In recent years the ports industry has struggled to attain consistent credit ratings for performance and positive outlooks, but Fitch Ratings highlighted Port Tampa Bay’s achievements in revenue generation, relatively low debt service levels, strong liquidity position and the economic conditions in Hillsborough County. The port’s long-term lease revenues, diverse business mix and the status of Florida’s significant population growth.
Historically, the port relied on high-volume, low-value bulk cargoes, but throughout the last decade, it has focused on cruise activity and increased container operations, enabling the port to expand its revenue mix. Additional strengths are the port’s increasing intermodal connectivity—including the recently-completed I-4 connector—and the TPA’s taxing authority.
In recent years, the port authority has been working toward a strategic, aggressive capital campaign that has focused on expansion of container facilities, augmentation of bulk cargo berthing capacity and rehabilitation of petroleum docks, which are critical for the west and central Florida market. Practical financial decisions, guided by a business-model approach and an eye on diversification, have enabled the port to experience financial success.
The port’s ‘positive’ outlook also follows the 2014 National Economic Impact of the US Coastal Port System results, which cites U$4.6 trillion in economic value that US coastal ports provide in terms of business revenues, personal income and other economic output by importers and exporters—a solid 43% increase over the 2007 assessment. That US$4.6 trillion figure represented 26% of the nation’s US$17.4 trillion economy in 2014, up from 20% of 2007’s US$16.1 trillion economy.
Other key gains cited by the new report include US$321.1bn in federal, state and local tax revenues generated by port-sector, US$23.1m jobs generated by port-related activity, and personal wages and local consumption related to the port sector doubled from 2007.
Elsewhere, the Florida Department of Transportation (FDOT) has increased the minimum funding levels for seaport projects. Port Tampa Bay says it will benefit by building stronger infrastructure, attracting business to the state, and ensuring sustainable economic contributions.