After setting back-to-back record cargo growth at Florida’s seaports, additional economic data continues to show the significant role ports are playing as a major economic engine. Last month, new economic impact studies from JAXPORT and PortMiami revealed that the two seaports now produce $31 billion and $61 billion respectively in economic output, significantly higher than their respective 2019 and 2016 studies. Now, Port Everglades has released its latest report showing $26.5 billion in economic activity and 10,778 direct local jobs – a 12 percent increase for the 2023 fiscal year.
While the return on investment clearly shows that investing in Florida’s seaports is beneficial for jobs and the economy, there is downward pressure on existing port infrastructure threatening these successes. Florida’s economic and population growth, combined with shifting trade lanes to the Atlantic and Gulf Coast away from mismanaged West Coast trade lanes, are key reasons why Florida’s seaports face capacity and efficiency challenges.
Florida seaports have five-year capital improvement projects in the pipeline to offset growing population and demand pressures; however, many of these critical infrastructure projects are needed immediately. History has shown that when faced with challenges, Florida knows how to lead.
Approximately ten years ago, the Florida Legislature provided additional investments to help ports prepare for ships sailing out of the widened Panama Canal. By increasing statutory minimum investments, seaports and partners at the Florida Department of Transportation (FDOT) were able to build necessary capacity projects allowing larger post-Panamax cargo ships to call on Florida seaports.
Currently, state partners do not have additional resources in their Five-Year Work Program for priority seaport projects. The five-year capital improvement plan for Florida’s seaports exceeds $5 billion with a priority project list of $320 million. Yet FDOT’s Five-Year Work Program allocates approximately $74-$78 million annually with another $35 million set aside for debt payments.
Under this funding scenario, less than 10 percent of funding will be available to meet capital improvement projects over the next five years. The gap in growing seaport investments threatens to erode current economic successes.
As previously stated: "Maritime business is highly competitive," adding that businesses will look elsewhere if needs are not met: "They will turn to Texas... or Georgia... or Louisiana."
Port directors at Florida's 16 seaports understand their crucial role in our state’s economy; ensuring they maintain efficient ports capable of meeting cargo demands remains a top priority. Supported by local chambers of commerce, economic development leaders, elected officials among others who recognize that port-related jobs are vital to community livelihoods.
Throughout summer months efforts will continue sharing this message with elected leaders urging lawmakers not cede Florida's port success: "Your support of Florida's seaports is appreciated."