Jacksonville Port Authority: Strategic Master Plan Final Draft Prepared for: Jacksonville Port Authority 2831 Talleyrand Avenue Post Office Box 3005 Jacksonville, FL 32206-0005 Prepared by: MARTIN ASSOCIATES 941 Wheatland Avenue, Suite 203 Lancaster, PA 17603 (717) 295-2428 Dames Point Marine Terminal Blount Island Marine Terminal Talleyrand Marine Terminal December 5, 2013 TABLE OF CONTENTS EXECUTIVE SUMMARY ......................................................................................................................................... 1 INTRODUCTION .................................................................................................................................................. 17 I. OVERVIEW OF CURRENT MARKETS IN WHICH THE JACKSONVILLE PORT AUTHORITY OPERATES AND COMPETES ........................................................................................................................................................................... 19 1. JAXPORT HISTORICAL EXISTING CARGO BASE ...................................................................................................... 19 2. EXISTING CONTAINER OPERATIONS .................................................................................................................... 21 2.1. Historical And Current Conditions ................................................................................................................ 21 2.2. JAXPORT Container Operations .................................................................................................................... 23 3. CONTAINER MARKET POTENTIAL – IMPLICATIONS FOR A DEEPWATER CHANNEL ..................... 24 3.1. Overview Of Historical U.S. Container Trade ............................................................................................... 24 3.2. Dynamics Of The U.S. Containerized Cargo Market ..................................................................................... 26 3.3. Sources Of Containerized Trade ................................................................................................................... 27 3.4. Impact Of Changing Logistics Patterns On All-Water Services At Atlantic Coast And Gulf Coast Ports ....... 28 3.5. Future Implications ...................................................................................................................................... 30 3.6. Logistics Cost Analysis To Serve Containerized Markets .............................................................................. 34 3.7. JAXPORT Container Forecasts ...................................................................................................................... 41 3.8. Container Market Projections, Status Quo Vs. Deep Water ......................................................................... 44 4. AUTOS & RORO CARGO ....................................................................................................................................... 48 4.1. JAXPORT Historical And Current Conditions ................................................................................................. 48 4.2. JAXPORT Auto/RoRo Terminals .................................................................................................................... 50 4.3. Market Outlook For Auto/RoRo Cargoes ..................................................................................................... 50 4.4. JAXPORT Auto/RoRo Forecast ...................................................................................................................... 52 5. BREAK BULK CARGOES ......................................................................................................................................... 54 5.1. JAXPORT Historical And Current Conditions ................................................................................................. 54 5.2. Market Outlook And Forecast By Key Commodity ....................................................................................... 56 6. DRY BULK CARGOES ............................................................................................................................................. 67 6.1. JAXPORT Historical And Current Conditions ................................................................................................. 67 6.2. Market Outlook For Dry Bulk Cargoes.......................................................................................................... 68 6.3. JAXPORT Dry Bulk Forecasts......................................................................................................................... 69 7. LIQUID BULK CARGOES ........................................................................................................................................ 71 7.1. JAXPORT Historical And Current Conditions ................................................................................................. 71 7.2. Market Outlook For Liquid Bulk Cargoes ..................................................................................................... 71 7.3. JAXPORT Liquid Bulk Forecasts..................................................................................................................... 72 8. SUMMARY/IMPLICATIONS .................................................................................................................................. 72 II. CAPACITY ANALYSIS – CARGO TERMINALS ...................................................................................................... 76 1. CONTAINER TERMINAL CAPACITY........................................................................................................................ 76 1.1. Description Of Container Operations At JAXPORT ....................................................................................... 76 1.2. Development of Container Terminal Capacity Metrics ................................................................................ 79 2. AUTO/RORO, BREAK BULK AND BULK OPERATIONS AT JAXPORT ..................................................................................... 86 3. BREAK BULK AND BULK TERMINAL OPERATIONS AT JAXPORT .......................................................................................... 90 3.1. Break Bulk And Bulk Operations At Talleyrand Marine Terminal ................................................................ 90 3.1.1. Seaonus Logistics .................................................................................................................................................... 91 3.1.2. Westway Trading .................................................................................................................................................... 93 3.2. Break Bulk And Bulk Operations At Blount Island Marine Terminal ............................................................ 93 3.2.1. SSA Forest Products Operations ............................................................................................................................. 93 3.2.2. Sea Star Liquid Bulk ................................................................................................................................................ 94 3.2.3. Hoegh Autoliner Operations................................................................................................................................... 94 3.3. Bulk Operations At Dames Point .................................................................................................................. 94 3.4. Summary Of Break Bulk And Bulk Operations .............................................................................................. 96 III. CRUISE MARKET AT JAXPORT ......................................................................................................................... 98 1. WORLDWIDE CRUISE INDUSTRY ................................................................................................................ 98 1.1. Cruise Vessel Trends And New-Build Program ............................................................................................. 99 1.2. European Marketplace Mega-Trends ........................................................................................................ 106 1.3. Cruise Line Business Model ........................................................................................................................ 106 1.4. Key European Cruise Corporations, Distribution Of Fleet, 2012 ................................................................. 108 1.5. Destination Challenges: Cruise Line Needs ................................................................................................ 109 2. JACKSONVILLE CRUISE SPHERE .................................................................................................................................. 110 2.1. Caribbean & Bahamas Growth Factors ...................................................................................................... 112 2.2. Factors Influencing Regional Traffic ........................................................................................................... 113 2.3. Primary Cruise Regions For JAXPORT ......................................................................................................... 114 2.4. JAXPORT’s Fit Into The Cruise Market ........................................................................................................ 115 3. THE POTENTIAL CRUISE MARKET FOR JACKSONVILLE