Miami's Port to Issue Bond to Pay Debt, Fund Tunnel Project

MarineLink.com
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)

Maritime Reporter November 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Port of Houston Expecting Record Year

The Port of Houston Authority is expecting 2014 to close as a banner year for the port, with 34 million tons of cargo handled through November, Executive Director

Hapag-Lloyd Completes CSAV Merger Capital Increase

Hapag-Lloyd completed the planned capital increase of EUR 370 million (approximately $452.5 million) as part of the business combination with the Chilean shipping

San Jacinto College Breaks Ground on New Training Center

San Jacinto College has broken ground along the Port of Houston for its new 45,000-square-foot Maritime Training Center.   At the site of 3700 Old Highway 146 in La Porte,

Ports

Port of Houston Expecting Record Year

The Port of Houston Authority is expecting 2014 to close as a banner year for the port, with 34 million tons of cargo handled through November, Executive Director

Costa Rica Approves APM Terminals Project

Port operator APM Terminals, a unit of Denmark's A.P. Moller-Maersk, said on Friday Costa Rica's environment agency had approved the construction of its Moin Container Terminal project.

US Plans to Shut Royalty Loophole on Coal Exports

U.S. coal companies will no longer be able to settle royalties at low domestic prices when they make lucrative sales to Asia according to reforms proposed by the Interior Department on Friday.

Finance

Larger Tankers May Offer Better Return Chances

Investors looking for returns in the tanker markets can invest their capital in a variety of ways. Should an owner invest in a VLCC or an Aframax? How about an

US Plans to Shut Royalty Loophole on Coal Exports

U.S. coal companies will no longer be able to settle royalties at low domestic prices when they make lucrative sales to Asia according to reforms proposed by the Interior Department on Friday.

Hapag-Lloyd Completes CSAV Merger Capital Increase

Hapag-Lloyd completed the planned capital increase of EUR 370 million (approximately $452.5 million) as part of the business combination with the Chilean shipping

News

Larger Tankers May Offer Better Return Chances

Investors looking for returns in the tanker markets can invest their capital in a variety of ways. Should an owner invest in a VLCC or an Aframax? How about an

Keeping to the Schedule in the Pacific Northwest

When a tightly scheduled repower for the Kodiak-based trawler Sea Mac in early December took a very bad turn, Mike Fourtner used his 25 years of fishing experience

NZ Report: Human Error to Blame for Rena Grounding

New Zealand's Transport Accident Investigation Commission (TAIC) published its final report into the grounding of containership Rena in October 2011. The TAIC’s

 
 
Maritime Contracts Maritime Security Naval Architecture Navigation Offshore Oil Pipelines Port Authority Ship Electronics Ship Simulators Sonar
rss | archive | history | articles | privacy | terms and conditions | 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: 0.1803 sec (6 req/sec)