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 the Goal to "Increase the economic strength and impact of revenue-generating County enterprises balancing economic, environmental, and community needs."
Crowley Liner Services, Inc. (Crowley), has held nonexclusive stevedore and cargo handler service franchises at Port Everglades since July 24, 1986. These franchises were granted originally by the Port Everglades Authority (PEA) in the name of Crowley’s predecessor, Trader Marine Transportation Corporation, for a two-year term and were subsequently renewed by the PEA for a ten-year term on July 23, 1988 (Item No. 1-PH). The company changed its name to Crowley American Transport, Inc., on August 1, 1992. The most recent renewal of the franchises were granted on June 10, 2008, (Item No. 14-PH) by the Broward County Board of County Commissioners (Board), successor in interest to the PEA, in the name Crowley Liner Services, Inc., for a ten-year term commencing on July 24, 2008, and ending on July 23, 2018. Crowley has submitted an application for renewal of its nonexclusive stevedore services franchise for a ten-year term, from July 24, 2018, through July 23, 2028. Crowley’s has also submitted an application for renewal of its nonexclusive cargo handler services franchise which is the subject of a separate agenda item.
Crowley was incorporated in the State of Delaware on October 23, 1956, and is authorized to do business in the State of Florida. Crowley provides stevedore and cargo handler services for its company owned and chartered vessels, directly employing 200 administrative and labor employees in its terminal operation at Port Everglades. Crowley is Port Everglades' largest container terminal tenant. It is an important container carrier in Central America and the Caribbean, offering multiple sailing in both regions. Crowley is the largest carrier in the Central American market place, and well known in the industry, using both rail and truck for distribution in Port Everglades. Crowley is headquartered in Jacksonville, Florida. In Fiscal Year 2017, Crowley accounted for approximately 34% of Port Everglades' containerized cargo activity.
Port staff has reviewed the stevedore services franchise application against the enumerated renewal criteria set forth in Chapter 32 of the Broward County Administrative Code. Staff’s due diligence included corresponding with Crowley’s representative to clarify franchise requirements and reviewing of Crowley’s corporate status, resumes of executive staff and list of managerial personnel, business history/experience, litigation history, insurance, financial documents and creditworthiness, discharge of previous financial obligations to County, compliance with all franchise terms and conditions, required licenses and certificates, company programs and policies, list of equipment to be used at Port Everglades, statement of intended activities, and actions to promote and develop business growth at Port Everglades. No false or misleading information was submitted as part of the franchise application. In addition, Crowley's safety and environmental history was reviewed, and no infractions were found.
Based on the review of information provided in the application, staff has determined that Crowley meets the criteria for renewal of a stevedore services franchise. Stevedore services franchises may be granted for any period of time up to ten years. Past practice has been for staff to recommend granting the renewal of a stevedore services franchise for a term of ten years. Accordingly, staff is recommending that the franchise be renewed for a ten-year term. The complete application and supporting documents are on file in the Port Everglades Business Administration Division.
To allow for a more efficient franchise approval process, the Resolution granting a franchise (see Exhibit 1) has been modified to incorporate the franchise terms and conditions previously included in the franchise agreement, thus eliminating the need for a separate franchise agreement. Crowley has, through the submission of the signed franchise application, agreed to comply with all franchise conditions set forth in Section 32.24 of the Broward County Administrative Code and in the Resolution. Once the Resolution is approved by the Board, the Port will, pursuant to Section 32.27 of the Broward County Administrative Code, issue a franchise certificate setting forth the terms and conditions of the franchise.
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