Page 36: of Maritime Reporter Magazine (September 2017)

Ports Report “ “One of most successful public-partner partnerships has been with the Florida East Coast Railway and the State of

Florida.”

Steven Cernak, President & CEO, Port Everglades paid for 50% of design/construction (with completion in 2022) that includes AAPA, noted, “Together, we were able tion would be the key to future success- (handled by the construction division of dredging to deepen its entrance channel to build a 43-acre Intermodal Container es. “Public-private partnerships are both

Bouygues), originally pegged at around and turning basin from its present 42 feet Transfer Facility that can handle both a challenge and an opportunity,” he in- $670 million. The remaining 50% of the depth to 50 feet. The estimated $374 mil- domestic and international freight.” sists, adding, “We must come together to design/construction costs were divided lion cost is set to split mostly between In the new PE-ILC transaction, a long share experiences on bene? ts and risks up between Miami-Dade County (which the Federal government and the Port, time tenant at the existing FTZ, Interna- that will help us progress in develop- oversees the port in its role as a “land- with money generated solely from user tional Warehouse Services, Inc. (IWS) ing P3s and attract future investments.” lord”) and the City of Miami. The opera- fees. The state is contributing a small will be leasing a newly constructed fa- Separately, TFIC’s Swanson offered that tions and maintenance are subcontracted amount towards design. In late May, cility which will offer a wide range of “P3 projects are essential to the growth to a private “concessionaire” until 2044, Port Everglades announced plans for a logistics services, including 3PL ware- and ef? ciency of port operations. Used when ownership reverts back to FLDOT. $437.5 million expansion project where housing, government inspections and properly by both private and public enti-

According to the U.S. DOT, total capital new berths for larger vessels would be refrigerated storage. Eric Swanson, Flor- ties, P3s can be effective tools for the ex- cost of the project was $1.1 billion, and added (alongside an expanded turning ida-based Principal at Treadwell Frank- ecution of port master plans and opera- total payments (including annual “Avail- area), and crane rail infrastructure for lin Infrastructure Capital, LLC (TFIC), tions.” In a recently delivered AIG white ability Payments” paid each year to the new Super Post-Panamax cranes on or- described his ? rm’s role, saying, “TFIC paper entitled, “The United States: The private concessionaire) are estimated der would be added. is focused on the development of proj- World’s Largest Emerging P3 Market: to be $2.65 billion – much of it coming Port Everglades has now received ap- ects that are related to core infrastructure Rebuilding America’s Infrastructure,” from the state. The private investors – provals from Broward County for its such as seaports, airports and other tran- the future of P3 structured transportation insurance companies and pension funds Port Everglades International Logistics sit nodes. Our role is to structure, lead and infrastructure projects is painted as who have invested through the Meridiam Center, LLC (PE-ILC), a foreign trade and manage the transaction, including the way forward for many reasons. But,

Infrastructure North America Fund – see zone (FTZ) that will be completed in attracting the appropriate ? nancing.” if the U.S. Department of Transportation their return over decades. 2019, replacing an obsolete facility. The The deal’s structure sees a major pri- (USDOT) de? nes P3s as “contractual

Separately, and to accommodate the port, which encompasses Hollywood, vate component, with Swanson saying agreements formed between a public bigger post-Panamax vessels, a $220 Dania and Fort Lauderdale, is no strang- “The local partnership that includes agency and a private sector entity that million dredging project for deepening er to P3 arrangements. Steven Cernak, TFIC, IWS and ANF Group (a construc- allow for greater private sector participa- the channel to 52 feet, was paid for by the port’s President and Chief Execu- tion company) is doing the predevelop- tion in the delivery and ? nancing of trans- the state ($112 million), with Miami- tive Of? cer, said, “One of most success- ment work and will attract equity and portation projects,” then the AIG advice

Dade County investing the $108 million ful public-partner partnerships has been debt ? nancing to the project. The project that “All private sector participants will balance. The state also contributed $20 with the Florida East Coast Railway and is a 30-year lease with an option for an- be challenged to accept risk beyond their million, approximately half the cost of the State of Florida.” other 20 years. IWS will be one of the comfort zone and what had traditionally four new cranes, with a reach of 22 con- Mid-2014 saw the opening of an Inter- anchor tenants of the project.” He added, been the regime in other project delivery tainers, to serve the larger vessels. A re- modal Container Transfer Facility (near “Port Everglades will be providing a methods; and a signi? cant portion of that lated project – this one to improve inter- dock rail) that brings containers close milestone payment of $3 million which risk, will not be transferrable to conven- modal freight connections – linking the to the berths via the FECR, instead of is essentially to accommodate the site tional insurance coverage,” should be port with the rail network, was paid for draying them through a congested part work required on the project as well as given equal attention. In the end, a lot of jointly by the state, the Florida Depart- of Fort Lauderdale. In this deal, as de- other needs. The port has been very co- good is coming from new and innovative ment of Transportation (FDOT), and the scribed by the port, “Port Everglades operative in working with our group to ? nancing packages, especially where it

Port of Miami. TIGER grants played a contributed 42.5 acres of land … valued allow private ? nancing, but has not pro- involves ports and infrastructure. But, role in funding this project, and privately at $19 million. Construction costs are es- vided any other funding mechanism.” warns AIG in the same white paper, “P3s owned Florida East Coast Railway also timated to total $53 million, which will are never going to be enough to supplant provided capital. be paid through $18 million in grants The ABCs of PPPs government spending, but government

Further up the coast, at Port Ever- through FDOT’s Strategic Intermodal For all the publicity and attention giv- expenditure is no longer enough if the glades, which is operated by Broward System program, a $30 million FDOT en this unique type of ? nancing today, breakdown of vital public facilities is to

County, expansion is in the works. Fol- State Infrastructure Bank loan, and $5 Mr. Cernak stressed that port executives be reversed.” A cursory look at the state lowing a late 2016 authorization, the million from FECR’s capital plan. Cer- are still learning about the structuring of of the infrastructure on our inland water- port has embarked on an expansion plan nak, who is also Chairman-elect of the P3’s and that going forward, collabora- ways probably makes that clear enough.

36 Maritime Reporter & Engineering News • SEPTEMBER 2017

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