Known primarily for its cruise ships, Port Canaveral has been concentrating its growing commercial focus on robust trade already coming from Central and South America.
There is untapped potential for containers, whether through direct call or via feeder vessel, and short-sea shipping of domestic loads, all, again, because of our role as Orlandos port, said Port Canaveral CEO J. Stanley Stan Payne.
Port Canaveral -- What is there:
Located at the eastern end of the Beachline Expressway, a straight line from Orlando and north of Cocoa Beach, the port is known primarily as a cruise stop, handling an average of 2.8 million passengers a year.
A deepwater location that has served a vital link in receiving, tracking and retrieving space vehicles for Cape Canaveral, the channel,at 44 feet deep, annually handles nearly 3 million tons of cargo. Cement, petroleum, lumber, automobiles and citrus are among the main products.
The 49-acre facility has more than 300,000 feet of dockside warehousing.
Jobs: 13,093 -- 2,309 cargo, 8,908 cruise, 427 marina, and 1,369 real estate.
Economic impact: $648.8 million of direct and indirect wages, salaries and local consumption expenditures
Revenue: $1.1 billion
Taxes: $48 million state and local
Cruise lines: Royal Caribbean, Carnival Cruise Lines, Norwegian Cruise Lines and Disney Cruise Lines.
The port is overseen by a five-member elected Port Authority, which sets fiscal, regulatory and operational policies.
Desires growth:
Building two mult-ipurpose cargo piers: Piers 5 & 8.
On the north side of the port, one pier would be used to handle oil and other liquid cargoes such as citrus juice; the other for containers and other cargo, providing space for up to 800,000 tons.
Each would share a 100,000-square-foot warehouse.
Both are in the design stage.
Cost: $58 million.
Hindrances to growth:
Money. Specifically, obtaining state and federal grants for the envisioned $58 million cargo piers that will be partially funded by the Port Authority.
The port is currently funding its own construction of the new $52 million cruise terminal.
Seven questions with J. Stanley Stan Payne, CEO, Port Canaveral:
SSN: Where does the Port of Canaveral view itself in the footprint of Gov. Scotts dream to attract more growth from the Panama Canal expansion?
Payne: The impact of the expansion of the Panama Canal has yet to be seen. I think Floridas advantages in the north/south trade to robust economies in Central and South America, as a foundation for growth, are quite overlooked. As the port closest to Orlando, we will have an opportunity to develop a niche of feeder services -- direct services by smaller lines, and specialized services -- and perhaps focus on lines that can be a focal point in Port Canaveral but not in larger ports ..."
SSN: What is the desired growth in the next five to 20 years for the port?
Payne: Interestingly, Port Canaveral has grown during the dark economic times of the past few years, setting a record for operating revenues in 2011, a 13 percent increase over 2010. There was growth across the whole spectrum of our business segments, with new records set in cruise passengers and petroleum imports.
As the economy rebounds, our strategic location close to Orlando and Central Florida will prompt a dramatic rise in building products, from lumber to aggregate for road building.
There is untapped potential for containers, whether through direct call or via feeder vessel, and short sea-shipping of domestic loads, all, again, because of our role as Orlandos port.
Our cruise growth has been very strong and will continue to be.
SSN: What will it take to reach this point?
Payne: We are developing a new cruise terminal and three new cargo berths to accommodate growth, as well as shifting our marketing strategies to focus sharply on our Central Florida hinterland.
SSN: What ports and entities are offering the most competition to attract this trade?
Payne: The Central Florida container market is among the most competitive in the United States, served not only by multiple Florida ports but by Savannah, Charleston, even Long Beach/Los Angeles. Because of the advantage of low costs and our close proximity to Orlando, we will be successful in carving a niche for Port Canaveral in general cargo, just as we have in bulk cargo.
SSN: What is Florida doing to counter this competition?
Payne: Planning and building.Port Canaveral has the advantage of a very solid balance sheet built on conservative, market-driven decisions. Based on current projections, we will be completely debt-free in 2023, even given our ambitious construction plans and the fact that we have borrowed money twice in the past three years to take advantage of low interest rates and low construction costs.
SSN: Who are the biggest champions of Port Canaveral?
Payne: Certainly, Congressman Bill Posey.Our legislative delegation, with Mike Haridopolos, Thad Altman, Steve Crisafulli, and our former commission chairman, Rep. Tom Goodson.
SSN: What and who are some of the biggest hurdles facing the ports expansion?
Payne: Certainly, a big concern for Port Canaveral -- with a solid balance sheet and business plan producing a solid flow of revenues -- is that grant money, federal or state, will disrupt market forces and provide a competitive advantage to other ports lacking the financial foundation we have worked so hard to develop.
In other words, a $50 million grant to another port for a container facility frees up $50 million that a port can spend elsewhere, perhaps on a new cruise terminal. We are funding our new cruise terminal from our own revenues.
(This is the first in a weekly series with port directors in Florida.)
Reach Jim Turner at jturner@sunshinestatenews.com or at (850) 727-0859 or (772) 215-9889.
