The Port of Miami expects its share of trade with Asia will increase by about 15% following the opening of the USD5.25 billion Panama Canal extension next year.
“After the extension to the Panama Canal opens, southeast United States will capture up to 400,000 additional moves and this makes it a highly competitive market for us,” Kevin Lynskey, assistant director of PortMiami told IHS Maritime.
PortMiami invested USD1.6 billion in infrastructure development over the past four years, primarily aimed at capturing a greater share of Asian trade, which currently accounts for 35% of the port’s total throughput. With the canal extension, that share is expected to rise to 50%.
“When the extension opens, our primary opportunity is in the consumer zone from Orlando to Atlanta. Currently, over 60% of Asian cargo for Orlando comes through a non-Florida port. There is little question that after expansion we’ll get a bigger piece of this business,” Lynskey said.
Orlando is currently served primarily by the Port of Savannah followed by Los Angeles and Long Beach. Atlanta is primarily served by ports on the west coast.
A USD250 billion project to deepen the harbour was completed this summer and it is now possible for any ship that can fit through the extended Panama Canal to berth in PortMiami. A USD48 billion on-dock rail with 9,000 loadable feet is also complete, as well as an 800 m twin-tube tunnel to provide better road connections to its hinterland. PortMiami has 13 on-dock cranes in place, six of which are super post-Panamax, with four more on order.
PortMiami booked 13% growth in throughput in fiscal year (FY) 2014/15 taking throughput beyond 1 million teu for the first time. The growth is mainly attributed to American trade as well as some pick-up in Asia trade.
Meanwhile neighbouring Port Everglades is targeting the cargo side of its business and planning significant capital investment in a number of key projects over the coming years.
“We have a very aggressive capital investment plan equating to around USD500 million over the coming five years and USD1.6 billion over the next 20 years,” said CEO and port director Steve Cernack. “Last year we got an upgrade in our credit, which puts us in a solid place to get funding and we are managing that position carefully in order to maintain it.”
The design phase of a project to widen and deepen the access channel has begun and the environmental requirements for the addition of five new berths are complete. Due to the proximity of the airport, the port has produced designs for new low-profile container cranes, which are awaiting approval from the Federal Aviation Administration.
“We are predominately a north-south trade port but an opportunity exists for expansion in east-west trade lanes,” said Cernack. “The Panama Canal gives us an opportunity to become more rounded in terms of the services we offer.”
After exceeding 1 million teu in throughput last year, Port Everglades expects about 5% growth in volumes in FY 2015/16.