The Jacksonville Port Authority was able to keep its seventh-ranked, by revenue, tenant June 17 by signing Sea Star Line to a 20-year contract extension.
JaxPort’s board of directors unanimously approved the contract, which includes options for two 10-year terms at Sea Star’s facility at the Blount Island Marine Terminal.
“They were looking to expand their facility and they had offers to go to some other ports, some of our competitors, and they chose to stay here,” said Michael Poole, chief financial officer for JaxPort.
Poole reported Sea Star, at $3 million annually, is JaxPort’s seventh-highest revenue-generating tenant. The company has operated at the port since the early 1990s. It is a subsidiary of Tote Inc. and provides service from the U.S. to the Caribbean.
“We look forward to many, many more years serving Puerto Rico and the U.S. Virgin Islands through the port at Jacksonville,” said Peter Keller, Sea Star president.
The company plans to increase its annual cargo volume and its corporate environmental responsibility with the purchase of two new container ships powered by liquefied natural gas.
The first ship is scheduled to be in service by late 2015 and the second by early 2016.
“These are some of the most environmentally-friendly ships ever built and they will serve us for the next 40 years,” said Keller.
The lease states Sea Star will guarantee a minimum throughput of 950,000 short tons, each of which is equal to 2,000 pounds.
The company will pay the port a fee of $3 per short ton, which would generate nearly $3 million in the first year of the contract.
The fee is scheduled to annually increase, “by the same percent of increase that occurred in the Consumer Price Index for the 12-month period that ended three months just prior to February 1,” according to the terms of the lease.
Poole projected the lease to annually generate $3 million to $4 million in the early part of the lease and $5.3 million to $6 million in the latter part of the lease.
JaxPort also is negotiating a new lease with Trailer Bridge Inc., which is based in Jacksonville and ships out of the Blount Island Marine Terminal.
“We are looking at a potential 10-year contract with the facility that they are already located at on Blount Island,” said Roy Schleicher, interim CEO of JaxPort.
Trailer Bridge is JaxPort’s ninth-best revenue generating tenant, annually contributing $2.4 million.
Trailer Bridge serves Puerto Rico and the Dominican Republic from its facility. The company transports products including food, furniture, appliances and automobiles.
Trailer Bridge emerged from bankruptcy in March 2012 with the assistance of investors Seacor Holdings Inc. and Whippoorwill Associates Inc.
The board approved its proposed fiscal year 2013-14 budget with a 6-0 vote.
JaxPort is predicting a 4.4 percent increase in revenue to about $56 million and a capital budget of about $122 million.
The capital budget funding includes $25.5 million from JaxPort, $82.7 million from the state, $12.2 million in federal funding and $1.2 million from tenants.
As an independent authority of the City, JaxPort is required to submit its budget to City Council by July 1 for review.
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