Port's blockbuster deal with Hanjin in trouble, Korean company ready to nix Jax

[JaxNative68]

Hanjin has been threatening to pull the plug again.  All due to the union insisting that Hanjin needs to have more BS jobs for their worthless union people on Hanjin's payroll.

[simms3]

errr...i can't stand unions.  i don't dislike the regular workers who belong to unions, but i really despise union leadership.  it is the epitome of a whole political ideology i also despise.  whenever there is some sort of problem affecting businesses, you can most certainly look straight at the unions.

[JaxNative68]

i heard a rumor today that Jacksonville officially killed the hanjin deal and it is no longer being pursued.  has anyone else heard any truth to this?

[tufsu1]

i heard a rumor today that Jacksonville officially killed the hanjin deal and it is no longer being pursued.  has anyone else heard any truth to this?

nope...it is just on hold pending the mile point fix and a rejevenated economy

[bornnative]

Here's my bet on how this thing goes down...

1.  JAXPORT pushes forward and secures partial funding for the deepening
2.  JAXPORT goads COJ into issuing additional financing (bonds, tax, etc.) to cover the gaps they couldn't fill with federal & state money
3.  Riverkeeper and other concerned entities file suit, successfully gaining several injunctions to delay the beginning of the project
4.  By the time the lawsuit is settled, Hanjin will back out of the deal anyway, because at that point Savannah & Charleston will be so far ahead on post-Panamax infrastructure that they will have ready-made space to accommodate Hanjin (and will have been marketing this point to Hanjin for the entire duration of the "do we or don't we" dredging lawsuit).

Make no mistake...Hanjin is not delaying this deal simply out of a desire to give COJ/JAXPORT time to sort their demons.  Check out the volume and price of new-build ships that Hanjin has ordered & taken delivery of during the past 2 years.  Like any large infrastructure conglomerate, they invest when the market is bad so that the pieces are in place to take full advantage of a booming economy.  They don't wait for the economy to come back before embarking on a 3 year capital construction project.

They are delaying and agreeing to delays because they have already decided to look elsewhere.  They just retain more bargaining leverage with the other ports if the Jacksonville plan is still officially "on."

[spuwho]

Savannah sold its soul to keep its port capability.  Hardly anyone lives on the river between Tybee and the city center, why?

Who wants to look at 6-7 stories of containers out their window?

This is what people have to look forward to here between Dames Point & Mayport.

[simms3]

^^^Who the hell wants to live on the river between Dames Point and Mayport anyway?  There are dozens upon dozens of miles of riverfront from downtown South in much more scenic and boat friendly areas.

Talleyrand to Blount Island (or even Atlantic Marine/Mayport) should be straight industrial like the eastern waterways of Houston.  That is a God-given resource that most cities would kill to have and shouldn't be taken up by single family homes that can be built elsewhere.

bornnative's post sounds pretty reasonable/logical.  Therefore I'm worried and dismayed.

[ChriswUfGator]

Savannah sold its soul to keep its port capability.  Hardly anyone lives on the river between Tybee and the city center, why?

Who wants to look at 6-7 stories of containers out their window?

This is what people have to look forward to here between Dames Point & Mayport.

That kind of thinking is what ruined downtown Jacksonville. I'd rather look at ugly stuff and have a successful local economy than the reverse.

[Noone]

I'd like to add on to bornnative's post as well. And the logical reasoning for delays that could just have Hanjin saying we can now go here instead. Tonight at the city council meeting 2011-43 is ready for council. $1,000,000 from FDOT for Timucuan National Preserve Bicycle Touring Route.

Which is better for the local economy and creating jobs.
Tourism or Port jobs?

Can we have both?

The same could have been said for putting the new cruise ship terminal near the Timucuan and not at Mayport. We don't want to kayak or bike the Timucuan and look at a big ship whether its a container ship or a cruise ship. The National Park is a special interest group too.

[thelakelander]

Savannah sold its soul to keep its port capability.  Hardly anyone lives on the river between Tybee and the city center, why?

Who wants to look at 6-7 stories of containers out their window?

This is what people have to look forward to here between Dames Point & Mayport.

That kind of thinking is what ruined downtown Jacksonville. I'd rather look at ugly stuff and have a successful local economy than the reverse.

One man's trash is another man's treasure.  I like driving across the Hart and Matthews Bridges because of the good view they give you of all the industry along Talleyrand and Commodore's Point.  I also found Norfolk's riverfront "alive".  From the riverwalk, you can get a great look at major ships being built and repaired.

[Captain Zissou]

Because you want to keep as many dollars in your city as you can?

Local firms and their employees pay local property and sales tax on a permanent basis.

exactly...which is why a firm with a 200-person local office (regardless of HQ location) should carry as much (if not more) weight as a locally-HQ firm with 20 employees.

Come on tufsu.  If it was a $200 million dollar project, the local firm would keep all the money, and probably enable them to expand and grow their market share.  If it is a company with twice the people in Jax, but headquartered elsewhere, the majority of that money is going to headquarters to then be dispersed back to all branches as they see fit.  I see what  you mean about property tax, but that is not the only money a business contributes to a city (hopefully). 

[tufsu1]

but a locally HQ firm of 20 employees likely couldn't do a $200 million project.

nevertheless, I can assure you that large firms still keep a significant amount of work in their local offices....and since the majority of cost involved in professional service contracts (which is what the local preference policy refers to) are salaries and other labor costs, the money would still stay local.

[ChriswUfGator]

The selection processes in Jacksonville are usually not fair to local vendors or local interests.

actually I disagree....most City contracts provide a credit (around 5 points) for local firms....and last year there was a move to raise the credit and offer it only to firms with local hedquarters....that was ultimately squashed, as it should have been...why give advantage to a 20 person local firm over a firm with 200 people here but HQ in another city.

What an asinine statement.

1: If a 20 person firm can do the job as well as a 200 person firm, then why not?

2: If the firm is local, that should be a primary consideration, especially in this economy.

[Non-RedNeck Westsider]

What an asinine statement.

1: If a 20 person firm can do the job as well as a 200 person firm, then why not?

2: If the firm is local, that should be a primary consideration, especially in this economy.

I don't think the quantity of staff is a consideration, they were basing on the HQ location - which is assinine.  I don't the company is based in Anchorage, if they're having their local branch do the job, then they should get the same considreration as a group that's HQ'd here. 

[tufsu1]

What an asinine statement.

1: If a 20 person firm can do the job as well as a 200 person firm, then why not?

2: If the firm is local, that should be a primary consideration, especially in this economy.

I agree...if a 20 person firm can do it, great.

The issue is whether a 20-person local firm should get preference over a 200 person firm that has 10 offices (of which 1 is local) just because their HQ isn't in Jax.

Basing everything on local HQ means firms like RS&H and Haskell win every time.