Jaxport as an urban growth strategy: community implications and prospects

Northeast Florida Center for Community Initiatives

Department of Sociology and Anthropology

University of North Florida

djaffee@unf.edu

September 2012
Acknowledgements: The following University of North Florida students conducted research that contributed to this report: Amanda Anderson, Sandra Milesevic, Mark Fafard, Roni Clarke, Alexandra Spencer, and Brittany Mair. My colleague in the Department of Sociology and Anthropology, Dr. Suzanne Simon, provided invaluable feedback and suggestions on an earlier draft of this report. I am also grateful to the advice and consultation of Dr. Quinton White, Executive Director, Marine Science Research Institute, Jacksonville University. Support for this project has been provided by a Dean’s Leadership Council grant from the College of Arts and Sciences, University of North Florida. The findings, interpretations and conclusions expressed in this report are solely those of the author.

This report is a product of The Ports Project (http://www.unf.edu/coas/cci/ports/) at the University of North Florida. It is based on research conducted by faculty and students that includes meetings with community stakeholders and researchers. The purpose of this report is to provide the community with an analysis and assessment of some of the social, economic, and environmental implications of an expanding Jacksonville Port Authority (JAXPORT) enterprise. The report critically examines an economic urban growth strategy that revolves around port logistics, goods movement, and transportation.

INTRODUCTION

In spite of the attention directed to the port as a potential engine of economic expansion for Jacksonville, most residents have little knowledge of what is involved in a local economy revolving around a container shipping port, the logistics industries, and the movement of goods. Most if not all of the information the public receives about the port is produced and disseminated by JAXPORT itself, local businesses, the chamber of commerce, and stakeholders that may benefit directly from the expansion of the port, or public officials who view the port as a growth engine for Jacksonville and the North Florida region. What is absent is an independent critical analysis of the port economy.

One of the purposes of The Ports Project at UNF and this report is to begin to fill in this gap in information and analysis. A larger objective is to raise community awareness about the proposed port economy development strategy so that an informed citizenry can participate more effectively in decisions about the future economic direction of their community. Democratic citizenship and community engagement in public affairs requires information and knowledge. Public knowledge and awareness are also important because large sums of public taxpayer funds are being requested to support and expand the port infrastructure. If the proposed projects move forward as proponents hope, there are additional costs to be considered along with the widely touted benefits.

The first section of the report will provide some basic descriptive information about the Jacksonville Port Authority -- its terminals, and the types of cargo that move through the port. This is followed by a brief discussion of the role of JAXPORT within the larger global system of cargo transit. The third section of the report outlines the major infrastructural projects that are designed to enhance the competitiveness of JAXPORT. This includes the St. Johns River dredging/deepening project. The fourth and fifth sections of the report turn to an assessment of costs and benefits as they relate to employment and the environment. One of the leading arguments for port expansion is that it will create jobs. This study looks closely and critically at the job numbers that have been used to make the case for investment in port expansion. All shipping ports also pose a range of environmental threats to air and water quality which need to be considered as well. This includes, for the case of JAXPORT, the environmental impact of deepening the St. Johns River. The final section places Jacksonville in the larger context of East coast ports competing with each other for container vessels and cargo. The report concludes with some constructive policy recommendations based on the research literature as well as best practices from ports across the nation and globe.

JAXPORT: BASIC INFORMATION

JAXPORT, as an organization, employs only about 150 people. When reference is made to JAXPORT as a job creating entity this refers to the labor forces employed by the firms that move cargo, lease space at the terminals, supply goods and services to the firms moving cargo, as well as the multiplier effects of JAXPORT income generating activity.

The changing cargo profile, with containers accounting for the greatest percentage of tonnage as well as registering the largest percent increase (33.7%) over the four year period, reflects the growing importance of the container terminals. This is the area where the greatest expansion is anticipated with the completion of the Mitsui/Tra-Pac terminal at Dames Point and the projected addition of a Hanjin container terminal in the same location.

As a landlord port (that leases rather than owns and controls port facilities) JAXPORT is limited in its ability to propose and implement policies and procedures unless these are included in formal lease agreements. In this report we make policy recommendations with the understanding that JAXPORT’s landlord status places constraints on its ability to unilaterally change or modify practices and procedures of port-related businesses. However, in concert and collaboration with port tenants and stakeholders, JAXPORT can take a leadership role in introducing new ideas and innovations that could translate into the most beneficial community impact.