The Emergence of Florida s Seaports and Inland Ports Florida League of Cities - International Relations Committee November 17, 2011
History of the Global Supply Chain 2
Supply Chain, Circa 1950 Regional manufacturing, limited infrastructure Production Distribution 3
Supply Chain in the 70 s Containerization, Pacific Rim S. Korea Japan Los Angeles New York Taiwan Hong Kong 4
Supply Chain, 2011 Global sourcing and the 3 new Asian tigers; the rise of Latin America China Malaysia Viet Nam Brazil 5
US Ports Today 6
Top 15 North American Container Port Rankings By Total TEU Source: Containerization International 7
Game Changers on the Horizon 8
Coming Soon to a Port Near You? 12,000 TEU s, 1,302 ft. long, 50 ft. draft, 22 crane reach 9
Panama Canal Expansion Opening August 14, 2014 Construction photos taken by ACP: February 2011 10
Panama Canal Expansion Opening August 14, 2014 Artist conception of New Atlantic locks 11
Southeast Asian Manufacturing Centroid Shift Current Inbound U.S. Cargo Flow Western Centroid Shift U.S. Intermodal Rail Flow With Manufacturing Westbound Centroid All Water/Suez Shifts Flow Into Vietnam and/or India, The North Westbound American Intermodal East U.S. Flow Coast will See Dramatically More Westbound Suez Traffic 12
Value of Florida s International Trade Top Ten Trading Partners (dollar value) Note the Prominence of South Central and Caribbean Trade Source: Florida Seaports 5-year plan (March 2011) 13
2014 and Beyond Tomorrow s ports will not be measured merely by their port capacity but rather by throughput performance Ron Widdows, CEO, APL March, 2007 through-put n. \thrú-püt\ definition: (maritime usage) - The sweeping of cargo off and away from the terminal docks in order to ready the waterfront for the next arriving vessel. 14
Emergence of the Inland Port 15
Emerging Trend of US Seaports and Inland Ports / Port Everglades 16
What is an Inland Port? An inland port is a master planned, mixed-use development aimed at attracting new and existing customers of an established and growing seaport system 17
What are the Key Pieces to a Successful Inland Port? Scale: Typically 1,500-5,000 acres Rail: Connecting inland port customers to ondock terminals Proximity to consumers: 20+ million within 1-day drive; 3 million within 200 miles Favorable Business Climate: A state and local government enthusiastic about driving business and employment to the region. 18
Inland Port Development Cycle Phased development of a community may occur over 10-15 year period, with expected build-out of tenancies 10-15 years beyond. Initial first phase of inland port showing both build to suit and speculative construction 19
Inland Port Development Standards Institutional quality construction Established design standards State of the art improvements and equipment Environmentally conscious building systems 20
Who are the Anchor Users of Inland Ports? Major retailers Importers; beneficial cargo owners (shippers) 3rd party logistics firms Regional distribution centers Foreign trade zone operators Rail customers Exporters of raw materials and/or finished products Food and beverage firms; cold supply chain; grocery store distribution Transportation providers 21
Inland Ports Regional Benefits Direct / indirect employment at attractive wages Enhanced revenues to local economy Increase in property tax base Adaptability to development & environmental regulation Pay for infrastructure upgrades 22
The Business Case and Florida s Opportunity 23
Projections for transpacific container traffic recovery Source: HIS, Global Insight The Global Outlook; October 14,2010 24
Projections for transatlantic container traffic recovery Source: HIS, Global Insight The Global Outlook; October 14,2010 25
U.S. population continues to increase Projected US Population Increases to 2030 Source: US Census Judson Drennan / The News & Observer 26
South Florida Distribution Center Demand/Absorption Forecast (2007 to 2025) Source: Martin Associates 27
Florida Ports Today Florida ports represent the only system in the US which spans both the Atlantic and Gulf coast regions. Together, over 2.84 million TEU s of containerized cargo and over $69.7 billion in materials are shipped via Florida ports. Florida ports remain the closest port of entry for traffic transiting the Panama Canal, and remains the gateway for the growing economies of the Caribbean and Latin American nations. Florida s dominant container seaports are located on the Atlantic side: Miami Port Everglades Palm Beach Jacksonville FLORIDA INLAND PORT 28
The Opportunity at hand To build upon Governor Scott s vision for Florida as an address How will this be accomplished? address 1. By creating the final component needed to capture increased market share of ocean cargo traffic passing through Florida Atlantic waters.a Florida bill of lading address 2. By creating a destination warehouse center, a complete business and logistics solution that attracts new and meaningful enterprise.a business address 3. By creating a working environment which will be desired by workers of all types.an employment address 4. By creating a successful model for collaboration between the public sector and private development interests.a case study address 29
Florida Inland Port The Regional Advantages 30
Florida Inland Port Florida intermodal connections Florida s Strategic Intermodal System (SIS) contains a network of highways, railroads, seaports and airports. They are currently the focus of state and federal funding and economic initiative directed towards improving Florida s position in domestic and foreign trade. Florida Inland Port optimizes the use of this investment for the betterment of the public interest and regional economy. FLORIDA INLAND PORT 31
Florida Inland Port 2005 planned regional freight corridors Long before FIP was conceptualized, the joint Martin/St. Lucie County MPO Regional Long-Range Transportation Plan, Destination 2030 indicated the FIP site was cited as the most probable location for a strategic freight hub. Florida Inland Port Florida Inland Port 32
Florida Inland Port Existing regional roads and rail FLORIDA Inland Port FLORIDA INLAND PORT Market Area Central and South Florida Tri-county Close-up 33
Florida Inland Port Florida intermodal connections 11 Turnpike and I-95 Interchanges between 5 and 15 miles of FIP Located near urban infrastructure Substantial housing inventory Available workforce and training Florida Inland Port 34
Florida Inland Port FIP distribution center radii 120 miles Florida Florida Inland Inland Port Port FIP 35
Florida Inland Port Florida distribution networks 120 miles Florida Inland Port FIP FIP 36
Florida Inland Port Florida distribution networks 120 miles FIP can reach about 11 million people, or about 64.7% of the Florida population, within a 120 mile radius of the site. This is the same 120 mile radius that includes the largest population of local distribution centers (ILC and inland port users) in Florida. Florida Inland Port 37
Florida Inland Port The Project 38
Florida Inland Port Strategic Partners Akerman Senterfitt HDR Engineering Vickerman & Associates Jones Lang LaSalle 39
Florida Inland Port Project Aerial 6.4 square miles, +/- 2,675 acres are developable with 1,433 acres set aside for conservation, utility easements and major lakes Property boundary C23 canal Martin County line 40
6 Florida Inland Port Preliminary conceptual site plan FIP s interchange hub is integrated with the warehouses and distribution centers on the site. Incoming freight is offloaded and stays on-site until leaving for its ultimate destination. This reduces impacts on local off-site infrastructure. 41
6 Florida Inland Port Planned rail interchange hub to be served by FEC Railway 42
6 Florida Inland Port Entry / exit gate facility concept plan 43
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Questions? Preston I. Perrone Project Director Florida Inland Port, LLC 4310 77 th Street Vero Beach, Florida 32967 prestono@kennedyholdingsllc.com John Carver Director Port Infrastructure Desk Jones Lang LaSalle Americas 515 S. Flower Street, Suite 1300 Los Angeles, CA 90071 john.carver@am.jll.com 45