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OFDELIVERING GLOBAL TRADECOMMERCE AND LOGISTICS INTELLIGENCE | SINCE 1827

Ocean carriers are taking a beating on trans-Paciﬁ c rate contracts, but savvy BCOs are looking to the day when the tables might turn WALKING A TIGHTROPE

www.joc.com JACKSONVILLE TRADE AND TRANSPORTATION

BEYOND DEEPER WATER

44 THE JOURNAL OF COMMERCE www.joc.com MAY 2.2016 JACKSONVILLE SOLIDIFIES POSITION AS DISTRIBUTION

EPICENTER SPECIAL ADVERTISING SECTION OF

By John Powers

acksonville Port Authority has experienced year-over-year growth for nearly a decade

J THE JOURNAL OF COMMERCE and a half. 2015 marked 14 years and counting. “Two of our key commodity groups, automobiles and containers, were both up. We budget aggressively every year, and we’ve historically been successful in meeting our goals,” Roy Schleicher, Jaxport’s executive vice president and chief commercial officer, said. This success is owed, in no small part, to ongoing carrier and shipper outreach highlighting the port’s viability as a distribution epicenter. JACKSONVILLE PORT AUTHORITY’S BLOUNT Doug Wheeler is president and ISLAND MARINE TERMINAL HANDLES A WIDE CEO of the Florida Ports Council, an advocacy organization that attempts VARIETY OF CARGO FROM CONTAINERS TO to direct public policy and secure VEHICLES TO HEAVY-LIFT AND PROJECT CARGO. strategic seaport funding at the state and federal levels. Outlining the area’s benefits for shippers, he said, “aside from our advantageous geography, Florida ports are unique in that they can handle any cargo, from containers to breakbulk, bulk and roll-on, roll-off. Our state has also invested historic amounts of

www.joc.com THE JOURNAL OF COMMERCE 45 JACKSONVILLE TRADE AND TRANSPORTATION

funding into seaboard infrastructure and who travel the world. Our marketing Combined marketing efforts by the state, connectivity to other modes, making team comprises specialists in key port, Chamber of Commerce and local our ports ready to assist businesses in commodity groups such as automobiles, development entities have convinced achieving success.” containers and non-container freight. many shippers and logistics-support Jaxport is at the forefront in Additionally, their targets include specific enterprises that the area offers a viable, communicating this message, of course. geographic areas, growth commodities, cost-effective option for distribution and Aggressive social media and advertising major shipper accounts and potential consolidation operations. campaigns are directed toward key foreign trade zone users, for example,” Up the coast, the ports of Savannah, constituencies: shippers, carriers, Schleicher said. Georgia, and Charleston, South beneficial cargo owners, third-party One measurement of Jacksonville’s Carolina, have enjoyed rapid growth logistics providers and government growing international visibility has been largely attributable to their ability to entities. “Most importantly, we deploy the proliferation of distribution operations attract distribution centers and the global cargo experts/sales representatives and warehousing in and around the city. carriers that deliver their inventories. THE JOURNAL OF COMMERCE OF JOURNAL THE FLORIDA PORTS HELP BUSINESSES THRIVE Florida seaports reap vast economic rewards for the state that continues to lorida is home to 15 seaports that Florida seaports have state leadership to grow. Cargo and cruise activity currently F deliver seamless and efficient move- thank for an extraordinary level of financial, support nearly 700,000 jobs in Florida. ment for a broad assortment of freight, as and other, support. The focus on the role Ports contribute $96.6 billion of output well as passengers. They serve a diverse of the ports in capturing international to the state’s economy, equivalent to consumer market within the state (and trade and improving freight mobility is due approximately 13 percent of Florida’s across the country) and are champions to recognition of their critical position in gross domestic product.

SPECIAL ADVERTISING SECTION OF SECTION ADVERTISING SPECIAL of both international trade and domestic the supply chain by Florida Governor Rick Florida’s seaports are creating mo- cargo movement. Florida is also the clos- Scott, the Florida Legislature and the Flori- mentum around economic vitality. They est connection between Latin America da Department of Transportation. Coopera- are achieving it by improving global com- and Caribbean trade partners and the U.S. tion at the state level has become a reliable petitiveness and increasing mobility for Midwest and Northeast, offering access reality, and the ports are also working with people and freight. They have enhanced to the Gulf of Mexico and Atlantic Ocean. federal leaders in this important effort. the diversity and flexibility of their assets, Each year, Florida increases its connections and are creatively optimizing how those to Asian and European trade lanes. assets are used. Florida ports are prioritiz- Together, there is no business or cargo ing capital investments and maximizing Florida ports can’t handle. Its ports system the use of scarce resources. is well-equipped with the infrastructure, Florida’s seaports are proud to connect waterway access and stable workforce to local businesses to international markets help businesses succeed. They plan to be and global businesses to nearly 20 million the seaports of choice for every business in residents and 100 million visitors a year. Florida, and for more and more shippers in Florida is where your ship (and business the United States and around the world. success) comes in. ■

46 THE JOURNAL OF COMMERCE www.joc.com MAY 2.2016 FLORIDA: WHERE YOUR SHIP COMES IN

In Florida, we’ve invested billions of dollars to increase efficiencies in our multi-modal freight delivery network of seaports, airports, highways and rail lines. We can reliably handle your cargo volume with diversified options, less congestion and more connectivity to markets in the Southeast and beyond, resulting in greater performance for you. When you think business success, think Florida first.

502 East Jefferson Street | Tallahassee, Florida 32301 | flaports.org JACKSONVILLE TRADE AND TRANSPORTATION

“ALL OF THE ELEMENTS ARE LINING UP.”

Already boasting the widest channel among Southeast ports, Jacksonville will shortly initiate an ambitious deepening project. “All of the elements are lining Jacksonville is already capitalizing on international warehousing, both in use up. We’re on the verge of signing the the same phenomenon and has the and available. This compares with port and U.S. Army Corps of Engineers physical resources in place to accelerate 51 million square feet in Savannah and agreement to put things in motion. If their growth curve. “According to the 68 million square feet in Charleston. This things go as scheduled, we could begin Costar Industrial Marketing Report, speaks volumes as to our desirability as a dredging in the first quarter of next year,” Jacksonville has 120 million square feet location for these types of operations,” Schleicher said. The project consists of in distribution centers and domestic/ Schleicher said. four different sections totaling nearly

OPERATING THE LARGEST US ON-DOCK WAREHOUSE or the past 30 years, Seaonus has Seaonus Mission Seaonus continually evaluates and THE JOURNAL OF COMMERCE OF JOURNAL THE F provided customized port, terminal Seaonus provides customized port, invests in its system capabilities to provide and warehouse solutions driven by col- terminal and warehouse solutions driven by its customers with the latest technology to laboration, innovation and creativity. The collaboration, innovation and creativity. keep their cargo in motion. Seaonus has company is headquartered in Jacksonville, recently invested in upgrading and expand- Florida, and has additional operational Seaonus Core Competencies ing its terminal operating system to meet facilities in the ports of Mobile and New Provide access to the following markets: the current demands of customers and assist Orleans. Its trusted, professional team pro- • Breakbulk, bulk and container with future growth opportunities. The com- vides stevedoring and terminal services, stevedoring services. pany provides its customers with real-time, along with dry, frozen and temperature- • Cold storage and warehousing services accurate information they need to manage controlled warehousing, as well as sup- with automation solutions. their business. ■

SPECIAL ADVERTISING SECTION OF SECTION ADVERTISING SPECIAL porting logistics transportation solutions. • Container freight station and cross- No matter the challenge, Seaonus can Seaonus has extensive experience in dock services with automation find a resolution. We welcome the oppor- handling breakbulk; bulk; roll-on, roll-off; solutions. tunity to partner with clients to develop lift-on, lift-off; heavy-lift; and out-of-gauge • Drayage and transportation services. innovative supply chain solutions to improve cargoes. Seaonus specializes in handling performance levels and growth opportuni- all types of forest products such as paper, In Jacksonville, Seaonus operates the ties for them. We stand ready to manage the lumber and pulp, as well as steel products largest dockside facility in the United States. full spectrum of operations required to get and project cargo. Standing at 553,000 square feet, the ware- shipments to or from anywhere in the world. house has a 1,500 pound-per-square-foot- True to our mission, we are determined to capacity and is designed to control humidity deliver solutions with collaboration, innova- to protect cargo. The company has the tion and creativity. ability to load or unload vessels and handle the cargo to and from conventional rail cars, Contact us today to learn more about how intermodal equipment and traditional trucks Seaonus can solve your cargo handling needs. all from their dockside facility. The building www.seaonus.com • [email protected] is primarily used for forest-related products. 904-786-8038

48 THE JOURNAL OF COMMERCE www.joc.com MAY 2.2016

JACKSONVILLE TRADE AND TRANSPORTATION

13 miles, with full completion slated for 2021. “Ultimately, we will be taking the channel down to 47 feet,” he said. Elimination of the bottleneck at the Mile Point intersection of the intracoastal waterway and the St. John’s River is another critical channel project. Due to the tidal effects at this junction, the largest vessels calling the port can currently only transit the river during two four-hour periods each day. A reconfiguration will correct crosscurrents premier heavy-lift and container Gauging the potential impact of that prevent larger ships from using stevedore and marine terminal the canal expansion on Jacksonville the channel on ebb tide. Phase 1 of the operators in Florida, with a specialty in is a matter of simple mathematics, project should be completed this fall, with project cargo, including out-of-gauge Schleicher said. “Within the consortium Phase 2 beginning the following year and and heavy-lift. John Mullins, director serving the East Coast, each player has focusing on marshland restoration. The of customer service and business a fixed number of slots. The positive state of Florida stepped up with development, believes Jacksonville can that we see is that bigger ships equal $43.5 million for design and construction. capitalize on the expanded canal by more slots per partner, which equals A channel with greater depth and building its carrier roster. more potential capacity for Jacksonville improved navigability bodes well “Additional services for existing and shippers,” he said. for a port eager to take advantage potential future ocean carriers are always August 1 is the official opening date of increased trade flows through an a plus. More freight volume equals more for Jaxport’s new $30 million intermodal enlarged Panama Canal. Headquartered prospects to the entire port community, container transfer facility. The ICTF in Jacksonville, Portus is one of the and the efficiency realized by ocean will serve TraPac Container Terminal at THE JOURNAL OF COMMERCE OF JOURNAL THE

carriers will dictate how much volume Dames Point and Blount Island Marine will be dedicated to Jacksonville,” Terminal, both on the port’s north side. Mullins said. “Everyone will be positively Connecting to the CSX main line, the PROUD TO SERVE impacted by the channel deepening, facility can accommodate two, 200-car offering additional freight volumes that unit trains daily. PUERTO RICO will drive additional cargo-handling “Previously, containers were moving opportunities.” between the terminals and a ramp across OTE Maritime Puerto Rico, head- Schleicher expects East Coast town. The new ICTF is across the street T quartered in Jacksonville, Florida, harbors will continue to see some from Dames Point and a few miles from offers integrated transportation services migration of the cargo that historically Blount. This equates to cheaper, easier

SPECIAL ADVERTISING SECTION OF SECTION ADVERTISING SPECIAL to and from the United States, Puerto moved via the West Coast and Panama rail access and improved productivity for Rico and the U.S. Virgin Islands. With the Canal. “The West Coast isn’t just going our local drayage operators. As a result, world’s first liquefied natural gas powered to give up its freight without a fight. we project substantial growth in our containership and state-of-the-art lift-on, The railroads and those ports will do all number of intermodal moves. We would lift-off capabilities, TOTE Maritime Puerto they can to retain their business. But like to see a 10 percent increase to start,” Rico vessels are the most advanced in the even if there is only a 10 percent shift of Schleicher said. trade. Company operations are certified freight, this translates to about 3 million Wheeler applauded Jacksonville’s rail to ISO 9001, ISO 14001, ISO 28000 and containers a year,” he said. initiative and reported that a dry run has Green Office standards. ■ Previous issues with labor stoppages, already taken place. “Like many ports congestion and inland connectivity around the state, Jaxport has focused on For more information, have forced many shippers to shift expanding its rail and road access. The visit www.totemaritime.com. distribution operations eastward Jaxport ICTF welcomed its first trains in to places like Jacksonville. In many April for a special military exercise and will instances, what began as a backup be available for commercial cargo later plan has increasingly become standard this year. This ICTF will greatly enhance operating procedure as the inherent the direct transfer of containers between transit and cost advantages are realized. vessels and trains,” he said.

50 THE JOURNAL OF COMMERCE www.joc.com MAY 2.2016

JACKSONVILLE TRADE AND TRANSPORTATION

For the military training, Jaxport investing $100 million — funded by an Currently underway, the Berth 35 partnered with multiple U.S. Army infusion of federal and state funds — in project involves complete demolition units in exercises aimed at expediting capital improvements at the Blount Island of approximately 1,275 feet of existing the movement of ocean-going military and Talleyrand terminals. Included are wharf and associated buildings. cargo, rehearsing the capabilities of the upgrades to wharves, on-dock rail and Reconstruction of new wharfage will personnel involved as well as the new terminal pavement areas. follow, to provide for increased capability terminal. The undertaking involved At Blount, the recently completed capacity for 100-gauge crane operations. movement of some 800 pieces of cargo Berth 32 wharf rehabilitation project Completion is slated for 2017. — including vehicles, containers and involved removal and replacement An integral feature of the Blount equipment — onto a military vessel. of 990 feet of marginal wharf, with Island upgrades is the refurbishing Jaxport is one of 17 U.S. strategic a new ballasted deck wharf structure of Berth 31 to serve as a focal point seaports on call to move military cargo. designed to accommodate the for heavy cargo operations. Heavy-lift The port authority is currently 100-gauge cranes of the future. specialist company Portus is keenly interested in this facility enhancement. “Blount Island’s berth was recently reconstructed to become the United SOUTHEAST’S PREMIER HEAVY-LIFT STEVEDORE States’ heaviest dock at 1,800 pounds per square foot. Add this to direct Class ortus is the premier heavy-lift and • Terminals/yard management and marine I rail service with CSX and Portus’ highly P project cargo stevedore in the South- gate services with automation solutions. skilled labor force, and you have a east. The company will accept any and • Container freight station and cross-dock project manager’s best-case scenario for all challenges to seek out transportation services with automation solutions. a high-velocity operation,” Mullins said. solutions that meet and exceed customer As a service provider, Portus’s employees By October, the port will have in needs. The recently renovated berth in are at the core of what it does. The com- operation three new super-post-Panamax Jacksonville is equipped to handle cargoes pany is proud to have invested time, money cranes at Blount Island, each boasting THE JOURNAL OF COMMERCE OF JOURNAL THE

up to 1,800 pounds per square foot or 78 and resources in them. Portus not only edu- outreach of 22 containers. The units were kilo instructions per second. Add direct cates its staff in standard maritime industry purchased at a cost of $13 million apiece dockside Class I rail service through CSX, practices, but also customizes training based from Shanghai Zhenhua Heavy Industries. and Portus can move your cargo from rail upon specialized cargo handling needs. Jaxport’s long-term strategic plan calls for to ship in one motion. Pound for pound, Key differentiators distinguishing Portus the total purchase of 10 new 100-gauge Portus is the Atlantic seaboard’s leading from other waterfront operations include: cranes. heavy-lift and project logistics berth and • Employees dedicated solely to Portus. “We have become the pioneering terminal. • Safety and Health Achievement port for liquefied natural gas power by Its corporate office is in Jacksonville, Recognition Program (SHARP) certified. welcoming the first LNG ship to be home Florida, with operations at Blount Island, • Certified master riggers. ported anywhere in the United States,”

SPECIAL ADVERTISING SECTION OF SECTION ADVERTISING SPECIAL Jacksonville Terminal, Port Everglades and • On-dock management. Schleicher said. TOTE Maritime is a leader Cape Canaveral. • Skilled, professionally qualified, and in the use of natural gas as a preferred most importantly, flexible labor. fuel source. Each of the carrier’s two new Portus Mission • Extensive handling equipment and LNG-powered vessels have capacity of Portus delivers port, terminal cargo han- lifting gear. 3,100 TEUs, making them the largest dry dling and warehouse solutions driven by • On-site steel fabrication shop. ■ cargo ships fueled by LNG. The first of collaboration, innovation and creativity to the vessels is already operating between meet customer expectations and create Contact Portus today to learn more Jacksonville and San Juan, Puerto Rico, superior solutions. about how they can solve your cargo with the second scheduled to enter handling needs. service before the end of the year. Portus Core Competencies www.portus-us.com • [email protected] By 2017, another major player in Provide access to the following markets: 904-757-1170 the Jacksonville-Puerto Rico trades • Heavy-lift; breakbulk; bulk; project; and will be entering the LNG arena. roll-on, roll-off (military) stevedoring. Crowley Maritime will deploy two • Container stevedoring with automation LNG-powered combination container/ solutions. ro-ro vessels. The ships, built by VT Halter Marine of Pascagoula, Mississippi, will

52 THE JOURNAL OF COMMERCE www.joc.com MAY 2.2016

JACKSONVILLE TRADE AND TRANSPORTATION

replace the towed triple-deck barge units substantial reductions in air emissions. Increasing capacity for handling that Crowley has used to service the U.S.- Though it already boasts 36 trains automobiles and other rolling stock is Puerto Rico trade since the early 1970s. per day, Jacksonville is far from content also being pursued. Early discussions Jaxport’s immediate role will be to to rest on its laurels in that regard. The regarding construction of a new auto support the fueling requirements of port community is currently engaged terminal at Dames Point are underway, these early adopter companies, which in planning designed to facilitate future Schleicher said. If negotiations come are long-time customers of the port. growth by improving northbound rail. “In to fruition, the timeline for the project Longer term, the port authority is also conjunction with the local transportation would be within the next two years. looking at opportunities for LNG as an planning organization, development For the future, he is confident in export commodity. interests, the Chamber of Commerce Jaxport’s ability to continue its 14-year A commitment to environmental and rail carriers, Jaxport is involved record of business expansion. “We will stewardship is further evidenced by the in a community-wide effort to utilize definitely continue to grow, and when fact that the port’s new container cranes enhanced rail as a means to expand its deep water becomes a reality, we will will be electric instead of diesel, generating viable hinterland,” Schleicher said. fare even better,” he said. Key to the future for all ports will be the outcome of carrier realignments. “We’re JAXPORT IS INVESTING IN THE FUTURE all anxiously awaiting the conference shakeouts — who ends up where. Once s the owner and manager of Jack- ers between vessels and trains. The new carriers determine the final composition A sonville’s public seaport terminals, facility complements existing on-dock rail of their partnerships, then the port Jaxport is committed to the ongoing facilities at Jaxport’s Talleyrand and Blount assignments will follow,” Schleicher said. enhancement of port infrastructure and Island terminals and further enhances the Notwithstanding carrier deliberations, facilities. A number of major growth proj- competitiveness of the adjacent TraPac Schleicher believes that Jacksonville ects in and around the port are currently Container Terminal. port interests have been successful in THE JOURNAL OF COMMERCE OF JOURNAL THE

in progress. Adding to the larger cranes already in conveying its strategic advantages to the Jaxport and the U.S. Army Corps of En- use at Jaxport’s TraPac Container Terminal, global trade community. “We’ve made gineers have two projects currently under- three new state-of-the-art 100-gauge con- inroads in terms of letting people know way to improve the commercial viability tainer cranes will be operational at Blount we have no terminal congestion issues, and economic competitiveness of the St. Island Marine Terminal by the end of the enjoy superior service connections, Johns River harbor: Mile Point, a project year. The new cranes will have a reach have cost- and transit-favorable removing a navigational restriction, and of 22 containers across a ship’s deck, up access to large and growing markets the Jacksonville Harbor Deepening Project, from the 16-container reach of Blount and offer unparalleled cross-terminal a federal program aimed at deepening the Island’s current 50-gauge cranes, and will turnarounds,” he said. harbor and allowing Jaxport to become a significantly increase the terminal’s cargo- A key growth driver is also the

SPECIAL ADVERTISING SECTION OF SECTION ADVERTISING SPECIAL first and last port of call for the industry’s handling capability. advocacy of Florida’s Governor Rick larger ships. Jaxport is continuing a comprehen- Scott and the level of state investment The Mile Point project —to correct sive infrastructure revitalization program in terminals, infrastructure and a navigational hazard and ensure larger to rebuild docks and rail at both Blount highways, Schleicher added. ships can travel the channel more Island and Talleyrand Marine Terminals. “Florida has and must continue to efficiently —is expected to be completed This well-designed, phased reconstruction make significant investments in freight by the end of this year. The federal project allows operations to continue while fortify- infrastructure,” Wheeler said. “We need to take Jacksonville’s harbor to 47 feet is ing the facilities for future growth. ■ to identify marketing targets and inspire also in progress with construction begin- confidence in Florida supply chain ning as early as the end of 2016. Learn more about Jaxport’s major logistics. In addition, we must continue Construction of the Intermodal Con- growth projects at JAXPORT.com/projects. to work with state leaders to identify and tainer Transfer Facility at Dames Point, implement competitive incentives for home to the MOL/TraPac Container Ter- potential importers, manufacturers and minal, is now complete. The ICTF opens to producers who reliably and profitably commercial customers later this year and meet global demand.” ■ will facilitate the direct transfer of contain- Contact John Powers at [email protected]

54 THE JOURNAL OF COMMERCE www.joc.com MAY 2.2016 JAXPORT