WorldCity Business Magazine

Maritime cargo heats up

by Claudio Mendonca

The Port of Miami processes most of the cargo entering South Florida, but the crowded port is suffering from growing pains and may not keep its reign for long.

Next in line for the throne? Port Everglades. *WORLDCITY *analysis of U.S. Census Bureau trade statistics show that the Port of Miami handled nearly $5.6 billion in cargo in the first six months of 2006, but that was nearly a 4 percent slip from the same period a year earlier. Fort Lauderdale’s Port Everglades, by comparison, saw its international cargo grow in value by nearly 36 percent.

That put it close on the heels of Miami’s port, with six-month trade of $5.3 billion.

Miami International Airport rounded out the trade trinity, handling $5 billion in cargo a jump of 3 percent from January through June.

The three entities accounted for most of the $35 billion in trade that South Florida registered in the first semester of 2006.

Port Everglades’ leap came principally as a result of the skyrocketing value of oil on world markets. The Broward County port handles most of the gasoline and refined petroleum products that enter South Florida. *WORLDCITY *tracks trade by value, rather than volume.

Port Everglades’ refined petroleum imports doubled in value in the first semester of 2006, making it the most important commodity entering the port. Although nearly two-thirds of all energy products passing through the port are domestic, about 35 percent comes from abroad principally Venezuela and the Caribbean.

The port’s Venezuelan shipments rose 38 percent from January through June.

Apparel was the second most valuable import for the Broward seaport, totaling $1.1 billion to nearly match the value of its clothing imports in the first six month of 2005.

“In addition to oil and textiles, gains were also made in containerized imports, computers, yachts, fruits and vegetables,” said Carlos Buqueras, director of business development at Port Everglades. Cement, lumber and steel shipments were also up.

Cargo accounts for two-thirds of Port Everglades’ revenues. The cruise business makes up the remainder.

While gasoline drove import revenues, yachts were the force behind outgoing cargo. From January through June of this year, more than $144 million-worth of yachts left Port Everglades headed for international destinations. That was a 32 percent jump when compared with the same period in 2005.

Port Everglades’ growth comes as a result of something the Port of Miami lacks: space.

Miami-Dade County’s land-squeezed seaport has seen its Broward County competitor nab significant new business, especially with shippers serving China. Mediterranean Shipping Co., a former Port of Miami tenant, now operates from Port Everglades while China’s Cosco Group recently inaugurated Far East service from Broward County.

Not only is land at a minimum at the Port of Miami, but traffic congestion exacerbated by ongoing construction in downtown Miami has sparked complaints about truck access to the port area.

“Congestion at the truck level has been a problem,” said Charlotte Gallogly, president of World Trade Center Miami, located at the port. “The key to growth is going to be the tripling of gates to 15 from the current five.”

Although Miami remains South Florida’s busiest seaport, some trade experts have said Miami could be losing business to the ports of Charleston and Savannah, which have drawn cargo for companies such as Home Depot and Southern Wine & Liquors.

Barbara Pimentel, vice-president of the Florida Customs Brokers Association Inc., said it is going to be difficult for Miami’s port business to grow “until the congestion issues are addressed.”

The Port of Miami’s interim director, Bill Johnson, acknowledged that the cargo business has been flat. However, he said cargo should increase as a result of a dredging project that will make the port more attractive to Super Panamex vessels. In a recent trip to Washington, D.C., Johnson met with U.S. Army Corps of Engineers officials to discuss dredging the entrance channel to a 52-foot depth and the rest of port to 50 feet from the current 42 feet.

“The expected results of this project is to have a significant increase in our economic impact, cargo volumes and new business investment,” Johnson said.

Elsewhere in South Florida, the Port of Palm Beach saw its cargo drop in value by 12.7 percent in the first six months of the year, putting it at $397 million. And the port in Key West saw the value of its trade plummet 90 percent to below $73,000.

But Port Everglades wasn’t alone in posting dramatic growth. Fort Pierce, a low-volume port, saw its trade rise 24 percent to $1.8 million for the first semester of 2006.

When it came to air cargo, computers and computer parts South Florida’s most valuable export commodities joined imports of cell phones and cut flowers to keep runways busy at Miami International Airport.

Cargo is not an important component of revenues at the Fort Lauderdale-Hollywood International Airport. It plunged 57 percent in value the first six months of the year to reach $444.5 million, although airport officials said trade volume was only down about 7 percent from a year earlier.

“Unlike [Miami International Airport] we are a much smaller player in international trade,” said Steve Belleme, assistant public information officer for the airport. FedEx handles almost 70 percent of the cargo going through the facility followed by American Airlines and Spirit Airlines.

“Fort Lauderdale is primarily a passenger airport,” Belleme said. He noted that the airport had considered creating an incentive program for cargo similar to its plan for passengers but the idea never got off the ground. “If an air carrier is interested in a cargo terminal in Fort Lauderdale, the airport will roll out the red carpet,” he added.