THE PORT EVERGLADES DEPARTMENT RECOMMENDS APPROVAL.
This action supports the Board of County Commissioners' Value of "Ensuring economic opportunities for Broward’s diverse population and businesses" and Goal to "Increase the economic strength and impact of revenue-generating County enterprises balancing economic, environmental, and community needs."
On March 31, 2017, Port staff received a request from Horizon Terminal Services, LLC (Horizon) to relocate from their current 5.73 acre grid parcel in Southport and to negotiate a lease for a 6.5 acre marine terminal site and adjacent warehouse space in Midport vacated by Chiquita on March 1, 2017, as part of their lease termination agreement approved by the Board on January 24, 2017 (Item No. 12) (see Exhibit 1). Horizon is interested in a long-term Marine Terminal Lease and Operating Agreement in order to invest $450,000 – $750,000 at the proposed leasehold site for a new auto processing facility. This facility would generate additional new business for Port Everglades and could create up to 25 local direct jobs, depending on the growth in vehicle throughput.
Horizon is a wholly-owned subsidiary of Höegh Autoliners (Höegh), a port and terminal operator and auto processor headquartered in Jacksonville, FL. Höegh is one of the world's leading "roll on/roll off" vessel operators, carrying two million standard car units annually worldwide. In early 2016, Horizon purchased SC Line/Fast Terminals, which operated at Port Everglades on a 5.73 acre grid parcel in Southport since 2012. The acquisition of the terminal business was part of their strategic investment in the Caribbean and Central American markets by Höegh. Horizon has identified Port Everglades as the natural choice for auto Original Equipment Manufacturers (OEMs) for both import and export of motor vehicles.
Horizon's current Southport grid site has a capacity to handle approximately 15,000 cars, heavy machinery, and other pieces of equipment annually, and Horizon projects the potential for an increase to 40,000 – 45,000 vehicles and other equipment types annually over the next five years. Its relocation to a larger parcel in Midport will allow for a more efficient operation to absorb some of this growth. Further, there are Port Tariff authorized grid parcels in Midport that could also be assigned to Horizon to provide additional space for its operation, as is needed.
The new Midport location is ideally suited for this type of operation as it provides direct access between the cargo yard and Berth No. 29. The extremely short driving distance between these two areas, and the ability to move vehicles without driving on a public roadway, reduces the possibility of damages to vehicles and limits the number of driving miles recorded on the odometers. These two factors are known to be very important to the manufacturers of new vehicles, both import and export. In addition, with the limited berth availability in Southport due to an increase in containerized cargo operations, the move of Horizon's operations to Midport will also benefit the port by shifting the berthing of the Höegh "roll on/roll off" ships to Midport as well.
Horizon is currently importing new vehicles, arriving every two weeks, on a new vessel service delivering an average of 300 new General Motors (GM) vehicles from Mexico. Over 1200 vehicles have been imported since operations started at the end of May 2017—these are the first shipments of new imported vehicles to move through the port in many years. GM is reportedly extremely happy with the service, and is planning for future growth at Port Everglades. Horizon also recently began exporting new Honda vehicles manufactured in the US, arriving by both truck and rail through Port Everglades. Horizon expects to export 250-500 new vehicles every two weeks. Exports moving through Port Everglades create additional job opportunities and support the US balance of trade.
No other port users have shown any current interest in leasing this parcel in Midport. Thus, Port staff recommends approval of a waiver of the competitive selection process and authorization for negotiations with Horizon. The resulting negotiated agreement will be presented to the Board to conduct the required public hearings and approval. |