by Mike Sharkey
Staff Writer
Change may be what led Jacksonville Port Authority Board Chair David Kulik to ask the Port’s management team to immediately begin a new feasibility study on retaining the cruise industry in Jacksonville.
Change in the economy.
Change in the status of the Hanjin cargo terminal.
And, possibly, change in the mindsets of those opposed to a new terminal in Mayport.
Kulik made the request Monday during the Port Authority’s monthly board meeting. He stressed he’s asking JPA CEO Rick Ferrin and his staff to look into the idea and shied away from suggesting any particular sites.
“If we do not act soon, the decision will be made for us,” said Kulik.
One Mayport business owner has supported moving the cruise terminal from Dames Point to Mayport since day one.
“I support it 100 percent and always have. I wish it was here already,” said Safe Harbor Seafood owner Gerald Pack in a telephone interview after the meeting, which he did not attend.
A lifelong fisherman and beneficiary of the seafood industry, Pack said new federal regulations over the fishing industry have almost crippled his business.
“I am one breath away from closing,” he said.
Pack said those opposed to the cruise terminal, if Mayport is deemed the proper site, should stay out of the debate.
“Most of those who have an opinion don’t have a pair of flip-flops in Mayport. They don’t own property out here. They just have an opinion,” said Pack.
“I am totally for business. How can you have 180,000 people drive by and not get some business? How can people want to leave it (Mayport) like it is? It will create jobs, temporary jobs they may be, but right now go out and try to find a job. It’s not that easy,” he said.
Pack thinks opinions might have changed. “I think they are more receptive now than six months ago,” he said.
The Port Authority owns enough property in Mayport to build the terminal and support buildings.
No one attending the meeting spoke publicly in opposition to the study.
Kulik said the decision a year ago by then Port Authority Chair Bill Mason to essentially scrap the cruise terminal talks made sense. The worldwide economy was in shambles and no one knew when things would turn around. However, Kulik said, the cruise industry has shown resiliency, especially in Jacksonville.
“There’s an improved image of Jacksonville not as just a great port city, but as a cruise terminal. This is a critical juncture for us,” he said.
“Good ports, the ones with the best reputations in the world, can do both (cargo and cruise business). It is also critical because of competition,” he said.
According to Kulik, Hanjin and International Longshoreman’s Association officials have met and he expects a deal to be reached soon.
“We feel very confident they are going to come to an agreement,” he said, adding about two years after the engineering study on the Hanjin terminal is complete, demolition on the current cruise terminal will begin.
“Two years go by in a flash. We need to start thinking about what to do with the cruise terminal because we can see into the future and the future says we will demo the cruise terminal,” he said.
According to Port Authority spokesperson Nancy Rubin, the current contract with Carnival expires in May of next year. Ferrin said Carnival officials understand the situation in Jacksonville with both the Hanjin deal and the undecided cruise terminal location. While Carnival may be willing to temporarily put business on hold out of Jacksonville, Ferrin said they won’t be willing to do so for very long.
“If the cruise terminal is ready in June of 2012, there will be no gap in service,” said Ferrin. “That means we would have to be under construction in the next six months.”
Kulik said it’s the board’s job to provide direction for Ferrin and staff. He also understands the port’s role in the local economy.
“It’s the board’s responsibility to provide economic value for the area. The cruise terminal has proven to be an economic engine and has created jobs. It’s a very challenging project,” he said.
“There will be no questions unanswered, no details unresolved and person unheard as we conduct the study,” he said.
The board eventually approved the study, but not before Kulik reminded everyone nothing is final no matter what the study indicates.
“This is not a vote on a cruise terminal, it’s not a vote on a site,” he said. “It’s just directing the management to conduct a new feasibility study.”
Kulik also said 2010 is starting off very well for Carnival. Even as the economy continues to show signs of struggling, the line reported profits of $175 million the first quarter of the year.
“That’s less than the previous quarter,” he said, adding Carnival had to reduce prices to attract business. “It’s a very dynamic industry.”
An economic impact study from last year indicated there are nearly 500 cruise-related jobs in the area and the industry has an annual economic impact of $67 million.
In other news from the meeting:
• The board approved $489,500 to repair a crane at Blount Island. The crane, which is 20 years old, was inspected in August and found to have damage due to stress and corrosion.
“It’s one of our important assets at Blount Island and has been down for some time,” said COO Chris Kauffmann.
• That crane isn’t the only infrastructure that needs work now or will in the future. Last month, uneven displacement of an expansion joint under a crane rail beam was detected. Superior Construction will repair the 800-foot section for $436,915, but more issues may need addressing.
“We need to look at budgeting more such repairs since some of our system is 50 years old,” said Kauffmann, adding the Port Authority has the funds in its capital budget.
Ferrin said much will have to be done over the next decade.
“Most of the infrastructure at Blount Island is 30-40 years old. We have the same situation at Talleyrand,” said Ferrin. “Over the next 10 years there is at least $100 million worth of refurbishing and berth work that has to be done.”
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