Miami's Port to Issue Bond to Pay Debt, Fund Tunnel Project
Tuesday, April 08, 2014

The port of Miami's total debt is set to pass $1 billion after Miami-Dade County commissioners approved a $225 million bond offering on Tuesday to meet existing lending agreements and pay the balance on a nearly finished underground tunnel connecting the island-port to nearby highways.

Auditors in March found a potential $1.6 million gap in the port's future payments toward its mounting debt stemming from an incentive to lure a new cruise ship into harbor last year, Deputy Mayor Ed Marquez told commissioners on Tuesday.

He noted ratings agency Moody's said on Friday the seaport's rating would not be impacted due to healthy reserves and strong revenue.

The port has $30 million in reserves, PortMiami Director Juan Kuryla told commissioners.

PortMiami over the past decade embarked on a more than $2 billion building spree, hoping to make Miami a more attractive choice for global shippers looking to distribute goods to the U.S. market.

With a deep dredge, larger cranes and upgraded facilities the port will be able to handle "Post-Panamax" ships that carry two or three times the load of standard freighters once the Panama Canal expansion opens in 2016.

Other deep water East Coast ports, including Baltimore, Norfolk, and New York, are already able to accommodate the massive ships.

Miami is the only port south of Norfolk, Virginia, with congressional authorization to dredge to 50 feet (15 meters). Other cities such as Charleston, Savannah and New Orleans are rushing to get hundreds of millions of dollars of projects funded and underway in time for the opening.

Moody's last year downgraded PortMiami's rating to A3, four levels above junk, while Fitch assigned it an 'A' rating, two levels away from non-investment grade.

While the port has staked its financial future on its ability to attract larger container ship from Asia, it is also facing challenges over plans to develop a portion of its land adjacent to waters too shallow for any maritime use.

Retired English football star David Beckham, recently awarded a Miami franchise by Major League Soccer, is on a high-profile campaign to build a 25,000-seat open-air stadium.

The port's recently approved master plan, however, calls for the development of more than 7 million square feet of convention, hotel and office space on the same site.

(By Zachary Fagenson; Editing by David Adams and Lisa Shumaker)

People & Company News

STX to Slash Jobs, Sell Yard

To stat above water by restructuring, South Korean Shipbuilder STX Offshore & Shipbuilding Co. plans to lay off about a third of its workforce and sell a yard in France, says a report in WSJ.

Kongsberg Performs Well in Q2

Norwegian defence and marine technology company Kongsberg Gruppen's second quarter 2016 (Q2) financial results shows sales performance broadly in line with recent trends,

Rickmers Holding, E.R. Capital Drop Merger Plan

Rickmers Holding AG and E.R. Capital Holding have jointly decided not to pursue the merger of their ship management activities.   For many years the companies


Indian Warships Visit Port Victoria

In a demonstration of India’s commitment to its ties with Seychelles and maritime security in the Indian Ocean Region, Indian Naval Ships Kolkata, Trikand and

Vitol's Malaysia Terminal Suspends Ops after Spill

VTTI, the storage unit of world's largest oil trader Vitol, has suspended operations at its terminal in southern Malaysia following an oil spill, two industry sources said on Friday.

Shenzhen Port to Adopt China ECA Regulation

China's Shenzhen port is set to to adopt requirements for ships at berth requiring to burn marine fuel with sulfur content not exceeding 0.5 percent starting October this year,


SOS from Hanjin Shipping

The creditors' extended help is crucial for survival of Hanjin Shipping Co as its negotiations with owners of chartered ships over a cut in leasing rates and to

NParks, Keppel in S$2.08 mln Partnership for Restoring Singapore Forest Wetlands

The National Parks Board (NParks) and Keppel Corporation today unveiled plans for a partnership to restore the freshwater forest wetland ecosystem historically

Skaugen Goes to Red Again

Norwegian Marine Transportation Service Company I.M. Skaugen SE reported interim losses but cautiously positive and expecting a gradual recovery of trading opportunities


NASA May Send Submarine to Titan

NASA has unveiled plans to send a submarine into the depths of the largest ocean of Saturn's biggest moon, Titan in a bid to explore the depths of its largest ocean.

Michelle Obama Sponsors Attack Submarine

General Dynamics Electric Boat has delivered to the U.S. Navy an attack submarine that is sponsored by first lady Michelle Obama and will be named for her home state, reports AP.

MV WERFTEN, Foreship Sign Design Agreements

MV WERFTEN signed a letter of intent with the engineering company Foreship in Stralsund today. The agreement includes parts of the basic design as well as design,

Maritime Contracts Maritime Security Maritime Standards Offshore Oil Pipelines Pod Propulsion Ship Electronics Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1944 sec (5 req/sec)