Jacksonville, FL — In a deal that JAXPORT says is proof that their investment in deepening the harbor is the right move, a 25-year lease agreement has been reached with SSA Marine.
“This is history in the making,” says JAXPORT’s CEO Eric Green.
The deal expands SSA Marine’s existing 50-acre footprint at Blount Island to 80 acres, with the potential to grow to 120 acres in the future. It will establish a $238.7 million international container terminal known as the SSA Jacksonville International Gateway Terminal, that includes deepwater berthing. JAXPORT says the deal will promote growth specifically in the Asian trade, which involves large container ships that are fully loaded. All said and done, the terminal will be able to support two post-Panamax vessels at the same time.
“The opportunity is a partnership with a global terminal operator. It represents a very long term commitment and investment in JAXPORT, and it’s an opportunity to partner for a shared vision for growth,” says JAXPORT CFO Beth McCague.
SSA Marine is putting in $129.7 million for use of the terminal and facility upgrades, including exclusive use of three 100-gauge cranes at the terminal. They also intend to add more cranes in the future. JAXPORT is rounding out the rest of that investment, with $109 million toward rebuilding berths and other enhancements that are already underway.
Of SSA Marine's investment, $28 million over the next three years will be earmarked specifically to fund some of the ongoing dredging project that is deepening the harbor to 47 feet, to accommodate those larger ships.
“We have a strong belief in the work that you guys have done with the deepening of the channel,” says SSA Marine President Mark Knudsen. “We have a lot of confidence that Jacksonville is going to be a big up-and-coming terminal.”
In terms of revenue, the deal has a minimum annual guarantee that would mean at least $158 million for JAXPORT over the 25 years. SSA Marine says, based on their current container volume, they expect to well exceed that, and JAXPORT believes that could go as high as $298 million. When added to tariffs that are paid by vessels, that puts the upside of the contract at $372 million over the 25 years.
“This contract- the initial stages will support over 2,100 jobs, growing to about 3,500-3,600 jobs in the ten year-period, based on the projected throughput on container moves,” says Martin Associates Economist Dr. John Martin.
SSA Marine is based out of Seattle, but has been operating at JAXPORT more than 40 years. The 25-year agreement comes with two possible five year extensions.
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