Largest containership to enter Florida port stopped at Jaxport

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MOL Bravo, the largest ship to port in Florida, at Jaxport.

The largest containership to ever visit a Florida port stopped June 24 at Jaxport and the TraPac Container Terminal at Dames Point.

The 10,100 container vessel MOL Bravo came from Asia via the Suez Canal. The cargo ship was not filled to capacity because it would sit too deep in the water

In May, the federal government committed $21.5 million to a project that would deepen the channel to 47 feet, which would accommodate more cargo-laden ships that sit deeper in the water. Construction is slated to begin early in 2018.

“When our harbor is deepened to 47 feet, a ship like the MOL Bravo will move twice as much cargo in and out of Jaxport,” said Dennis Kelly, regional vice president and general manager of TraPac Jacksonville

 

Major milestone for Jaxport: Deepening project receives first-ever federal construction dollars

Although the funding is just a fraction of the estimated $700 million or more the entire project will cost, it does represent a major milestone, as this is the first time Washington, D.C., has stepped forward with money for the deepening itself..

JaxportWe’ve crossed the goal line on this one,” said Eric Green, Jaxport’s interim CEO. “The entire conversation now has changed.”

In total, Florida has $238.3 million committed in the work plan. As well as the deepening money, North Florida projects include $3.2 million for beach nourishment in Nassau County and $3.3 million for nourishment in St. Johns County.

For Jaxport, the funding represents the culmination of a fight that has been going on for years, as the area first struggled to get the work authorized and then fought to get the money to pay for it. The deeper draft is necessary to bring fully laden container ships in at all tide levels, particularly when dealing with the larger ships that are now going through the Panama Canal.

The port embarked on the pre-construction, engineering and design phase of the project in 2014 — which also received federal funds — setting the stage for actual construction.

Plenty of unanswered questions still remain, including what the total price tag will be — the authority has mooted various options for the deepening project — and where the rest of the money will come from.

Green was unable to say exactly when those answers would be nailed down. In April, the City Council — one likely funding partner — asked for hard numbers by the beginning of June but agreed that that was not a hard deadline.

On Wednesday, Green committed to having answers “definitely” before the end of the year, with an eye toward work beginning in late 2017 or early 2018.

“We have this incredible vote of support from the federal government,” Port Authority spokesman Nancy Rubin said. “We still have to fully define the plan for the community.”

When the plan is rolled out, Green said, it will be fully formed, laying out exactly how much of the river will be dredged and where the funding will come from for each of the four phases the work is expected to be split into.

“We’re not going to start the project until we can show we have all the funding,” he said.

Logistics Industry Day

In conjunction with the Jacksonville Urban League, CareerSource Northeast Florida will host a Logistics Industry Day on May 9th. This events will spotlight current opportunities within the Jacksonville area and  provide job preparation training.  Please refer to the link below for more information and to register for the event.

Jax Urban League Logistic Day Registration

Crowley begins construction of new LNG bunker facility at Jaxport

       Courtesy of Jacksonville Business Journal reporter Junior Skeeple.

   Crowley Maritime Corp. and Eagle LNG Partners recently began construction of a new shore-side, liquefied natural gas (LNG) facility at Jaxport’s Talleyrand Marine Terminal. The LNG bunker fueling facility will serve Crowley’s new Commitment Class, LNG-powered, combination container/Roll-on Roll-off ships, which are under construction for use in U.S to Puerto Rico trade.

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Within the month, Chart Industries is expected to deliver two of its new, 1-million liter Decinske Giant cryogenic tanks for LNG storage at the site. Crowley is investing more than $550 million in two new innovative ships, along with a new 900-foot pier. Also, Crowley has invested in three new gantry cranes and improvements at its Isla Grande terminal in San Juan, Puerto Rico.

      The start of construction marks a milestone as we continue making progress with our partners, supplier Eagle LNG and Chart Industries, manufacturer of cryogenic storage tanks,” said Matt Jackson, vice president of Crowley, LNG. “LNG will provide a cleaner, efficient fuel source for our industry-leading Commitment Class ships, and our new JAXPORT bunkering terminal will support efficient operations with state-of-the art technology for bunkering operations.”

Crowley’s LNG and logistics groups are supporting construction of the Jacksonville facility by providing engineering expertise and transportation solutions for the equipment at the site. The facility will serve as the fueling station for the LNG-powered ships.

Weighing 260 tons, each cryogenic storage tank holds enough LNG to cover an average family’s electricity demand for 1,000 years. The tanks are en route to Jacksonville from Europe.

“Because of its multiple benefits, including being cleaner for the environment, we expect LNG demand for ship fuel to increase to 30 million tons a year by 2030. We recognize Crowley’s leadership as an early adopter of this fuel,” said Eagle LNG President, Sean Lalani.

The combination container/Roll-on Roll-off ships will begin service in the second half of 2017 and first half of 2018. The ships, which are some of the world’s first to be powered by LNG, are designed to travel at speeds up to 22 knots and carry containers ranging in size from 20-foot standard to 53- foot-long, 102-inch-wide, high-capacity units, along with hundreds of vehicles in enclosed, weather-tight car decking.

Jaxport Board approves purchase of land needed to deepen river

courtesy of Jacksonville Business Journal reporter Junior Skeeple

 

jaxort1The Jaxport Board approved the purchase of conservation land needed for its deepening project.  Jaxport is pushing for local, state and federal funding for the almost $700 million project. The Jaxport Board voted unanimously to approve the purchase of two parcels of land totaling 53 acres. The cost of the land was about $457,000.

The port is purchasing more than 14.8 of the total 53 acres from JEA and the remaining 38.4 acres jointly owned by JEA and Florida Power & Light Co.  The board also approved $1.5 million in funding for preparation and monitoring work in collaboration with the U.S. Army Corps of Engineers, which will manage the project to deepen 13 miles of the river. The work includes $608,000 for contract administration, design, procurement and construction, and $936,500 for environmental monitoring.

The port is sharing the costs with the Army Corps, which is overseeing the design and construction of the project.  The port authority included $46.6 million in its current operating budget to begin the dredging work. The money for dredging includes $31.6 million from the state and $15 million in port financing.

The deepening of the river would allow Jaxport to accommodate larger ships with more cargo. Both Savannah and Charleston, two major competitors for Jaxport, have begun dredging projects. Deepening the river in Jacksonville would keep Jaxport competitive with other southeast ports.

DHS approves Jax tech firm to improve port security

By Junior Skepple  Reporter Jacksonville Business Journal

nativecyberresolutions_750xx3457-1955-0-497idSoftware, an identification software company with offices in Jacksonville, has earned approval from the Department of Homeland Security for its SecureGate Ports technology. The identification software provides ports and port tenants with electronic security that can read and verify a worker’s credential, minimizing the chances of unauthorized personnel in secure areas.

The Business Journal spoke with the President and CEO of idSoftware, Jim Strey, and asked him how the software works and how many ports are using the new technology.

How does the technology work?

The Transportation Worker Identification Credential (TWIC) is what employees need to enter a secured area of a port. Before our technology the TWIC card was seen as a “flash pass.” It was something that would be seen by a security guard from feet away with no real way of authenticating the card. The TWIC card now contains silos of information and certificates on the card that have to be challenged. The software also checks the expiration date so that we know the TWIC card is current and it also checks the card against a list the TSA produces every night of cancelled cards.

Has unauthorized personnel gaining entrance in to secure areas at ports been an issue in the past?

Yes. The history of this goes all the way back to days after 9/11 when Congress enacted a law that stiffened who has access to the country’s ports. Before this electronic verification the process was as simple as showing up to a port and showing your card with no real verification. There were many instances before where people should not have been let on the port.

How many ports are using SecureGate technology?

There are approximately 100 ports and terminal operations using this technology. Our company has 44 ports and private operators using our SecureGate technology system, with four being in the state of Florida.

Four Trends that Will Shape Supply Chain and Logistics in 2017

by Erik Malin On Jan 24, 2017

1. Growth of the Tech-Enabled Logistics Provider

Technology permeates every area of the supply chain. Tracking solutions, sensors and other devices embedded in cargo and vehicles provide a real-time picture of assets (of all types, not simply trucks) in the field. On the backend, transportation management systems (TMSs) are becoming increasingly sophisticated, providing comprehensive transportation management from end to end.

Shippers and carriers will continue to lean on providers in 2017 as the tech leaders. Both parties, along with receivers, will look to smart logistics providers to tie seamless TMSs together with onboard tracking platforms and inventory management. The goal is optimized supply chains connecting in transit based on a real-time inventory snapshot.

2.  Constricting Freight Market?

For much of the past year or so, shippers enjoyed favorable rates thanks to relatively highly available capacity. As a result, those who honed in on spot rates may have seen short-term cost savings, while those who focused on strategic carrier relationships traded potentially higher rates for long-term mutual benefits.

Recent reports indicate the pendulum may swing back in favor of the strategic approach, as capacity tightened modestly over the past few months. Several factors will influence whether this is a long-term or seasonal shift. Shippers and their logistics providers should keep a close eye on potential spikes in fuel cost, and pending hours of service and driver wage regulation, which will impact capacity in the coming years. In the case of market constriction, those with locked-in, long-term carrier relationships will reap the benefits—greater access to consistent and reliable capacity, more stable rates, and the ease and efficiency which come with familiarity.

3.  Mastering E-Commerce Logistics

Online purchases continue to account for an increasingly large portion of overall retail sales. In fact, the U.S. recently experienced the highest e-commerce penetration in history, according to the U.S. Department of Commerce. This completely reset consumer expectations and, in turn, retailers’ delivery policies. Next-day and even same-day delivery are fast becoming the norm and retailers now have more stringent delivery deadlines (not to mention fees for late deliveries). The e-commerce pie only continues to grow and retailers will continue to grapple for their share. We’ll likely see retailers establish a continuously broad network of distribution and fulfillment facilities near dense population centers. Enhanced business intelligence and in-vehicle technology will also be key, as retailers and their logistics providers seek ways to trim the e-commerce-related factors that historically drive costs higher, like high fuel consumption and inefficient routing.  Many retailers already established e-commerce delivery networks. Conquering the art of cost containment will be the next step

4. Digital Freight Matching versus Driverless Trucks

Uber’s acquisition of self-driving trucking platform Otto sent a message to supply chain stakeholders: Silicon Valley has commercial transportation and logistics in the crosshairs. Reaction varied, and many set their sights on the potential for driverless or co-piloted trucks. But it’s another aspect of the deal—Uber’s long-term goal to establish a national digital freight matching (DFM) network—that may be more intriguing in the short term for logistics providers.

The two don’t necessarily fall hand in hand. Though driverless trucks may have more curb appeal, DFM apps could change the way shippers connect with carriers (and how logistics providers do business). In their current form, DFM apps could work for smaller-scale shippers, but not those with a large, regional and national footprint. More importantly, DFM apps will drive the industry at large (including third-party logistics or 3PLs) to innovate and develop more advanced TMSs, as well as challenge providers to diversify services.

Technology advances will continue to drive seismic shifts in the logistics industry in 2017 and we’ve only scratched the surface for what that could look like. Each stakeholder within the supply chain will address these areas in different ways, but ultimately, with the same goals: To provide higher quality customer service and more efficient, secure transportation.

 

 

JAXPORT CEO talks about challenges facing the port in 2017

JAXPORT CEO Brian Taylor addressed a crowd of about 200 people Thursday at the University of North Florida, recapping 2016 and looking into the future at the port’s annual State of the Port Address.jax-port-cranes

Although JAXPORT had a record-setting year in terms of twenty-foot equivalent units (TEU) moved through the port, Taylor said he sees four main challenges facing the port in 2017 and beyond: Container alliances, global trade agreements, the political landscape, and the international economy, are concerns for the port that Taylor said leads to much uncertainty going forward.

In April of 2017, three major container partnerships, the Ocean Alliance, The Alliance, and the 2M Alliance will finalize their service operations and deployments. The partnerships will collectively control 87 percent of global container capacity in the world. All three of the alliances are currently operating out of JAXPORT, but their operations can change through altered trade agreements with the United States.

The Trump administration removed the United States from the Trans-Pacific Partnership (TPP) and the renegotiation of North American Free Trade Agreement (NAFTA) are issues crucial to the success of JAXPORT. With Asian container movement through JAXPORT rising 19 percent in 2016, free trade between the U.S. and the Asian-Pacific region are imperative to the success of the JAXPORT.

“In the U.S. so many of the things we enjoy everyday can only be produced in the quantity and quality and the timeliness that we want them here in this market is in the Asian-Pacific region,” said JAXPORT CEO, Brian Taylor. “The opportunity lies in creating smarter trade agreements with better terms for all ensuring that global commerce can continue.”

China was also a big topic at the State of the Port address. Taylor said 17 percent of Chinese exports, roughly 4 percent of their gross domestic product, is tied to trade with the United States. He also said 24 percent of U.S. exports are moving through China. President Trump signing an executive order removing the U.S. from the TPP, has given China the opportunity to come to their own trade agreement with the 11 nations that were included in the TPP

JAXPORT’s new 100-gauge cranes are now operational at the Blount Island Marine Terminal.

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Courtesy of JAXPORT.com

The new container cranes are equipped to service wider, post-Panamax vessels with the ability to reach across 22 containers, a significant increase from the 16 container capabilities of the terminal’s current cranes. Each electric crane works on regenerative power, consuming power during the lifting of containers and creating energy as they lower. The use of electricity will increase energy efficiency and reduce emissions.

In 2014, JAXPORT awarded a $37.6 million contract to Shanghai Zhenhua Heavy Industries, Co. Ltd. (ZPMC), for the manufacturing, delivery and installation of the cranes. Shaw GVB, a subsidiary of Chicago Bridge and Infrastructure, provided engineering services before and during construction.

The Florida Department of Transportation awarded JAXPORT a $15 million grant toward the purchase.

JAXPORT’s long-term strategic plan calls for the purchase of a total of ten 100-gauge cranes for Blount Island in the next 10 years.

See photos from the cranes’ arrival

Check out our Cranes Fact Sheet