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State's Ports Can Help Shore Up Economy

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By J. STANLEY "STAN" PAYNE

Special to the Tribune

Published: March 15, 2009

These are indeed difficult times. Floridians are losing their jobs, consumer consumption is at very low levels, global trade volumes are declining and Florida is facing a significant budget deficit. Yet this is also a time of opportunity for us as a state to create jobs now and position our economy for the future.

Florida's 14 public deepwater seaports, including the Port of Tampa, present just such an opportunity. Florida's ports are prepared to match a state investment of $25 million a year to issue bonds to produce another $700 million to $800 million of capital projects in the next three to five years.

Florida's seaports generate more than 350,000 good paying jobs. The average salary for a port-related job is about $45,000 a year, which is about $10,000 higher than the average salary in Florida. Our seaports contribute more than $74 billion annually to the state's economy and $1.6 billion in state and local taxes.

Although Florida's ports represent a major contribution to our economy, they could be doing more but are hampered by outdated, duplicative laws and a lack of funds to meet future demands when the world economy returns to its pre-recession vitality.

Solid Investment

Consider this: More than 70 percent of the goods consumed within the state come through ports, yet more and more are arriving and departing from ports outside our state. And we spend less than 2 percent of our transportation funds on our seaports.

Our ports are an excellent investment. According to a report conducted for the Florida Department of Transportation, the state investment in seaport projects yields almost $7 return in economic activity for each $1 of state investment.

The Florida Legislature in the mid-1990s invested $25 million a year in the partnership to support $370 million in state infrastructure bonds, and ports invested even more as match. The results included, among other projects:

•New berths and navigational improvements to handle larger ships at the Port of Tampa and Port Manatee
•New cruise terminals and dredging at Port Canaveral

•Cargo and cruise terminals and dredging at Port of Miami

•Expanded containerized cargo facilities at Port Everglades that have increased international trade by more than 90 percent

•New berths and container cranes at the Port of Panama City

•A cargo transfer facility at the Port of Palm Beach

•Purchase of land and construction of new containerized cargo facilities at the Port of Jacksonville

Projects Create 3,000 Jobs

In 2007, the Legislature appropriated another $50 million in nonrecurring state funds matched by Florida ports for specific priority projects. These projects under way are providing more than 3,000 construction jobs today. Further, when completed, the projects are expected to produce another $56.5 million annually in state and local taxes.

As you can see, we have delivered on our commitments in the past and are prepared to perform in the future. Let your Florida ports assist in the state's economic revival.

J. Stanley "Stan" Payne is chairman of the Florida Maritime Leadership Coalition and CEO of Port Canaveral.

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