PortMiami scrunching cargo area to add two cruise terminals
Written by Jesse Scheckner on November 20, 2018
Two PortMiami projects costing a combined $100 million will result in one smaller, denser cargo yard and additional land on which to build two new cruise terminals, documents accompanying items Miami-Dade commissioners OK’d this month show.
The $34.88 million cargo yard densification project by Odebrecht Construction Inc., the lowest bidding contractor, is to take 777 days and is expected to last 50 years thereafter, Mayor Carlos Giménez wrote in a Nov. 8 memo.
Project funding, at 1015 N American Way, includes $4.38 million in seaport bonds and loans, $12.05 million in state transportation funds and $18.45 million from “future financing.”
Infrastructure improvements to the yard, operated by Terminal Link Miami, include electric rubber tire gantries that provide up to 40% more container throughputs on a smaller footprint, new concrete runways and turning pads, pavement markings and signage, grading and drainage, high-wind tie-downs, reefer rack structures and related foundations.
The project requires construction and installation of new electric transformer vaults and necessary provisions by Florida Power & Light.
Upon completion, 20 acres previously part of the cargo yard will be “transferred back to the port for two new cruise terminal facilities,” titled cruise terminals AA and AAA in the memo.
Each will have capacities exceeding 1 million cruise passenger movements, Mr. Giménez wrote.
An additional $64 million will be spent to further improve the cargo yard as part of an amended operating agreement – $42 million paid by the county and $22 million by Terminal Link.
The county’s share, Deputy Mayor Jack Osterholt wrote, will come from the port’s capital budgets through 2021 using proceeds from unsecured money-market securities, capital reserves, bond proceeds and grants.
County-funded improvements include infrastructure for a new electric rubber tire gantry system with busbars, relocating an entry gate, acquiring and transporting four temporary diesel rubber tire gantry systems, and $3 million minimum from the county toward construction of a Terminal Link maintenance and repair facility.
Terminal Link is to pay for all design costs, 12 electric rubber tire gantries, construction of an administrative building and construction costs of the maintenance and repair facility exceeding the county’s contribution.
The project will be substantially complete in October 2020, Mr. Osterholt wrote. After that, Terminal Link’s land rent will be reduced “in accordance with per-acre rent amounts set forth in the original agreement, which will result in a reduction of the land rent received by the county [of about] $1,559,448 per year.”
Despite having less space with which to work – about 60.62 acres compared to 80.62 acres now – Terminal Link agreed to increase its minimum volume per acre by 1,000 20-foot equivalent units (TEUs) for an anticipated yearly fiscal impact of $250,750.
Miami-Dade commissioners in July 2008 approved the original agreement with Terminal Link that included leasing the company 71.32 acres, guaranteeing throughputs of 2,750 TEUs per acre, escalating throughput guarantees and TEU rates, guaranteed minimum crane rental revenues and escalating land rental rates.
The agreement also committed both Terminal Link and Miami-Dade to work together to construct a fully functional rubber tire gantry system, which would make the terminal area denser and increase its capacity, within two years of its execution.
Almost precisely eight years later, commissioners adopted an amendment to the original agreement that expanded the lease area to about 80.62 acres and further increased guaranteed cargo volumes and revenues.
Miami-Dade will reduce Terminal Link’s rent to account for the 20 fewer acres once electric rubber tire gantry improvements are done, according to Mr. Osterholt, who wrote that Terminal Link’s preferential gantry crane access will increase by one crane if the county gets two more or by two cranes if the county gets at least three.
Seaport staff members monitoring the new agreement include Juan Kuryla, port director and CEO; Hydi Webb, deputy director; Andy Hecker, assistant port director and CFO; and Elizabeth Ogden, assistant port director of capital development.