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Detroit/Wayne County Port Authority Annual Report

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Detroit/Wayne County Port Authority Annual Report DETROIT/WAYNE COUNTY PORT AUTHORITY 2015 - 2018 Operational Assessment Projects & Initiatives Three year Plan 1 OVERVIEW Maritime activities within Detroit, Wayne County and all of Southeastern Michigan generates a significant amount of economic activity, Federal and State taxes, and business revenue along with local jobs and income. The 15 to 20 million tons of cargo handled though Detroit area marine terminals (based an Economic Impact study completed in 2011) demonstrates that the Port community provides over 5,600 direct jobs in addition to nearly 10,000 indirect and induced jobs. Business revenue exceeds $1.5 billion and State and Federal taxes over $280 million. The terminals generating these returns include fortune 500 companies from U.S. Steel and Marathon Petroleum to local companies such as Nicholson Terminal & Dock Company and the Detroit/Windsor Truck Ferry. Over 30 companies are involved in marine activities in the Detroit area generating the 5,600 jobs identified above. In order to enhance the operation of these terminals, the Port Authority was created in 1978 as a government agency to advocate on behalf of the marine industry. This advocacy is directed at improving infrastructure repair and development, brownfield remediation, and cargo marketing and generation, as well as facilitating financial assistance to businesses needing to grow their operations and create jobs. To that end, the mission of the DWCPA is to continue on the path of advancing programs and projects in the maritime domain that will enhance public awareness for the Port of Detroit, enhance tourism for the Great Lakes and provide economic development, job creation, and investments through sustainable partnerships. PRIORITIES 1. Advocate to public and not for profit economic development agencies on behalf of the marine industry in order to secure funding for infrastructure improvement, brownfield remediation and industrial development. 2. Market marine activities for the Port of Detroit in order to expand its existing cargo movements as well as non-traditional cargos. 3. Expand passenger cruise operations at Port of Detroit 4. Work with other local, state and federal agencies to enhance the regions Homeland Security activities. 5. Coordinate with local communities to ensure that maritime activities are conducted in a manner consistent with local interests. 6. Assist where possible the growth of the Detroit/Wayne County Port Foundation. 7. The Port Authority will continue working towards intergovernmental collaboration with its partners within the Federal, State and Local levels of government as well as with Canadian officials at all levels to ensure and enhance regional economy. 2 8. As a governmental entity it is the responsibility of the Detroit/Wayne County Port Authority to abide by all grant agreement requirements with funding partners and to sustain fiscal integrity. FISCAL YEAR 2014 ACCOMPLISHMENTS AND 2015 OBJECTIVES Public Dock & Terminal Due to Custom and Border Protection policies and procedures, the Detroit/Wayne County Port Authority Public Dock and Terminal did not host a cruise ship visit in 2014. However, with the support of our partners Continental Catering the terminal had over 10,500 dinner cruise passenger visits. In addition to the support of the State of Michigan, the Great Lakes Governors and the St. Lawrence Seaway Development Corporation, Customs and Border Patrol (CBP) has established a one year demonstration program to begin in 2015 which will allow cruise ships to once again use the Port Detroit Terminal. With CPB’s support the Port Authority is also planning to conduct two cross river passenger ferry operations linking Detroit and Windsor. These demonstration efforts will assist the Port Authority in establishing a long term international ferry service and domestic water taxi service. EPA Revolving Loan Fund In 2012, the Detroit/Wayne County Port Authority was awarded a $1 million grant to establish a revolving loan program for brownfield remediation. The funds are being used to remediate site which will be developed for use by the Henry Ford Medical System and Cardinal Health. The remediation effort is completed and the funds will be paid back over the next several years. With the repayment of these funds, the Port Authority will be able to initiate other investigations or remediation efforts. 3 Port of Detroit/Detroit Marine Terminal The Detroit Marine Terminal, owned by the Detroit/Wayne County Port Authority and operated by Nicholson Terminal and Dock Company, is in its 10th year of operation. To date the 2014 season has seen over 45 of vessel visits. The Port Authority in cooperation with its terminal operator is executing on a $500,000 Federal Rail Administration Grant to bring a rail spur onto the site. With the design engineering completed, the Port Authority is working with CSX Rail to complete the project which is anticipated by the fall of 2015. This rail spur is integral to the Port Authority’s efforts to improve the logistical capabilities of all port terminals. U.S. DHS Port Security Grants The Detroit/Wayne County Port Authority was selected by the Detroit Area Maritime Security Committee to act as the fiduciary agent for distributing U.S. Homeland Security grants through 2014. DWCPA is wrapping up operations as fiduciary agent for the FY2011 and FY2013 Port Security Grant Programs, as future grants will be administered through a new system. 4 Michigan Port Collaborative The Michigan Port Collaborative was incorporated as a 501 (c)3 in 2011. Working with the Collaborative, the Port Authority is seeking to establish a Michigan Port Assistance Grant program modeled on a program successfully operated by the State of Wisconsin since 1979. The grant program is intended to be available to all commercial marine terminals to assist in capital improvements necessary to improve the flow of cargo in the State of Michigan. Community Interaction As the operations of the Port of Detroit impact Southwest Detroit and several downriver communities from River Rouge to the southern end of Wayne County, the Port Authority has begun reaching out to community leaders to discuss issues of concern and assist in development efforts. This outreach will be essential in an effort to determine the highest and best use of existing facilities and vacant properties. In cooperation with neighborhood and community leaders, the Port Authority hopes to formulate a strategy to improve maritime and related infrastructure in a manner that creates jobs and investment opportunities that will enhance local communities. This effort will require the identification of infrastructure deficiencies, 5 environmentally impacted properties, as well as abandoned or underutilized facilities within these communities and strategy to secure funding to address the problems. The ultimate aim will be job creation and neighborhood and community revitalization. 6 DETROIT WAYNE COUNTY PORT AUTHORITY ACTION PLAN As a maritime center, Detroit and Southeastern Michigan has tremendous untapped potential. Regional maritime activity is responsible for an average of 14 million tons of cargo annually, over 5600 direct jobs and over $100 million in State and local taxes. The port includes an impressive list of users including US Steel, Marathon Petroleum , U.S. Gypsum, Morton Salt in addition to Superior Materials and Nicholson Terminal and Dock. However, many potential users, including many major manufacturers are not utilizing the Port’s potential. In addition to the cargo/industrial side of the Port, passenger operations have significant untapped potential. For 10 years, Hapag‐Lloyd operated a 500 birth cruise ship in the Great Lakes filled almost exclusively with German passengers. The success of a water taxi service to move people to Detroit Grand Prix on Belle Isle also demonstrated the opportunity that exists for passenger operations. In order to enhance the existing maritime operations and expand into new passenger and cargo handling opportunities the Detroit Wayne County Port Authority needs to implement a near term “Action Plan”. The proposed Action Plan includes: 1) Cargo Enhancement 2) Port Ready Real Estate 3) Development Finance 4) Passenger Service Development The success of this Action Plan will depend upon the support from the State and local governments as well as the willingness of the private sector to consider transportation alternatives. Cargo Enhancements 1) The Port of Detroit has over 20 private terminal operators handling various dry and liquid bulk products, semi‐finishes products such as steel, aluminum and zinc in addition to large machinery and trucks. In order to ensure that these terminals are maximizing their existing cargo flow, the Port Authority, in cooperation with the terminal operators, needs to identify any barriers to their business. As the ballast water issue appears to coming to a reasonable solution, other infrastructure concerns may need to be addressed. The most apparent infrastructure need is the repair to the Jefferson Avenue Bridge over the Rouge River. The Port Authority must play an active role in the prompt repair to this critical piece of infrastructure. However, there may be other infrastructure needs, including terminal paving, dock repairs and environmental remediation that would allow operators to increase their cargo movements or attract additional cargo. 2) The presence of GM, Ford and Chrysler in the immediate Detroit area offers significant opportunity for new cargo development. Unfortunately, the automakers
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