THE PORT EVERGLADES DEPARTMENT RECOMMENDS APPROVAL.
This action supports the Board of County Commissioners' Value of "Ensuring economic opportunities for all people and businesses in Broward" and the Goal to "Increase the economic strength and impact of revenue-generating County enterprises balancing economic, environmental, and community needs."
Coleary Transport Company, Inc. (Coleary), was incorporated in the state of Florida on April 18, 1985. Coleary held stevedore, cargo handler, and steamship agent franchises at Port Everglades since November 5, 1992. In April 23, 2010, the company voluntarily surrendered its franchises due to its decision to cease operations. On November 16, 2012, Coleary reinstated the corporation. On February 26, 2013 (Item No. 1–PH), the Broward County Board of County Commissioners (Board) granted a stevedore franchise to Coleary for a one-year term commencing February 26, 2013, and ending February 25, 2014. A renewal was approved by the Board on January 28, 2014 (Item No. 4-PH), for a ten-year term commencing February 26, 2014, and ending on February 25, 2024. Coleary also holds a ten-year cargo handler franchise (expiring on February 25, 2024) and a five-year steamship agent franchise (expiring on February 25, 2019) at the Port. Assignment of these franchises is the subject of two separate Agenda Items.
On May 15, 2017, staff received a letter from Coleary's legal representative requesting the assignment of Coleary's franchises at Port Everglades to Logistec USA, Inc, for the remainder of the franchise term (Exhibit 6). Logistec Everglades LLC (Logistec), was formed as the result of a joint venture between Coleary and Logistec USA, Inc.
The Logistec Corporation, founded in 1952, is a global leader in the cargo-handling industry and provides innovative, comprehensive industrial solutions to specific markets. It is a publicly traded company with operations in marine services and environmental services in over 30 ports and 48 terminals across North America. The merger of the two entities-Coleary and Logistec Corporation-will increase opportunities for Logistec Everglades LLC to develop growth in the business activities of the Port.
Port staff has reviewed the assignment application pursuant to the Broward County Administrative Code and has determined that the proposed assignee meets the criteria for assignment, and that the proposed assignment is in accordance with past practice. Staff’s due diligence included corresponding with the proposed assignee's representative to clarify franchise requirements, and reviewing the proposed assignee's corporate status, business history/experience, litigation history, insurance, financial documents and creditworthiness, required licenses, company programs and policies, and statement of intended activities. In addition, no safety or environmental violations were found in reviewing the company’s record.
The franchise agreement has been reviewed by the Port Everglades' Risk Manager and approved as to form by the Office of the County Attorney. The complete application and supporting documents are on file in the Port Everglades Business Administration Office. |