FLORIDA SEAPORTS CHARTING OUR FUTURE. CHARTING A COURSE FOR ECONOMIC SUCCESS: THE FIVE-YEAR FLORIDA SEAPORT MISSION PLAN 2012 to 2016

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1 FLORIDA SEAPORTS CHARTING OUR FUTURE Port of Fernandina Port of Pensacola Port Panama City Port of Jacksonville Port of Port St. Joe Port Citrus CHARTING A COURSE FOR ECONOMIC SUCCESS: THE FIVE-YEAR FLORIDA SEAPORT MISSION PLAN 2012 to 2016 Port of St. Petersburg Port Canaveral Port of Tampa Port of Fort Pierce Port Manatee Port of Palm Beach Port Everglades PortMiami Florida Seaport Transportation and Economic Development Council A Port of Key West

2 Florida s Ports Can Harness Trade s Job-Creating Power by Secretary Ananth Prasad As excerpted from The Journal of the James Madison Institute, Winter 2012 In today s global economy, trade and logistics are critical components of our nation s economy and quality of life. Florida, with 14 deepwater ports, three major railroads, and more than 12,000 miles of highways, stands to be at the center of the growing business in trade and freight movement. Our state s ports are economic engines not just for their respective cities and counties but, indeed, the entire region and state. For example, JAXPORT supports and diversifies the economy in Jacksonville and throughout Northeast Florida with nearly 65,000 direct and indirect jobs. And in Tampa, the port is responsible for almost 100,000 private sector jobs. Both ports generate billions of dollars of economic activity across their regions. In August 2011, I unveiled the Florida Transportation Vision for the 21st Century, the state s bold, innovative roadmap for the future. This vision highlights several avenues that the department will explore to advance transportation projects and create the conditions for the private sector to make investments which will create new, high-paying jobs. Using this blueprint, Florida will continue to make investments based on market and private sector demand to create the most advanced and effective transportation system in the country. Governor Scott s 2012 Job Creation and Economic Growth Agenda highlights the need to invest in Florida s 14 deepwater seaports to prepare for the expansion of the Panama Canal, the recently ratified free trade agreements, and the growing economies of Central and South America. There is also a need for potential private investment opportunities to improve transportation connections to and from Florida s ports, including supporting innovative concepts like integrated logistics centers (ILCs) and inland ports. By working together, we can make a positive impact on Florida s future by capitalizing on the immeasurable potential of our seaport system. Florida is making the investments in our ports in order to create long lasting economic opportunities for our state. By making these investments and improving access to our ports, we will make it more efficient and attractive for shipping companies to invest in Florida, grow our state s imports and exports, and improve our state s economy. Just as the Governor is focusing on our seaports in his plan to get Florida back to work, our seaport system is a key element in my vision for the Florida Department of Transportation (FDOT). Under my leadership, the department will continue to work in partnership with Florida s seaports in order to aggressively pursue new private sector investment and more freight and cargo to, from and through Florida. First, here s a little background on the state s relationship with the seaports. While Florida s ports are public entities, they are not governed by a state port authority, but are independently and individually governed. However, Florida s ports are also partners with the state in a unique organization called the Florida Seaport Transportation and Economic Development (FSTED) Council. This program gives the seaports a regular source of state matching funding, while preserving their ability to choose projects based on market demand. The market is the key driver of port investment needs, and the state acts to facilitate and leverage those investments. The ports benefit from additional resources, and the state benefits by achieving substantial returns on its investments, including jobs and economic growth. The department has a performance-based framework in place to measure and track these benefits and to ensure the soundness of state investments. Florida s transportation system must be ready to support private sector generated growth in an efficient and interconnected fashion. The department will continue to invest in Florida s transportation facilities, including seaports, using this market driven approach and maximizing Florida s return on investment. In order to unleash the power of the free market and private capital, we must make investments in our state s ports and reduce the barriers for shippers and logistics firms to move freight and cargo through our state. By increasing imports and exports, the state s economy will grow and Florida will be the economic engine for the entire country. Florida, under the leadership of Governor Scott, is determined and focused on being a major player in trade flow and logistics and I am committed to make sure that the transportation infrastructure is the strongest link. Ananth Prasad is Secretary of the Florida Department of Transportation

3 FLORIDA S SEAPORTS: Charting a Course for Economic Success Our Course Florida is at a critical point in time, when improving transportation infrastructure and expanding capacity to move goods will define our future economy. Strategic investments in seaports can transform Florida into a top global hub in the U.S., bringing thousands of high paying jobs to our shores. If these investments are not made, economic damage such as slower freight delivery, unpredictability in supply chains, diminished competitiveness of businesses, and increased cost of consumer goods can occur all caused by overstressed or neglected transportation infrastructure. Economists have repeatedly pointed to international trade as a leading growth sector for Florida and our most attainable opportunity to enhance our state s economy. Approximately 90 percent of world trade is carried by the international shipping industry. If Florida can enhance its existing relationships with South American countries and capture a fraction of the new business prospects in Asian markets via the Suez and Panama Canals, our economy could see immense economic benefits. Fortunately, Florida s seaports and their leadership have the shared focus of seizing these opportunities. Funding for Florida seaports and other transportation infrastructure increased for the past two years, due to the governor and state legislature understanding the considerable benefits that can be gained by these investments. High-quality infrastructure will be critical to boosting Florida s ability to attract jobs and increase investments by global companies. Connecting to Critical Global Markets Florida s location at the center of the hemisphere places it squarely at the crossroads of international commerce. The state s trade with more than 220 global partners encompasses the world. In particular, Florida s distinctive role as the Gateway to Latin America brings two-way trade, transportation, and jobs together strengthening both the state s economy and the developing economies of the state s partners. In addition, the opening of the Panama Canal s larger locks in 2014 and the expanded commodity flows from Southeast Asia through the Suez Canal are impacting trade patterns, which offer new global opportunities through Florida s sea and air gateways. Florida seaports have built on their natural advantages, and, as a result, the value and volume of goods and passengers moving through Florida s seaports and transportation systems is growing. Florida s international trade totaled more than $149 billion in 2011 and that number is up by more than 18 percent over the previous year. Florida is not alone in seeking to take advantage of these new global opportunities. Florida must be ready for this new era of global competition in order to attract, retain, and grow the dynamic jobs of companies around the world. These companies have a wide range of choices of where to locate and transportation efficiencies are a major consideration. Not improving Florida s infrastructure could mean the loss of future investments and jobs to other states and other countries. Florida cannot simply rely upon location and climate to attract and retain these companies. Seaports supply thousands of construction jobs and, more importantly, permanent jobs. This is important because port jobs are good jobs including all income levels providing a rare opportunity for upward mobility for deserving workers. In fact, according to the Florida Ports Council s 2012 Priority Seaport Projects: An Economic Analyis, the top 15 priority seaport

4 projects in Florida will support more than 12,000 one-time construction jobs and almost 13,000 annual jobs after project completion. Florida s seaports have $2.7 billion in capital projects expenditures programmed over the next five years, to deepen channels and harbors, build new cargo and cruise terminals and rehabilitate berths. Because of Florida s connection to growing economies around the world, it was able to more effectively weather the global economic downturn. However, Florida needs to leverage existing partnerships and capture new opportunities for our economy to fully rebound and achieve true growth beyond recovery. Leading the Cruise Industry in the U.S. Florida s seaports serve as the face of America to the world of cruising. The cruise industry brings $6.3 billion in spending to the state 35 percent of the industry s 2010 direct expenditures. It also provides a total of 123,000 jobs and pays $5.3 billion in wages. Florida cruise operations account for nearly 60 percent of all U.S. embarkations handling 13.5 million cruise passengers in PortMiami, Port Everglades and Port Canaveral continue to lead the nation in cruises and cruise passengers. As cruising grows in popularity, Florida can build on its historic success and increase its dominance by attracting new partners and providing best-in-class facilities. Already home to some of the newest of the cruise mega-ships, Florida s seaports are actively planning and preparing cruise facilities that will provide the necessary services, amenities and accessibility to attract more of these ships to the state, without compromising service to smaller ships and port-of-call vessels. Capturing Export Opportunities Florida s seaports do something most other states can only envy: they run a trade surplus, shipping out more domestic goods than the international goods received. This is courtesy of neighbors to the south like Brazil, Florida s number one trading partner, who has a $13 billion trade surplus. Although container volumes and values were up, with more than 100 million tons of cargo in 2011, additional opportunities abound on the import-driven east-west trade routes. Seaports are working to ensure every import container gets returned at a reasonable price brimming with Florida export goods. The ability to export goods at a low cost will help current businesses expand their markets, allow the entry of new businesses to certain foreign markets, and help attract advanced manufacturing and other export-related industries to Florida. There are substantial opportunities to fill containers returning empty with Florida goods and greatly assist our businesses in getting their products to international markets, especially with many of Florida s seaports already oriented towards exports. The goods that make up the state s top import and export lists are diverse, but surprisingly consistent from year to year. The large diversity among global partners helps stabilize and increase Florida s trade, even in the face of global market shifts and fluctuating economies. The consistency of imports and exports provides the goods needed for the state s growing population and regional partners. Although U.S. cargo volumes have been increasing since 2009, the value of Florida s waterborne trade is

5 growing fast enough to create an increase in the state s share of U.S. trade, a remarkable feat given the rapid recovery under way at most American west coast ports. Florida s seaports will help the state emerge as a global hub for trade and investment, leveraging Florida s population growth and location on north-south and east-west trade lanes to become a critical point for processing, assembling, and shipping goods to markets throughout the eastern U.S., Canada, the Caribbean and Latin America. Florida s seaports accomplish these goals because they lead the nation in balanced imports and exports, and they are expanding capacity and using that capacity in strategic ways. Shifting Trade Routes On its centennial in 2014 the Panama Canal will have re-created itself as an exceedingly influential waterway. An expanded canal will influence the diversion of cargo now arriving through West Coast ports to Gulf and East Coast ports as carriers look for less expensive ports with shorter waits and more carrierfriendly operations. Florida s seaports have well-crafted plans firmly in place to capitalize on the Panama Canal expansion. Some are positioned to attract additional Asian-direct waterborne services and others are determined to increase transshipments from container hubs in Central America and the Caribbean. Florida s seaports have well-crafted plans firmly in place to capitalize on the expansion. Some are positioned to attract additional Asian-direct waterborne services and others are determined to increase transshipments from container hubs in Central America and the Caribbean. Several of the largest container ports are planning and expediting dredge projects to facilitate post-panamax vessel access, and they are purchasing super post-panamax cranes and upgrading infrastructure. As an added benefit, the port and channel deepening will make the state more marketable to vessels plying non-panama Canal routes, as container and bulk new builds continue to get larger. Growing Relationships with Emerging Economies An important opportunity for Florida s business community is now available courtesy of federally negotiated free-trade agreements. Many of the FTA countries including the Dominican Republic, Costa Rica, and Chile are already showing multi-billion increases to their merchandise trade with Florida since the onset of their agreements. Cutting tariff and non-tariff barriers to trade will increase the competitiveness of many goods. Florida s seaports are anticipating market growth and are building on their successful experiences es with current partners (working closely ly with private interests, ests, economic development entities and others) to ensure vessel services and facilities are in place to handle newly attractive commodities from prospective free trade partner countries such as Colombia and Panama. In 2011, Florida s trade with Cuba, exports of primarily rily agricultural products, totaled $ million. With possible changes in the future, trade with Cuba may be a significant opportunity for many of our ports. Florida s seaports are anticipating a continued expansion n of humanitarian and agricultural movements, and are preparing for future trade with post-castro Cuba. When the seaports succeed, so does the state.

6 Expanding Distribution Efficiencies Seaports have always been challenged by the need for efficient landside access. In recent years the nation s Class I railways have made such tremendous strides in increasing their efficiencies that having direct access can significantly impact a port s long-haul business. Florida s seaports are building on-dock rail, Intermodal Container Transfer Facilities, near-port storage yards, and utilizing distribution centers to connect to more-efficient long-haul rail services. Seaports throughout the state are working diligently to better serve global partners as well as the state s growing population. They are improving supply chain networks especially road and rail connectivity to increase distribution efficiencies and accommodate growing trade volumes. Our Future Seaports are an undeniably important catalyst for growing businesses, generating jobs and enhancing Florida s quality of life. The state economy relies on the efficiency and capacity of Florida s seaports. When the seaports succeed, so does the state. The growth opportunities on the horizon reinforce the urgency of expanding Florida s trade infrastructure capacity so that it can sharpen its competitive edge. With dedicated leadership, innovative port management, and expeditious investment geared toward capturing new business and regaining cargo moving through other states, Florida s seaports will be a strong link in the logistics chain. Leadership in the Sunshine State is committed to expanding private sector jobs and is investing in innovative and critical infrastructure to safeguard the future of the state seaports and economy. Florida seaports are committed to partnering to attain diversified funding sources, to ensure an efficient system that provides consumers and businesses the choices they demand at prices they can afford, and to affirm Florida s competitiveness in the global economy. With Florida s leadership, seaports, and business community focused on the future, we are charting a course to economic success that will benefit all Floridians. FLORIDA SEAPORTS CHARTING OUR FUTURE Florida Ports Council Florida Seaport Transportation and Economic Development Council 502 East Jefferson Street, Tallahassee, Florida Follow us on Twitter and Facebook:

7 TABLE OF CONTENTS Florida Seaports: Charting a Course for Economic Success Our Mission, Our Mandate, Our Goals Florida Seaports at a Glance 2 Chapter I Investing in Florida s Economy 3 FLORIDA SEAPORTS CHARTING OUR FUTURE Chapter II Florida s Trade Trends 7 Chapter III Cargo and Cruise Operations at Florida s Seaports 23 Appendix A Collective Goals and Objectives of Florida s Seaports 35 Appendix B Priority Seaport Projects 36 Appendix C - Port Profiles 39 Canaveral 40 Citrus 43 Everglades 44 Fernandina 48 Fort Pierce 50 Jacksonville 51 Key West 54 Manatee 56 Miami 58 Palm Beach 60 Panama City 62 Pensacola 64 Port St. Joe 66 Petersburg 68 Tampa 70 Florida Ports Council Florida Seaport Transportation and Economic Development Council 502 East Jefferson Street, Tallahassee, Florida Follow us on Twitter and Facebook: Prepared May 2012 Coastal Communications and Public Relations, Inc.

8 TABLE OF CONTENTS Continued 4 Exhibit 1: Collective Florida Seaport Five-Year Capital Improvement Program FY 2011/2012 to FY 2015/2016 (TABLE) 5 Exhibit 2: Collective Florida Seaport Five-Year Capital Improvement Program (by Year) FY 2011/2012 to 2015/ Exhibit 3: Collective Florida Seaport Five-Year Capital Improvement Program (by Port) FY 2011/2012 to 2015/ Exhibit 4: Collective Florida Seaport Five-Year Capital Improvement Program (by Project Type) FY 2011/2012 to 2015/ Exhibit 5: Florida s International Trade (by Value) 2003 to Exhibit 6: Florida s International Trade (by Value) Annual Percentage Changes 2003 to Exhibit 7: Florida s Waterborne, Airborne, and Overland International Trade (by Value) 2003 to Exhibit 8: Florida s Import and Export Percentages (by Value) 2003 to Exhibit 9: U.S. Imports and Exports (by Value) 2003 to Exhibit 10: Florida s Trade with Global Regions (by Value) Exhibit 11: Florida s International Trade by Global Region 2009 to Exhibit 12: Florida s Imports and Exports by Global Region 2011 (with 2010 Comparison) 12 Exhibit 13: Florida s Trade with Global Regions (by Value) 2011 Percentages of Florida s Import and Export Markets 13 Exhibit 14: Florida s Top Ten Trading Partners (by Value) 2009 to Exhibit 15: Florida s International Trade (by Value) with Top Ten Trading Partners 2003 to Exhibit 16: Florida s Top Ten Import Trading Partners 2009 to Exhibit 17: Florida s Top Ten Export Trading Partners 2009 to Exhibit 18: Florida s Trade with DR-CAFTA 2009 to Exhibit 19: Florida s Top Ten Commodities (Import and Export) 2009 to Exhibit 20: Florida s Top Ten Import Commodities 2009 to Exhibit 21: Florida s Top Ten Export Commodities 2009 to Exhibit 22: Florida s Containerized Waterborne Trade by Seaport (by Value) 2010 to Exhibit 23: Three-Year Comparison of Florida s Containerized and Non-Containerized Cargo (by Value) 2009 to Exhibit 24: Florida s Waterborne Imports and Exports by Seaport (by Value) 2010 to Exhibit 25: Percentage of Florida s Import and Export Cargo (by Value) 2009 to Exhibit 26: Three-Year Comparison of Florida s Total Waterborne Trade Tonnage (by Port) and 2015/2016 Projections 26 Exhibit 27: Cargo Tonnage at Florida s Seaports FY 2002/2003 to 2010/ Exhibit 28: Florida s Waterborne Import, Export and Domestic Tonnage (by Port) FY 2010/2011 (with Prior Year Comparisons) 27 Exhibit 29: Florida s Waterborne Import, Export and Domestic Tonnage Percentages FY 2006/2007 to 2010/ Exhibit 30: Waterborne Cargo Types Handled by Florida s Seaports (by Tonnage) FY 2010/2011 (with Prior Year Comparisons) 28 Exhibit 31: Percentage of Waterborne Cargo Types Handled by Florida s Seaports FY 2010/ Exhibit 32: Three-Year Comparison of Waterborne Cargo Types Handled by Florida s Seaports (by Tonnage) FY 2008/2009 to 2010/ Exhibit 33: Three-Year Comparison of Container TEUs Handled by Florida s Seaports FY 2008/2009 to 2010/ Exhibit 34: Container TEUs Handled by Florida s Seaports FY 2002/2003 to 2010/ Exhibit 35: American Association of Port Authorities Top U.S. Mainland Container Ports (by TEUs) 31 Exhibit 36: Comparison of Florida with Other Container Handling States (by TEUs) Exhibit 37: Revenue Cruise Passengers at Florida s Seaports FY 2010/2011 (with Prior Year Comparison and FY 2015/2016 Projections) 33 Exhibit 38: Revenue Cruise Passengers at Florida s Seaports FY 2002/2003 to 2010/ Exhibit 39: Summary of 2010 Cruise Industry Impacts in Florida 35 Exhibit 40: Florida Seaports Collective Goals and Objectives

9 OUR MISSION, OUR MANDATE, OUR GOALS Our Mission Ports work to enhance the economic vitality and quality of life in the state of Florida by fostering the growth of domestic and international waterborne commerce. Charged with facilitating the implementation of seaport capital improvement projects, the Florida Seaport Transportation and Economic Development Council consists of the port directors of the 15 publicly-owned seaports and a representative from both the Department of Transportation and the Department of Economic Opportunity. Our Mandate Florida s deepwater seaports, as mandated by Chapter 163, Florida Statutes, prepare master plans to guide their development and expansion. Regularly updated plans, consistent with the comprehensive plans of the seaports respective local governments, establish goals and objectives, address forecasted needs, and identify five-year capital seaport improvement programs to implement. Our Goals (Collective Goals and Objectives of Florida s Seaports appear in Appendix 1) Develop world-class cargo and cruise facilities to enhance Florida s global competitiveness Build system-wide, seamless intermodal facilities to move port goods and passengers efficiently and cost effectively Capitalize on increased north-south trade and the Panama Canal expansion to capture more direct all-water service and feeder calls Strengthen and diversify strategic seaport funding to ensure vital and timely improvements Advocate a continued statewide economic development that includes investment in major economic engines Florida s seaports Implement security measures that balance compliance with an efficient flow of seaport commerce 1

10 2011 FLORIDA SEAPORTS AT A GLANCE Florida s seaports moved million total tons of cargo (5.7 percent decrease) 3.0 million TEUs (6.4 percent increase) 13.5 million cruise passengers (4.9 percent increase) Florida s international trade snapshot Value increased markedly 2011 was a record year at $149 billion (up 18.2 percent) $62.4 billion were imports and $86.8 billion were exports a $24.4 billion trade surplus Exports have been increasing each year since 2005, and the value of imports (41.8 percent of state s total) has been declining The value of Florida s waterborne cargo increased to $82.7 billion, an 18.7 percent increase over 2010 Waterborne trade comprised 55.4 percent of the state s total international trade (vs percent through airports and two percent over land) At $44.6 billion, containerized cargo represented 54 percent of the waterborne cargo value Nationwide the U.S. had 59.8 percent imports to 40.2 percent exports Florida s share of the nation s international trade increased slightly in 2011, from 4.0 percent to 4.1 percent Florida s continuing strong waterborne export trade with its neighbors to the south is the primary reason for the state s more balanced proportion The commodities moving through the state are consistent, particularly the top ten commodities, which include industrial machinery, electrical machinery, vehicles, and fuels, among others Diversity of Trading Regions Florida trades with most countries in the world All global region partners showed growth in trade with Florida in 2011 and all but the African Continent showed double-digit growth The top ten country partners were Brazil, Colombia, China, Venezuela, Switzerland, Chile, Japan, Costa Rica, Dominican Republic, and Mexico These top ten and 21 more countries each contributed more than $1 billion to the state s international trade in 2011 Florida seaports also move goods to and from Puerto Rico and other states Florida recorded a large trade surplus with trading partners to the south in 2011, exporting $31.3 billion more than it imported from them Florida s trade deficit with Asia continued, as the state imported $6.8 billion more in goods from this region than it exported Florida s largest deficit again was with China, importing almost $8 in goods for each dollar it exported, resulting in a $6.4 billion deficit Florida s seaports have programmed $2.7 billion in improvements over the next five years to accommodate growing business. 2

11 CHAPTER I INVESTING IN FLORIDA S ECONOMY Florida s seaports represent its gateways to and from the four corners of the world, connecting to competitive trade opportunities, high productivity and high paying jobs. They serve as a strong and vital economic lifeline which must be nurtured in order to capture the countless advantages waiting for Florida and its citizens. Without a steady and adequate revenue stream, providing dependable financing for essential capital improvements, this lifeline becomes restricted. Restricted too, are Florida s opportunities to compete in a global economy or even worse, to serve the state s own consumers. Opportunities missed will be opportunities lost to Florida s competitors. The Investment Strategy Florida s economic success is dependent upon its ability to strategically invest in an integrated statewide network of trade gateways, logistics centers and transportation corridors that capture these opportunities for our state. Investment in Florida s seaports is an example of how transportation funding decisions support state, local and private sector initiatives, reacting to a market-driven demand. In order to grow, prosper and continue to create the conditions for the private sector to produce high-paying jobs, Florida must have the best transportation infrastructure in the nation. As an example, each year, Florida seaports identify projects that will improve the state s transportation network, implement their long-term port master plans, and efficiently service the existing and prospective port tenants. These projects, which are eligible to receive state and local funds, are evaluated for their ability to create jobs and for their positive return on investment. This year, nine seaports have presented 15 priority projects which meet those criteria. These projects are described in Appendix B. Building to Better Serve Our Internal and External Markets Having worked to increase productivity and operational efficiencies during the economic downturn, the seaports are looking to the future and building the strategic, competitive facilities needed to serve their existing tenants and to attract new users. As noted in Chapter II, industry parameters, particularly with the Panama Canal expansion anticipated for 2014, continue to dictate longer berths, larger terminals, deeper channels, heavier duty cranes, and more efficient intermodal access systems for many of the state s ports. On the cruise side, the emergence of a new generation of cruise ships also requires longer berths, larger terminals, additional parking, and new equipment. The state s seaports continue to update their port master plans to reflect the changing global marketplace and new facility requirements. These state-mandated, five- and ten-year maintenance and expansion plans, which are adopted by the seaports respective local governments, are developed in the context of each seaport s long-term vision and prime mission to create jobs and facilitate region-wide and statewide economic development. 3

12 To truly accelerate growth a backlog of infrastructure investment needs to be addressed. In this five-year mission plan the Florida Seaport Transportation and Economic Development (FSTED) Council and its partners have collaborated to identify substantive trade trends, outline the current state of Florida s seaport industry and its economic impact, share plans for capital projects, and document opportunities and strategies. The state s fifteen established and emerging strategic seaports are vital hubs for moving domestic and international cargo, and key gateways for massive volumes of cruise passengers. Skillful planning for future improvements to the seaports is under way and critical to Florida s economic future. The common thread running through the seaports individual master plans and their collective strategic vision of job creation through economic development is the need for an adequate revenue stream to finance the capital improvements essential to sustaining and advancing Florida s position in the global economy as well as better serving the state s own consumers. The Seaports On-Port Capital Improvement Needs Florida s seaports have programmed $2.7 billion in capital improvements over the next five years. EXHIBIT 1: COLLECTIVE FLORIDA SEAPORT FIVE-YEAR CAPITAL IMPROVEMENT PROGRAM FY 2011/2012 TO 2015/2016 Port FY 2011/2012 FY 2012/2013 FY 2013/2014 FY 2014/2015 FY 2015/2016 Total Five-Year CIP Canaveral $108,592,000 $41,835,000 $40,095,000 $33,627,000 $16,051,000 $240,200,000 Citrus $0 $0 $0 $0 $0 $0 Everglades $106,846,000 $143,336,000 $120,328,000 $73,460,000 $33,935,000 $477,905,000 Fernandina $1,250,000 $5,325,000 $23,100,000 $1,510,000 $4,110,000 $35,295,000 Fort Pierce $2,810,000 $1,290,000 $6,250,000 $2,750,000 $0 $13,100,000 Jacksonville $121,499,420 $47,696,500 $113,852,500 $136,545,000 $473,220,000 $892,813,420 Key West $1,210,400 $333,000 $0 $0 $0 $1,543,400 Manatee $19,000,000 $29,750,000 $28,000,000 $14,000,000 $15,000,000 $105,750,000 Miami $95,068,000 $131,950,000 $143,775,000 $30,346,000 $4,900,000 $406,039,000 Palm Beach $7,387,000 $8,774,000 $7,007,000 $5,151,000 $0 $28,319,000 Panama City $6,750,000 $15,550,000 $10,000,000 $7,500,000 $3,100,000 $42,900,000 Pensacola $2,600,000 $4,500,000 $3,250,000 $3,500,000 $5,100,000 $18,950,000 Port St. Joe $3,836,290 $6,051,600 $3,936,000 $16,400,000 $37,000,000 $67,223,890 St. Petersburg $495,000 $699,000 $107,000 $110,000 $112,000 $1,523,000 Tampa $74,542,331 $81,620,000 $70,290,000 $73,170,000 $47,170,000 $346,792,331 TOTAL $551,896,441 $518,710,100 $569,990,500 $398,069,000 $639,698,000 $2,678,354,041 Data Source: Individual Seaport CIPs (as of March 2012) Exhibit 1 shows the details of the seaports collective $2.7 billion five-year capital improvement program for FY 2011/2012 through FY 2015/2016. This five-year program is approximately $123 million larger than the previous iteration in FY 2010/2011 through FY 2014/2015; cutbacks by several ports in response to continuing financial constraints have been offset by increases at other ports to meet programmed infrastructure expansion. 4

13 Exhibits 2, 3, and 4 illustrate how the seaports collective capital improvement program is broken down by year, by port, and by project category. The surge in FY 2015/2016 expenditures reflects costly harbor deepening projects, which represent more than 34.5 percent of the seaports collective CIP estimated for the five-year period (see Exhibit 4). Repairs to and maintenance of aging berths and other infrastructure are also essential to the seaports future competitiveness. EXHIBIT 2: COLLECTIVE FLORIDA SEAPORT FIVE-YEAR CAPITAL IMPROVEMENT PROGRAM (BY YEAR) FY 2011/2012 TO 2015/2016 $1,200,000,000 $1,000,000,000 $800,000,000 $600,000,000 $400,000,000 $551,886,441 $518,710,100 $569,990,500 $398,069,000 $639,698,000 $200,000,000 $0 FY 2011/2012 FY 2012/2013 FY 2013/2014 FY 2014/2015 FY 2015/2016 Data Source: Individual Seaports EXHIBIT 3: COLLECTIVE FLORIDA SEAPORT FIVE-YEAR CAPITAL IMPROVEMENT PROGRAM (BY PORT) FY 2011/2012 TO 2015/2016 Key West 0.1% St. Petersburg 0.1% Fort Pierce 0.5% Pensacola 0.7% Palm Beach 1.1% Fernandina 1.4% Panama City 1.7% Port St. Joe 2.6% Citrus 0.0% Manatee 4.1% Jacksonville 34.5% Canaveral 9.3% Tampa 11.9% Everglades 16.4% Miami 15.7% Data Source: Individual Seaports Five-Year Capital Improvement program is $2.7 billion 5

14 EXHIBIT 4: COLLECTIVE FLORIDA SEAPORT FIVE-YEAR CAPITAL IMPROVEMENT PROGRAM (BY PROJECT TYPE) FY 2011/2012 TO 2015/2016 Security 1.1% Site Improvements 3.6% Land Acquisition 1.4% Other Structures 3.3% Cruise Terminals 6.5% Channel and Harbor Deepening (including Spoil Projects) 34.5% Miscellaneous Projects (Computer, Recreation, Environmental, Fees) 5.3% Intermodal Road and Rail 8.3% Cargo Terminals including New Berths and Equipment 27.4% Berth Rehabilitation and Repairs 13.5% Data Source: Individual Seaports CIPs Five-Year Capital Improvement Program is $2.7 billion Off-Port Intermodal Capital Investments Not included in the $2.7 billion shown in Exhibit 1 are the many off-port road and rail projects on which the seaports depend for efficient freight and passenger movements. The Florida Department of Transportation (FDOT) adopted the Strategic Intermodal System Plan (SIS) in January 2005, identifying ten of Florida s seaports as strategic hubs on the transportation system and establishing a network of road, rail, and waterway connectors. Since that time, funding provided under the state s SIS and SIS Growth Management programs has assisted Florida s seaports in making significant progress connecting to the major trade corridors. Although progress has been made, additional intermodal improvements are still needed. In cooperation with their state agency partners, Florida s seaports have been working for more than two decades to expand seaport capacity and efficiency so that international trade can flourish in Florida, businesses can expand, and new jobs can be created. With their respective FDOT Districts and the Central Seaport Office as well as with the FSTED Council, the seaports have identified an array of additional intermodal projects important to seaport access and supply chain systems, but beyond seaport control, as part of the ongoing SIS process. FDOT s update to the SIS, the development of a Seaport System Plan, and new approaches to integrating the respective transportation modes into one strategic statewide system suggest opportunities to implement the efficient intermodal logistics network the seaports need to sustain and advance Florida s economic growth. 6

15 CHAPTER II FLORIDA S TRADE TRENDS Florida lies at the crossroads of international commerce. It trades with more than 220 countries around the world. Its distinctive role as the Gateway to Latin America brings two-way trade, transportation, and jobs together, strengthening the economy of our state and helping trading partners prosper. Changing trade patterns, led by the Panama Canal expansion and by burgeoning Asian cargo flows through the Suez Canal, are complementing our long-standing relationships with neighbors to the south, offering new global opportunities for international business through Florida s sea and air gateways. Florida s Total International Trade In 2011, Florida s international trade totaled $149.4 billion, an almost $25 billion increase over the 2010 figure and a new record. This increase in a single year is a positive indicator of the state s recovering economic climate. EXHIBIT 5: FLORIDA S INTERNATIONAL TRADE (BY VALUE) 2003 TO $149.4 $125.0 $101.3 $128.5 $113.0 $107.4 Overland Airborne $94.3 Waterborne $81.2 Total $73.1 $0 $20 $40 $60 $80 $100 $120 $140 $160 Value(US$Billions) Data Source: US Census Bureau Exhibit 5 shows the state s international trade record for waterborne, airborne cargo and overland (including pipeline) cargoes 1. The overland goods include those moved by road and rail, as well as pipeline. The increases in the value of Florida s international trade in 2010 and 2011 reflect the state s 1 These waterborne and airborne numbers total $149.4 billion, based on the port-level data obtained from the US Census Bureau, Foreign Trade Division, which uses the District of Unlading methodology. In other parts of this report, data obtained from Enterprise Florida, will be used it uses a District of Entry methodology (and obtains slightly different results at $149.2 billion), but is based on the same US Census Bureau data. 7

16 gradual emergence from the recession that has weakened global economies. Exhibit 6 shows how the dollar value of the state s international trade has changed over the decade and illustrates the two-year long resurgence from the dramatic decline in EXHIBIT 6: FLORIDA S INTERNATIONAL TRADE (BY VALUE) ANNUAL PERCENTAGE CHANGES 2003 TO $149.4 $125.0 $101.3 $128.5 $113.0 $107.4 Overland Airborne $94.3 Waterborne $81.2 Total $73.1 $0 $20 $40 $60 $80 $100 $120 $140 $160 Value(US$Billions) Data Source: US Census Bureau Dollar Value of Florida s Waterborne and Airborne International Commerce As shown in Exhibit 7, goods moving through Florida s seaport gateways in 2011 were valued at approximately $82.7 billion, 55.4 percent of the state s total international trade; goods moving through the state s airport gateways were valued at $63.8 billion, 42.7 percent of the total. The remaining $3 billion, almost two percent, represents goods moving over land or by pipeline. EXHIBIT 7: FLORIDA S WATERBORNE, AIRBORNE, AND OVERLAND INTERNATIONAL TRADE (BY VALUE) 2003 TO 2011 (US$ BILLIONS) Year Waterborne Airborne Overland 2003 $45.5 $25.0 $ $51.0 $27.2 $ $62.4 $29.0 $ $72.3 $32.1 $ $73.3 $36.2 $ $82.5 $42.3 $ $57.0 $41.3 $ $69.7 $52.8 $ $82.7 $63.8 $3.0 Data Source: US Census Bureau - total international trade value basis is $149.4 billion 8

17 Import-Export Balance Of the more than $149 billion in Florida s international trade in 2011, $62.4 billion (or 41.8 percent) were imports and $86.8 billion (or 58.2 percent) were exports (see Exhibit 12 later in this chapter). Exhibit 8 shows Florida s import-export ratios since 2003, with the shift in 2007 to a higher percentage of exports than imports. Since that time, Florida s exports as a percentage of the state s total international trade continue to outpace imports. The state s trade with its neighbors to the south, whose economies remained comparatively vibrant during the recession, helps keep Florida s exports strong. Recent U.S. Census Bureau data indicate Florida is the fourth ranked exporting state in the nation. EXHIBIT 8: FLORIDA S IMPORT AND EXPORT PERCENTAGES (BY VALUE) 2003 TO 2011 Year Imports Exports % 44.3% % 46.2% % 46.9% % 48.2% % 52.1% % 56.8% % 59.0% % 58.6% % 58.2% Data Source: US Census Bureau - total international trade value basis is $149.2 billion Florida s imports increased in value by 17.4 percent in 2011 and exports increased by 18.7 percent (see Exhibit 12 later in this chapter). Nationwide, imports and exports increased by 15.4 and 15.8 percent, respectively, as Exhibit 9 shows. Florida s growth record is thus comparable to, and somewhat better than, that of the U.S. as a whole. Year Total U.S. Merchandise Trade Change over Prior Year Imports Change over Prior Year Share of Total U.S. Trade Exports Change over Prior Year Share of Total U.S. Trade 2003 $1,981, % $1,257, % 63.4% $724, % 36.6% 2004 $2,285, % $1,470, % 64.3% $814, % 35.7% 2005 $2,572, % $1,670, % 65.0% $901, % 35.0% 2006 $2,881, % $1,855, % 64.4% $1,025, % 35.6% 2007 $3,101, % $1,953, % 63.0% $1,148, % 37.0% 2008 $3,391, % $2,103, % 62.0% $1,287, % 38.0% 2009 $2,615, % $1,559, % 59.6% $1,056, % 40.4% 2010 $3,191, % $1,913, % 59.9% $1,278, % 40.1% 2011 $3,687, % $2,206, % 59.8% $1,480, % 40.2% Data Source: US Census Bureau EXHIBIT 9: U.S. IMPORTS AND EXPORTS (BY VALUE) 2003 TO 2011 (US$ 000,000) 9

18 Global Distribution of Florida s International Commerce The regional distribution of the state s global commerce in 2011 is illustrated in Exhibit 10. Florida s neighbors to the south South America, Central America, and the Caribbean accounted for 59.6 percent of the state s international trade in 2011, comparable to the 59.2 percent share in 2010, but from a larger base. The top five regions with which Florida trades are South America (1), Asia and the Middle East (2), Europe (3), Central America (4), and the Caribbean (5). EXHIBIT 10: FLORIDA S TRADE WITH GLOBAL REGIONS (BY VALUE) 2011 Australia & Oceania 0.5% African Continent 1.0% North America 4.4% Caribbean 9.5% South America 37.4% Central America 12.7% Asia & the Middle East 18.8% Europe (Excl. Turkey) 15.7% Data Source: Enterprise Florida, based on US Census Bureau - total international trade value basis is $149.2 billion As detailed in Exhibit 11, Florida s trade with all of the global regions (as grouped by Enterprise Florida s methodology) increased in value in 2011; the growth ranged from 3.3 percent to 30.5 percent. EXHIBIT 11: FLORIDA S INTERNATIONAL TRADE BY GLOBAL REGION 2009 TO 2011 (US$ 000,000) Region Value of Trade Percent of Total Value of Trade Percent of Total Value of Trade Percent of Total Percent Change 2011 over 2010 South America $37, % $46, % $55, % 20.9% Asia and the Middle East $18, % $24, % $28, % 12.6% Europe (Excl. Turkey) $16, % $19, % $23, % 21.8% Central America $13, % $16, % $18, % 14.4% Caribbean $10, % $12, % $14, % 16.9% North America $4, % $5, % $6, % 25.0% African Continent $1, % $1, % $1, % 3.3% Australia and Oceania $ % $ % $ % 30.5% Total $102, % $126, % $149, % 18.2% Data Source: Enterprise Florida, based on US Census Bureau 10

19 Other highlights of Florida s total 2011 international trade with global regions include the following: Florida s trade with all but the African Continent increased by double digits. South America retained its top position, with 37.4 percent of Florida s international trade in 2011 more than the next two regions combined. Asia and the Middle East retained its second position, with 18.8 percent of the market, among Florida s trading partners. This was down slightly from 19.7 percent the year before. Australia and Oceania experienced the largest market share increase in 2011 over 2010, at 30.5 percent, although the base value, at $692.8 million, is modest. There continues to be a trade surplus for Florida with every region of the world, except Asia and the Middle East, and North America. Exhibit 12 compares the dollar values of imports and exports for each of the regions with which Florida trades. The exhibit also shows the percentage changes in these values between 2010 and 2011, with exports increasing at a slightly higher rate than imports (18.7 percent versus 17.4 percent). EXHIBIT 12: FLORIDA S IMPORTS AND EXPORTS BY GLOBAL REGION 2011 (WITH 2010 COMPARISON) (US$ 000,000) Imports Exports Region over over 2010 South America $10,708.2 $14, % $35,435.8 $41, % Asia and Middle East $16,580.4 $17, % $8,343.8 $10, % Europe (Excl. Turkey) $9,718.0 $10, % $9,561.5 $12, % Central America $7,864.2 $9, % $8,631.6 $9, % Caribbean $3,675.8 $5, % $8,440.3 $8, % North America $4,026.6 $4, % $1,203.0 $1, % African Continent $444.7 $ % $1,062.9 $1, % Australia and Oceania $146.1 $ % $384.9 $ % Total $53,164.0 $62, % $73,063.8 $86, % Data Source: Enterprise Florida, based on US Census Bureau - total international trade value basis is $149.2 billion Imports In 2011, Asia and the Middle East retained its position as top import trading partner, with 5.2 percent growth, however, South America is closing in on the top position, with 32 percent growth. A hefty increase in imports from the Caribbean, posting a 46.7 percent change in 2011, is notable. Overall, Florida s import trade increased by close to $10 billion for the second year in a row, as compared with the $14.4 billion decline in Exports On the export side South America retained its dominance, and saw a 17.6 percent increase on an already massive base of cargo. A 32.5 percent increase in exports to Europe is notable. Overall, Florida s export trade increased by $13.7 billion in 2011, corroborating a similar increase in 2010 that reversed a $13.1 billion decline in

20 The exhibit below illustrates each global region s share of Florida s import and export trade. The striking feature of this exhibit is its clear indication of South America s importance not just to the state s export market, but also to its import market, the model of two-way trade that supports economic growth. EXHIBIT 13: FLORIDA S TRADE WITH GLOBAL REGIONS (BY VALUE) 2011 PERCENTAGES OF FLORIDA S IMPORT AND EXPORT MARKETS 50% 48.0% Imports 40% Exports 30% 27.9% 20% 22.6% 17.3% 10% 12.2% 14.6% 11.1% 14.8% 10.1% 8.6% 7.9% 0% South America Asia & Middle East Europe (Excl. Turkey) Central America Caribbean 1.9% North America 1.4% African Continent 0.5% 0.6% 0.3% Australia & Oceania Data Source: Enterprise Florida, based on US Census Bureau - total international trade value basis is $149.2 billion Florida s Top Trading Partners The continuing characteristics of Florida s international trade are better understood by looking at the comparative market shares of individual countries within the respective global regions. Exhibit 14 ranks the top ten countries whose commerce contributed to the state s $149.2 billion in international trade in It compares the values of the state s 2011 commerce with these top partners for the previous two years, showing the percentage changes between 2010 and Consistent with Florida s dominant role in trade with Central and South America and the Caribbean, six of the countries on the list of the state s top ten trading partners are from those regions. The highlights of Florida s trade with specific countries, as shown in Exhibit 14, include the following: All of the top ten ranked countries remained the same for the last three years, with a few position switches, and all showed increases for the second year in a row. Nine of the ten countries had double-digit percentage increases all but Japan. Brazil, Colombia, and China remained Florida s top three trading partners in Brazil retained its top spot, with $18.5 billion in trade, more than twice that of the next ranked country, Colombia, and more than that of Colombia and China combined. 12

21 Switzerland showed a remarkable 43.2 percent increase in 2011 on top of a 46.1 percent increase in its Florida trade in Venezuela had the largest percentage gain, at 46.3 percent, and was the only country other than Brazil to show an absolute gain in excess of $2.5 billion. The Dominican Republic and Costa Rica two of the DR-CAFTA countries with which the U.S. has had a Free Trade Agreement since 2005 increased their trade with Florida by $3.3 billion over a two-year period. Chile, with which the U.S. has had a Free Trade Agreement since 2004, also saw a $2.7 billion (63.8 percent) increase in trade with Florida over the two-year period ending in Country Value of Trade Rank Value of Trade Rank Value of Trade Rank Percent Change 2011 over 2010 Total All Countries $102,991,066,255 $126,228,015,853 $149,166,340, % Brazil $12,604,486,714 1 $15,937,241,946 1 $18,525,066, % Colombia $6,262,548,725 2 $7,580,719,762 2 $9,082,317, % China $5,819,019,281 3 $7,433,987,177 3 $8,263,881, % Venezuela $4,797,542,424 4 $5,427,861,081 6 $7,938,676, % Switzerland $3,768,587,738 8 $5,507,208,736 5 $7,886,231, % Chile $4,198,390,030 7 $5,421,145,901 7 $6,878,307, % Japan $4,225,895,055 5 $6,034,990,237 4 $6,322,829, % Costa Rica $3,682,490,110 9 $5,024,846,435 8 $5,650,556, % Dominican Republic $4,217,555,004 6 $4,933,525,768 9 $5,511,324, % Mexico $3,344,193, $4,239,445, $5,341,638, % Top Ten Total EXHIBIT 14: FLORIDA S TOP TEN TRADING PARTNERS (BY VALUE) 2009 TO Top 10 (2011) Share of Total $149.2 Billion: 54.6% Top 10 (2010) Share of Total $126.2 Billion: 53.5%* Top 10 (2009) Share of Total $103.0 Billion: 51.3%* $81,400,829,899 Data Source: Enterprise Florida, based on US Census Bureau *Individual entries for previous years no longer add up to the annual total because new 2011 top ten countries replaced those in the original 2009 and 2010 columns Exhibit 15 illustrates how Florida s trade with each of its top ten trading partners has evolved during the decade. This exhibit confirms Brazil s domination of the top spot, Switzerland s fast uphill track, and the continued role of long-time partners. 13