THE PORT EVERGLADES DEPARTMENT RECOMMENDS APPROVAL.
This item supports the Broward County Board of County Commissioners' Value of "Ensuring economic opportunities for all people and businesses in Broward" and Goal to "Increase the economic strength and impact of revenue-generating County enterprises balancing economic, environmental, and community needs."
On June 6, 2017 (Item No. 44), the Board approved an Agreement between Broward County and Shanghai Zhenhua Heavy Industries Co., Ltd., Inc. d/b/a ZPMC, for Low Profile Super Post Panamax Container Handling Gantry Cranes, for the Port Everglades Department, in the initial amount of $41,400,000 for three cranes, with an option to purchase up to three additional cranes in the potential maximum amount of $55,103,400, for a total contract amount not-to-exceed $96,503,400. Port staff intends to issue the first Notice To Proceed for design and construction of the first three cranes in December 2017.
The Florida Department of Transportation (FDOT) has approved the disbursement of $6,000,000 in Fiscal Year 2017/2018 Strategic Intermodal System (SIS) Growth Management grant funds for the first three gantry cranes through this Joint Participation Agreement (JPA), which requires matching funds from Broward County in the amount of $6,000,000. With the execution of this JPA, total project cost covered by the JPA is $12,000,000, with FDOT providing 50% of the funding. The JPA provides that FDOT will reimburse the County for up to 60% of the grant amount ($3,600,000) after the cranes have been delivered, and the remaining 40% ($2,400,000) at final acceptance of the new cranes. Port staff anticipates delivery of the first three new cranes in Summer 2019.
The completion of this project is needed for Port Everglades to more efficiently accommodate the larger Neo Panamax vessels that are already arriving at the port through the Panama Canal and from Europe. The new cranes will have the ability to handle containers stacked eight units high and reach across 22 containers on a ship's deck. By adding the three new gantry cranes, Port Everglades will remain competitive with other ports, and be able to market to ocean carriers on East-West and North-South trade lanes.
The JPA is written in the standard FDOT format and has been reviewed by the Port Everglades Risk Manager and approved as to form by the Office of the County Attorney. FDOT will execute the JPA after County approval.
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