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 May 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

WCI Applauds Increased USACE Funding

Today WCI applauded the leadership of Senate Appropriations Committee Chairman Thad Cochran (R-MS) and Senate Energy & Water Development (E&WD) Appropriations Subcommittee

SoCal Beach Cleanup Could Take Months

The U.S. Coast Guard captain overseeing cleanup of oil spilled from a pipeline rupture that closed two California state beaches and fouled offshore waters near

MPC Honors Crowley for Tank Vessel Safety

Crowley Maritime Corporation’s petroleum services division has once again been honored by Marathon Petroleum Company (MPC) with its annual Elite Vessel Award, which

Ports

USCG Tall Ship Sailing to the Bahamas

The U.S. Coast Guard Cutter Eagle is scheduled to arrive at Berth 14 at Prince George Wharf in Nassau, Bahamas on Thursday, May 28 as part of its 2015 cadet summer training deployment.

Shipping Freight Rates Drop Amidst Overcapacity

Shipping freight rates on the world's busiest route, from Asia to Northern Europe, fell by the largest percentage amount since 2008, reflecting wild volatility

WFP: Aid Cargo for Yemen will be Delivered After Ship Docks

The World Food Programme will deliver a cargo of Iranian aid for Yemen once the ship carrying it reaches Djibouti's port, the U.N agency said on Friday. Earlier

Finance

US Funding for Air Emissions/Alternative Energy Projects

The U.S. Maritime Administration (MARAD) announced that up to $1.3 million in Federal funding is now available through cooperative agreements for projects supporting

WCI Applauds Increased USACE Funding

Today WCI applauded the leadership of Senate Appropriations Committee Chairman Thad Cochran (R-MS) and Senate Energy & Water Development (E&WD) Appropriations Subcommittee

Shipping Freight Rates Drop Amidst Overcapacity

Shipping freight rates on the world's busiest route, from Asia to Northern Europe, fell by the largest percentage amount since 2008, reflecting wild volatility

News

DMW Marine Takes the Lead in Military Cranes

DMW Marine Group, LLC. has completed a number of projects for the U.S. Navy and foreign Navies in recent years, claiming a place as a go-to supplier for Navy departments globally.

US Oil Platform on Fire in Gulf Of Mexico

An oil platform caught fire and was evacuated in the U.S. Gulf of Mexico offshore Louisiana in the early hours of Friday, though no injuries were reported, the U.

USCG Tall Ship Sailing to the Bahamas

The U.S. Coast Guard Cutter Eagle is scheduled to arrive at Berth 14 at Prince George Wharf in Nassau, Bahamas on Thursday, May 28 as part of its 2015 cadet summer training deployment.

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Navigation Offshore Oil Pipelines Port Authority Ship Electronics Ship Simulators Sonar
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: 0.2607 sec (4 req/sec)