$250M terminal proposal for JaxPort to consider!!!

[Jaimen]

JACKSONVILLE â€" A Middle Eastern private port operator has presented the Jacksonville Port Authority with a $250 million proposal to double cargo shipments at the port and create potentially thousands of jobs, but the company head said it may go to another East Coast port if the port doesn't act soon.....

.....Gulftainer Co. Ltd. executives gave their pitch to port authority senior management March 23 to build a private port container terminal on Blount Island and have been waiting to hear back.

[Tacachale]

I'd prefer to hear more information on the proposal before developing an opinion. It might be a solid proposal, but it might not be.

[thelakelander]

^True.  The Jax Biz Journal article doesn't provide too much detail and I haven't noticed it being covered anywhere else.

[thelakelander]

JaxPort says no deal....

full article: http://jacksonville.com/news/metro/2012-06-01/story/jaxport-turns-down-250-million-deal

According to the Biz Journal, Gulftainer Co.Ltd., a private port operator based in the United Arab Emirates wanted to lease 100 acres on Blount Island to build a container terminal that would have doubled cargo shipments at the port and created thousands of jobs.  Gulftainer also offered to help with the expense of wharf improvements and deepening the harbor without public financing or incentives.  However, apparently it would have meant JaxPort not having as much control over things as they do now.  Gulftainer is expected to pursue deals with competing East Coast ports.

[simms3]

Wanted to refresh since this was a big news story that never gained traction on MetroJacksonville.

What are everyone's thoughts?  Both sides of the argument provide clear responses and meaningful points.  I would never be able to make up my own opinion on which side is right given what has come to light.  Does anyone know anything we do not?

http://jacksonville.com/opinion/editorials/2012-06-12/story/port-was-right-avoid-big-mistake

I get the sense that to really get the ball rolling to receive fed funds, we need a sharp vision/master plan and a way to implement, as well as proven demand and some semblance of matching funds.  It seems to be no different than with public transit funding nowadays.  Perhaps the Port weighed the option of receiving some funds from this tenant and screwing up a good plan for the future, thus potentially screwing demand and federal funding options.

Still, it would have been a very nice shot of adrenaline for the city, which has the worst ratio of good to bad news of just about all of its growing peers and neighbors.

[thelakelander]

I would have liked to not see them blow Gulftainer off.  $250 million is a lot of money and potential to leave on the table.  I don't know if it would have been a good deal or not (that info wasn't really shared with the public) but I would have preferred a little negotiation or a counter offer.  I don't see why that could not have taken place while a strategic master plan is still under development.  As of late last week, I understand that Port Canaveral has now reached out to them.

[Jaimen]

If they have available land on Blount Island, why not build a nice cruise terminal there?

[Tacachale]

I'm glad they didn't just jump on it at the first hint of money. We have something of history of doing that, and it's not always for the best.

There were several things about the proposal that raise some flags. For starters, the land they wanted has the rather serious drawback of already having tenants on it. Additionally, parts of the pitch was a bit Lyle Lanleyish - the figure they were talking about wasn't $250 million, it was "up to $250 million" and depended on various factors (such as ejecting or moving the existing tenants). That's what we in the marketing biz call "weasel words".

It also appears that the Port Authority didn't actually blow off Gulftainer, they told them they'd review it, and gave them a no when they asked for a quicker decision. I really don't know what else they could have done short of jumping on the proposal immediately.

[thelakelander]

A counter offer perhaps or acknowledgement that the current proposal would not work because of x,y,z concerns but that they'd be willing to work with them on alternatives?  It's really tough for me to say they were right or wrong because the details were not public but I'm not sold that it had to be that exact proposal or bust either.  From what I have heard (I do know someone associated with Gulftainer), Gulftainer did expect at least a counter or negotiation process to occur.

[thelakelander]

For anyone who is interested, here is the Gulftainer power point presentation to JAXPORT:

http://www.scribd.com/doc/96146033/Gulftainer-s-PowerPoint-presented-to-JaxPort-officials-in-March

[Ocklawaha]

If they have available land on Blount Island, why not build a nice cruise terminal there?

FOR WHAT? So people who travel all the way to Jacksonville from Ypsilanti, Winnetka or Keokuk in order to take their dream cruise, they'll see Jacksonville International Airport, an abandoned paper mill, and 25,000 containers. Oh, I almost forgot the JEA power plant... Sorry y'all but that sort of 'welcome' won't play in Kenosha.

We need a cruise terminal that focuses big cruise ships so that their passengers can readily enjoy our beaches, and smaller cruise ships embark their passengers so they can enjoy our downtown riverfront.

I support TWO cruise terminals:

One somewhere in the Mayport area for mega-ships. (Just your standard quite large cruise port building with mass transit and parking facilities, but more importantly, MIXED USE, so Mayport businesses, and new businesses can thrive. SPECIAL long-term lease at rock bottom prices for any displaced Mayport business. Hey maybe we could even make it have that 'old wharf' or 'Mayport Village' feel).

Imagine... On the River Walk!


Small Cruise Terminal, Nanaimo, BC

One in downtown on the riverfront. (A combined DVI-Visit Jacksonville, Marine Welcome Center, Micro-Port focusing on the 'Small Ship' cruise industry... and MAYBE the ONLY purpose built 'Small Ship' terminal in the world).

As for the 'deal' Jaxport apparently killed without much negotiation? The key seems to be 'WITHOUT MUCH NEGOTIATION!' Good God people, is JPA as brain dead as JTA? I'm getting that distinct Jacksonville seafarer feeling about this known as BOHICA!

[simms3]

For anyone who is interested, here is the Gulftainer power point presentation to JAXPORT:

http://www.scribd.com/doc/96146033/Gulftainer-s-PowerPoint-presented-to-JaxPort-officials-in-March

Just read the entire presentation.  I have to agree that it is pretty incredible that JPA didn't at least see what all they could get from doing a Gulftainer deal.

I do have to point out as someone who has very frequently boated the SJR to the beach and passed all the port facilities, it is the "emptiest" port I have ever seen, so Gulftainer's point about efficiency should have been well taken.  Savannah's port and of course other ports in Miami and Oakland seem really full of big ships all the time, rather than a bunch of unused cranes with 1 ship, maybe.  Gulftainer seemed to really focus on efficiency, like how many TEUs they could unload per crane, how many TEUs they could stack per area, etc etc.

[thelakelander]

Although the port blew them off, they did make some great points about better utilizing the land already in possession.  That's the type of thinking and planning this city needs more of, IMO.  I would hope that some of their suggestions still end up in JAXPORT's master plans.

[tufsu1]

I think it is pretty sad that JaxPort doesn't already have an updated master plan....I mean they've been talking post-Panamax for the past seven years!

[thelakelander]

True. One would think a plan would have already been in place before chasing the post-panamax dream. I guess this confirms how far JAXPORT is behind the other East Coast ports in that race. Knowing that, perhaps Gulftainer could have been part of an alternative plan.