Florida Ports Spark Private Investment

When an underground tunnel connecting PortMiami and Interstate 395 is completed in 2014, flatbed trucks hauling cargo containers will be able to travel from Miami to Massachusetts without passing through a single traffic light. Nearby, a restored rail link connecting the Port with the Florida East Coast Railway will enable the transfer of up to 200 containers at a time, a far cry from the one-by-one loading process underway today.

The tunnel and rail projects are part of a multi-phase, $6.4-billion overhaul at PortMiami that will also see a 50-foot deep dredge capable of accommodating socalled post-Panamax ships. Officials estimate the upgrades will increase PortMiami's capacity from one million TEUs today to two million in 2020—and three million TEUs in 2035.

Miami is not the only Florida port receiving a facelift. From the Port of Tampa and Port Citrus, to Port Canaveral and Port Everglades, nearly all of the state's 14 seaports are experiencing upgrades. The investments come as Tier 1 ports in Miami and Jacksonville prepare for an uptick in volume once the Panama Canal expansion is complete, and secondary ports in smaller markets look to capture additional market share in non-container volume and short haul shipping. Improvements across the Sunshine State are consistent with upgrades under way at ports up and down the Eastern Seaboard and across the nation.

The $5.2-billion Panama Canal expansion will reshape dynamics in the global supply chain come 2014, but evidence indicates Florida's trade patterns are already shifting. While the state's inbound and outbound activity has historically relied on east-west transit, connections between North and South America and the Caribbean are growing in significance. Case in point: South Florida currently boasts the largest trade surplus among US Customs Districts, roughly $25 billion as of earlier this year.

Chief among the factors driving the success of Florida's ports is a geographic location that enables outbound cargo to remain stateside as long as possible, while at the same time offering an early point of entry for inbound shipments coming from points east and south. This gained efficiency is especially important as ships grow larger and more expensive to operate.

Yet for all its strengths as a hub for international cargo traffic, Florida has long lacked an inland port system to complement waterfront operations with ample land storage, direct links between rail lines and terminals, convenient Interstate highway access and proximity to large employment bases.

Now that appears to be changing as private investors seize new opportunities to capitalize on billions of dollars in public-sector investment. Early-stage developments—such as the Florida Inland Port in St. Lucie County—will yield new cargo capacity, enhance connectivity between Florida's ports and the nation's supply chain and create new jobs. These private investments are an important step in the right direction for Florida's infrastructure and economy—and a strong sign that the state's ports are poised for growth as global consumer demand increases along with the cargo traffic it generates.