Tampa's seaport told to dredge now for future
Tampa's seaport shipping business could boom a decade from now if officials get ambitious about the arrival of larger cargo vessels, according to a draft strategic plan presented Tuesday to Port Authority leaders.Commissioners were told it could cost as much as $1 billion in private and public money to dredge nearby shipping channels and build facilities to handle commercial container cargo traffic expected to increase in 2015. The business opportunity stems from the recent approval of a massive expansion of the Panama Canal. Construction during the next decade will allow significantly larger and deeper ships through the canal linking the Pacific and Atlantic oceans.
Today, 25 percent to 30 percent of container ships from Asia come through the canal, port Director Richard Wainio said. The expansion could increase to 50 percent the number of ships heading through the canal, which is 1,200 nautical miles from the Port of Tampa. "Tampa is extremely well-positioned to take advantage of that," said Michael Horton, vice president of Moffatt & Nichol, the consulting firm that prepared the report looking at the port's business potential for the next 20 years.
Getting the bigger, more lucrative ships into Tampa Bay would require dredging channels at least 50 feet deep - a costly proposal requiring significant review from local, state and federal agencies. "We clearly are not looking at funding it on our own," Wainio said. "It won't be done without that major private sector involvement." Commissioner Steve Pinney said he's skeptical that the Panama Canal project will be done by 2015. Still, Tampa officials need to see the plan as more than a way to cover lost revenue from phosphate or other products. "We should not look at replacing businesses," he said. "We should be looking at growing business." It's been almost a year since Moffatt & Nichol were asked to evaluate market potential for the Port of Tampa and its areas of business: cargo, cruise, ship repair and development. Their review included extensive meetings with 317 port-related businesses. The port's strategic plan should be complete in several months. Economic consultant Jeffrey Sweeney estimated the port's business service economic contribution at $1.5 billion. The marine terminals, shipyards and cruise terminals also were responsible for more than 16,000 direct jobs.
Tuesday's report highlighted market assessments, facility needs and short- and long-term options for the port. In addition to the significant recommendations involving container cargo, the consultants expect: The local cruise market - limited by the height of the Sunshine Skyway - to be affected by an industry introducing new vessels too long and tall to sail safely under the bridge. A gradual decline in phosphate exports, spurred by drops in major market demand and cheaper international production. Other drops could come in scrap metals, citrus products and general cargo. Ship repair to continue to contribute, though its success depends on local markets and competition. Horton said some labor consolidation and outsourcing should take place. Construction materials such as concrete and aggregates, steel and lumber should increase, as should petroleum product imports.
Wainio said the opportunity to tap into the popular container shipping market exists today. This year, more than 25,000 containers arrived through the Port of Tampa, but more than 1.1 million containers arrived in Central Florida during the same period. While the Port of Tampa got its first direct cargo service from China this year, there's potential to tap more companies that ship by land or other nearby ports. "There's a major, major market out there if we can even capture a small part of it," said Wainio, who expects the port to handle 45 million to 50 million tons of cargo annually for the next few years.