JACKSONVILLE TRADE AND TRANSPORTATION

JACKSONVILLE INVESTING FOR NEXT CARGO SURGE By John Powers

42 THE JOURNAL OF COMMERCE www.joc.com MAY 1.2017 iming high, and overachieving, is Jacksonville’s burgeoning Asian business. a slight uptick in volumes, though not at has been the guiding approach Volume in this trade lane grew 19 percent in the double-digit level, Director of Customer A for Jacksonville, , logistics fiscal 2016 to more than 336,000 containers, Service and Business Development John growth in the 21st century. “For the last accounting for fully 35 percent of the Mullins noted. This was driven by out-of- 15 years we’ve experienced year-over-year port’s total container traffic. This growth gauge import and export machinery and growth. Our strategy is to set our budgets is particularly impressive considering the heavy industrial equipment moving by aggressively, and we have consistently port was only marginally involved in the container ocean carriers. exceeded them. For example, in 2016 we Asian trades prior to 2009, when TraPac With the addition of the 2M Alliance aimed for overall growth of 5 percent, and opened its Jaxport terminal. Since that — Maersk Line and Mediterranean our final results came in at more than time, double-digit growth has occurred Shipping Co.— Jaxport now boasts service 6 percent,” said Roy Schleicher, Jacksonville each year. from the three major carrier consortia, Port Authority’s executive vice president Private and public stakeholders which includes the THE Alliance and the and chief commercial officer. understand that this growth has a Ocean Alliance. “We’re hopeful that the Since 2010, containers and cars price, President and CEO of the Florida larger vessels in their fleets will result in have been the port’s growth engines. Ports Council Doug Wheeler explained. more allotments for our port. Potentially, Containers accounted for 45 percent of “Certainly, a highlight of Jacksonville’s double vessel size will equate to twice

total port volumes. For the fiscal year recent successes has been a substantial as many slots for our customers. We are SPECIAL ADVERTISING SECTION OF ending last September, Jaxport handled increase in Asian trade. One of the drivers receiving only positive signals from all three a record 968,000 TEUs, eclipsing the for this success has been the investments alliances, and each has experienced good previous standard of 937,000. Factoring they are making, specifically their new growth,” Schleicher said. in containers moving through private intermodal container transfer facility and At the nation’s second-busiest autoport, terminals, total containers handled through ongoing dredging initiative,” he said. automobiles and other rolling stock Jacksonville exceeded 1.2 million TEUs. The Asian activity has provided accounted for nearly 35 percent of total Leading the surge in container traffic Jacksonville-based Portus Stevedoring with port traffic, with nearly 700,000 units

SOUTHEAST’S PREMIER HEAVY-LIFT STEVEDORE specialized cargo handling needs. THE JOURNAL OF COMMERCE Key differentiators that distinguish Por- ortus is the premier out-of-gauge The company mission is to deliver port, tus from other waterfront operations are: P heavy lift and project cargo stevedore terminal, cargo-handling and warehouse • Employees dedicated solely to Portus. in the southeastern . Portus solutions that are driven by collaboration, • Safety and Health Achievement will accept any and all challenges to seek innovation, and creativity to meet customer Recognition Program (SHARP) certified. out transportation solutions that meet expectations and create superior solutions. • Certified Master Riggers. and exceed customer needs. The recently Portus core competencies involve pro- • On-dock management. renovated berth in Jacksonville is equipped viding access to the following markets: • Skilled, professionally qualified, and most to handle cargoes up to 1,800 pounds per • Heavy-lift, breakbulk, bulk, project, and importantly, flexible labor. square foot. Portus is home to the South- roll-on, roll-off stevedoring. • Extensive handling equipment and east’s highest on-dock rail capacity of 78 • Container stevedoring with automation lifting gear. kips (78,000 pounds) per axle. Combine solutions. • On-site steel fabrication shop. this with direct dockside Class I rail service • Terminals-yard management and marine • An award-winning state-of-the-art, through CSX, and Portus can move your gate services with automation solutions. internet-based terminal operating system. cargo from rail to ship in one motion. Pound • Container freight station and cross-dock Contact Portus today to learn more for pound, Portus is the Atlantic Seaboards’ services with automation solutions. about how they can solve your cargo leading heavy lift and project logistics berth handling needs. n and terminal. As a service provider, Portus’ employees Portus’ corporate office is in Jacksonville, are at the core of everything the company www.portus-us.com • [email protected] Florida, with operations at Florida’s Blount does. Portus is proud to have invested 904-757-1170 Island Jacksonville Terminal. Portus also has time, money, and resources in its people. locations in Florida’s and The company not only educates its staff Cape Canaveral, and Sunny Point, North in standard maritime industry practices, Carolina. but also customizes training based upon

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crossing Jacksonville terminals last year. types of containers, including more than shipping and logistics services between The balance of port activity landed in the 300 53-foot containers per vessel, making Jacksonville and San Juan. The investment conventional and bulk cargo categories. this the only trade globally that has such encompasses construction of two new, Notwithstanding growth in the equipment. The ships handle oversize cargo LNG-powered combination container/ Jacksonville-Asia lane, Puerto Rico remains and heavy lifts, as well as cars and vehicles roll-on, roll-off ships, new terminal facilities the port’s No. 1 market. A key factor in in specially designed car carriers. With the and gantry cranes in San Juan, and terminal this corridor is the versatility of the vessels additional ability to pump on and off bulk improvements in Jacksonville, including plying the trade. “TOTE Maritime Puerto liquids and transport dry and refrigerated LNG bunkering infrastructure. Rico operates the world’s first liquefied cargo in a variety of configurations, these Jaxport is equally invested in minimizing natural gas powered container ships, the ships can meet the ever-changing needs of its carbon footprint. “We’ll soon be most environmentally friendly container Puerto Rico, he said. taking delivery of our first two LNG- ships in the world. The Marlin-class lift-on, Crowley Maritime is also planning holding tanks. It’s safe to say the LNG lift-off vessels are the most versatile in the an entrance to the LNG arena with the revolution is starting here in Jacksonville,” Puerto Rico trade, supported by a seamless launch of its new Commitment-class ship El Schleicher said. A further example of network of port facilities, support systems, Coquí, one of the world’s first combination the port’s greening initiatives is its three, and inland transportation resources. With container/roll-on, roll-off ships powered newly operational container cranes. Each a fixed, twice-weekly sailing schedule by liquefied natural gas. Use of LNG as the employs regenerative power, consuming between Jacksonville and San Juan, TOTE primary fuel will reduce carbon dioxide power during the lifting of containers and Maritime Puerto Rico provides flexible and emissions by 35 percent per container creating and storing energy as they lower, efficient transportation solutions for all as compared to existing fossil fuels, the simultaneously reducing overall energy cargo moving to Puerto Rico and the Virgin company reported demand and emissions. Islands,” President Tim Nolan said. This is the first in a series of milestones In last year’s Jacksonville special, Custom-built for the Puerto Rico trade, expected to be achieved as part of we reported on the port community’s Nolan explained, the new Marlin-class Crowley’s $550 million project to concerted efforts to position it as a viable vessels can accommodate various sizes and expand and modernize the company’s and desirable alternative for both shippers THE JOURNAL OF COMMERCE OF JOURNAL THE

FLORIDA PORTS HELP BUSINESSES THRIVE Florida seaports reap vast economic rewards for the state that continues to grow. Cargo and cruise activity currently lorida is home to 15 seaports that Florida seaports have state leadership support nearly 700,000 jobs in Florida. F deliver seamless and efficient move- to thank for an extraordinary level of Ports contribute $96.6 billion of output to ment for a broad assortment of freight, as financial, and other, support. The focus the state’s economy, equivalent to about well as passengers. They serve a diverse on the role of its seaports in capturing 13 percent of Florida’s gross domestic consumer market within the state (and international trade and improving freight product. across the country) and are champions mobility is due to recognition of their Florida’s seaports are creating momen-

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

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and carriers. The numbers suggest these proximate distribution centers, and we minimizes any possibilities for shortages efforts have been successful. What draws see major growth in their numbers. and impediments to getting project and have proven most attractive? Furthermore, we’re not limited to serving heavy-lift cargoes through the port and the Nolan’s thoughts on that question were: distribution centers in Florida and South specialty vessels that handle them back to “Customers have built their supply chains Georgia. Our expanding intermodal reach sea where they belong,” Mullins said. around the port of Jacksonville. The trucking makes us cost- and transit-competitive to Rail connections are fundamental to and rail access here make the port of markets throughout the Southeast and US TOTE’s operations model, and it takes full Jacksonville a leading gateway to San Juan.” heartland,” he said. advantage of the port’s network. “CSX At Portus Stevedoring, the feeling is The carriers serving Puerto Rico out of provides excellent service from the US that growth wouldn’t be possible without Jacksonville continually need to reposition Midwest and Northeast to Jacksonville, as the recent Jaxport investments. “The boxes throughout the Southeast and well the FEC Railway to and from South Jacksonville Port Authority has upgraded its Midwest. As a result, the port is able to Florida. Both respective organizations docks and piers to the highest capacities help negotiate excellent backhaul rates for provide excellent service for TOTE Maritime in the region. This opens the door for freight moving to those destinations. Puerto Rico,” Nolan said. opportunities in the heavy-lift and project From a surface transportation point of In 2016, Jacksonville upped its rail logistics sector, which is one of our core view, Jacksonville affords excellent highway horsepower with the opening of a new competencies,” Mullins said. To the list of access via Interstate 95 north-south and intermodal container transfer facility that Jacksonville’s operational advantages, he along Interstate 10 to the west. “Our city is expected to increase freight velocities added “labor diversity and expertise, Class I also enjoys a six-lane configuration for and economies, Mullins said. Adjacent to rail direct to vessels’ berth and the heaviest I-95, as opposed to the four-lane variety, Dames Point Terminal, and just 3 miles dock capacity on the Eastern Seaboard.” which contributes to the congestion issues from its facility, the ICTF As the third-largest state in terms of that plague many other East Coast ports,” obviates the cross-town drays previously population, Floirida continues to grow, Schleicher said. required to transfer containers to existing Schleicher pointed out. “In addition, No discussion of Jacksonville’s rail yards, and slashes an average 30 tourism and cruise activity in the state strategic advantages would be complete minutes from each delivery. Business is generate a huge additional consumer without detailing its comprehensive rail “… robust and growing at the ICTF, as THE JOURNAL OF COMMERCE OF JOURNAL THE

demand. This drives the need for connectivity. The port’s three Class I Jacksonville shippers are embracing the carriers — Norfolk Southern, CSX, associated cost- and transit-time benefits,” and the Florida East Coast Railway Schleicher reported. PROUD TO SERVE — operate an average of 36 trains Jacksonville cannot sustain its impressive daily, including seven to nine each record of year-over-year growth without PUERTO RICO day to Miami-Fort Lauderdale alone. aggressive funding from the port authority, “Our extensive rail capability means state, and federal governments and private OTE Maritime Puerto Rico, headquar- we have less congestion, making it interests. For its part, Jaxport has drawn a T tered in Jacksonville, Florida, offers easier to get in and out of our port clearly defined investment roadmap with a integrated transportation services to and at a better cost. CSX and Norfolk total price tag exceeding $600 million. The

SPECIAL ADVERTISING SECTION OF SECTION ADVERTISING SPECIAL from the United States, Puerto Rico and Southern provide us with excellent project agenda comprises: the US Virgin Islands. With the world’s first connections to places like Atlanta, • Federal channel harbor deepening liquefied natural gas powered container- Memphis, Chicago, and Detroit. We to 47 feet to position Jaxport as the ship and state-of-the-art lift-on, lift-off are the last US port outbound on first US East Coast port of call for fully capabilities, TOTE Maritime Puerto Rico several of our major services, and loaded Panamax-class vessels. The US vessels are the most advanced in the this maximizes the time available Army Corps of Engineers completed trade. Company operations are certified for Detroit-Chicago exporters to get a comprehensive economic, to ISO 9001, ISO 14001, ISO 28000 and cargo down to us,” Schleicher said. engineering, and environmental Green Office standards. n Rail capability is a vital asset for study and issued its Chief’s Report in any port interested in the heavy-lift April 2014. In June 2014, the project For more information, and project trades. “Jacksonville received congressional authorization visit www.totemaritime.com. has direct Class I rail shipside, in the Water Resources Reform and which offers superior cargo velocity Development Act. Engineering and for heavy-lift project cargoes and design work is complete, and the the skilled labor to handle these project is entering the construction commodities. With CSX operating phase. full time on a weekly basis, this • New on-dock rail facility.

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• Three newly operational, 100-gauge arrival of Hamburg Sud’s new Asia-North terminals and recoup their infrastructure container cranes at Blount Island. America East Coast rotation. Blount Island is investments? Schleicher made Jacksonville’s • Vehicle-processing expansion. the last stop outbound for the new service, case for a resounding “yes.” • On the heels of the Berth 35 upgrade, offered through the 2M Alliance, and “For a time, we had gotten accustomed continued build-out at Blount Island, connecting to China at Busan, Qingdao, to growth in the 10 to 12 percent including additional cranes, expanded Xingang, Shanghai, and Ningbo. range. These days, we are seeing more container yards, and upgrading of all Wheeler detailed an investment strategy like 5 to 6 percent. However, if you just berths to accommodate 100-gauge for the long run. “You have to continue to compound those numbers out for a few cranes and megaship operations. make sure your port has the amenities and years, it’s evident that there’s going to be Though successful, TOTE Maritime capacity to cost- and time-efficiently get a huge need for additional facilities.” He has not been resting on its laurels in freight on and off vessels and into and out continued, “You can’t just dump all that Jacksonville. In 2016, its Puerto Rico of the port. For Jacksonville, this just means future freight into a couple of ports. It’s not service was enhanced with the purchase more of the same — timely and strategic just an issue of terminal capacity, but also of a second LNG-powered, Marlin-class investment.” surface transportation infrastructure. As vessel. Currently, the company is planning There are concerns in some quarters distribution centers proliferate to provide 2017-2018 upgrades for gate systems and that in the rush to accommodate access to population centers, they can’t terminal design to improve traffic flows, megaships and capture a larger portion take everything to several hubs. The

trucker turn times, and cargo availability, of the trade, ports may be building excess distribution center operators know they SPECIAL ADVERTISING SECTION OF Nolan said. He noted that this will also be capacity. So, with the halcyon days of need to spread their supply chains to supported by continued improvements to double-digit trade growth behind us, the avoid congestion issues. Frankly, if there terminal handling equipment. question looms: Can North American were only two or three ports on the East On the carrier front, further news is the ports realistically expect to fill all their new Coast handling the future container load,

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HEREFOR THE ENVIRONMENT

PROUD TO SERVE PUERTO RICO We understand shipping goes beyond reliable deliveries. It’s also about being environmentally responsible, which is why we were the first to invest in LNG Powered Container Vessels. Make a green choice for your business by contacting TOTE Maritime today.

1.877.775.7447 | totemaritime.com

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provides us the opportunity to increase our volumes not merely from expanding trade, but by capturing some of this freight already coming in. Our ability to pursue this cargo is a huge advantage to us,” Wheeler explained. For Portus, one priority is that, in addition to spurring container and roll-on, I wouldn’t want to live in those areas. There is no reason to expect that roll-off volumes, the port must continue The road and rail congestion would be 2017 will not be another banner year for to maintain its focus on the steamship insurmountable.” Jacksonville. Container volumes across operators who haul traditional freight. In recent years, Jacksonville’s surging Jaxport terminals are expected to exceed “Jacksonville needs to fill the niches for the volumes on the Asian trade lane have 1 million TEUs this year. With the small-to-medium carriers with specialty been fueled, to some extent, by West impending relocation of Crowley’s services and work with the neo-bulk clients Coast port diversions. Schleicher believes operations, that number will rise above that often move to and from the breakbulk that this phenomenon may have largely the 1.3 million-TEU level. When ongoing carriers,” Mullins said. run its course, and that future growth negotiations come to fruition, automobile- The ongoing challenge for Jacksonville will emanate from other sources. “Those handling capacity will jump with the remains visibility. “We’ve come a long diversions have slowed down a lot. The addition of 100-150 acres of marshaling way with infrastructure development distribution center operators who pulled yards and expanded processing facilities. in Jacksonville. As new assets are put in some freight out of the West Coast and Jacksonville may also have access place, we need to make sure that business opened on this side of the country are still to some low-hanging fruit in its quest decision-makers know about these comfortable going to both. Certainly, there for increased traffic. “We’re in a unique capabilities,” Wheeler said. n are transit and cost advantages for either position in that we’ve identified 3 million option, and there will be plenty of freight to 3.5 million TEUs that are coming into Contact John Powers at [email protected]. to go around,” he said. Florida through non-Florida ports. This THE JOURNAL OF COMMERCE OF JOURNAL THE

JAXPORT. IT’S JUST SMART BUSINESS. which spans more than 5,000 square miles across eight counties in Northeast Florida, ocated in Northeast Florida, in the heart breakbulk; forest products; reefer; heavy-lift; helps shippers save time and money by L of the South Atlantic, Jaxport is a full- as well as oversized, military, and specialty streamlining customs clearance. There are service, international trade seaport situated cargoes. more than 120 million square feet of distri- at the crossroads of the nation’s rail and The port is served by three major bution center and warehousing space within highway network. interstates (I-10, I-95 and I-75), and offers close proximity to the port. The port owns, maintains and markets 36 daily train departures via three railroads: In 2016, Jaxport completed several sig-

SPECIAL ADVERTISING SECTION OF SECTION ADVERTISING SPECIAL three cargo terminals, a rail terminal and CSX, Norfolk Southern and Florida East nificant infrastructure projects, all designed one passenger cruise terminal along the St. Coast Railway. Jaxport offers fast reach to the to allow its customers to capitalize on Johns River: Blount Island Marine Terminal, U.S. Southeast consumer market with more the opportunities ahead. Jaxport was also Dames Point Marine Terminal, Talleyrand than 60 million consumers within a one-day recently recognized with industry awards for Marine Terminal, the Jaxport Intermodal truck drive. both outstanding customer service and com- Container Transfer Facility and the Jaxport The Jaxport ICTF at Dames Point, oper- mitment to auto excellence. n Cruise Terminal. ated by Ceres Rail Services, serves Jaxport’s Jaxport offers worldwide cargo service terminals: The TraPac Container Connect with Jaxport’s global cargo from dozens of ocean carriers to more than Terminal at Dames Point and the Blount experts at JAXPORT.com/cargo. 100 ports in 72 countries. Global connec- Island Marine Terminal. Rail that connects tions include direct service with Asia, Europe, to CSX’s main line allows for two unit trains Africa, the Middle East, South America, the each day carrying up to 200 containers Caribbean, and other key markets. each. The ICTF allows for the direct transfer Jaxport and its maritime partners handle of containers between vessels and trains, containerized cargo; automobiles; high and speeding up the shipment process. heavy; roll-on, roll-off; dry and liquid bulks; Jaxport’s Foreign Trade Zone No. 64,

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