s consumers and industry and for the many regional trading partners the state is uniquely positioned to serve. For Florida to maintain its competitive edge in the global arena and continue facilitating two-way trade and economic development throughout the region, strategic expansion of the jobcreating transportation infrastructure that carries goods to market is required.

45 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2008/ / Chapter II. Cargo and Cruise Operations at Florida s Seaports Bright Spots in Face of Economic Downturn. The In 2008, the dollar value of Florida s accomplishments of Florida's seaports, whose diversity is total international cargo increased by profiled in Appendix B, can be measured in several ways: 13.7 percent, from $114.9 billion in the dollar value of their cargo, the tonnage crossing their 2007 to $130.5 billion. This increase docks, the number of containers moved, as counted in 20- was, however, accompanied by modest foot equivalent container units or TEUs, and the number of declines in the other measures of seaport performance. cruise passengers embarked and disembarked. In 2008, the dollar value of Florida s total international trade increased by 13.7 percent, from $114.9 billion in 2007 to $130.5 billion, as discussed in Chapter I. This increase was, however, accompanied by modest declines in the other performance measures: a 5.8 percent decline in tonnage, a 1.8 percent decline in TEUs, and 5.7 percent decline in the number of revenue cruise passengers. 3 Dollar Value of Waterborne Cargo. Table 12 shows the total value of Florida s waterborne international trade in 2008 and provides a comparison with Table 12: Total Value and Containerized Cargo Value of Florida's Waterborne International Trade 2008 (with 2007 Comparison) Seaport Total Value Containerized Cargo Value Total Value Containerized Cargo Value Change Total Value Canaveral $547,695,616 $9,102,425 $589,935,712 $12,303, % Everglades 22,571,569,800 12,723,536,198 20,296,507,284 11,675,071, % Fernandina 424,431, ,350, ,063, ,158, % Fort Pierce 154,487,273 36,277, ,554,241 10,349, % Jacksonville 22,969,560,559 3,778,827,401 20,935,984,849 3,335,209, % Key West* 10,398,024 4,417,368 6,096,391 1,893, % Manatee 809,546, ,680, ,383, ,065, % Miami 22,183,369,360 16,992,967,385 20,316,302,076 15,656,577, % Palm Beach 1,881,427,153 1,388,386,472 1,809,509,092 1,574,031, % Panama City 3,435,320, ,500,807 3,672,752,027 1,164,938, % Pensacola 295,760, ,569,484 10,802, , data unclear St. Petersburg* 2,763, ,983 83,182, , % Tampa 7,196,789, ,623,419 4,221,339, ,443, % Total $82,483,119,488 $37,067,824,895 $73,333,413,176** $34,329,098,262** 12.48% Data source: U.S. Census Bureau, Foreign Trade Division. These waterborne numbers are based on the port-level data obtained from this source, which uses the District of Unlading methodology and obtains slightly different results than the Enterprise Florida methodology ($128.5 billion rather than $130.5 billion). *The cargo values for these locations reflect operations other than at the specific port docks, as calculated by the federal government; it is not known what these values represent. **These numbers were revised by the Foreign Trade Division since the previous edition of the Seaport Mission Plan. 3 The dollar value of international cargo is based on the calendar year; the other measures reflect the fiscal year records of each seaport.

46 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2008/ / In 2008, Florida's seaports moved $82.5 billion worth of goods from countries the world over, up from the $73.4 billion moved in Table 12 also shows the value of containerized cargo, a subset of the total value. The value of waterborne cargo increased by 12.5 percent in 2008; the value of containerized cargo increased by 9.4 percent. Table 13 shows the import-export shares of the seaports international cargo volumes, which include $41.0 billion in imports and $41.5 billion in exports. Imports represented 49.7 percent of the waterborne international trade value, down from the 55.1 percent in 2007, while exports represented 50.3 percent, up from the 44.9 percent in These percentages represent considerable growth in the dollar value of the state s exports over the past two years. Table 13: Dollar Value of Florida s Waterborne Imports and Exports by Port 2008 (with 2007 Comparison) Port Imports Exports Total 2008 Imports Exports Canaveral $417,156,671 $130,538,945 $547,695,616 $485,050,440 $104,885,272 Everglades 10,570,135,333 12,001,434,467 22,571,569,800 10,846,225,118 9,450,282,166 Fernandina 21,508, ,923, ,431,637 87,004, ,059,584 Fort Pierce 20,763, ,724, ,487,273 7,044, ,510,167 Jacksonville 11,805,314,363 11,164,246,196 22,969,560,559 11,937,945,943 8,998,038,906 Key West* 1,139,337 9,258,687 10,398, ,200 5,329,191 Manatee 682,253, ,293, ,546, ,418, ,964,390 Miami 11,099,608,972 11,083,760,388 22,183,369,360 10,663,035,828 9,653,266,248 Palm Beach 701,296,199 1,180,130,954 1,881,427, ,147,816 1,243,361,276 Panama City 2,818,675, ,644,824 3,435,320,655 3,099,987, ,764,158 Pensacola 267,593,998 28,166, ,760,764 3,554,632 7,248,021 St. Petersburg* 301,598 2,461,627 2,763,225 79,481,990 3,700,437 Tampa 2,622,150,702 4,574,638,382 7,196,789,084 1,855,071,207 2,366,268,503 Total $41,027,897,294 $41,455,222,194 $82,483,119,488 $40,396,734,857 $32,936,678,319 Data source: U.S. Census Bureau, Foreign Trade Division. These waterborne numbers are based on the port-level data obtained from this source, which uses the District of Unlading methodology and obtains slightly different results than the Enterprise Florida methodology ($128.5 billion rather than $130.5 billion). *The cargo values for these locations reflect operations other than at the specific port docks, as calculated by the federal government; it is not known what these values represent. The 2007 import and export numbers were revised by the Foreign Trade Division since the previous edition of the Seaport Mission Plan. Waterborne imports increased slightly from $40.4 billion in 2007 to $41.0 billion (1.6 percent) in 2008, less of a decline than the 5.6 percent between 2006 and 2007, whereas waterborne exports increased significantly from $32.9 billion in 2007 to $41.5 billion (25.9 percent) in 2008, a much greater increase than the 11.6 percent between 2006 and 2007.

47 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2008/ / Seaport Tonnage. Florida s waterborne trade in FY 07/08, including the international and domestic cargo handled at both public and private terminals in port areas, declined to million tons, a 5.8 percent decrease from FY 06/07 s million tons. Table 14 shows the total waterborne tonnage handled at each of Florida's seaports in FY Table 14: Florida s Total Waterborne Tonnage by Port 07/08, as compared with FY FY 07/08 (with FY 06/07 and FY 05/06 Comparisons and 06/07 and FY 05/06. The FY 12/13 Projections) table also includes the Projection seaports projections for Seaport FY 07/08 FY 06/07 FY 05/06 FY 12/13 FY 12/13, which remain Canaveral 2,395,779 3,572,206 4,553,756 8,998,400 optimistic, despite the Everglades 23,714,813 25,602,150 26,585,683 27,950,000 current economic slowdown. Fernandina 451, , ,422 1,025,000 These projections include Fort Pierce 477, , ,000 1,173,000 the bulk tonnage at private Jacksonville 24,484,000 24,008,000 23,649,730 44,700,000 terminals as well as the Manatee 8,291,139 8,817,068 9,416,809 15,000,000 tonnage at the public seaports. Exhibit 10 shows Miami 7,429,963 7,835,132 8,654,371 9,370,570 the state's historic Palm Beach 2,766,647 3,283,800 4,300,000 3,207,000 waterborne tonnage record Panama City 1,193,000 1,302,347 1,788,000 2,300,000 since FY 98/99. Pensacola 384, , ,810 1,000,000 Tampa 42,612,593 45,293,505 48,188,580 52,690,000 Total 114,201, ,243, ,841, ,413,970 Data source: Individual seaport data. Exhibit 10: Tonnage at Florida s Seaports FY 98/99 - FY 07/08 (In millions of tons) Projected Tonnage Difference FY 06/07 and FY 07/08: -5.8% FY FY FY FY FY FY FY FY FY FY FY 98/99 99/00 00/01 01/02 02/03 03/04 04/05 05/06 06/07 07/08 12/13

48 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2008/ / Table 15 shows the relationship between the seaports imports, exports, and domestic tonnage in FY 07/08 and compares that tonnage with what crossed seaport docks in FY 06/07 and FY 05/06 while Exhibit 11 shows the comparative percentages of each cargo type for these three periods. Imports (47.4 million tons) represented 41.5 percent Table 15: Florida s Waterborne Import, Export, and Domestic Tonnage by Port FY 07/08 (with FY 06/07 and FY 05/06 Comparisons) of the total million tons moving through Florida s seaports in FY 07/08, the same percentage as in FY 06/07 and slightly less than the 42.2 percent in FY 05/06. Exports (19.2 million tons) represented 16.0 percent of the total in FY 07/08, an increasingly greater percentage than the 15.7 percent of the total in FY 06/07 and 13.6 percent in FY 05/06. Of the million tons in FY 07/08, 41.6 percent was domestic cargo. In FY 06/07, domestic cargo represented 42.1 percent of the total; in FY 05/06, it represented 44.1 percent. Seaport Canaveral Everglades Fernandina Fort Pierce Jacksonville Manatee Miami Imports 1,851,509 10,035,513 71,901 51,000 14,002,000 7,470,153 3,774,506 Exports 166,121 3,808, , ,000 1,403, ,986 3,655,457 Domestic 378,149 9,870, ,000 9,079, Total 2,395,779 23,714, , ,000 24,484,000 8,291,139 7,429,963 Palm Beach 1,163,355 1,603,292-2,766,647 Panama City 656, , ,000 1,193,000 Domestic Cargo. Domestic cargo is cargo transported in the coastwise trade between two or more states or between the U.S. and Puerto Rico. This domestic cargo includes Florida s traditional liquid and dry bulk commodities such as petroleum and phosphate products as well as aggregates, cement, and sugar. The 47.6 million tons carried in FY 07/08 represent an 8.2 percent decrease over the FY 06/07 tonnage, echoing Data source: Individual seaport data. the 8.7 percent decline recorded between FY 05/06 and FY 06/07. Pensacola 188,292 26, , ,432 Tampa 8,134,484 6,616,144 27,861,965 42,612,593 FY 07/08 47,398,713 19,163,938 47,638, ,201,125 FY 06/07 50,270,600 19,086,154 51,886, ,243,159 FY 05/06 54,415,945 17,586,418 56,838, ,841, Domestic Exports Exhibit 11: Import, Export, and Domestic Tonnage Percentages FY 07/08 (with FY 06/07 and FY 05/06 Comparisons) Imports FY 05/ FY 06/07 FY 07/08 Percent

49 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2008/ / Domestic cargo, traditionally the predominant tonnage moving across Florida's road and rail infrastructure to consumer markets throughout the state, has recently become almost equal to import tonnage. A large portion of the domestic tonnage is essential to meeting the state s fuel needs; another large portion is essential to meeting the construction industry s needs; the decline in domestic tonnage thus reflects the current decline in these markets. The Port of Tampa, Port Everglades, and the Port of Jacksonville all handle millions of tons of domestic cargo, particularly petroleum, through either their private terminals or their public facilities. Import and Export Cargo. The seaports import tonnage in FY 07/08 decreased by 5.7 percent over FY 06/07, the second year in a row that imports declined. On the other hand, also for the second year in a row, export tonnage increased, albeit by a slight 0.4 percent, following a much larger 8.5 percent increase in FY 06/07. The strong increase in the dollar value of Florida s Table 16: Cargo Types Carried at Florida s Seaports FY 07/08 international trade, as discussed in Chapter I, compared with the (with FY 06/07 Comparison) General Seaport Dry Bulk Liquid Bulk Breakbulk Cargo* Total tonnage decrease, not only reflects changes in global markets and the value of the U.S. dollar, Canaveral Everglades 1,051, , ,585 16,143, , ,443 75,539 6,396,252 2,395,779 23,714,813 but also reflects Florida s exporting more high-value cargo. Fernandina , , ,759 Table 16 shows the comparative tonnages of the diverse cargo types moving through Florida s seaports. Liquid bulk -- primarily petroleum products -- represented 50.6 percent of the tonnage weight, dry bulk (fertilizers, cement, aggregates, etc.) represented 25.7 percent, and break-bulk and general cargo represented the remaining 23.7 percent, as shown in Exhibit 12. The general cargo category includes containerized cargo. Fort Pierce 146,000 10,000 66, , ,000 Jacksonville 6,535,000 10,452,000 1,472,000 6,025,000 24,484,000 Manatee 2,050,005 5,438, ,364 55,651 8,291,139 Miami ,429,963 7,429,963 Palm Beach 559,117 1,002, ,491 1,091,693 2,766,647 Panama City 185,000 42, , ,000 1,193,000 Pensacola 297,208 38,554 28,278 20, ,432 Tampa 17,606,485 23,758,835-1,247,273 42,612,593 FY 07/08 29,325,489 57,806,410 4,029,412 23,039, ,201,125 FY 06/07 32,355,338 60,697,403 3,941,088 24,249, ,243,159 Data source: Individual seaport data. *Includes containerized cargo. 20.2% 25.7% Dry Bulk 3.5% 50.6% Liquid Bulk Breakbulk General Cargo Exhibit 12: Percentages of Cargo Types at Florida s Seaports FY 07/08

50 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2008/ / Table 17 summarizes the changes in the tonnage of each commodity type between FY 07/08 and FY 06/07. Table 17: Summary Comparison of Cargo Types Carried at Florida s Seaports FY 07/08 and FY 06/07 Dry Bulk (Cement, aggregates, etc.) Liquid Bulk (Petroleum products, etc.) Breakbulk (Perishables, lumber, etc.) General Cargo (Including containerized) FY 06/ million 60.7 million 3.9 million 24.2 million million FY 07/ million 57.8 million 4.0 million 23.0 million million Tonnage Change -2.9 million million million 1.2 million -7 million Total % Change

51 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2008/ / Florida's container ports experienced a slight decline (1.8 percent) in their collective TEU movements in FY 07/08. Several ports, including Port Everglades and some of the smaller container ports -- Tampa, Manatee, Fort Pierce, and Canaveral --saw increases in the containers crossing their docks. Container Movements. In FY 07/08, container movements at Florida s seaports declined slightly (1.8 percent) to 2,895,371 TEUs. Table 18 shows the TEUs in FY 07/08 by port and compares them with the FY 06/07 and FY05/06 movements. Exhibit 13 shows the history of these movements since FY 98/99. As Table 19 shows, eleven of the nation s top twenty seaports saw container throughput declines in 2008, the result of accelerating global fluctuations. (Data for two ports had not yet been recorded.) Exhibit 13: Container Movements at Florida s Seaports FY 98/99 - FY 07/08 Table 18: Container Movements at Florida s Seaports FY 07/08 (with FY 06/07 and FY 05/06 Comparisons and FY 12/13 Projections) Seaport FY 07/08 FY 06/07 FY 05/06 Projection FY 12/13 Canaveral ,047 4,795 Everglades 985, , ,030 1,159,653 Fernandina 31,546 32,116 37,906 55,000 Fort Pierce 17,480 15,760 11,600 28,500 Jacksonville 697, , ,239 2,187,683 Manatee 6,346 4,902 5,576 12,000 Miami 828, , ,514 1,052,873 Palm Beach 234, , , ,550 Panama City 49,496 54,480 58, ,000 Pensacola ,000 Tampa 44,265 39,653 24, ,000 FY 07/08 2,895,371 2,949,546 2,991,465 5,084,054 Data source: Individual seaport data. 6,000,000 5,000,000 4,000,000 3,000,000 Projected TEUs Difference FY 06/07 and FY 07/08: -1.8% 5,084,054. 2,000,000 1,000,000 TEUs 0 2,514,256. FY 98/99 2,514,986. FY 99/00 2,511,810. FY 00/01 2,489,570. FY 01/02 2,564,976. FY 02/03 2,671,927. FY 03/04 2,970,545. FY 04/05 2,991,465. FY 05/06 2,949,546. FY 06/07 2,895,371. FY 07/08 FY 12/13

52 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2008/ / Even those primary Florida competitors -- the Port of Savannah, the Port of Houston, and the Port of Hampton Roads (Virginia) -- that had shown increases in 2007 despite the initial fluctuations in the global economy, demonstrated little TEU growth in 2008, or, in the case of Houston, even a slight decrease. Among the major Florida container ports, only Port Everglades showed an increase in the number of TEUs handled in Several of Florida s seaports with smaller container operations to date -- the Port of Tampa, Port Manatee, the Port of Fort Pierce, and Port Canaveral -- also handled more TEUs in FY 07/08 than they did in FY 06/07, as shown above in Table 18. Table 19: U.S. Mainland Port Container Volumes, 2008 and 2007 (Includes loaded and empty containers) 2008 Rank Port Absolute Change Percent Change 2007 Rank 1 Los Angeles 7,849,985 8,355, , % 1 2 Long Beach 6,350,125 7,312, , % 2 3 New York/New Jersey 5,265,053 5,299,105-34, % 3 4 Savannah 2,616,126 2,604,312 11, % 5 5 Oakland 2,236,244 2,388, , % 4 6 Hampton Roads 2,083,278 2,128,366-45, % 7 7 Seattle 1,704,492 1,973, , % 8 8 Tacoma 1,861,352 1,924,934-63, % 6 9 Houston 1,794,309 1,768,627 25, % Charleston 1,635,534 1,754, , % 9 11 Port Everglades 985, ,687 36, % Miami 828, ,945-56, % Jacksonville 697, ,073-12, % Baltimore 612, ,466 2, % Anchorage 544, ,844 39, % Wilmington (DE) N/A 284, Philadelphia 255, ,492 2, % Portland (OR) 245, ,246-16, % New Orleans N/A 250, Palm Beach 244, ,931-5, % 20 Data source: American Association of Port Authorities as of March 1, (Some data may have changed since previous edition of the Seaport Mission Plan.) Primary Florida competitors are highlighted in turquoise. The top ten mainland U.S. container ports in 2007 remained in the top ten in 2008, with just a few position switches. Florida s three largest container ports -- Port Everglades, the Port of Miami, and the Port of Jacksonville -- also remained among the top fifteen mainland container seaports in the country, ranking eleventh, twelfth, and thirteenth, respectively. When taken together, Florida s eleven ports with container operations put the state in fourth place among the states moving containerized cargo, behind California, New York/New Jersey, and Washington, as shown in Table 20.

53 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2008/ / Table 20:Comparison of Florida with Other Container-handling States 2008 Rank Port 1 California 2 New York/New Jersey 3 Washington 4 Florida 5 Georgia 6 Virginia 7 Texas Data source: American Association of Port Authorities. Each of Florida s container ports is projecting growth in container movements in the next five years as planned infrastructure to accommodate this growth comes on line. The most dramatic increases are forecast at the Port of Jacksonville, with its new container terminal for Asian service; but other ports also anticipate increased container activity, particularly once the current economic downturn is over and demand picks up. Collectively, the seaports are projecting a 75 percent increase in TEU movements by FY 12/13 (see Table 18). While the current recession is more severe than the normal cyclical nature of economic activities, the consensus is that trade will resume -- it always has -- and that it is wise to use this down time as a breather to prepare for the eventual upswing. This means that preparations for more all-water trade to the East Coast and Gulf Coast ports should continue, as should preparations for the opportunities to result from the Panama Canal expansion and, perhaps, from changes in U.S. policy towards Cuba. When the expansion of the Panama Canal is completed by 2014, a greater number of ships, including wider and larger vessels, will be able to transit the waterway. Bigger ships of all types will be able to offer all-water service from Asia to the U.S. East Coast and the Gulf of Mexico through the new locks. Feeder ships, themselves larger than those now calling at Atlantic ports, may transship cargo from developing off-shore container hubs like Freeport, Bahamas; Caucedo, Dominican Republic; and Kingston, Jamaica, as well as from Panama s own growing load centers. Adequate capital improvement funding is essential to build the new capacity Florida s seaports need now to capture these new opportunities. In addition to expanded on-port capacity, efficient multimodal connections linking the seaports with local and regional markets are indispensable to remaining competitive. Efficient connections with nearby distribution centers and other support facilities allow Florida to serve its own constituency as well as consumers beyond state borders or in off-shore locations.

54 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2008/ / Cruise Operations In FY 07/08, 13.2 million revenue In FY 07/08, 13.2 million revenue passengers cruised from Florida's ports, a 5.7 percent passengers cruised from Florida decline over FY 06/07, primarily the result of a continuing seaports, a 5.7 percent decline over decrease (-27.3 percent) in the number of one-day cruise FY 06/07, primarily the result of a passengers as more land-based entertainment opportunities continuing decrease (-27.3 percent) in the number of one-day cruise compete with these cruises. Multi-day cruise passengers passengers. Multi-day cruises decreased by just 0.3 percent in FY 07/08. Table 21 shows decreased by just 0.3 percent. the passenger movements at Florida's cruise ports in FY 07/08 and compares them with those in FY 06/07. Exhibit 14 shows the history of these movements since FY 98/99. Table 21: Revenue Cruise Passengers at Florida s Seaports in FY 07/08 (with FY 06/07 Comparison and FY 12/13 Projections) FY 07/08 FY 06/07 Seaport One-Day Multi-Day Total One-Day Multi-Day Total Projection FY 12/13 Canaveral 1,089,456 2,484,504 3,573,960 1,612,52 2,663,396 4,275,922 5,405,680 Everglades 591,059 2,636,711 3,227, ,888 2,690,058 3,409,946 4,304,146 Jacksonville - 152, , , , ,000 Key West* - 924, ,411-1,000,000 1,000,000 N/A Miami - 4,137,531 4,137,531-3,787,410 3,787,410 4,850,000 Palm Beach 424, , , , ,000 Tampa - 767, , , ,861 1,000,000 Totals 2,104,719 11,103,328 13,208,047 2,898,222 11,182,541 14,081,363 16,409,826 Data Source: Individual seaports. * Includes ferry passengers (170,004) Projected Cruise Passengers Difference FY 06/07 and FY 07/08: -5.7% FY 98/ FY 99/ FY 00/ FY 01/ FY 02/ FY 03/ FY 04/ FY 05/ FY 06/ FY 07/08 FY 12/13 Total Multi-Day One-Day Exhibit 14: Revenue Passengers at Florida s Seaports FY 98/99-FY 07/08 (In millions of cruise passengers)

55 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2008/ / FY 07/08 Cruise Record. Each of Florida s cruise ports had somewhat different operational results in FY 07/08. The Port of Miami saw a 9.2 percent increase in the number of its cruise passengers in FY 07/08; but the number of multi-day passengers at Florida s other cruise ports, including the port-of-call passengers at Key West, decreased slightly. These decreases are attributable to various causes: stormy summer weather, ship call changes, and, in the case of Jacksonville, a few months without calls while one ship was replaced with another. The biggest difference in Florida s FY 07/08 cruise operations, however, was in the one-day market, whose share of the total passenger numbers decreased significantly. As shown in Exhibit 15, in FY 06/07, one-day cruise passengers represented 21 percent of the total number of passengers cruising from Florida s ports; in FY 07/08, that share had dropped to 16 percent. 21% One Day Multi-Day 16% One Day Multi-Day 79% FY 06/07 FY 07/08 84% Exhibit 15: Comparison of One-Day and Multi-Day Cruise Passengers FY 07/08 and FY 06/07 Table 22 summarizes revenue cruise passenger operations at Florida s seaports in FY 06/07 and FY 07/08. Table 22: Summary Comparison of Cruise Passenger Operations at Florida s Seaports FY 07/08 and FY 06/07 One-Day Multi-Day Total FY 06/ million 11.2 million 14.1 million FY 07/ million 11.1 million 13.2 million Passenger Change -793,503-3, ,727 % Change

56 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2008/ / Economic Impact of Florida s Cruise Activities. The latest Cruise Lines International Association (CLIA) economic study, released in August , confirmed that Florida remains at the center of worldwide cruising. As the capital of the North American cruise industry and the corporate home or administrative offices for all the top cruise lines, Florida accounts for 54 percent of all U.S. cruise embarkations. The Port of Miami, Port Canaveral, and Port Everglades are the top three cruise ports in the U.S.; the Port of Tampa also ranks among the top ten U.S. cruise ports. The state is thus not only the center for cruise originations, but it is also the center of most aspects of the industry. Carnival Corporation & plc and Royal Caribbean Cruises, Ltd., which, combined, control three-fourths of the North American cruise industry s capacity, have their headquarters in Miami. Norwegian Cruise Line, which is owned by Star Cruises, has its U.S. headquarters in Florida, as do other cruise lines. Overall, these operations generate more than 14,500 employees, approximately 41 percent of the total employment of the cruise lines throughout the U.S. Cruise industry activities affect virtually every industry in the country and the state. Florida businesses received $6.1 billion or almost one-third of the cruise industry s 2007 direct expenditures in the U.S. 5 This $6.1 billion in direct expenditures -- a 20 percent increase over generated 126,546 jobs (36 percent of the industry s nationwide employment) and $5.2 billion in wages paid to Florida workers (34 percent of the wages paid to workers throughout the country). Table 23 summarizes these 2007 cruise industry economic impacts on Florida. Impact Category Table 23: Summary of 2007 Cruise Industry Impacts in Florida Florida s Absolute Share of Cruise Industry s U.S.Impact Florida s Percentage Share of Cruise Industry s U.S. Impact Passenger embarkations* Nearly 5,000, % Resident cruise passengers 2,279, % Direct expenditures ($ millions) 6, % Total employment 126, % Total wages ($ millions) 5, % Cruise line direct employment 14, % Source: Cruise Lines International Association and Business Research and Economic Advisors *CLIA uses the calendar year as a basis for its calculations and records only passenger embarkations. Florida s cruise ports count both passenger embarkations and disembarkations. Data source: The Contributions of the North American Cruise Industry to the U.S. Economy in 2007, Cruise Lines International Association, August The Contributions of the North American Cruise Industry to the U.S. Economy in 2007, Cruise Lines International Association, August As an example of the industry s impact on many sectors of the economy, CLIA states in its above-cited report that over 60 percent of gross output and 40 percent of job creation affected seven industry groups (ranked in order of output): nondurable goods manufacturing, professional and technical services, travel services, durable goods manufacturing, financial services, airline transportation, and wholesale trade.

57 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2008/ / Looking to the Future. What does the future hold for the cruise industry? According to CLIA, even with the current economic downturn, the industry is forecasting continued growth and is introducing new generations of cruise ships, among which are super megaships even larger than those calling at Florida s cruise ports today. Fourteen new ships will join the fleet in 2009 and 21 new ships -- a $14 billion investment -- are scheduled to come on line between 2010 and As summarized below, Florida s seaports will be homeporting many of these ships and are building the new terminals and parking facilities to accommodate them. Royal Caribbean will lead the industry with its two 5,400-passenger new Oasis-class ships, scheduled to homeport at Port Everglades. The first ship, the Oasis of the Seas, will start operations in late 2009 and the second, the Allure of the Seas, will follow in Cruise Terminal 18 is being expanded to serve these ships. Carnival has two 3,652-passenger ships coming on line. The first of these, the Carnival Dream will initiate operations from Port Canaveral in Port Canaveral is also expanding its cruise facilities to accommodate two new Disney Cruise Line 4,000-passenger ships in 2011 and These ships will each carry 1,300 more passengers than the two Disney ships currently operating from Port Canaveral. In 2010, Norwegian Cruise Lines will bring the new Norwegian Epic - a 4,200-passenger ship -- to the Port of Miami. As part of its 10-year berthing agreement with the cruise line, the Port is investing $10 million in upgrades to Terminals B and C, including a new gangway and general improvements to accommodate the new ship. To continue attracting these larger cruise ships and generating the economic benefits and jobs their cruise activities foster, Florida's cruise ports must have the additional capital improvement funding required to build the capacity needed to accommodate the anticipated demand and industry changes.

58 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2008/ / Chapter III. Investing in the Seaports 2016 Vision of Success As they explore ways to increase productivity and operational efficiencies to address the current downturn, the seaports are looking to the future and continuing to implement the strategic facilities their existing tenants and new users will need once the economy turns around. Continued Initiatives to Achieve the Seaports 2016 Vision of Success. As noted in previous chapters, despite the volatility in every aspect of the economy and the effect of that volatility on global trade, Florida s international trade increased by 13.7 percent in 2008 to $130.5 billion, with waterborne commerce accounting for $82.5 billion of that trade. As they explore ways to increase productivity and operational efficiencies to address the continued downturn, the seaports are looking to the future and continuing to implement the strategic facilities their existing tenants and new users will need once the economy turns around. The jury is still out as to just when the economic turaround The profound tenets of the 2016 will occur, but when it does, international and domestic Vision of Success remain all the more trade will again flourish and the seaports wish to be ready important in the current environment. for the upswing. Consequently, while the short-term time line for cargo and cruise projections may have shifted by a few years, the profound tenets of the 2016 Vision of Success, which emerged from the collaborative visioning process the seaports undertook with their tenants, other maritime industry stakeholders, and public agency representatives in 2006, remain all the more important in the current environment. Industry parameters, particularly with the expansion of the Panama Canal anticipated for 2014, continue to dictate longer berths, larger terminals, deeper channels, heavier duty cranes, and more efficient intermodal access systems for many of the state s cargo ports. On the cruise side, the emergence of a new generation of cruise ships also requires larger terminals, additional parking, and new equipment. Many of the state s seaports -- including Port Everglades, Port Manatee, Port Panama City, the Port of Port St. Joe, and others -- have recently updated their port master plans to reflect the changing global marketplace and new facility requirements; others, including the Port of Miami, are initiating plan updates. These state-mandated five- and ten- year maintenance and expansion port master plans, which are adopted by the seaports respective local governments, have been developed in the context of the seaports longer-term vision and their prime mission to create jobs and facilitate regionwide and statewide economic development. Appendix A presents the seaports' long-standing collective goals and objectives to meet these requirements, which are mirrored in their individual plans. The common thread running through the seaports individual plans and their collective vision of success is the need for an adequate revenue stream to finance the capital improvements essential to sustaining and advancing Florida s position in the global economy over the next decade and beyond. Making a Difference in Florida s Economy. Florida s seaports are economic engines that provide hundreds of thousands of good jobs and generate billions of dollars of economic impact to their local, regional, and statewide economies. Job Creation from Maritime Cargo Operations. Based on the 2008 level of cargo activities at Florida s seaports, a just-released analysis by Martin Associates of the statewide economic

59 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2008/ / impacts of Florida seaports maritime cargo operations determined that the seaports are generating 554,347 good-paying jobs. This employment includes the port-related jobs at the many businesses whose operations depend on the proximity of Florida s seaports as essential components in their global supply chain. 4 Table 24 summarizes these impacts. More information is provided in the Executive Summary of the Martin Associates study, which is contained in Appendix C. Table 24: Summary of the Statewide Impacts of Maritime Cargo Handled at Florida s Seaports 2008 Impact Category Statewide Impacts JOBS Direct Jobs 36,266 Induced Jobs 45,679 Indirect Jobs 17,968 Total Port Sector Jobs 99,913 User Jobs 454,434 Total Jobs 554,347 PERSONAL INCOME (Thousands of Dollars) Direct Personal Income $1,741,250 Re-spending Local Consumption $5,099,121 Indirect Income $761,898 Total Port Sector Income and Local Consumption $7,602,269 User Income $15,680,487 Total Income and Consumption $23,282,757 VALUE OF ECONOMIC OUTPUT (Thousands of Dollars ) Direct Business Revenue $5,146,907 Local Purchases $1,466,402 Total Port Sector Revenue $6,613,310 User Revenue $59,717,225 Total Economic Value $66,330,535 STATE AND LOCAL TAXES (Thousands of Dollars) Direct, Induced, and Indirect State and Local Taxes $562,568 Total Port Sector Taxes $562,568 User State and Local Taxes $1,160,356 Total State and Local Taxes $1,722,924 Source: The Statewide Economic Impacts of Maritime Cargo Handled at Florida s Public Seaports , Martin Associates, March 30, Totals may not add due to rounding. The induced income impact also includes local consumption expenditures and should not be divided by induced jobs to estimate the average salary per induced job. This re-spending throughout the state is estimated using a statewide personal earnings multiplier, which reflects the percentage of purchases by individuals that are made within the State of Florida. Hence, the average salary would be overestimated. 4 The Statewide Economic Impacts of Maritime Cargo Handled at Florida s Public Seaports , Martin Associates, March 30, 2009.

60 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2008/ / The diverse nature of these jobs provides an illuminating perspective on how Florida s seaports generate statewide economic development. In addition to the almost 100,000 port sector direct, induced, and indirect jobs, 5 Florida s seaports are responsible for attracting more than 454,000 related user jobs. Table 25 summarizes the characteristics of these related user jobs in the context of the supply chain. The 2008 Economic Impact of Florida s Maritime Cargo Operations In Florida, the average annual wage for individuals employed in transportation and material-moving occupations in 2006 (the latest available data) is $44,760 double the average pay for all other nonadvance degree occupations ($23,254) and $10,000 more than the average annual wage for all occupations ($34,420). 6 The Martin Associates study determined that direct port jobs pay an even higher annual average salary of $48, ,347 jobs $66.3 billion in statewide economic value 9 percent of the 2008 Florida gross domestic product of $734.5 billion $1.7 billion annual state and local tax revenues Statewide Economic Value and State and Source: The Statewide Economic Impacts of Local Taxes. As determined in the Martin Maritime Cargo Handled at Florida s Public Seaports - Associates study, the 2008 maritime cargo 2008, Martin Associates, March 30, operations of Florida s seaports have resulted in statewide economic value that exceeds $66 billion. State and local taxes generated by these maritime cargo operations total $1.7 billion (see Table 24). Economic Impact of Cruise Operations at Florida s Seaports. As discussed previously, in addition to the above maritime cargo impacts, Florida economy benefits from the seaports cruise operations (see Chapter II). 5 Direct jobs are jobs with local firms providing support services to the respective seaports. These jobs are dependent upon this activity and would suffer immediate dislocation if the seaport activity were to cease. Seaport direct jobs include jobs with railroads and trucking companies moving cargo to and from the ports maritime terminals, members of the International Longshoremen's Association (ILA) or other dock workers (both union and non-union), steamship agents, freight forwarders, ship chandlers, warehouse operators, bankers, lawyers, terminal operators, stevedores, etc. Induced jobs are jobs created locally and throughout the regional economy due to purchases of goods and services by those directly employed. These jobs are with grocery stores, the local construction industry, retail stores, health care providers, local transportation services, etc., and would also be discontinued if seaport activity were to cease. Indirect jobs are those jobs generated in the local economy as the result of local purchases by the firms directly dependent upon seaport activity. These jobs include jobs in local office supply firms, equipment and parts suppliers, maintenance and repair services, etc. Source: The Statewide Economic Impacts of Maritime Cargo Handled at Florida s Public Seaports , Martin Associates, March 30, U.S. Bureau of Labor Statistics.

61 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2008/ / Table 25: Florida s Port-Related User Jobs in the Supply Chain Related user jobs are the jobs connected with exporters and importers located throughout the state. They include the direct, induced, and indirect jobs created at each level of production that are related to an imported product (through the Florida seaports) used as an intermediate input in a manufacturing activity, as well as the jobs created at each level of activity to produce an export product moved via the Florida seaports. For retail imports, the related user jobs include all the jobs and economic activity that are required in the logistics chain to move the imported retail good to the point of final sale. For example, the jobs related to the retail imports include: The jobs in retail/wholesale distribution centers that handle the imported retail products received through the Florida ports. The jobs in Florida that support the distribution center activity, such as the suppliers of packaging materials, insurance providers, utilities, business logistics support activities, and maintenance and repair operations in support of the distribution center activity related to those imports through Florida. Trucking activity, including the reloading of the retail products into 53-foot domestic containers to move the imported retail products from the distribution centers to the retail outlets and the impacts created by the trucking activity such as fuel purchases, maintenance and repair activity. The employment in the retail stores where the imported retail goods are sold. The employment supporting the retail sales activity associated with the imported goods, such as advertising, and material purchases used in product presentations as well as utilities, maintenance and repair activities in support of the retail store. In each case, only those jobs -- as identified above and associated with the value of the imported retail goods moving via the Florida ports -- are included as related jobs. For the intermediate imported commodities that are used in the construction industry within the state, such as cement, lumber, and steel, the related jobs not only include the impacts associated with the value of the construction activity that these imports represent, but also all the supporting activity that is required for the construction industry. This supporting activity includes the purchases of additional services from construction supply firms in the state, such as construction equipment and materials, electrical supplies, insurance, fuel, and subcontracted labor. For export cargo, the related jobs represent the impacts of the international logistics supply chain of moving an export cargo from the point of production in Florida to the Florida seaport. For example, for the export of fertilizers, related users include: The employment in mines where the phosphate rock exported is produced. The supporting activity to mine the rock, including all the in-state purchases of equipment and support services. The logistics support activities to arrange for the sale of the rock to international markets. Source: The Statewide Economic Impacts of Maritime Cargo Handled at Florida s Public Seaports , Martin Associates, March 30, 2009.

62 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2008/ / Impact of State Investments in Florida s Seaports. Based on studies sponsored by the Florida Department of Transportation (FDOT), state-level seaport investments are estimated to yield $6.90 worth of economic and transportation benefits to Florida for every $1.00 in expenditures, resulting in a net present value of $3.6 billion. 7 Continuing state-level seaport investments over the next few years are estimated to generate an additional $1.6 billion in business output, 15,650 permanent jobs in the Florida economy, and $491 million in personal income for Florida residents by The State-Seaport Partnership. The eighteen-year state-seaport funding partnership has facilitated implementation of the seaports respective master plans and continues to be an important factor in realizing the seaports 2016 vision of success. Created by Chapter 311, Florida Statutes (F.S.) in 1990, that partnership initially allocated $8 million annually for capital improvement projects consistent with the seaports master plans, subject to Florida Seaport Transportation and Economic Development (FSTED) Council approval. In 1995, $2 million was added to the annual allocation on a discretionary basis. The state-seaport partnership for project funding was expanded in 1996 by Chapter 320, F.S., which allowed the seaports to bond funds allocated for on-port capital development and expansion projects as well as priority, multi-jurisdictional off-port projects. The projects the seaports were able to fund by leveraging and matching the funds in the Chapter (3), F.S., Series 1996, and subsequent Chapter (4), F.S., Series 1999 bond programs laid the foundation for the seaports ability to meet current demands and generate the economic impact described above. During this first decade of the 21 st century, new elements of the state-seaport partnership have come into play: The seaports priority projects were first specifically included in the FDOT FY 05/06-09/10 Work Program in 2004 and the seaports received a matching grant of $4 million in non-recurring funds. FDOT implemented the Strategic Intermodal System (SIS) in January 2005, identifying ten of Florida s seaports as hubs on the system and establishing a network of road, rail, and waterway connectors. At FDOT s request, the seaports prepared a Five-Year Capital Needs Plan for FY 06/07 FY 10/11. 9 The resulting plan demonstrated a significant shortfall in the seaports ability to fund their five-year capital improvement programs, particularly with the continuing impact of security costs on their operating budgets. In 2006, as the state-seaport partnership became more focused on longer-term planning to comply with SIS requirements, the seaports reviewed their strategic, market-driven priority projects and looked further into the future, creating 10- and 20-year vision plans. It was in 2006 that the seaports first received an additional $5 million in annual funds to be used as matching grants for intermodal projects. In late 2007, the Legislature allocated the seaports $50 million as an infrastructure investment economic stimulus. The projects funded with this allocation included cargo and cruise terminal improvements at seven ports. These projects, most of which are intended to serve the expanding 7 Cambridge Systematics study for FDOT, Evaluate Florida s 14 Deepwater Seaports Economic Development and Return on Investment, Ibid.. 9 J.D. Sanchez Consulting, Inc., Florida Seaports Five-Year Needs Plan, FY 06/07 FY10/11, October 19, 2005.

63 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2008/ / needs of existing customers, are under way and providing 3,000 construction jobs. When completed shortly, these projects will produce $56.5 million in state and local taxes annually. Since that time, the seaports have continued updating their capital improvement programs and reassessing their priority projects to reflect the ever-changing global environment and market demands. As the economy weakened in 2008 and the concept of a federal economic stimulus program emerged, the seaports identified their most strategic projects that could be ready to go within 90 to 120 days from apportionment. They also prepared a strategic asset list of projects for implementation in two to three years to serve existing customers and meet future demands. Unfortunately, with every month that passes, the budget deficit facing Florida grows larger, and, despite the efforts of FDOT and the Seaport Office to preserve the previously identified seaport funding through the FSTED and SIS programs, some temporary cuts have been made, with more possible. Florida's seaports have programmed $2.6 billion in capital improvements over the next five years. The Seaports On-Port Capital Improvement Needs Table 26 shows the details of the seaports collective five-year capital improvement program for FY 08/09 through FY 12/13. This five-year program is approximately $24 million smaller than the previous iteration in early Cutbacks by several ports in response to financial constraints have been offset by increases at other ports to meet programmed infrastructure expansion.. Table 26: Collective Seaport Capital Improvement Program FY 08/09 through FY 12/13 Seaport FY 08/09 FY 09/10 FY 10/11 FY 11/12 FY 12/13 Total CIP (Updated 1/15/09) Canaveral $40,233,000 $30,409,000 $27,748,000 $29,523,000 $17,499,000 $145,412,000 Everglades 45,443,000 85,027,000 53,601, ,962, ,230, ,263,000 Fernandina 1,000,000 1,305,000 4,700,000 5,910,000 3,860,000 16,775,000 Fort Pierce 5,574,149 6,934, ,000 2,725, ,000 16,143,392 Jacksonville 600,420, ,315,891 73,267,500 47,437,500 27,434, ,875,823 Key West 1,750,000 $8,080,000 1,600,000 2,310,000-13,740,000 Manatee 35,650,000 13,650,000 26,400,000 22,400,000 18,400, ,500,000 Miami 162,650,000 68,694,000 63,802,000 36,977,000 84,677, ,800,000 Palm Beach 1,480,000 5,211,000 4,808, ,499,000 Panama City 13,550,000 3,475,000 6,925,000 6,600,000 7,300,000 37,850,000 Pensacola 2,020, , , ,000-3,520,000 Port St. Joe* 6,612,000 1,824, ,000 4,630,000 2,000,000 15,486,000 St. Petersburg** 1,622,500 2,283,750 1,725, ,631,750 Tampa 117,340,000 78,595,000 82,999,001 50,795,000 87,240, ,969,001 Total $1,035,345,581 $531,703,884 $349,106,001 $ 327,569,500 $357,740,000 $2,601,464,966 * The Port of Port St. Joe has just entered into an agreement that will allow it to proceed with a major expansion and will be updating its CIP to reflect the new projects that expansion will comprise. ** Funds for St. Petersburg s FY 08/09-FY 12/13 projects have not been appropriated by the City of St. Petersburg.

64 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2008/ / Exhibits 16 and 17 below, and Exhibit 18 on the next page, illustrate how the collective capital improvement program is broken down by year, by port, and by project category Exhibit 16: Collective Florida Seaport Five-Year Capital Improvement Program By Year FY 08/09-FY 12/13 $1,200,000,000 $1,000,000,000 $800,000,000 $600,000,000 $400,000,000 $200,000,000 $- $1,035,345,581 $531,703,884 $349,106,001 $327,569,500 $357,740,000 FY 08/09 FY 09/10 FY 10/11 FY 11/12 FY 12/13 FY 08/09 FY 09/10 FY 10/11 FY 11/12 FY 12/13 Exhibit 17: Collective Florida Seaport Five-Year Capital Improvement Program By Port FY 08/09-FY 12/13 Tampa, $416,969,001, Canaveral, St. Petersburg, 16.0% $145,412,000, 5.6% $5,631,750, 0.2% Port St. Joe, Everglades, $15,486,000, 0.6% $411,263,000, 15.8% Pensacola, $3,520,000, Fernandina, 0.1% $16,775,000, 0.6% Panama City, $37,850,000, 1.5% Fort Pierce, $16,143,392, 0.6% Palm Beach, $11,499,000, 0.4% Miami, $416,800,000, Jacksonville, 16.0% $973,875,823, 37.4% Manatee, Key West, 13,740,000, $116,500,000, 4.5% 0.5% Canaveral Everglades Fernandina Fort Pierce Jacksonville Key West Manatee Miami Palm Beach Panama City Pensacola Port St. Joe St. Petersburg Tampa

65 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2008/ / Exhibit 18: Types of Projects in Florida Seaports $2.6 Billion Collective Five-Year Capital Improvement Program (FY 08/09-FY 12/13) Channel and Intermodal Road Harbor Deepening and Rail 9% 8% Berth Land Acquisition Rehabilitation and 10% Repairs 6% Other (Environmental, Cargo Terminals Studies / 43% Miscellaneous Projects and Repairs/ Fees) Cruise Terminals 11% 13% Building an interconnected transportation system to compete in global markets and fulfill the needs of Florida s consumers and businesses is essential to Florida's continued economic development. Off-Port Intermodal Capital Investments. Not included in the $2.6 billion shown in Table 25 are the many off-port road and rail projects, both connectors and other links, on which the seaports depend for efficient freight and passenger movements. In recent years through the funding provided under the state s SIS and SIS Growth Management programs, Florida s seaports have made significant headway in seeing their facilities connected to the major trade corridors that carry goods the length and breadth of the Florida peninsula; but other connectors are still needed. Working with their respective FDOT Districts and the Central Seaport Office as well as with the FSTED Council, the seaports have identified an array of additional intermodal projects important to seaport access, but beyond seaport control, as part of the ongoing SIS process. Many of these projects have been programmed for SIS funding in the five-year period and beyond. Nevertheless, many still require funding consideration and the seaports continue to encourage the prioritization of these projects for future funding. It is hoped that the state will be able not only to fund additional road and rail links with future federal discretionary funds, but also to accelerate construction on those already programmed. As discussed earlier, Florida s seaports, like others on the East and Gulf Coasts -- including the ports of New York/New Jersey, Virginia (Hampton Roads), Charleston, Savannah, and Houston -- are seeing a diversion of Asian trade from congested West Coast ports. Florida s capture of this booming trade to serve its population would mean that the state s roads would not have to experience an influx of trucks carrying goods to Florida markets from other out-of-state ports. To sustain and grow this trade, however, the state s transportation system must be able to move goods and people more efficiently and

66 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2008/ / more cost effectively than elsewhere. Increasingly, shippers, rather than ocean carriers, choose where to bring their cargo, and those seaports with an efficient transportation system and nearby distribution centers to serve the local and regional consumer markets prevail. The Financial Capacity of Florida s Seaports. In 2005, the Florida Ports Financing Commission studied the funding capacity of Florida s seaports and the impact of enhanced seaport security. 10 This study was used in conjunction with the previously mentioned seaports Five-Year Capital Needs Plan to assess the individual seaport s capacity to pay for the $2.5 billion in capital improvements envisioned in their respective port master plans to meet market demands and compete in the global marketplace. A 2007 update of the 2005 study 11 found the seaports, collectively, had the capacity to fund less than one-third ($783.2 million or about 29 percent) of their 2007 $2.6 billion capital improvement program using the pay-as-you go method. Alternatively, using debt financing, they had the capacity to fund only approximately $296.8 million (11.3 percent) of the $2.6 billion. The estimated shortfall of over $1.8 billion meant that as much as 71 percent of the seaports essential capital needs such as channels, wharves, terminals, container yards, and other intermodal transfer facilities could not be built without another source of funds. Consistent with the factors identified in the 2005 study, the drain in 2007 on the seaports financial resources, was again found to result from: Continuing and rising cost of capital improvements. Continuing diversion of revenues to pay for mandated security. Increasing annual operating costs. Changes in global, national, and local economies. All of these factors and more continue to affect the seaports capacity to amass the capital to fund their current $2.6 billion five-year capital planning needs. In January 2009, First Southwest again reviewed the financial situation of Florida s seaports. Their review confirmed that, due to the current national economic downturn, related revenue pressures on state and local governments which restrict their capital improvement funding abilities, increased security costs, etc., most Florida seaports still cannot fund all necessary projects within their capital improvement programs. Unfortunately, the inability to fund projects, especially those that increase seaport throughput capacity, comes at a time when the state s seaport system should be strategically preparing to meet the expected increased demand for services arising from the Panama Canal expansion. To document the seaports capital improvement funding shortfalls and the obstacles they face in carrying out their capital programs to meet the future service demands, First Southwest interviewed the executive staff of the state s eight largest seaports. These included Port Canaveral, Port Everglades, the Port of Jacksonville, Port Manatee, the Port of Miami, the Port of Palm Beach, Port Panama City, and the Port of Tampa. While each of these seaports has somewhat different financial needs and resources, common themes emerged from the interviews. As with any business enterprise in today s economic 10 First Southwest Company, An Analysis of the Funding Capacity of Florida s Seaports to Meet their Five-Year Capital Plans (FY 06/07 through FY 10/11 and An Assessment of the Cost of Enhanced Seaport Security, November 30, First Southwest Company, The Capacity of Florida s Seaports to Fund their Five-Year Capital Programs (FY 07/08 through FY 11/12) and The Cost of Mandated Seaport Security, February 13, 2008.

67 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2008/ / environment, the seaports are concerned about their ability to maintain revenues to fund their operational, capital, and projected debt service needs. They are also concerned about the ability of some major customers and vendors to effectively ride out the current economic downturn. Most of the seaports are gearing up for -- or would like to gear up for -- the opportunities to be presented by the Panama Canal expansion in The major common obstacles to the capital program implementation that would permit them to be ready for these future opportunities are: Limited net revenue generation. Limited funds to provide matching dollars for grants. Financial constraints at the local government level. Financial constraints at the federal and state levels. Limited access to the financial markets due to economic conditions and the lack of bond insurance. SIS eligibility restrictions. Excessive and expensive state-mandated security requirements. Permitting process delays. Finally, a dedicated revenue stream flowing from the federal government for seaport infrastructure was a desire expressed by most of the seaports as a possible solution for meeting future demand. Continued Efforts to Balance Commerce and Security. Florida has led the nation in developing and implementing measures to safeguard its seaports. The state's seaports prepared and implemented security plans to comply with Florida's mandates for minimum-security standards and with federal mandates. Now they continue working with both state and federal agencies to harmonize state and federal standards. Solutions are needed to ensure that the security of Florida s seaports continues to meet the mandated standards, but does not put the ports at a cost disadvantage with regard to their outof-state and off-shore competitors. Amassing Capital to Fund Capacity-Enhancing Infrastructure. Where will Florida be in 2016? Every indicator points towards continued international and domestic trade growth to serve both the state s population and its national and international markets. The seaports must adapt to the pace of global change by building critical infrastructure and providing efficient and cost-effective services or they will lose their competitive edge on the trade lanes of commerce - both the traditional North-South routes between Florida and its neighbors and the growing direct routes between Florida and the Far East. To accommodate the forecasted growth on Florida s trade lanes, the seaports have identified layered financial objectives: Maintain a list of production-ready strategic projects for a quick response to economic stimulus money made available through the state. Work with FDOT and the Florida Legislature to create a new revenue stream -- a five-year investment fund or new bonding capability -- for market-driven priority seaport infrastructure projects, enhancing the state-seaport partnership to achieve the maximum matching funds for seaport capital projects. Continue working with FDOT to identify additional funding for the seaports and their connectors within the SIS programs, particularly as the federal government releases additional discretionary economic stimulus funds.

68 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2008/ / Continue implementing an active Congressional outreach program to position Florida and the seaports for their share of the forthcoming discretionary economic stimulus funds. Develop a strategic plan to obtain funding for regional multimodal projects in the federal transportation reauthorization legislation. Working with FDOT and the Florida Legislature, the seaports are requesting a multi-year financing plan to leverage state funds with local and federal funding. Help accelerate the process by which harbor-deepening project funds are authorized and allocated. Leverage state funds with local funding from seaports and other transportation entities and federal funding from grants and loans. Increase public awareness and support for the maritime industry through the newly created Florida Maritime Leadership Coalition. Achieving these objectives requires the collaboration of all those involved in Florida's trade, including all levels of government -- federal, state, regional, and local -- as well as private-sector users and owners of Florida's trade and transport system, and all transportation modes. A statewide strategic plan that addresses the state s multimodal infrastructure needs and commits the investment necessary to implement the plan and improve freight mobility is essential to this process. Global dynamics require this new capital to be implemented with the flexibility to prioritize strategic investments so that funds can flow where they are needed in response to market demands. Resetting the Course. Efficient freight mobility is a competitive advantage in the global playing field, where value is created by the timely, cost-efficient movement of goods to market. In cooperation with their state agency partners, Florida s seaports have been working for almost two decades to expand seaport capacity and efficiency so that international trade can flourish in Florida, businesses can expand, and new jobs can be created. The world is changing, however, and strong cross-jurisdictional partnerships are more important than ever. Federal support of the seaports harbor and channel deepening needs, state support of the seaports connectivity needs, and collaborative efforts to strengthen balance sheets and finance future growth -- these are the prerequisites of Florida s success in the competitive global arena. Given the lead-time required to permit, fund, and build the new infrastructure needed to meet the forecast demand, there is no time to waste. Florida s interconnected multimodal transportation system -- seaports, airports, and rail -- is one of the state s most dynamic and proven catalysts for economic growth. In this time of economic downturn, resetting the course to invest in proven economic generators, like Florida s seaports, makes more sense than ever.. In this time of economic downturn, resetting the course to invest in proven economic generators, like Florida s seaports, makes more sense than ever.

69 A Five-Year Plan to Achieve the Mission of Florida's Seaports: / Appendix A: The Collective Goals and Objectives of Florida's Seaports

70 A Five-Year Plan to Achieve the Mission of Florida's Seaports: / The seaports regularly updated master plans all establish goals and objectives for port maintenance and expansion and identify capital improvement programs to implement them. The individual goals and objectives of each seaport are incorporated into the collective program of goals and objectives and serve to achieve the 2016 Vision of Success the seaports crafted with their tenants, other maritime industry stakeholders, and public agency representatives. Florida s deepwater seaports, as mandated by Chapter 163, Florida Statutes, prepare port master plans to guide their maintenance and expansion. These regularly updated plans, which must be consistent with the comprehensive plans of the seaports respective local governments, all establish goals and objectives addressing the seaports forecasted needs and identify five-year capital improvement programs to implement them. The individual goals and objectives of each seaport are incorporated into the collective program of goals and objectives defined below. These goals and objectives serve to achieve the 2016 vision of success crafted by the seaports with their tenants, other maritime industry stakeholders, and public agency representatives in the summer of THE 2016 VISION OF SUCCESS: Public and private partnerships will have increased investments in seaport growth. New freight and passenger transportation corridors will have created seamless intermodal connectivity, improving landside and waterside access. Port capacity will have expanded to allow for new business opportunities. The values of and synergies among ports, communities and industries for economic development will have been recognized and supported. Regional and statewide cooperation will be enabling the optimization of port assets. GOAL 1: Provide efficient and cost-effective facilities for cargo and passengers. Objectives: Improve cargo facilities as required. Improve cruise facilities as required. Improve infrastructure as required at all ports. Implement maintenance and new dredging programs and identify appropriate dredged material management sites. Acquire land for port expansion and development of complementary activities. Implement environmental protection/mitigation and man-made/natural hazard mitigation programs as required. Encourage timely permitting programs through state and local agencies.

71 A Five-Year Plan to Achieve the Mission of Florida's Seaports: / GOAL 2: Build the intermodal facilities needed by Florida's seaports to move their goods and passengers more efficiently than competing out-of-state and off-shore seaports. Objectives: Provide/improve direct access to roadway networks. Work with governmental agencies to plan and fund intermodal transportation system improvements. Implement the statewide rail and intermodal policies. Partner with other modal interests to achieve common goals. GOAL 3: Maintain and expand existing trade markets and patterns, increasing cargo flow. Objectives: Continue individual as well as regional promotional efforts in establishing markets. Provide leadership through the Florida Seaport Transportation and Economic Development Council, the Florida Ports Council, and other agencies to develop trade policies, including educational efforts at state and national levels. Ensure that Florida s seaports are positioned to capture a sizable share of trade generated by an open Cuban market. Capitalize on opportunities presented by the North American Free Trade Agreement, the Dominican Republic-Central America Free Trade Agreement, and other such agreements with Florida's major trading partners. GOAL 4: Develop funding alternatives that will enable Florida s seaports to implement required improvements in a timely manner and meet revenue projections. Objectives: Increase seaport revenue streams by expanding port potentials and diversifying into profitable complementary activities where appropriate. Develop and maintain an adequate source of state and federal matching funds for port projects. Develop and maintain adequate sources of local government financing for port projects. GOAL 5: Implement security measures that balance compliance with federal and state minimum security standards and the need for an efficient flow of commerce through our seaports. Objectives: Seek federal and state funds to comply with federal and state seaport security measures.

72 A Five-Year Plan to Achieve the Mission of Florida's Seaports: / Work with federal and state agencies to develop cost-effective security measures to comply with federal and state mandates. Work with private-sector seaport tenants to enable them to comply with federal and state minimum security standards. Provide leadership through the Florida Seaport Transportation and Economic Development Council, the Florida Ports Council, and other agencies to implement cost-effective seaport security measures that enable the orderly and smooth flow of commerce through our seaports. GOAL 6: Develop a state policy on economic development recognizing that international trade is dependent on Florida s transportation system. Objectives: Educate state leaders regarding the infrastructure investments in port transportation systems needed to attract and maintain market share. Educate state leaders regarding the need to keep landside transportation costs competitive. Continue to develop state policies that help ports lower the costs of land-based transportation services.

73 Appendix B: Port Profiles

74 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2007/ /2012 B-1 PORT PROFILE: PORT CANAVERAL GOVERNING BODY: Canaveral Port Authority (Canaveral Port District) Located on Central Florida s Atlantic coast, Port Canaveral serves both cargo and cruise markets from its pivotal location adjacent to the Kennedy Space Center and nearby Orlando theme parks and attractions. In FY 07/08, Port Canaveral handled 3.6 million revenue cruise passengers on partial-day, 3-, 4-, and 7-day cruises to nowhere, the Bahamas and the Caribbean. To date, the Canaveral Port Authority has invested over $150 million in its six major cruise terminals, which were designed and custom built to accommodate the world s fleet of super mega-cruise ships. Land remains available for additional cruise terminals. Port Canaveral, with its Foreign Trade Zone 136, is also an increasingly important cargo port, handling 2.4 million tons in FY 07/08. The Port offers unique quadramodal transportation opportunities, linking sea, land, air, and space modes. It is a distribution hub for cargo moving between Europe, the southeast U.S., Central America, the Caribbean, and Asia. Principal imports are petroleum, newsprint, melons, salt, lumber and forest products, juices, slag, aggregates and limestone, pumice, and automobiles. Principal exports include fresh citrus and juices, automobiles, and heavy equipment. To continue the expected expansion, the Canaveral Port Authority is renovating old cargo docks and building new ones wider and stronger to promote additional cargo diversity and cargo-handling efficiencies. In addition to serving maritime operations, Port property is used for public/private, commercial and recreational facilities. More than 200 businesses operate from Port Canaveral. Tourists and the local community have access to ocean, beach, camping, marinas, parks, and restaurants. MISSION STATEMENT "Serve the economic and social needs of the District and the region by providing low-cost transportation benefits; creating a stable, meaningful, and permanent employment base; promoting and accommodating major marine-associated industries, facilities, and services for the military and space organizations; promoting the District's and region's economic growth; and enhancing local and regional recreational facilities and opportunities." CURRENT (FY 07/08) AND PROJECTED (FY 12/13) THROUGHPUTS Cargo (tons): Current 2.4 million. Projected 9.0 million. Cargo (TEUs): Current 959. Projected 4,795. Cruise (revenue passengers): Current million. Projected 5.4 million. Florida Seaport Transportation and Economic Development Council March 2008

75 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2007/ /2012 B-2 STRATEGIC DEVELOPMENT PROGRAM Major Goals and Objectives: Construct and expand Port facilities and infrastructure in an orderly manner to meet the growth needs of the District and Central Florida region, the cruise/tourist industry, the cargo transport industry, and the Foreign Trade Zone; to support marine commercial/industrial groups, the military establishment, and the space industry; and to meet the recreational demands of the nearby community. Expand cruise operations and build new cruise terminal facilities and multi-level parking garages. Provide new bulk, break-bulk, and containerized cargo facilities. Enhance intermodal connections to Central Florida. Achieve cooperative utilization or recapture of federal land now occupied by the Department of Defense. Capital Improvements Needed to Achieve Port's Mission PORT CANAVERAL (Continued) Cruise terminal construction for next generation of mega ships. Existing cruise terminal facility improvements and parking garages. Cargo berth repairs, reconstruction, replacement, expansion, and deepening. Northside Operations Center - security. Channel widening, corner cut off, and expansion and dredging of middle and west turning basins. Land restoration. North Side container yard expansion and intermodal gate, including truck terminal gates. Warehouse and cold storage expansion. Construction of North Side Fuel Tank Farm and potential pipeline to Orlando International Airport. Road improvements and additions. Pond/stormwater improvements. Security upgrades: lighting, fire protection, and fencing. SPHERES OF INFLUENCE Primary Hinterland Served: Cargo: Central Florida counties of Brevard, Polk, Indian River, Lake, Okeechobee, Orange, Osceola, Seminole, Volusia, and beyond both to South Florida and the Southeast U.S. Cruise: The United States, Europe, the Bahamas, the Caribbean, Mexico, and Central and South America. Florida Seaport Transportation and Economic Development Council March 2008

76 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2008/ B-3 Trading Partners: PORT CANAVERAL (Continued) Imports: Europe (lumber, vehicles, newsprint, slag, cement, petroleum); Mediterranean (cement, pumice, vehicles); South America (cement, petroleum, juice concentrates); Caribbean Basin (cement, limestone, salt); Canada (newsprint, lumber and forest products, aggregate/granite); Central America (melons, juice concentrates, limestone); Asia (petroleum, slag, cement). Exports: Europe (citrus concentrates, juices, gypsum); Central America (vehicles, heavy equipment); Caribbean (sand, vehicles, heavy equipment, general cargo); Asia (fresh citrus. ENVIRONMENTAL INITIATIVES Sand bypass and beach restoration Water quality monitoring Water reuse/aquifer storage Stormwater treatment Off-shore artificial reefs Educational programs Brazilian Pepper eradication and control program Right whale protection Manatee and least tern protection Public park and recreation access Best Management Practices brochure for marine facilities and commercial fishing industry Five national/state awards, including Governor s Council for Sustainable Florida and American Association of Port Authorities (AAPA) awards noted below. Sea turtle lighting protection plan Major sponsor for Space Coast Birding and Wildlife Festival RECENT ACCOMPLISHMENTS Completion of Ocean Club Marina and significant completion of Bluepoints Marina with more than 1,000 wet and dry storage slips. Commencement of construction of Seaport Canaveral more than 3- million- barrel fuel tank farm. Additional upgrades to Jetty Park and dedication of Rodney S. Ketcham Park in memory of Port Commissioner Ketcham. Completion of Cove area landscaping and stormwater pond project. Commencement of major West Turning Basin expansion project for larger cruise ships. Commencement Las Vegas Casino Lines gambling cruise operation from Cruise Terminal 4. Commitments for significantly larger cruise ships from Royal Caribbean Cruise Lines (2009), Carnival Cruise Lines (2009), and Disney Cruise Lines (2011 and 2012). AAPA 2008 Communications Awards for "Welcome to Port Canaveral" video and Employee Appreciation Day. Named Florida s Top Port in 2008 Florida Monthly magazine annual Best of Florida poll AAPA Excellence in Financial Reporting Certificate of Achievement Government Finance Officers Association (GFOA)Award for excellence in financial reporting, marking 17 years of consecutive awards for financial reporting.

77 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2008/ B-4 PORT PROFILE: PORT EVERGLADES GOVERNING BODY: Broward County Board of County Commissioners Port Everglades is one of Florida s largest and most diverse seaports with cruise as well as containerized, petroleum, bulk, break-bulk, rolling and floating cargo operations. Other Port activities include leasing office and warehouse space and land, managing parking facilities, providing Navy lay-in berthing including an annual Fleet Week celebration, and operating Foreign-Trade Zone #25. Port Everglades is Florida s top container port. Containerized cargo volumes at the Port continued to grow during the past fiscal year approaching one million TEUs. As the future home to the two largest cruise ships in the world, Royal Caribbean International s Oasis of the Seas and Allure of the Seas, Port Everglades is expected to also become the top cruise port in the world by Currently, Port Everglades serves more than 3.2 million cruise passengers annually on 45 cruise ships from 14 cruise lines. The Port is the region s major petroleum storage and distribution facility for gasoline, jet fuel, diesel fuel, ethanol, and other bulk liquid commodities. During FY07/08, nearly 114 million barrels of petroleum products moved through 10 private terminal operators at Port Everglades to 12 South Florida counties and three international airports. During the past year, the Port has seen a significant shift to alternative fuel supplies, which is impacting the amount of storage required. The Port is a self-supporting enterprise fund of Broward County and one of South Florida s strongest economic engines. Its economic impact amounts to more than $18 billion in business activity, 200,000 jobs statewide, and $625 million in state and local tax revenues. The Port also provides more than 11,600 direct jobs in Broward County, creating more than $407 million in personal income. MISSION STATEMENT The mission of Port Everglades is to manage the County s port-related assets to maximize the economic benefits to the citizens and businesses of Broward County and the State of Florida. The Port will manage the County s assets in a financially responsible, environmentally sound manner, consistent with the local, state, and federal rules and regulations that govern international and domestic trade, transportation and the Port industry. CURRENT (FY 07/08) AND PROJECTED (FY 12/13) THROUGHPUTS Cargo (tons): Current 23.7 million. Projected 27.9 million. Cargo (TEUs): Current 985,095. Projected 1.2 million. Cruise (revenue passengers): Current 3.2 million. Projected 4.3 million.

78 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2008/ B-5 STRATEGIC DEVELOPMENT PROGRAM Major Goals and Objectives: Consistently maintain, develop, expand, and modify the Port to meet service area needs; strengthen Broward County s economy; and enhance the region s multi-modal transportation network. Provide new container and other marine terminal/warehouse facilities, including planning for an intermodal container transfer facility. Improve intermodal connections (road and rail) to facilitate the transportation of cargo and provide competitive service. Expand cruise operations and construct new facilities. Expand roadway systems and parking facilities to support increased cruise growth. Expand Foreign-Trade Zone operations (including noncontiguous zones). Expand role as a transshipment center for the Southeastern U.S., Caribbean, Latin American, and Far East markets. Improve petroleum distribution facilities and operations. Pursue new trading opportunities and strengthen existing ties. Implement the Master and Vision Plans. Capital Improvements Needed to Achieve Port s Mission: Expansion of Southport for new containerized cargo terminals. PORT EVERGLADES (Continued) Additional cruise and cargo berths, cargo facilities, and cranes. Improved intermodal infrastructure, including internal roadway systems and external connections. Harbor-deepening program to accommodate deeper-draft cargo ships. Additional upland dredged material management sites. Additional parking facilities. SPHERES OF INFLUENCE Hinterland Served: Cargo: Primarily Broward, Dade, and Palm Beach counties as part of a 24-county area extending northward to Pasco, Polk, Osceola, and Brevard; southward to Monroe; and westward to the Gulf of Mexico; however, in trade with Latin America, the hinterland is the entire United States. Cruise: All of North and South America and Europe. Trading Partners: Countries and territories in the Caribbean Basin, North, Central, and South America; Europe; Mediterranean; the Middle East; Southwest Asia; and Africa.

79 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2008/ B-6 PORT EVERGLADES (Continued) ENVIRONMENTAL INITIATIVES Manatee protection. Wetland and mangrove protection. Provision of dredged material for Broward County s beach nourishment program. Initiating a Green Ports Program to include Port tenants, customers, and public input on best growth and development practices. Retained Trane South Florida, to complete a comprehensive energy performance project. The annual energy conserved from the project will result in an annual reduction in greenhouse gas emissions of 9.8 million pounds of carbon dioxide, 61,101 pounds of sulfur dioxide and 17,091 pounds of nitrous dioxide and saving more than $4.55 million in energy costs over the next 10 years. Instituted a formal recycling program for paper, printer cartridges, batteries, steel, fluorescent lamps, and paint. Requested Port customers to achieve a measurable level of water reduction by aggressively cutting back their consumption during drought conditions in South Florida. The result was a 2- million-gallon reduction in a 6-week timeframe. Donated berth space to assist tire salvage and recycling pilot program. If fully realized, program will clean up approximately 700,000 tires from the seafloor and turn them into energy. Refurbished Marinelli Garden area and converted fountain to butterfly-attracting planters. Won a Superior Award from National Association of County Information Officers for the Environmental Workshop held in March Won an Award of Excellence from the American Association of Port Authorities on the Protecting the Balance brochure. RECENT ACCOMPLISHMENTS Cruise Highlights Port Everglades broke its own two-year-old world record on January 3, 2009, when 49,234 cruise passengers sailed in and out of the Port in a single day. Broward County Commissioners approved an agreement with Royal Caribbean Cruises Ltd. to bring the world s two largest cruise ships to Port Everglades, which is expected to make the Port the world s top cruise port by The first of Royal Caribbean s 5,400-passenger, 220,000 grossregistered-ton ships, Oasis of the Seas, is scheduled to begin sailing year-round from the Port in Fall 2009, with the second sister-ship, Allure of the Seas, to begin year-round sailings one year later. More than 600 baggage handlers at Port Everglades completed a customized hospitality course entitled SUNsational Service training for Professional Porters. The program was a team effort between Port Everglades, the Greater Fort Lauderdale Convention & Visitors Bureau, Southeast Florida Employers Port Association, cruise stevedoring companies at the Port and the International Longshoremen s Association Local #1526. The course taught customer service excellence and was designed specifically for porters at Port Everglades.

80 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2008/ B-7 PORT EVERGLADES (Continued) Phase I expansion of Cruise Terminal 18 converted 34,500 square feet of existing warehouse space to terminal space for a total of 90,000 square feet on the first floor and 12,000 on the second floor. Phase I was completed in time for the arrival of the Celebrity Solstice in November Phase II, to be completed in October 2009, will expand the terminal an additional 138,000 square feet to accommodate Royal Caribbean International s Oasis-class cruise ships Cruise Terminal 29 was expanded by 10,000 square feet to accommodate larger vessels. Improvements included new ADAcompliant restrooms, new lighting, overhead door, access doors, HVAC ductwork, and epoxy floor. The old loading dock area was regraded to create a continuous level surface. New cruise ships that sailed from the Port in FY 2008 included: Costa Cruises Costa Fortuna, Cunard Line s Queen Victoria, and Princess Cruises Emerald Princess. The final departure of Cunard Line s Queen Elizabeth 2 from Port Everglades, its homeport since 1972, resulted in the Port s being featured in the Associated Press and on 49 television stations nationwide with an estimated viewership of 2.6 million. Cargo Highlights Containerized cargo volumes continued to grow during FY 2008 as the Port experienced an 8.66 percent increase in tonnage and a 3.83 percent increase in TEUs. Through combined marketing efforts, several of the Port s existing terminal operators experienced higher volumes of containerized cargo tonnage in FY 2008, including Crowley Liner Services, Florida International Terminal, Florida Transportation Services, Port Everglades Terminals Ltd., Sun Terminals, and St. John Shipping. Containerized cargo, at 6.58 million tons and 985,095 TEUs, has been on a steady upswing at Port Everglades, almost doubling since FY Port officials attribute this 92 percent growth to new terminal operators such as Port Everglades Terminal Ltd. (MSC) and Florida International Terminal, in the Port s Southport area, who are bringing more international trade through oceangoing shipping to and from Broward County. Port Everglades received its first ocean shipment of ethanol during FY Ethanol now accounts for over 1.6 million barrels of fuel moving through the Port. Several terminal operators are preparing for the future distribution of alternative fuels by constructing new tanks or converting existing tanks to handle ethanol and other green fuels. Rolling and floating cargos such as yachts, trucks, tractors, and automobiles increased by 22.5 percent to 240,129 tons in FY Other Highlights In support of Broward County s commitment to innovation, Port Everglades began offering epayments, giving customers the ability to pay invoices via credit card or e-check 24/7. Negotiations were completed with Klein Systems Group to purchase and develop software to provide enhanced Harbormaster, Billing, and Accounts Receivable systems which will assist the customer experience. The software will provide statistics and data to management for knowledge-based decision-making.

81 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2008/ B-8 PORT EVERGLADES (Continued) During a Port-initiated trade mission to Europe, Broward County Mayor Lois Wexler, along with Port Director Phillip C. Allen, signed an agreement officially linking Port Everglades to the Port of Marseille, France as the seaport s third International Sister Seaport. The Port also has Sister Seaport agreements with the Port of Olbia, located on the Italian island of Sardinia, and the Port of Xiaman in China. During the trade mission to Europe, Mayor Lois Wexler also visited the headquarters of MSC Cruises and its parent company, which resulted in a new two-year agreement with MSC Cruises for use of Terminal 4. Casting evolution and innovation in starring roles, Port Everglades premiered a new DVD that features the Port s diverse business mix of cruise, cargo, petroleum, and real estate and its commitment to environmental and economic stability. Port Everglades launched a new advertising campaign targeting cargo shipping and cruise line executives to promote the Port s commitment to innovation. A new automated software system, EZ-FTZ, was installed in Foreign-Trade Zone #25. The new software system -- designed to speed data entry, enhance inventory control, and better safeguard records -- also provides increased electronic accessibility for agencies involved with moving commodities through the FTZ, including U.S. Customs and Border Protection, Bureau of Census, and Foreign-Trade Zones Board. More than 2,500 men and women of the U.S. Navy, Marine Corps, and Coast Guard participated in South Florida s annual celebration of maritime services, Fleet Week Port Everglades 2008 The celebration included sailors from: Multi-purpose amphibious assault ship USS Iwo Jima (LHD 7), from Norfolk. Guided missile cruiser USS Vella Gulf (CG 72), from Norfolk. Amphibious dock landing ship USS Carter Hall (LSD 50), from Norfolk. Guided missile destroyer USS Mitscher (DDG 57), from Norfolk. Guided missile destroyer USS Ramage (DDG 61), from Norfolk. USCGC RELIANCE (WMEC 615). A fast attack submarine. Registration for the Transportation Worker Identification Credential (TWIC) began at Port Everglades. TWIC is a national identification card for people working in security-restricted areas inside the nation s seaports. The Port maintained over a 90 percent occupancy rate in all its buildings and warehouses through the continuous efforts of the tenant relations staff. Broward County Commissioners approved an amendment to the Broward County Administrative Code on June 10, 2008, establishing a new category of franchise at Port Everglades entitled, Marine Terminal Security Services Franchise, which will be required of all companies providing security services on County-owned properties within Port Everglades as of January 1, The new franchises will allow the Port to more closely monitor the activities of this business segment with open access to restricted areas for the purpose of assuring compliance with federal and state security standards, and enhancing public safety at the Port. Port Everglades received approval from the Florida Department of Law Enforcement and Office of Drug Control for the Port Security Plan submitted to meet the requirements of the 2006 amendments to Florida State Statute Section 311.

82 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2008/ B-9 PORT PROFILE: PORT OF FERNANDINA GOVERNING BODY: Ocean Highway and Port Authority, Nassau County The Port of Fernandina provides terminal service to over fourteen pulp and paper producers located throughout Florida and the Southeast. In addition, the Port has expanded in providing steel export services to several steel mills in the Southeast. Fernandina also supports a number of independent container lines serving Venezuela, Colombia, Ecuador, the Dominican Republic, Haiti, Jamaica, Aruba, Curacao, and Bermuda. The Port's principal cargos include: Exports: Forest products including Kraft linerboard, wood pulp, machinery, and treated lumber as well as steel billets, rebar, and coils. Imports: Lumber, wood pulp, hardboard. The containerized commodities moving through the Port include wood pulp, automobile parts, steel products, plastics, beverages, frozen foods, machinery, consumer goods, and building materials. MISSION STATEMENT "The Ocean Highway and Port Authority was created in 1941 and authorized to carry out public purposes of benefit to the citizens of the County of Nassau and the State of Florida. (Ch , S12, Sp. Acts 1941)." CURRENT (FY 07/08) AND PROJECTED (FY 12/13) THROUGHPUTS Cargo (tons): Current million. Projected 1.0 million. Cargo (TEUs): Current 31,546. Projected - 55,000. Cruise (revenue passengers): Current - None. Projected None STRATEGIC DEVELOPMENT PROGRAM Major Goals and Objectives: Promote economic development. Create employment opportunities in Nassau County. Revitalize and maintain deepwater seaport activities. Support local industries by providing port facilities. Provide superior service to niche carriers and port users.

83 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2008/ B-10 PORT OF FERNANDINA (Continued) Capital Improvements Needed to Achieve Port's Mission: Expand on-port warehouse and off-port distribution center. Expand rail siding to service intermodal traffic. Modernize equipment. Add new berth. SPHERES OF INFLUENCE Hinterland Served: Southeastern United States and Gulf States. Major metropolitan areas such as Tampa, Orlando, Jacksonville, Atlanta, New Orleans, and Houston. The Midwest and the Great Lakes region. Trading Partners: Northern Europe, Bermuda, Venezuela, Ecuador, Chile, Columbia, Haiti, Dominican Republic, Jamaica, Aruba, Curacao, the Bahamas, Panama, and Puerto Rico. ENVIRONMENTAL INITIATIVES Two-year manatee monitoring study. Participating with the New England Aquarium in a right whale monitoring program. Near-shore disposal for beach renourishment (previous channeldeepening project). Creation of five acres of saltwater marsh. Reduction in truck dwell time. RECENT ACCOMPLISHMENTS Established off-port distribution center and an adjacent off-port container depot on U.S. 17, 1.5 miles from I-95 and 13 miles from the Port. Initiated new monthly service of exported Kraft linerboard to Ecuador and Chile. Added a third rubber-tired gantry (RTG) and replaced another. Increased warehouse capacity by approximately 12 percent. Increased container yard capacity by 30 percent. Completed Dade Street access improvements and new gate configuration. Implemented security improvements. Rehabilitated piers. Break-bulk liner service from North Europe. Steel exports to the Caribbean and Central America. Achieved positive cash flow and results.

84 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2008/ B-11 PORT PROFILE: PORT OF FORT PIERCE GOVERNING BODY: St. Lucie County St. Lucie County is exploring its strategic options for the Port. The County owns 20 acres at the Port adjacent to 67 acres owned privately. This is in addition to the 12 acres that house the privately owned Indian River Terminal. The County continues to work with private companies in an effort to develop its 20 acres, Harbour Pointe, in accordance with the Port Master Plan. Over the next five years, it is hoped this can be accomplished. Private users of the Port -- Indian River Terminal Company, Scott Groves, Inc. McCulley Marine, and other miscellaneous shippers -- continue to move bulk products and other cargoes at their facilities. Currently, approximately 477,000 tons of cargo pass through Indian River Terminal annually. Nearly all of this container and general cargo traffic moves into the Bahamian and Caribbean islands -- primarily Freeport, Grand Bahama; Providenciales, Turks and Caicos; and Nassau -- and comprises primarily exports of products, materials, and supplies to support everyday life in those islands, plus supplies, equipment, and tools for development projects. Projected increases in cargo throughputs relate primarily to the growing demands of development-related projects that serve expanding tourist and recreation markets in the islands.. PRINCIPAL ACTIVITIES AND PRODUCTS (PRIVATE TERMINALS): Imports: Aragonite, cement. Exports: Materials and supplies for Island residents. MISSION STATEMENT Broaden and strengthen the economic base of the regional community by providing adequate infrastructure and development processes for mixed-use Port development. CURRENT (FY 07/08) AND PROJECTED (FY 12/13) THROUGHPUTS Cargo (tons): Current million (including private terminals). Projected million. Cargo (TEUs): Current 17,480. Projected 28,500. Cruise (revenue passengers): Current - None. Projected None.

85 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2008/ B-12 PORT OF FORT PIERCE (Continued) STRATEGIC DEVELOPMENT PROGRAM Major Goals and Objectives: Develop land for mega-yacht use. Provide infrastructure for land to be developed for mixed marine recreation, marine commercial, and marine industrial uses. Restore Taylor Creek to its original depth. Capital Improvements Needed to Achieve Port s Mission Land acquisition. New Port entrance in design stage. Infrastructure construction. SPHERES OF INFLUENCE Hinterland Served: St. Lucie, Indian River, Okeechobee, Highlands, Hendry, Glades, and Martin Counties. RECENT ACCOMPLISHMENTS Trading Partners: Caribbean Basin, Bahamas, Far East, Europe. Completion of Phase I Taylor Creek Restoration. Completion of Phase III Shoreline Stabilization.

86 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2008/ B-13 PORT PROFILE: PORT OF JACKSONVILLE GOVERNING BODY: Board of Directors and Jacksonville Port Authority The Jacksonville Port Authority (JAXPORT), located in Northeast Florida, is one of the largest and busiest cargo ports in the South Atlantic and one of the nation s newest cruise ports, with year-round service provided by Carnival Cruise Lines. JAXPORT was originally created by the Florida Legislature in 1963 as a special district of the City of Jacksonville. The Legislature reconstituted the Authority in 2001, splitting off the Authority s airport operations into a separate Airport Authority. Today, JAXPORT is a seaport-only enterprise. The Authority has no taxing authority, instead deriving nearly all operating revenues from leases, equipment rental, and fees from private users. JAXPORT is governed by a sevenmember Board of Directors in which the Mayor of Jacksonville appoints four members and the Governor of Florida appoints three members. JAXPORT facilities include three public cargo terminals (Talleyrand, Blount Island, and Dames Point), a passenger cruise terminal, and a ferry service owned and maintained by the Jacksonville Port Authority. Other non-jaxport private terminals along the St. Johns River include cargo terminals, multiple dry and liquid bulk terminals, shipyards, and U.S. Navy and Marine Corps installations. Operating as a landlord, JAXPORT develops, manages, and markets the publicly owned facilities to promote their growth and use by private companies. JAXPORT and its maritime partners handle dry and liquid bulk, break bulk, vehicle (roll-on/roll-off) and containerized cargo, as well as over-sized and specialty cargoes. JAXPORT has 14 container cranes, on-dock refrigerated and freezer warehousing, and Foreign Trade Zone status. The Port also continues to be an important military outload port for the rapid worldwide deployment of supplies for U.S. military operations. Well-known as a leading importer of automobiles and other vehicles, the Port also ranks among the top container ports in the nation and dominates trade with Puerto Rico. Port facilities serve as a southeastern hub for the intermodal movement of commodities on the world market. To move goods to market, shippers have access to three major railroads and three interstate highways. \ VISION STATEMENT "The vision of the Jacksonville Port Authority is to be a major economic engine in Northeast Florida by becoming the premier diversified port in the Southeastern United States, with connections to all major trade lanes throughout the world." CURRENT (FY 07/08) AND PROJECTED (FY 12/13) THROUGHPUTS Cargo (tons) 1 : Current 24.5 million. Projected 44.7 million. Cargo (TEUs): Current 697,494. Projected 2.2 million. Cruise (revenue passengers): Current 152,411. Projected 350, This tonnage includes the cargo crossing privately owned facilities in Jacksonville Harbor.

87 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2008/ B-14 STRATEGIC DEVELOPMENT PROGRAM Major Goals and Objectives: PORT OF JACKSONVILLE (Continued) Continue to expand Port facilities and improve existing infrastructure through major capital initiatives by: Further developing JAXPORT's newest terminals for intermodal, container, bulk, and break-bulk business. Intensifying international marketing efforts and diversifying trade lanes and cargos. Working with FDOT to improve the connector system linking Jacksonville to the interstate road network. Capital Improvements Needed to Achieve Port s Mission: Intermodal highway connections and railway improvements. Channel dredging to 45 feet. Land acquisition. Funding assistance for capital projects. SPHERES OF INFLUENCE Growing major cruise service now homeporting in Jacksonville. Continuing to enhance the St. Johns River ferry service. Explore off-terminal property opportunities. Continue harbor deepening. Continue to enhance seaport security. Hinterland Served: Central and northern Florida, southeastern United States, major portions of the Midwest. Trading Partners: Primary shipping partners, accounting for more than 80 percent of the maritime trade, are in Latin America and the Caribbean (including Puerto Rico), Also, the Far East, Canada, Northern and Western Europe, the Middle East, and Africa. ENVIRONMENTAL INITIATIVES JAXPORT Participates on NOAA s Southeast U.S. Right Whale Recovery Plan Implementation Team and provided $250,000 to prepare bathymetric surveys of the coastal area as part of the recovery effort. Continues to protect more than 50 acres of environmentally sensitive salt marsh along Wynn's Creek at Dames Point Marine Terminal through conservation easements. Created salt marsh wetlands on Buck Island and Fanning Island in the St. Johns River estuary.

88 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2008/ B-15.PORT OF JACKSONVILLE (Continued) Helped fund Dutton Island preservation and environmental restoration along the Intracoastal Waterway in Atlantic Beach. Supports Tree Hill Nature Center, a local 50-acre nonprofit wildlife preserve providing environmental education to area schoolchildren and local residents, and commissioned a 45-foot mural entitled A River in Harmony for the center Supported the St. Johns Riverkeeper s new educational program, entitled River Friendly Yards, through the printing of brochures encouraging homeowners to practice river friendly lawn maintenance and landscaping. Employees and family members help remove debris from the banks of the St. Johns River near JAXPORT s terminal facilities as part of Jacksonville s annual St. Johns River Clean-Up. Actively participates, along with City environmental regulators, independent agencies, business partners, and concerned citizens, in Jacksonville Community Council Inc. s on-going E3 Energy, Environment, and Economy air quality improvement study and implementation project. Diverse sponsorships include: a booth at the 37th Annual Earth Day Jacksonville & Ecology Fair, distributing thousands of wildflower seed packets, water conservation brochures, and educational coloring books; the Great Greenscape Tree Giveaway in which more than 20,000 native tree saplings are donated to local citizens; a new outdoor classroom at Oceanway Middle School for teaching science, ecology, and horticulture; and Duval County s environmental sciences certificate program, the Academy of Coastal and Environmental Sciences (ACES). RECENT ACCOMPLISHMENTS Cargo Highlights In FY 07/08, JAXPORT experienced steady throughput, moving 8.4 million tons, nearly 660,000 vehicle units, and 700,000 twenty-foot long cargo containers (TEUs). In 2008, the Tokyo-based shipping line Mitsui O.S.K. Lines, Ltd (MOL) began cargo service between JAXPORT and ports throughout Asia. MOL and the company's terminal operator, Trans Pacific Container Service Corporation (TraPac), will operate from a new $220 million cargo facility at the Dames Point Marine Terminal set to open in January The project is primarily funded through special purpose facilities bonds backed by MOL, city excise tax bonds, and a low-interest loan from the State Infrastructure Bank of Florida. The 158-acre acre terminal has been built using the latest technology in cargo-handling systems. Ships are expected to traverse both the Panama and Suez canals. This new service is an economic boon for Jacksonville, creating more than 1,600 new private sector jobs in Jacksonville when the facility opens. Over time, supporting operations in trucking, distribution and related services could generate an additional 4,000 direct and indirect local jobs throughout the region. Home improvement and department stores are now looking to open distribution centers in Northeast Florida, as the new facility will provide them with a direct local link to their Asian suppliers.

89 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2008/ B-16 PORT OF JACKSONVILLE (Continued) JAXPORT also has announced completion of a contract with Hanjin Shipping Co., LTD of Korea to develop a $400 million, 90-acre, container terminal adjacent to TraPac. JAXPORT and Hanjin are set to move forward with design, permitting and construction of the new terminal in 2009, with an expected facility opening in late 2011 or early Cruise Highlights In FY 07/08, 152,411 passengers sailed from the JAXPORT Cruise Terminal. The vast majority of those passengers boarded Carnival Cruise Line s Carnival Celebration, which consistently sold out cruises from JAXPORT s facility. Based on its success in Jacksonville, Carnival announced a significant capacity increase in Jacksonville s cruise operations when the 2,052-passenger Carnival Fascination replaced the 1,486-passenger Carnival Celebration on fourand five-day cruises year-round in September Carnival Fascination is enjoying the same success, sailing at better than 100 percent capacity on each cruise out of JAXPORT. Other Highlights JAXPORT recently assumed operational responsibility for the St. Johns River Ferry, linking Mayport Village with Fort George Island along State Road A1A in Duval County. JAXPORT is proceeding with improvements at both sides of the 0.9-mile crossing and has instituted fare and schedule adjustments that will help ensure financial stability. A proposal to extend the harbor deepening from Drummond Point to the Talleyrand Marine Terminal was authorized by the U.S. Congress in December Deepening the final stretch of Jacksonville s main shipping channel from 38 feet to a maintained depth of 40 feet is expected to begin in early The feasibility of deepening the St. Johns River main channel to 45 feet is under study. JAXPORT s vision is to become the nation s new Gateway to the World, and continue to be a major economic engine for Northeast Florida. According to a 2006 economic impact study, the seaport generates nearly 50,000 direct and indirect area jobs. Approximately 7,000 of these jobs are held by employees of private firms operating directly at port terminals. An additional 43,000 jobs are held by area workers throughout Northeast Florida who support those directly employed at port facilities. Jacksonville s seaport generates approximately $2.7 billion in economic impact annually and, with the addition of JAXPORT s two new container terminals, that figure is expected to triple.

90 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2008/ B-17 PORT PROFILE: PORT OF KEY WEST GOVERNING BODY: City of Key West The Port of Key West consists of the cruise berths at the Outer Mole Pier, Mallory Dock, and Pier B, as well as an offshore anchorage area. The City also supports a domestic ferry operation at the Key West Bight Ferry Terminal. These facilities constitute one of the busiest ports-of-call in the nation, and have one of the state s strongest and most sustained passenger ferry operations. As the Port is exclusively a cruise ship and ferry passenger port, with no cargo activities and minimum ship provisioning, contributions to the local and regional economy are based primarily on revenue generated directly from tariffs and other fees, as well as passenger and crew spending. The economic impact from Port operations is vital to the City: Direct revenues from cruise ship tariffs and fees were close to $5 million in FY 06/07, constituting 12.5 percent of the City s general revenue. Passenger and crew spending for the same period is estimated at over $33 million dollars. Direct, indirect, and induced economic spending impacts are estimated to be over $50 million annually. Port-related activity is estimated to create 435 direct jobs in the Key West area, and 958 total direct, indirect and induced jobs. For a small community whose total population is approximately 25,500, these jobs represent a significant contribution to the overall economy. In addition to generating significant economic impacts at the local level, the Port of Key West supports cruise and ferry homeporting activities all over the state. Cruise vessels calling on Key West sail from Port Canaveral, Port Manatee, Port of Tampa, Port of Miami, and Port Everglades. An estimated 10 percent of all cruise passengers departing from Florida call on Key West at some point in their cruise itinerary. In addition, ferry passengers call on Key West from Fort Myers and Miami homeports, providing an effective multi-modal alternative to other transportation modes, particularly vehicular traffic. By adding diversity to itineraries generating from locations throughout Florida, Key West supports passenger benefits realized on a statewide basis. MISSION STATEMENT The City of Key West s Port Operations Mission Statement is to focus on providing residents and visitors with maritime, real estate services, and management of infrastructure to enhance the local economy, providing recreational opportunities for its citizens, and at the same time protecting both our heritage and the marine environment for future generations. CURRENT (FY 07/08) AND PROJECTED (FY 12/13) THROUGHPUTS Cargo (tons): Current - None. Projected - None. Cargo (TEUs): Current - None. Projected - None. Cruise (revenue passengers): Current.924 million.* Projected 1.0 million. *Includes ferry passengers (170,004).

91 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2008/ B-18 STRATEGIC DEVELOPMENT PROGRAM Major Goals and Objectives: PORT OF KEY WEST (Continued) Develop and maintain port-of-call facilities to accommodate the needs of the cruise ship industry and its passengers. Link the physical, social, and environmental aspects of the working waterfront to the community fabric. Maximize the generation of benefits and revenues emanating from the cruise industry for the City and its tourist-related businesses. Manage cruise-related volumes to sustain the island's quality of life, including its environmentally sensitive resources, public amenities, and public waterfront. Increase domestic ferry operations in the City of Key West as an alternative to land-based transportation. Maintain and improve Port security. Capital Improvements Needed to Achieve Port's Mission: Incorporate the Truman Waterfront, a former United States Navy property, into the historic fabric of the City by means of improved passenger access to and from the facility to commercial areas in Old Town Maintain and improve the City s Mallory Dock cruise facility and Key West Bight ferry facility, including security improvements, infrastructure upgrades, and berthing improvements. Improve passenger services through provision of a passenger shelter at the Mole Pier. Streamline port and security operations through construction of a single port office. SPHERES OF INFLUENCE Hinterland Served: United States cruise homeports; West Coast of Florida ferry ports; City of Key West. Trading Partners: Not applicable. ENVIRONMENTAL INITIATIVES The Port of Key West s strength as a cruise port-of-call lies in its high desirability as a destination, its strategic location relative to North American cruise itineraries, and its excellent berthing positions. But Key West s resources are fragile. The City s unique character derives from its highly individual community and environmental fabric; high passenger volumes can stress that fabric and potentially damage the desirability of the City as a destination and as a place to live. In addition, potential shipping impacts on the fragile ecosystem surrounding Key West are a concern. The Florida Keys and their offshore waters have been designated a National Marine Sanctuary and the possibility of providing extra protection against damaging discharges within these waters is being considered by the City.

92 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2008/ B-19 RECENT ACCOMPLISHMENTS PORT OF KEY WEST (Continued) The Port of Key West is realizing the benefits of its proximity to Naval Air Station Key West in several significant ways. The channel improvement project, sponsored by the Navy and constructed by the U.S. Army Corps of Engineers, has improved navigation. Similarly, upgrades to the Outer Mole Pier provide the longest berth on the island. Plans to better connect the berth with commercial areas in Old Town are being considered. Upgrades to Mallory Dock are in the design and permitting phase and will be realized as phased improvements over the next several year The Port s ferry business at the Key West Bight Ferry Terminal has continued to thrive, despite adjustments required by state and federal port security mandates. Key West has continued to sustain passenger ferry operations when most other ferry operations throughout the state have failed. The City s success as a destination and the significant time savings offered by high speed ferry transit from ferry homeports on both Florida coasts have contributed to the relative stability of the industry

93 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2008/ B-20 PORT PROFILE: PORT MANATEE GOVERNING BODY: Manatee County Port Authority Located at the entrance to Tampa Bay, Port Manatee is among Florida s largest deepwater seaports. The Port serves a variety of break-bulk cargo commodities, led by imports of perishables, forestry products, steel, and non-ferrous metals. Bulk commodities include finished phosphate products, refined petroleum, cement, cement clinkers, and a growing array of construction-grade aggregates. More than $124 million in new berthing and warehouse space, along with a comprehensive maintenance and expansion-dredging program, are under way or recently completed at the Port. Seeking to diversify its activities and serve its growing hinterland, Port Manatee plans to develop the infrastructure needed for container operations and purchased a mobile harbor crane to expedite cargo movements for its existing tenants. The Port Manatee County Port Authority is also moving forward with an innovative concept called the Port Manatee Encouragement Zone to develop synergies with neighboring landholders to expand Manatee County s economic development platform. MISSION STATEMENT: To be a powerful catalyst of countywide economic growth and hub of trade-related activity by developing diversified and competitive deepwater shipping facilities and conducting maritime-related activities in a profitable and environmentally responsible manner. CURRENT (FY 07/08) AND PROJECTED (FY 12/13) THROUGHPUTS Cargo (tons): Current 8.3 million. Projected 15.0 million. Cargo (TEUs): Current 6,346. Projected 12,000. Cruise (revenue passengers): Current - None. Projected None. STRATEGIC DEVELOPMENT PROGRAM Major Goals and Objectives: Develop and operate Port Manatee as a competitive and viable deepwater shipping port. Stimulate regional economic development. Serve community, state, national, and international shipping needs generated by that development. Develop Port Manatee Encouragement Zone.

94 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2008/ B-21 Capital Improvements Needed to Achieve Port s Mission: Vessel berths. Dredging. Cold storage facilities. Paved open storage. Shoreside cranes. Additional intermodal facilities and related infrastructure. I-75 Connector Road. SPHERES OF INFLUENCE PORT MANATEE (Continued) Hinterland Served: Florida counties within a 100-mile radius including Lee, Charlotte, DeSoto, Sarasota, Hardee, Polk, Hillsborough, Highlands, Pasco, Hernando, and Pinellas as well as Manatee. Trading Partners: Pacific Rim (including China), Central and South America, Caribbean Basin, Europe, and Australia. ENVIRONMENTAL INITIATIVES Dedicated two-thirds of recently acquired Port property for environmental preservation and mitigation. Received Certification from DEP acknowledging completion of Port seagrass transplant program Completed a 60-acre spoil island restoration project, transforming the land into a migratory and endangered bird sanctuary. RECENT ACCOMPLISHMENTS Delivery of Port Manatee s first mobile harbor crane. Completion of Turning Basin, Berths 4 and 5, and Main Ship Channel dredging to feet. Completion of dredging for the Phase II maintenance and expansion dredging program. Completion of Access Control Center. Development of truck marshalling and queuing facility. Planning for Berth 12 dredging and intermodal container yard development. Completion of dry-storage warehouse to accommodate imports of South American soft wood products. Agreement with HRK Holdings to provide 20 years of capacity for upland spoil disposal Won top environmental mitigation award from AAPA, two times in three years. Initiated new container-on-barge marine highway service to Brownsville, Texas. Master Plan approved in December 2008

95 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2008/ B-22 PORT PROFILE: PORT OF MIAMI GOVERNING BODY: Miami-Dade County Mayor and the Board of County Commissioners The Port of Miami is among America s busiest ports and recognized throughout the world with the dual distinction of being the Cruise Capital of the World and the Cargo Gateway of the Americas. The Port of Miami is strategically positioned as a conduit for the expansion of trade and U.S. job growth. Among the largest container ports in the U.S., the Port of Miami handles cargo from more than 25 shipping lines. These lines call on approximately 100 countries and 250 ports around the world. On the cargo side, more than 7.4 million tons of diversified commodities cross the Port of Miami s docks annually. On the cruise side, the Port accommodated almost 4.1 million multi-day cruise passengers in The Port of Miami contributes over $17 billion annually to the South Florida economy and accounts for 176,000 jobs that are directly or indirectly related to Port activities. One of the Port s primary goals is to promote growth in both the cruise and cargo industries in Miami-Dade County and to make sure that every Port user can conduct business safely, effectively, and efficiently. MISSION STATEMENT "To be an economic generator for both Miami-Dade County and South Florida, projecting a positive world-class image for our local community. To ensure that the Port has the capabilities to provide both the cruise and cargo industries with the necessary infrastructure for continued growth well into the 21st century. One of our primary goals is to promote growth in both our cruise and cargo industries in Miami-Dade County and to make sure that every Port user can conduct business safely effectively, and efficiently. CURRENT (FY07/08) AND PROJECTED (FY12/13) THROUGHPUTS Cargo (tons): Current 7.4 million. Projected million. Cargo (TEUs): Current 828,349. Projected million. Cruise (revenue passengers): Current 4.1 million. Projected 4.9 million.

96 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2008/ B-23 PORT OF MIAMI (Continued) STRATEGIC DEVELOPMENT PROGRAM Major Goals and Objectives: Deepen the Port s entrance channel to -52 feet and south shipping channel to -50 feet. Expand cruise market share by restoring existing facilities and constructing new terminals and berths required for new generation ships. Expand container market share by providing cargo-handling and railroad facilities required for efficient intermodal container operations. Enhance position as transshipment hub of the Caribbean and Central and South America. Pursue new trade opportunities and strengthen existing ties. Capital Improvements Needed to Achieve Port s Mission: Consolidate security facilities. Direct Port-Interstate access Development of an on- or near-dock intermodal logistics transfer facility. Provide bulkhead strengthening and improvement projects. Cruise terminal and cargo berthing expansion. SPHERES OF INFLUENCE Hinterland Served: From the South Florida counties of Miami- Dade, Broward, Monroe and Palm Beach throughout the state into the Southeast, Northeast, and Midwest. Trading Partners: Imports: Pacific Rim, Europe, and Central and South America. Exports: Caribbean, Central and South America, and the Far East. ENVIRONMENTAL INITIATIVES Committed to conduct Port operations efficiently while striving to achieve the highest environmental quality for air, land, water, and ecosystems. Striving to be One Organization with our staff, our Port user community, and visitors in an Environmental Stewardship Program. Member of the U.S. Coral Reef Task Force / Southeast Florida Coral Reef Initiative to develop a coordinated local plan to address causes of coral reef degradation and provide a roadmap for successful conservation and management. Designing and permitting improvements in an environmentally sensitive manner. Interfacing with the environmental community on enhancements and initiatives for Biscayne Bay. Developing public/private enhancement initiatives. Pursuing infrastructure improvements that will result in cleaner air. Creating a stormwater management program to protect our natural resources through education and best management practices.

97 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2008/ B-24 RECENT ACCOMPLISHMENTS PORT OF MIAMI (Continued) Repairs to wharf at Seaboard yard from Berth 165 to Berth 177. Rehabilitation of storm drainage system in cargo yards. Rehabilitation of Cruise Terminals B and C. Completion of upgrades to Cruise Terminals D and E Completion of extension to Eastern Port Blvd. Completion of new Cargo Gate Complex New Parking Garage under constructions Oleta River Mitigation Project Completion of new Port Entrance feature.

98 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2008/ B-25 PORT PROFILE: PORT OF PALM BEACH GOVERNING BODY: Board of Port Commissioners (Port of Palm Beach District) The Port of Palm Beach District, with its on-dock rail capabilities, is the fourth largest container port in Florida and handles molasses, fuel oil, cement, and sugar among its varied dry bulk, liquid bulk, break-bulk, and roll-on/roll-off cargos. It is the only South Florida port with on-dock rail capabilities and is an important distribution center for commodities being shipped primarily throughout the Caribbean Basin. The Port also offers day-cruising and multi-day port-of-call cruises. As a full-service, diversified landlord port that provides services through its private sector partners in South Florida, the Port is responsible for facilitating economic development within Palm Beach County and the region. With its associated activities, the Port is estimated to bring between 2,500 and 3,000 jobs to the community. Additionally, the Port provides a Foreign Trade Zone to the region. In implementing its current Master Plan, the District has focused on the redevelopment of Slip 3, harbor and channel improvements, South Gate access to SR 710 and U.S. 1, and development of a South Port complex. Land use constraints have led the District to pursue the innovative concept of an inland port or logistics center, which is now being studied for its market and economic feasibility. Among the Port s other priorities for the future are continued intermodal road and rail improvements to facilitate mobility for the many truckers who carry cargo to and from the Port. MISSION STATEMENT: "Provide quality deepwater facilities to serve the diverse maritime shipping, rail, intermodal and cruise markets, and facilitate economic development within Palm Beach County, the region, and the state. CURRENT (FY 07/08) AND PROJECTED (FY 12/13) THROUGHPUTS Cargo (tons): Current 2.8 million. Projected 3.2 million. Cargo (TEUs): Current 234,241. Projected - 271,550. Cruise (revenue passengers): Current 424,204. Projected 500,000.

99 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2008/ B-26 STRATEGIC DEVELOPMENT PROGRAM Major Goals and Objectives: PORT OF PALM BEACH (Continued) Increase cargo throughput, with increased imports/exports into the Caribbean and Latin America regions. Increase cruise operations, passenger counts, and support-related tourism. Diversify revenues with additional customers, while retaining existing customers. Increase and enhance the Port s role in the community, state, regional, and national economies. Implement the new Port Master Plan over the next five years Capital Improvements Needed to Achieve Port s Mission Redevelopment of Slip 3. Harbor and channel improvements. South Gate access to SR 710 and U.S. 1. South Port complex. On-port intermodal rail improvements. Off-port intermodal rail improvements. Passenger cruise terminal and garages. Inland port expansion. SPHERES OF INFLUENCE Hinterland Served: Palm Beach, Martin, St. Lucie, Okeechobee, Highlands, Glades, Hendry, Brevard, Indian River, Monroe, Miami-Dade, and Broward counties. Trading Partners: Central and South America, Mexico, Caribbean Basin, Canada, and Northern Europe. ENVIRONMENTAL INITIATIVES Stormwater Management Plan (design and construction) to protect Lake Worth Lagoon. Assistance to sister municipalities in obtaining U.S. Army Corps of Engineers upgrade of an existing sand transfer plant. Continued placement of "manatee-friendly fendering system along berths and marginal wharves. Joint initiatives with Palm Beach County and the Florida Inland Navigational District to maintain Peanut Island as a recreational park, to include eco-tourism. RECENT ACCOMPLISHMENTS New 13th Street improvements. New state-of-the-art main gate Phases 1 and 2. Completion of 16 acres of container terminal paving, drainage, and lighting improvements. South Gate complex construction under way. Inland Port Feasibility Study.

100 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2008/ B-27 PORT PROFILE: PORT PANAMA CITY GOVERNING BODY: Panama City Port Authority Port Panama City provides modern seaport facilities for a variety of bulk, break-bulk, and containerized cargos. The Port s location is attractive to shippers serving North Florida, Georgia, and Alabama. Facilities include six berths, 300,000 square feet of warehouse space, ten acres of paved cargo-handling area, and a 36-foot deep channel. The Port also owns an off-port intermodal distribution center Port Panama City is home to two important international manufacturing plants Berg Steel Pipe and Oceaneering International. Green Circle, a new Jackson County manufacturer of wood pellets for export to Europe, has started shipping its product through Port Panama City. Exports: Pulp, paper, steel pipe, wood pellets, textiles, resins, machinery, and project cargos. Imports: Copper, steel plate, steel coils, molasses, aggregates, furniture, apparel, and fresh produce. MISSION STATEMENT Expand regional economic opportunities by providing modern port facilities, promoting trade, and supporting industrial development. CURRENT (FY 07/08) AND PROJECTED (FY 11/12) THROUGHPUTS Cargo (tons): Current 1.2 million. Projected million. Cargo (TEUs): Current 49,496. Projected 100,000. Cruise (revenue passengers): Current - None. Projected None.

101 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2008/ B-28 PORT PANAMA CITY (Continued) STRATEGIC DEVELOPMENT PROGRAM Major Goals and Objectives: Facilitate local and regional economic growth through phased expansion of seaport facilities. Promote development of essential intermodal transportation infrastructure. Conserve and protect environmental resources. Reduce energy consumption. Reduce exposure to natural and manmade disasters through hazard mitigation, safety, and security programs. Capital Improvements Needed to Achieve Port's Mission: Add general cargo-handling equipment, including a second mobile harbor crane. Replace aging bulkheads on south and west docks. Expand South Berth 3 by 150 feet by installing mooring dolphins. Continue development of Port Panama City Intermodal Distribution Center. SPHERES OF INFLUENCE Hinterland Served: Northwest Florida, Alabama, Georgia, Mississippi, Tennessee, Kentucky, North Carolina, and South Carolina. Trading Partners: Mexico, Central America, South America, Europe, and the Caribbean. ENVIRONMENTAL INITIATIVES Continued maintenance of Audubon Island as a brown pelican nesting site. Transition to renewable fuels where possible, coupled with energy conservation. RECENT ACCOMPLISHMENTS Completion of multibulk facilities to accommodate the export of wood pellets to Europe. Construction of new container examination station Opening of new six-lane interchange gate with radiation portal monitors and scales

102 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2008/ B-29 PORT PROFILE: PORT OF PENSACOLA GOVERNING BODY: City of Pensacola The Port of Pensacola s 50-acre facility in Northwest Florida includes eight deep-draft berths and more than 400,000 square feet of covered storage. The Port offers users a Foreign Trade Zone (FTZ #249), an Enterprise Zone (EZ #1702), and stevedoring and marine terminal services for all descriptions of bulk, break-bulk and unitized freight. Capitalizing on its Gulf of Mexico access and rail proximity, the Port of Pensacola has been successfully diversifying its cargo mix to provide new business opportunities. In addition to handling a wide variety of import/export cargos, the Port also offers available warehouse space for lease to industrial use customers that fit within the Port s business profile as a landlord port. The Port s cargo includes: Exports: Frozen food, bagged food products, paper products, both electric and wind power generation equipment, and off-shore exploration supplies and materials. Imports: Forest products, aggregate, asphalt, paper products, construction materials, cement, and both electric and wind power generation equipment. The Port of Pensacola's primary operating objectives are to maximize revenues and maintain financial stability, while serving as a catalyst for the creation and retention of jobs. The Port achieves these objectives by facilitating international trade, improving facilities and services, attracting both cargo and non-cargo activities, and planning for improvements in facilities and infrastructure. In carrying out its activities, the Port balances these ideals with the sensitivities it faces as an industrial/commercial complex located in the midst of thriving downtown retail, residential and historic areas. MISSION STATEMENT "Manage and operate cost-effective facilities for marine commerce to foster regional and international trade; to stimulate private investment; and to promote economic development and employment." CURRENT (FY 07/08) AND PROJECTED (FY 12/13) THROUGHPUTS Cargo (tons): Current million. Projected million. Cargo (TEUs): Current Projected 12,000. Cruise (revenue passengers): Current - None. Projected - None.

103 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2008/ B-30 PORT OF PENSACOLA (Continued) STRATEGIC DEVELOPMENT PROGRAM Major Goals and Objectives: Attract at least one regular liner service. Attract at least one major long-term break-bulk shipping customer. Increase cargo throughput generated to the port from local/regional industries and manufacturers. Capital Improvements Needed to Achieve Port s Mission: Expansion of the port s freezer terminal. Maintenance dredging. Rehabilitation of the port s internal rail infrastructure. Improved cargo security systems (i.e. lighting and fire suppression). SPHERES OF INFLUENCE Hinterland Served: Northwest Florida, Georgia, Alabama, South Carolina, western North Carolina, Mississippi, Tennessee, Arkansas, Missouri, Kentucky, Illinois, Indiana, Ohio. Trading Partners: Central and South America, Caribbean Basin, Mediterranean, Africa, Baltic Region and Asia. ENVIRONMENTAL INITIATIVES Construction and maintenance of a wetlands mitigation area on off-port waterfront property. Maintenance of a spoil disposal site. Maintenance of a stormwater system. RECENT ACCOMPLISHMENTS Attracted Vestas Wind Technologies as a new port user in 2008, shipping wind turbine generator systems from Europe to a wind farm development project in Indiana. Successfully extended long-term lease with Halcorp to operate a liquid asphalt terminal at the port through mid-2011.

104 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2008/ B-31 PORT PROFILE: PORT OF PORT ST. JOE GOVERNING BODY: Port St. Joe Port Authority The Port of Port St. Joe, a once-thriving Gulf port that has been inactive for some time, has been the focus of a revitalization effort in recent years to again develop it into an employment center and a hub of economic activity and commerce. Several significant steps in this effort were realized in First, the Port completed construction of a new berth and barge basin on the Port s 68-acre site at the entrance to the Intracoastal Waterway on St. Joseph Bay, affording access to both inland and ocean-going vessels. Second, in December 2008, the Port and the St. Joe Company formally ratified a long-term lease agreement for another 60- plus acre site across U.S. 98 from the purchased parcel. This agreement provides the Port with waterfront access to the bay as well as to the Intracoastal Waterway through the Gulf County Canal to expand port operations. To facilitate the Port s immediate start-up of operations, the agreement also encompasses a short-term lease from the St. Joe Company for access to roughly 20 acres on the ship channel turning basin as well as just over half the existing mill site bulkhead, with an option to lease another 20 acres as needed for expansion. This effort to revitalize the Port is of great importance to the citizens of the community and the Port Authority is proceeding diligently to accomplish the task. MISSION STATEMENT "The mission of the Port of Port St. Joe is to enhance the economic vitality and quality of life in the Port St. Joe area by fostering the growth of domestic and foreign commerce." CURRENT (FY 07/08) AND PROJECTED (FY 12/13) THROUGHPUTS Cargo (tons): Current - None. Projected million. Cargo (TEUs): Current - None. Projected - To be determined. Cruise (revenue passengers): Current - None. Projected - To be determined.

105 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2008/ B-32 STRATEGIC DEVELOPMENT PROGRAM Major Goals and Objectives: Construct new deepwater port. Continue building infrastructure on 68-acre Gulf County Canal site. Attract appropriate users for Gulf County Canal site. Capital Improvements Needed to Achieve Port s Mission: Infrastructure for new deepwater site. Remaining infrastructure for Gulf County Canal site. Improved intermodal transportation system. PORT OF PORT ST. JOE (Continued) SPHERES OF INFLUENCE Hinterland Served: Northwest Florida, Southeast Alabama, and Southwest Georgia. Trading Partners: To be determined. RECENT ACCOMPLISHMENTS Port Authority adoption and Department of Community Affairs/local government approval of new Port Master Plan. Bulkheading and dredging of 68-acre site providing 860-foot berth area on the Gulf County Canal. Securing of funding for planned improvements, including site development and rail access. Letters of Intent from interested port customers. Agreement on deepwater port site.

106 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2008/ B-33 PORT PROFILE: PORT OF ST. PETERSBURG GOVERNING BODY: City of St. Petersburg The Port of St. Petersburg, located on Tampa Bay, is exploring opportunities to create a multi-use facility that capitalizes on its unique assets within the City of St. Petersburg. These include opportunities to attract mega yachts and other vessels, including small cruise ships as well as development of a new Research and Development Center on the eastern end of the Port. MISSION STATEMENT "To provide safe, clean, attractive commercial port facilities for use by the shipping industry and general public, and to provide research and development capability, thereby increasing economic development opportunities throughout the City of St. Petersburg, the greater Tampa Bay area, and West Central Florida by creating new high-paying maritime jobs in our community, while attracting tourism and other maritime industries to our region." CURRENT (FY 07/08) AND PROJECTED (FY 12/13) THROUGHPUTS Cargo (tons): Current - None. Projected - None. Cargo (TEUs): Current - None. Projected - None. Cruise (revenue passengers): Current None. Projected None. STRATEGIC DEVELOPMENT PROGRAM Major Goals and Objectives: Continue to improve Port facilities, including terminal, berths, landscaping, parking, Research and Development Center infrastructure, and public access to attract revenue-generating users to the Port. Provide facilities to expand potential maritime operations and attract a variety of vessels. Diversify revenue and similar investment opportunities by creating an atmosphere that will attract mega yachts, cruise lines and other marine-related businesses that complement each other. Continue to take advantage of the Port s proximity to the adjacent Albert Whitted Airport, University of South Florida campus, U. S. Coast Guard and museums through joint use and programming, and complement the City s downtown redevelopment plans. Implement a cost-effective, phased development approach.

107 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2008/ B-34 PORT OF ST. PETERSBURG (Continued) Capital Improvements Needed to Achieve Port s Mission: Improve shore side facilities including potential upgrades to accommodate mega yachts, paving, parking, and potentially a second 900-foot berth. Construction of new Port-related facilities to enhance the waterfront area. Wharf renovations. Construction of a new Research and Development Center on the eastern end of the Port. Funding assistance for capital improvements. SPHERES OF INFLUENCE Hinterland Served: Cruise passengers/port users would come primarily from the Tampa Bay region, but also from out of state. A nationally known company, based at the planned Research and Development Center, will create highpaying jobs. Trading Partners: Not applicable at present. ENVIRONMENTAL INITIATIVES Photo by Dorian Aerial & Architectural Photographics Collaboration with other Tampa Bay entities to establish a Vessel Traffic Information System, a prototype program to improve vessel safety in Tampa Bay. In collaboration with the University of South Florida Marine Science Department, the Florida Institute of Oceanography, the United States Geological Survey, and the Florida Department of Environmental Protection, anticipated pursuit of opportunities to expand real-time data collection for the benefit of the entire state and its Gulf of Mexico and Caribbean trading partners. Membership in Tampa Bay Regional Planning Council s Agency on Bay Management, which protects and promotes regionally significant natural resources, including Tampa Bay. RECENT ACCOMPLISHMENTS Renovation of the eastern third of the Port wharf. Sheet pile replacement. Improved Port lighting. Plans are moving forward to continue wharf improvements. Construction of the Research and Development Center has begun. Continued implementation of security upgrades. Facility Security Plan is Coast-Guard-approved and has been found substantially compliant by the Florida Department of Law Enforcement.

108 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2008/ B-35 PORT PROFILE: PORT OF TAMPA GOVERNING BODY: Tampa Port Authority The Port of Tampa is the largest of the Florida ports, as measured by tonnage and area, and is one of the nation s top 15 largest ports. The Port is also the largest economic engine in West and Central Florida. A major port of entry for the fuel and building materials used in the region and a major center for shipbuilding and repair, the Port is also a popular cruise homeport, offering three cruise lines with a variety of Caribbean itineraries. Reflecting the Port s traditional ties with the nearby phosphate industry, predominant bulk cargos include phosphate rock and fertilizer products as well as petroleum and coal. The Port is diversifying its cargo mix to take advantage of Florida s growing ties with Mexico and other countries in Latin America. In addition to the traditional liquid and dry bulk cargos, the Port handles many other commodities, such as imports and exports of new and used automobiles; exports of citrus pellets and scrap steel; and imports of limestone, ammonia, sulphur, cement, steel, rock, fruit, construction materials, and refrigerated products. Tampa s significant diversification and expansion are evidenced most notably in its container trade development. Over the last few years, investments in container terminal facilities include the acquisition of three gantry cranes, paving and electrification of the terminal, and new plans to develop the terminal to 140 acres, which would bring the annual terminal capacity to 750,000 TEUs (twentyfoot equivalent units). The rapidly growing Central Florida market is the largest in the U.S. Southeast and Gulf regions. To expand its operations and bulk capacity, the Port has begun developing Port Redwing. Berthing, road, and rail improvements will be operational within the next two years. The Port s newly-unveiled Strategic Plan and Master Plan a widely collaborative effort with the port community outlines the port s strategies and direction for the next 10 to 20 years and is available for download at MISSION STATEMENT The TPA will be recognized as a leader in the maritime industry. The TPA will have a customer-driven, strategic business focus in working with stakeholders to develop and manage marine terminals and supporting infrastructure for the benefit of the regional economy. The TPA will employ sound financial, business, and environmental management practices in fulfilling its mission. CURRENT (FY 07/08) AND PROJECTED (FY 12/13) THROUGHPUTS Cargo (tons): Current 42.6 million. Projected 52.7 million. Cargo (TEUs): Current 44,265. Projected - 200,000. Cruise (revenue passengers): Current 767,760. Projected 1.0 million.

109 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2008/ B-36 STRATEGIC DEVELOPMENT PROGRAM Major Goals and Objectives: PORT OF TAMPA (Continued) Develop Port Ybor, south end of Hookers Point, Eastport, Port Redwing, and Channelside area. Develop new deep-draft berths and associated uplands. Develop the container cargo business. Improve vessel navigation and optimize vessel movement in and out of the Port Support transportation initiatives to ease truck traffic in and out of the Port. Continue implementation of new Port security program. Capital Improvements Needed to Achieve Port's Mission Roadways and other infrastructure. New deep-draft berthing facilities. Channel deepening and widening. General cargo terminals. Container cranes. Transit sheds SPHERES OF INFLUENCE Hinterland Served: 24-county region of Central Florida. Trading Partners: Mexico, India, Canada, Trinidad, Colombia, China, Japan, Venezuela, Argentina, Ukraine. ENVIRONMENTAL INITIATIVES In cooperation with the U.S. Coast Guard as well as other Tampa Bay entities, maintaining a Vessel Traffic Information System, which is a national prototype. Wetland and estuary impact mitigation for Port activities. Environmentally sound management of Port s spoil islands for wildlife resources. Maintenance and restoration of stormwater runoff treatment systems. Management and maintenance of Port's award-winning mitigation site at Pendola Point. Management of sovereign submerged lands in Hillsborough County. Environmentally sound upland property management.

110 A Five-Year Plan to Achieve the Mission of Florida's Seaports: 2007/ D- 37 RECENT ACCOMPLISHMENTS PORT OF TAMPA (Continued) In August 2006, Zim Integrated Shipping Services initiated weekly direct container service between Asia and Tampa. The service is being upgraded to accommodate for ships in the 4,000- to 5,000-TEU range (Panamax vessels). The Port Authority works closely with terminal operating partner Ports America to develop a world-class terminal. Offering an impressive schedule of 4-, 5-, 7-, 10-, 11-, and 14-day cruise itineraries for the upcoming season. Cooperative marketing initiatives between the cruise lines and local community partners well under way, bringing more exposure to the Tampa destination s hotels and attractions. Cruise activity and the visitors seen on pre- and post-cruise stays help fuel an economic impact to the community. 96,000 jobs and $7.8 billion in total economic impact. One of three ports in the country chosen to participate in the Portfields Initiative pilot program, NOAA s new model for revitalizing waterfront communities. Multi-phased program to enhance and expand container capabilities at Hookers Point Container Terminal. Addition of new transit shed space to accommodate break-bulk cargo business. Widening of a portion of Sparkman Channel near downtown Tampa to support larger cruise ship traffic. Total project from initial planning to final construction was completed in 12 months. Completed vehicle distribution yard. Completed new bulk cargo dock at Berth 26. Completed a new Strategic Plan and Master Plan. The Port of Tampa Container Terminal placed first in the development category in the 17th Annual Future of the Region Awards