Dredging project cost increases

JaxPort CEO says dredging project could cost $100 million more than thought

By, David Bauerlein
for the Florida Times-Union/Jacksonville.com
on Tuesday, October 20, 2009
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Deepening Jacksonville’s port to handle massive cargo ships would cost about $100 million more than original estimates from a few years ago.

The latest “rough estimate” is about $600 million to deepen the channel to 48 feet, said Jacksonville Port Authority Chief Executive Officer Rick Ferrin. He gave that dollar figure while speaking as a panelist today at a Global Trade and Transportation Symposium in Jacksonville.

Previously, the Port Authority used a figure of about $500 million to dredge and blast the ship channel from the mouth of the St. Johns River to west of the Dames Point bridge. Deepening that segment of the river would give the new TraPac terminal and the planned Hanjin terminal the ability to serve giant cargo ships from Asia that will call more often on East Coast ports after the Panama Canal is enlarged.

In an interview, Ferrin said the latest cost estimate for dredging remains subject to change. The U.S. Army Corps of Engineers is doing a feasibility study that Ferrin said should be ready in early 2011.

“We just know that it’s going to be a very expensive proposition,” Ferrin said.

The Army Corps study will do a cost-benefit analysis to determine how much federal spending is justified. Ferrin said JaxPort is marshalling information to give the Army Corps about the economic payoff of a deeper channel.

The costlier tab for dredging also would put the Port Authority on the hook for a bigger local match. Ferrin said if the total project costs $600 million, the Port Authority’s share would be around $200 million. He said the Port Authority would seek to use a combination of issuing bonds, borrowing from a state transportation fund, and seeking state and federal financial support to pay for the local match.

“We’re going to look under every rock to have as many options as we can,” Ferrin said.

During the symposium, state Department of Transportation Secretary Stephanie Kopelousos said the Port Authority’s success at opening trade lanes to Asia and the availability of land for expansion of cargo-related operations makes Jacksonville “enticing.” However, she did not give any financial commitments by the state for the dredging.