Page 28: of Maritime Logistics Professional Magazine (May/Jun 2017)

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Port Finance

One of most successful public-part- ner partnerships has been with the

Florida East Coast Railway and the

State of Florida. – Steven Cernak, Port Everglade’s

President and Chief Executive Offcer

Credit: Broward County’s Port Everglades with an option for another 20 years. IWS will be one of the an- United States: The World’s Largest Emerging P3 Market: chor tenants of the project.” He added, “Port Everglades will Rebuilding America’s Infrastructure,” the future of P3 struc- be providing a milestone payment of $3 million which is es- tured transportation and infrastructure projects is painted as sentially to accommodate the site work required on the project the way forward for many reasons. But, if the U.S. Depart- as well as other needs. The Port has been very cooperative in ment of Transportation (USDOT) defnes P3s as “contractual working with our group to allow private fnancing, but has not agreements formed between a public agency and a private sec- provided any other funding mechanism.” tor entity that allow for greater private sector participation in the delivery and fnancing of transportation projects,” then the

The ABC’s of PPP’s AIG advice that “All private sector participants will be chal-

For all the publicity and attention given this unique type lenged to accept risk beyond their comfort zone and what had of fnancing today, Mr. Cernak stressed that port executives traditionally been the regime in other project delivery meth- are still learning about the structuring of P3’s and that go- ods; and a signifcant portion of that risk, will not be trans- ing forward, collaboration would be the key to future suc- ferrable to conventional insurance coverage,” should be given cesses. “Public-private partnerships are both a challenge and equal attention. an opportunity,” he insists, adding, “We must come together to In the end, a lot of good is coming from new and innovative share experiences on benefts and risks that will help us prog- fnancing packages, especially where it involves ports and in- ress in developing P3s and attract future investments.” Sepa- frastructure. But, warns AIG in the same white paper, “P3s are rately, TFIC’s Swanson offered that “P3 projects are essential never going to be enough to supplant government spending, to the growth and effciency of Port operations. Used properly but government expenditure is no longer enough if the break- by both private and public entities, P3’s can be effective tools down of vital public facilities is to be reversed.” A cursory for the execution of Port master plans and operations.” look at the state of the infrastructure on our inland waterways

In a recently delivered AIG white paper entitled, “The probably makes that clear enough.

28 Maritime Logistics Professional May/June 2017 | |