Planning for the Panama Canal Planning for the Panama Canal Expansion – A Port PerspectiveExpansion – A Port Perspective
Richard WainioRichard WainioPort Director and Chief ExecutivePort Director and Chief Executive
Tampa Port AuthorityTampa Port AuthorityOctober 21, 2009October 21, 2009
Tampa OverviewTampa Overview
Florida’s largest port in tonnage and area Diverse traffic base Major cruise home port Expanding container gateway
Port of Tampa Perspective - SummaryPort of Tampa Perspective - Summary
Immediate priority – capturing larger share of huge local market
Panama Canal expansion one of several variables impacting growth forecast
Prudent/incremental approach to facilities expansion as business develops
TampaTampaBay Bay
MarketMarket
• • Geographic center of state Geographic center of state • • 5,742 square miles5,742 square miles• • 8 million people within 100 miles8 million people within 100 miles
• • Expanding distribution center gatewayExpanding distribution center gateway• • Current local market potential= + 400K TEUsCurrent local market potential= + 400K TEUs• • 1.9 Million Labor Force1.9 Million Labor Force
Central Florida Container MarketCentral Florida Container Market
•
Tampa
Direct 350K TEUSTransload 50K TEUS
Total (est.): 400K TEUS
Direct 350K TEUSTransload 50K TEUS
Total (est.): 400K TEUS
Port SharePort Share
Expanding Distribution Expanding Distribution Center GatewayCenter Gateway
Companies such as Rooms to Go, Southern Wines & Spirits, Lowes, Wal-Mart, Havertys, Pepsico, Bealls, United Natural Foods, Kane’s Furniture, VF Image Wear, Ace Hardware, SYSCO/International Food Group, Corvest, Publix, and Perry Ellis are among firms that have recently constructed and/or expanded distribution centers in the region.
CSX is planning to develop an Integrated Logistics Center at Winter Haven in Polk County – 50 miles due east of the Port of Tampa. Phase I will include a 300 acre container and vehicle rail terminal and Phase II, a 950 acre distribution center park.
Key to the Port of Tampa’s container growth has been the Executive Shippers’ Council representing over 140 importers and exporters within 100 miles who control over 250,000 TEUs and are keen to support container carriers that call Tampa direct.
The Gulf Coast is becoming an The Gulf Coast is becoming an increasingly attractive marketincreasingly attractive market
Expanding vessel capacity provides opportunity for carriers Expanding vessel capacity provides opportunity for carriers to add new services and serve distinct complementary to add new services and serve distinct complementary markets in US Gulfmarkets in US Gulf
Major investments in port capacity and distribution centers is Major investments in port capacity and distribution centers is increasing the Gulf Coast’s attractivenessincreasing the Gulf Coast’s attractiveness• Tampa:Tampa: major expansion capability and growing DC major expansion capability and growing DC
industryindustry• Houston:Houston: Bayport expansion doubling capacity and Bayport expansion doubling capacity and
growing DC growing DC industry • Mobile:Mobile: container terminal expansion and auto industry container terminal expansion and auto industry • Louisiana:Louisiana: four proposed container terminal projects four proposed container terminal projects
under considerationunder consideration
Panama Canal ExpansionPanama Canal Expansion
Canal Expansion ImplicationsCanal Expansion Implications
Potential shift of up to 25% of West Coast cargo Potential shift of up to 25% of West Coast cargo to East/Gulf Coast portsto East/Gulf Coast ports
New post-Panamax direct services combined New post-Panamax direct services combined with expanded Caribbean transshipment will with expanded Caribbean transshipment will create opportunities for both regional and create opportunities for both regional and intermodal portsintermodal ports
Market opportunities vary by region and stateMarket opportunities vary by region and state Not all ports need to be deepened to 45’ or 50’ Not all ports need to be deepened to 45’ or 50’
to benefit; nor will all ports gain significant new to benefit; nor will all ports gain significant new business.business.
System EncouragesSystem Encourages “Keeping up with the Joneses” Behavior – “Keeping up with the Joneses” Behavior –
But at What Cost?But at What Cost?
If my neighbor is dredging to 45-50’ feet – I must do the same
Lobby for USACE authorization – Just in case we may need it down the road
Is this the most efficient use of resources? - How many deep water ports do we need?
More than just dredging costs – also access infrastructure (road, rail, tunnel, etc.)
P. CABELLOP. of SPAIN
RIO HAINASAN JUAN
CAUCEDO
Caribbean Transshipment Triangle
FREEPORT
COLON/MIT
KINGSTON
CARTAGENA
Shipping and Trade DevelopmentsShipping and Trade Developments
Economic downturn and gradual recovery in world trade
Ocean carrier overcapacity – benefits all-water route
Larger vessels – deeper ports – load centers – transshipment
All-water East/Gulf Coast vs. West Coast Intermodal
Concerns with West Coast productivity and new fees
Shipper port diversification strategies and growth in East/Gulf Coast distribution center capacity
Concerns about port/transportation infrastructure capacity deficit overstated
Many Variables Cloud the ForecastMany Variables Cloud the Forecast
Ocean carrier service deployment strategies – all-water direct vs. Caribbean transshipment
Logistics & supply chain strategies - large import DCs vs. regional DCs close to population centers
Fuel prices Ocean carrier pricing strategies Truck & rail service patterns
What’s Tampa Doing to Prepare?What’s Tampa Doing to Prepare?
Identifying the real market opportunities and Identifying the real market opportunities and recognizing the limitations.recognizing the limitations.
Expanding container terminal capacity – phased Expanding container terminal capacity – phased expansion in line with market growthexpansion in line with market growth
Improving truck access to Interstate highway Improving truck access to Interstate highway system – I-4 Crosstown connector underwaysystem – I-4 Crosstown connector underway
Improving rail accessImproving rail access addition of on-dock rail in future phases of addition of on-dock rail in future phases of
terminal expansionterminal expansion CSX Winterhaven Integrated Logistics CenterCSX Winterhaven Integrated Logistics Center
Container Terminal ExpansionContainer Terminal Expansion
• Phased incremental approach as volumes grow and business case dictates
• Served by a 43 feet deepwater channel, 2100 feet of berth and three gantry cranes, and 100 ton mobile harbor crane
• Expansion now underway to increase from today’s 25 acres to 40 acres by end of 2009
• Phased expansions to 160 acres and 2700 feet of berth over next 3-5 years
I-4/Crosstown I-4/Crosstown ConnectorConnector
Tampa added to Horizon Line’s Puerto Rico service
Other North-South trade potential including Cuba
Opportunities from Canal Opportunities from Canal Expansion but Latin America Expansion but Latin America
Remains key to Florida/TampaRemains key to Florida/Tampa
Shifting International Trade RoutesShifting International Trade Routes Conference Conference
January 26-27, 2010January 26-27, 2010Grand Hyatt Tampa BayGrand Hyatt Tampa Bay
Co-sponsored by AAPA & MARAD and hosted by Tampa Port Co-sponsored by AAPA & MARAD and hosted by Tampa Port AuthorityAuthority
Alberto Aleman, Administrator of the Panama Canal Authority will Alberto Aleman, Administrator of the Panama Canal Authority will provide an update on the status of the Canal expansionprovide an update on the status of the Canal expansion
Speakers will address the international economic outlook and Speakers will address the international economic outlook and shifts in global trade patterns; examine the role of transshipment shifts in global trade patterns; examine the role of transshipment and the Caribbean Basin; and discuss infrastructure needs from and the Caribbean Basin; and discuss infrastructure needs from the perspective of cargo owners, ocean carriers, ports, terminal the perspective of cargo owners, ocean carriers, ports, terminal operators, warehouse and distribution centers, and highway and operators, warehouse and distribution centers, and highway and rail interests. rail interests.
For more info visit: For more info visit:
http://aapa.files.cms-plus.com/PDFs/09_ShiftingTradeRoutes.pdfhttp://aapa.files.cms-plus.com/PDFs/09_ShiftingTradeRoutes.pdf