by Mike Sharkey
Staff Writer
The Mitsui O.S.K. Lines terminal isn’t anywhere near completion, but it’s already having an effect on the Jacksonville Port Authority. Late last month, the Port Authority submitted a record budget of almost $350 million for City Council approval.
The budget is up 67 percent from last year and, according to Ron Baker — the Port Authority’s deputy executive director and chief financial officer — reflects both operational and capital expenditures.
“Previous years have not seen some of this capital development,” said Baker. “We are building a $240 million terminal. This budget certainly is a record by a significant amount.”
Baker said this year’s budget without the Mitsui terminal would have been higher than in previous years. He said revenue from the Port Authority possibly taking over operations of the Mayport Ferry and the TraPac and Rinker Aggregate terminals have all been figured into the 2007-08 fiscal budget.
Last year’s budget was a little over $200 million and the Port Authority executed that budget with 159 full-time employees. This year’s budget of $346-plus million also contains funding for 159 employees.
“Truthfully, we have gotten along with the staff we have by hiring smart,” said Baker, explaining that when most are hired they join the Port Authority understanding the necessity to wear multiple hats. Baker said he expects the Port Authority to begin adding to its staff in the near future. “It’s high time to start thinking about what to do next.”
According to the budget, the Port Authority is projecting $49.1 million in operating revenues with $33.1 million in operating expenditures for a net operating income of a little over $16 million. The capital side of the budget includes six line items worth a little more than $293 million, that’s an increase of almost $130 million — or 79.44 percent — from last year.
Of the Port Authority’s expected operating revenues of $49.1 million, most of that is in the form of containers ($24 million) and automobiles ($10.9 million). Salaries ($10.7 million) constitute a majority of the Port’s operating expenses.
Baker said next year’s budget may be in the same range. Some of the Mitsui funding will still be included and there may be two other major terminal projects on the books. Baker declined to name the company, but he said the Port is currently negotiating with another major carrier.
“I’m optimistic,” he said.
While the Port Authority employs 159 people, Baker said the most recent survey of Port tenants indicated between 45,000 and 50,000 people actually work at the Port.
“That’s directly, indirectly or induced,” said Baker. “We need to do a fresh study since we have been growing so much. It’s like a small city over where they are building the terminal.”
Baker also said the most recent survey conducted indicated the Port has a $3 billion economic impact on the area. Like the employee survey, Baker said that figure is likely outdated and inaccurate.
“I’m certain that two large terminals later it’s substantially more than that,” he said.
Baker said the Port’s ranking depends on the commodity being considered. While New York and New Jersey are tops in moving automobiles, Jacksonville is moving up the list.
“Once we have these new terminals on line, clearly we will be ahead of the competition in the Southeast,” said Baker.