THE PORT EVERGLADES DEPARTMENT RECOMMENDS APPROVAL.
This action supports the Broward County 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 November 15, 2017, Port staff received a request from A.G.Royce Metal Marketing, LLC, d/b/a Concrete Reinforcing Products (CRP), to negotiate a lease for marine terminal land at Port Everglades (see Exhibit 1). CRP is interested in leasing three to five acres of land in the Southport area at Port Everglades for a two-year term. CRP is headquartered in Sunrise, FL, and is a national distributor of steel reinforcing bars used for construction projects. Port Everglades has been its primary port of importation for the past 20 years, however their cargo moves through the port on land arranged through franchised stevedores and cargo handlers. In 2016, CRP imported and distributed over 200,000 metric tons of steel reinforcing bars through Port Everglades, which accounted for approximately 35% of the Florida market, and reported paying $731,000 in cargo wharfage charges and $251,000 in cargo storage fees to Port Everglades. This was an increase from approximately 130,000 metric tons of steel products moved through the port in 2014, and 170,000 metric tons in 2015.
CRP's request for a lease was prompted in part by recent changes in Port Everglades Tariff No. 12 which became effective on October 1, 2017, that reduced the length of time that break-bulk steel and lumber cargo can be staged at the port before cargo storage and demurrage charges apply. As the beneficial cargo owner of the imported steel products, using leased land will provide CRP with more flexibility for inventory management. Leasing land in Southport near the Florida East Coast Railway's (FEC) project cargo rail spur on port property will also provide more flexibility to CRP for handling domestic steel shipments by rail.
Section 32.4.h. of the Broward County Administrative Code requires a competitive selection process for marine terminal leases and operating agreements, however Section 32.10 of the Code authorizes the Board of County Commissioners to waive that requirement for good cause. Given that CRP has been a long-term port user and beneficial cargo owner, but is now interested in entering into its own Marine Terminal Lease and Operating Agreement, the Port Everglades Department staff recommends approval of a waiver of the competitive selection process and authorization to enter into negotiations with CRP that would lead to a new Agreement that will be presented to the Board for approval.
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