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 January 15, 2018, the Port Everglades Chief Executive/Port Director received a request from FRS-Fast Reliable Seaways, LLC (FRS) to enter into negotiations for an agreement to homeport its fast ferry SAN GWANN at Port Everglades to offer a year round passenger ferry service up to six days per week to Bimini, Bahamas (see Exhibit 1).
FRS has been operating this service from PortMiami to Bimini since 2016, having taken over the route formerly operated by Bimini Superfast, and is looking to relocate its operations to Broward County and Port Everglades. FRS projects a volume of up to 120,000 passengers per year through Port Everglades.
Port Everglades currently has another fast ferry and cargo service sailing to Freeport, Bahamas. Balearia Caribbean Ltd., Corp. (Balearia) has operated from Port Everglades since 2011, and the current Agreement approved by the Board on October 27, 2015 (Item No. 9) expires on November 30, 2020. Balearia currently operates from Berth and Cruise Terminal 1 in the Northport area of Port Everglades, however, Cruise Terminal 1 is scheduled to be demolished in early 2019 as part of the Convention Center expansion. Port staff and Balearia have been meeting for a number of months to discuss alternative operating arrangements since no other cruise terminal will be available to house its operations. The most recent discussions resulted in the identification of a site on the port south of Spangler Blvd. in the vicinity of the historic Customs House for the construction of a new facility separate from the berth area to receive and process embarking passengers before shuttling them to the assigned berth. Port staff will be continuing to meet with Balearia to develop this alternate operating plan.
The FRS Group is a 150 year old company headquartered in Germany that currently operates 64 ships in various passenger ferry trades in Europe, the Mediterranean, North Africa, and the northwest coast of the U.S. and Canada. The smaller size of their ferry, combined with the hours of arrival and sailing, provide more flexibility to use any of the Port's cruise terminals on any given day. However, due to the Port's existing contractual commitments to the cruise lines and Balearia and likely berth conflicts during cruise season, operating the service from Port Everglades will require the construction of a new facility on the port separate from the berth area to receive and process embarking passengers before shuttling them to the berth. Nevertheless, the potential for this new business opportunity at Port Everglades is most appropriately discussed through sunshined negotiations.
Section 32.10 of the Broward County Administrative Code authorizes the Board of County Commissioners to waive the competitive selection requirements of the Code for good cause. Given that FRS is proposing to provide six days per week passenger ferry service to Bimini, a service that is not currently provided from Port Everglades, and that they are a well established international company currently providing the service from PortMiami, the Port Everglades Department recommends approval of the waiver of the competitive selection process and authorization for the Chief Executive/Port Director to enter into negotiations with FRS. Any agreement resulting from those negotiations will be brought back to the Board for approval. |