Florida’s path to becoming a major logistics gateway

Several community leaders at the Florida Chamber Foundation’s Transportation Summit discussed what Florida currently has to offer the logistics industry and steps the state needs to take in order to become a major logistics gateway.

   Several community leaders at the Florida Chamber Foundation’s Transportation Summit held last Thursday in Jacksonville, Fla. discussed what Florida already has to offer the logistics industry and steps the state needs to take in order to become a major logistics gateway.
   Florida has all of the right attributes, according to Port of Jacksonville CEO Brian Taylor, including a network of ports; modal connectivity many other states lack; no state income tax; and low real estate costs, particularly in northeast Florida. The state also sports low transportation costs for companies that establish distribution centers in Florida, because with so much cargo being brought into the state, many of the trucks leave the state empty, Taylor explained.
   In addition, Florida has invested close to $1 billion into its seaports, primarily in preparation for the opening of the expanded Panama Canal in 2016. Over the past four years, Gov. Rick Scott and the state legislature have tabbed over $850 million for investment in port-related infrastructure.
   In September, the Port of Miami became the first Florida port with the capability to handle post-Panamax container vessels, while Port Everglades and the Port of Jacksonville are well on the way to getting the approvals and the funding they need to become big ship ready, Florida Department of Transportation Secretary Jim Boxold said.
   Although Florida has made significant investments in its ports, marketing may be even more critical in capturing more freight, Florida Ports Council President & CEO Doug Wheeler explained.
   In order to attract more goods through Florida’s seaports, Wheeler said the state needs to market the cost effectiveness it offers on certain trade routes compared to other states. Florida needs to capture cargo that is coming in from outside the state via truck and train instead of through Florida’s ports, he added.
   “There’s about 3 to 3.5 million TEUs (per year) right now that are coming into our state through a non-Florida port, and so obviously for us to be able to capture that is a game changer,” Wheeler said. “As a state right now, we are moving about 3 million TEUs (per year).”
   Bringing manufacturing back to Florida would not only be a win for ports and for freight railways, but probably for air cargo carriers as well, said Wheeler.
   When it comes to setting the stage for logistics success, customers want to know they have a competitive unit cost, service reliability and an environment where their business is going to thrive, CSX Transportation Director for Industrial Development and Ports Carl Warren said. “If they don’t have those things you can rest assured that there are other gateways and other ports and other locations that will be out promoting those things and they will be heard.”
   Several years ago (10+ years), the carriers used to come to the ports begging for terminal space, but now ports have to go to the carriers and the beneficial cargo owners to convince them why their port is the best place to ship their goods, Taylor explained. As more ports and terminals were established throughout the United States, carriers were provided with more choices, which drove competition.
   FedEx Chairman and CEO Fredrick W. Smith had a similar message for all states in a recent speech. At the National Conference for the Council of State Governments, he discussed the three ways states can accelerate their competitiveness, including fostering technology innovation, training the workforce for innovative jobs of the future and embracing trade agreements and infrastructure investments.