by Bradley Parsons
Staff Writer
Jaxport rode an aggressive marketing campaign to its most profitable year in 2003 said spokesperson Robert Peek.
Peek said the port emphasized its access to rails and roads and its proximity to markets throughout the Southeast to draw millions in new shipping business to Jacksonville. As new imports like wood pulp came in, Peek said a quarter million tons of military equipment went out, pushing 2003 revenues to $31 million, up 12 percent from last year. Jaxport also trimmed $3 million from its operating 2002 budget, spending $17.3 million in fiscal year 2003.
Jaxport’s facilities allow its sales team to pursue a variety of clients, said Peek. Unlike Charleston, S.C., which is known mostly as a container depot, and Brunswick, known for cars, Jaxport spreads its business among the four major industry sectors. By accommodating automobiles, cargo containers, breakbulk — loose material like lumber and bulk phosphates, Peek said Jaxport insulates itself against downturns in any one sector.
Although Brunswick’s focus on shipping cars may have helped lure CLOVIS America, a company that ships Kia and Hyundai, away from Jacksonville last week, Peek said Jaxport’s commitment to diversity would remain profitable in 2004. CLOVIS plans to ship 130,000 cars through Georgia next year.
“It’s like diversifying your portfolio,” said Peek. “Some ports don’t move much cargo when people aren’t buying cars. We’ve had more of a mindset to go after what had been nontraditional cargoes, and it’s really paid off. It allows our port to take advantage of all the opportunities of the market instead of sitting on the sidelines.”
Peek said Jaxport saw increased shipping of cars, containers and breakbulk last year. The introduction of the Chrysler Crossfire pushed vehicle business up 11 percent, while new customer Liberty Woods, a plywood importer, helped increase breakbulk traffic by 1 percent. Peek said container traffic was also up 1 percent. Peek said Celebrity and Carnival cruise ships came to Jacksonville too late to make a difference in last year’s bottom line. He expected they would spend about $1 million at the port in 2004.
Jaxport began aggressively marketing its diversity and its regional advantages as part of a strategic plan, advanced in 2001 by the board of directors. By expanding the port’s customer base and making port employees more accountable for the money they spend, Peek said the plan helped keep Jaxport profitable through the recent economic downturn.
According to Jaxport’s financial report, 2003 marked the fourth consecutive year of growing revenues. The $17.3 million in expenses was at its lowest level in four years.
Peek said the board’s plan emphasized spending discipline. He said the $3 million in savings from last year was entirely attributable to his employees.
“We had an extra push last year to challenge our employees to hold the line on expenses and watch where we’re spending money whether its office supplies or oil and grease for our facilities, we’re making sure we’re spending only on needs.”
Peek said Jaxport was evaluating departmental budgets monthly as opposed to previous year–end reviews.
“If employees are going beyond their budgets, we’re making instant corrections,” he said.
In March, Jaxport’s discipline was rewarded. Moody’s Investor’s Services gave Jaxport an A2 rating, the industry’s second highest. Tampa and Miami received the same rating.
Peek said the rating would make it easier for the port to raise money for future capital improvement and provided an additional selling point to future potential customers.
“It engenders confidence in the industry; it shows we’re on good financial ground,” said Peek. “They look at how we run our finances as indicative of our operation as a whole.”