FY 2013 Annual Report
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2 0 JAXPORT | JACKSONVILLE PORT AUTHORITY 1 3 ANNUAL REPORT ABOUT JAXPORT The Jacksonville Port Authority (JAXPORT) is an independent agency responsible for the development of public seaport facilities in Jacksonville, Florida. JAXPORT owns three cargo facilities and one passenger cruise terminal along the St. Johns River: Blount Island Marine Terminal, Talleyrand Marine Terminal, Dames Point Marine Terminal and the JAXPORT Cruise Terminal. • Ten of the world’s top 15 global carriers now serve JAXPORT • Serving the Asian trade through the Panama & Suez Canals • Record setting container volume at JAXPORT • More than 60 million consumers within one-day truck drive • One of the nation’s highest-weight-bearing-capacity docks • No. 1 container port complex in Florida • 5th year of container volume growth • 13th year of operating revenue growth • Celebrating a decade of cruise service • Foreign Trade Zone No. 64 named one of the best in the world • No. 1 U.S. port handling trade to Puerto Rico • No. 1 U.S. vehicle export port • One of 16 U.S. Strategic Ports on-call to move military cargo for national defense Blount Island Marine Terminal Dames Point Marine Terminal Talleyrand Marine Terminal A MESSAGE FROM JAXPORT Joe York Brian Taylor Chairman of the Board Chief Executive Officer 2 JAXPORT.com/2013report/ | Twitter: @JAXPORT | Flickr.com/jaxport | YouTube.com/jaxport | LinkedIn: JAXPORT | Facebook.com/JacksonvillePortAuthority Strategic Master Plan Delivering a 47-foot shipping channel & beyond VISION Northeast Florida will be a principal hub of the nation’s global logistics, trade and transportation network MISSION Creating jobs and opportunity by offering the most competitive environment for the movement of cargo and people GUIDING PRINCIPLES Innovation · Teamwork · Accountability · Leadership · Integrity WE PLEDGE TO Demand a measurable return for the dollars invested Maximize the use of public assets for public good Balance the interests of those we serve Integrate green port initiatives into all endeavors Pursue all outreach and engagement opportunities GOAL Develop near-term and Deliver a 47-foot long-term plans that are Preserve diversity of Deliver annual profitable shipping channel operationally and financially business business growth compatible STRATEGIES • Eliminate the Mile Point • Ensure complete • Increase market share in • Leverage prime navigational issue integration of near-term the Caribbean and Latin geographic location and long-term capital America • Interface with U.S. spending plans • Target retail and Congress, U.S. Army Corps refrigerated distribution of Engineers and all those • Develop a business model able to expedite • Optimize the current for an alternate cruise capabilities, manufacturing approval/funding capabilities of the terminal and light assembly Talleyrand Marine Terminal companies • Develop business and • Capitalize on existing community consensus • Continue berth and rail infrastructure to support • Market directly to ocean carriers and • Design and construct the improvements at the Blount specialty and oversized Intermodal Container Island Marine Terminal to cargoes importers/exporters Transfer Facility at Dames support a 47-foot harbor Point • Strengthen bulk handling • Aggressively pursue • Efficiently manage capabilities for commodities options to serve all • Develop a more efficient ongoing dredging and such as limestone, granite, international carriers and rail corridor in collaboration major shipping alliances with business and disposal operations biodiesel and liquids community partners • Finalize a Mayport • Continue to offer rapid, • Promote the use of the • Work with the FL Dept. of property strategy that effective, secure service Foreign Trade Zone Transportation to enhance creates economic value and during U.S. military the regional highway and is consistent with mobilizations as one of only • Lead the industry in road systems community goals 16 strategic military ports in support of Liquefied Natural the nation Gas (LNG) operations JAXPORT.COM/STRATEGICPLAN | 2013 JAXPORT ANNUAL REPORT 3 FINANCIAL HEALTH JAXPORT earned $53.1 million in operating revenues in When combined with the volumes from private users of the FY 2013, a 2.4 percent increase over FY 2012 and the port’s harbor, Jacksonville maintains its rank as Florida’s No. 1 13th consecutive year of operating revenue growth. Strong container port. expense-side management allowed JAXPORT to reduce operating expenses to $28 million in FY 2013 from $30 A total of 8.2 million tons of cargo shipped through million in FY 2012, a 7 percent decrease. At the same time, JAXPORT facilities in FY 2013 and the port saw 1,933 operating income in FY 2013 rose 15 percent to $25 million vessels calls in the same period. The rebound in vehicle from $21.7 million in FY 2012. volumes (630,697) continues taking JAXPORT to near pre- recession levels. Successes include a continued rebound of automobile and other roll-on/roll-off cargoes and an increase in cruise- Moody’s Investors Service recently assigned JAXPORT a related revenues based on a new contractual agreement. financial rating of “A2” while Fitch Ratings assigned JAXPORT a rating of “A.” Both agencies noted that despite In addition, JAXPORT enhanced its balance sheet by challenging economic conditions, JAXPORT maintained its reducing overall debt by $28 million and improving debt competitive position as a strategically located container service coverage ratios. port, its status as one of the nation’s largest vehicle processing centers, and its diverse revenue streams These financial results reflect JAXPORT’s positive year supported by long-term contracts with private tenants. operationally with another record set in container volume. JAXPORT facilities moved a record 926,810 containers or JAXPORT has a significant capital program planned for twenty-foot equivalent units (TEUs) in FY 2013. Container FY 2014, much of it funded through state and federal volume has grown 33 percent since 2008, making JAXPORT grants. These projects include wharf rehabilitation at Blount one of the few U.S. seaports to experience growth even Island and Talleyrand Terminals, Mile Point improvements, through the recent global economic downturn. the Intermodal Container Transfer Facility at Dames Point and spoil site improvements at Bartram Island. Top 10 Trade Lanes FY 2013 47% Puerto Rico 2% Netherlands 8% China 4% Finland 6% Japan JAXPORT 21% Other Caribbean (5%) S.E. Asia (3%) WCSA (3%) ECSA (2%) Africa (2%) N. Europe (2%) Middle East (2%) Central America (1%) Mediterranean (1%) Indian Sub-Continent (1%) N.E. Asia (1%) 5% Brazil 3% Saudi Arabia 1% Korea 2% Venezuela 1% Arab Emirates 4 JAXPORT.com/2013report/ | Twitter: @JAXPORT | Flickr.com/jaxport | YouTube.com/jaxport | LinkedIn: JAXPORT | Facebook.com/JacksonvillePortAuthority Total Tonnage (in millions) Revenue (in millions) TEUs (in thousands) 1 . 3 8 . 9 5 6 . 1 . 7 9 54 0 1000 4 5 4 0 2 . 5 2 5 9 8 3 0 9 . 0 2 0 1 2 7 . 9 4 8 8 8 8 4 . 8 3 47 900 7 . 2 2 7 4 8 4 7 40 800 5 7 8 9 6 6 33 700 5 26 600 4 19 500 3 12 400 2 5 300 07/08 08/09 09/10 10/11 11/12 12/13 07/08 08/09 09/10 10/11 11/12 12/13 07/08 08/09 09/10 10/11 11/12 12/13 Fiscal Year Fiscal Year Fiscal Year Vessel Calls Auto Units (in thousands) Import/Export (in millions of tons) 7 5 0 2250 700 1 5.5 6 3 3 8 0 7 6 9 , 3 4 4 0 2 3 9 4 9 6 3 , . , 9 . , 1 4 2 1 4 . 1 1 4 . 7 9 0 9 . 2000 600 4.5 . 4 . 2 5 3 4 3 8 7 6 0 , . 9 7 2 1 3 1 , 5 5 1 1750 500 3.5 0 2 4 1500 400 2.5 1250 300 1.5 1000 200 1 750 100 .5 500 50 .25 07/08 08/09 09/10 10/11 11/12 12/13 07/08 08/09 09/10 10/11 11/12 12/13 09/10 10/11 11/12 12/13 Fiscal Year Fiscal Year Fiscal Year 2013 JAXPORT ANNUAL REPORT 5 ECONOMIC ENGINE There is no denying that JAXPORT is a crucial component port-related companies and re-spending by workers; $1.9 of the area’s present economic vitality and future growth. billion in business revenue generated by port-related According to figures released in 2009 by the world companies; $320 million generated in U.S. Customs renowned consulting firm Martin Associates, Jacksonville’s revenue; $385 million in local purchases made by port- seaport generates the following impact: related businesses; and $130 million paid in state and local taxes by port businesses. Nearly 65,000 direct and indirect area jobs are supported by port activity: everything from longshoremen, truck drivers The 2009 Martin Associates study further shows that the and warehouse workers to engineering specialists, legal cruise industry supports more than 460 jobs in Northeast consultants, maintenance workers and hundreds of similar Florida and more than $67 million in annual economic support positions. In Jacksonville alone, nearly 23,000 impact. Jobs at the JAXPORT Cruise Terminal include those people are employed in port-dependent positions, jobs handling luggage, customer service, parking and security, as directly relying on the port. An additional 43,000 positions well as jobs generated in the community to support are related to cargo activity in the Port of Jacksonville; these passengers and crew members, such as ground are jobs within the manufacturing, retail, wholesale and transportation and hospitality. distribution industries. In addition, growth at the port has spurred demand for The latest research concludes these positions provide commercial real estate and warehouse space. Citing an average annual salary of $43,980, well above the Jacksonville’s outstanding intermodal connections and Jacksonville average of $27,215 as cited by the worldwide ocean carrier services, several companies have JAX Chamber.