There is no doubt in Brian Taylor’s mind that Jacksonville’s main shipping channel along the St. Johns River should be increased in depth from the existing 40 feet to 47 feet.
Taylor, CEO of the Jacksonville Port Authority, told the Rotary Club of Jacksonville on Monday that if Jacksonville’s port is to remain competitive and build on its past success, deepening the channel to accommodate larger vessels is critical.
He said a deeper shipping channel is the authority’s No. 1 goal.
“We need 47 feet of water if we are to maintain the relevance we already have achieved,” Taylor said. “If we don’t have 47 feet of water, we’re taking ourselves out of the game.”
Taylor said Jacksonville is “built already to be a global transportation hub” with the combination of the port, roads, highways and rail lines serving North Florida.
“We’re the westernmost port of the East Coast and 60 million consumers are within a one-day truck drive” from Jacksonville, he said.
He also cited JaxPort’s diversity of shipping business, which has contributed to annual growth for the past 13 years. Taylor said Jacksonville has a balance of export and import business through the port, 49 percent export and 51 percent import.
When he introduced Taylor, admiralty and maritime law attorney George Gabel said the maritime industry is changing more rapidly than any other industry based on the widening and deepening of the Panama Canal and the shift to a global economy.
Taylor said there are two ways to handle that change.
“You can either be swept up in change and take advantage of it, or you can be swept out by change,” he said.
One of the most noticeable changes at JaxPort over the past five years is the amount of business it does with companies in Asia and the Pacific region.
“Five years ago, we had one carrier from Asia and the Pacific. Today, we do business with 16 of the 18 carriers that serve Asia and the Pacific,” Taylor said.
JaxPort’s business with Asia increased by 18 percent last year and now accounts for 26 percent of the port’s business, he said.
Taylor estimated that 14,000 jobs would be created over the next 20 years if the channel is deepened to 47 feet.
The U.S. Army Corps of Engineers has approved a plan to deepen the channel. The proposal is before the federal Civil Works Review Board.
If the plan is approved by the board, the project would qualify for funding from the federal government, which would be appropriated by Congress.
Taylor said as of Feb. 25, the cost for deepening the channel to 47 feet would be $684 million. With the federal government funding 65 percent of the budget, that would leave a balance of $371 million. Assuming 50 percent of the remainder would be provided by the state, there’s still a balance of more than $185 million that would have to be found before the project would be fully funded.
“It’s up to us to figure out how to fund the balance of the project,” Taylor said.
Assuming each step is accomplished as soon as possible, he said it would be 2019 or 2020 before the project would be complete.
Asked why 47 feet is the “right number” for the depth of Jacksonville’s shipping channel, Taylor said that depth is what is required by the new generation of larger vessels that require more water under their keels.
“Forty-three percent of the global container fleet on order (vessels under construction but not yet in service) draft 47 feet or greater,” said Taylor.
Asked about possible detrimental environmental impacts of the project, Taylor said the Army Corps of Engineers has determined there would be no environmental impacts associated with the project that could not be mitigated.
He realizes the project won’t please everyone.
“No matter what we do, we will never satisfy all the constituent groups. It’s all about balancing the need to grow against protecting the environment,” Taylor said.
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