5th Cruise Liner In Tampa Likely

By TED JACKOVICS The Tampa Tribune

Published: Aug 22, 2007

TAMPA - The Port of Tampa expects to add a new cruise ship by 2010, bringing to five the number of large leisure travel ships based here.

Port officials also are negotiating to recruit a second container cargo shipping company in the next three years, expanding Tampa's fledgling container service and some of the most lucrative sources of port revenue and local employment.

The new cargo container company and its routes would help triple the number of 20-foot equivalent containers the port handles to 100,000 annually by 2010.

It would add to the growth anticipated from the weekly container cargo service that links Tampa and the Far East, officials said Tuesday.

Port officials outlined four key objectives for 2008 at the start of their budgeting process:

•Expand container, general cargo and bulk cargo business. That includes supporting new cement and aggregate customers that will be fully operational in 2008, including Votorantim/Trinity, Gaetano Cacciatore and Tarmac/Titan.

Agreements with Andinos Cement and Rinker Materials to begin operations at the port will be finalized for fiscal 2008, while Murphy Oil, Florida Rock, Drummond and Vulcan are among tenants expanding operations next year. Rinker will lease 36 acres at an Eastport site to import and export bulk construction materials.

•Maximize the use of existing property and obtain new property. The port intends to market and enhance access to Port Ybor for general cargo and roll-on, roll-off cargo operations.

•Expand the cruise business, which includes four ships: Holland America's Veendam; Carnival's Carnival Legend and Carnival Inspiration; and Royal Caribbean's Grandeur of the Sea.

•Ensure efficient port operations. Port commissioners on Tuesday approved spending $230,000 for software to better track vessels visiting the port and reservations of berth space.

Although port officials declined to disclose negotiation details for the prospective cruise and new container services, they were confident enough to include anticipated revenue from both prospective operations in the budget proposal they released Tuesday.

Tampa Port Authority Chief Financial Officer Mike Macaluso said he expected the port would achieve $41.7 million in operating revenue for the 2008 fiscal year, which begins Oct. 1, compared with a projected $38.5 million this year.

With the new shipping services, along with new and expanded port tenant operations, officials project operating revenue to grow to $49.3 million in the 2010 fiscal year.

Net income, excluding grants, is expected to be $32.3 million in fiscal 2008, compared with $30.3 million this year.

Net income would increase to $36.7 million in fiscal 2010, Macaluso said.

"Of course, we can't predict exactly what would happen by 2010," Macaluso said, but he said the port typically prepares conservative annual budget proposals.

Other port officials elaborated on the confidence they had in including a new cruise ship and cargo container service in the budget outlook.

"We don't want to get too specific, but the feedback we get from the cruise lines and container shipping companies is that they have an interest in Tampa as they consider redeploying their fleets as they add new vessels," said Wade Elliott, senior director of the marketing division.

Cruise ships will provide 20 percent of the port's operating revenue in 2008, compared with 27 percent for bulk cargo, 21.9 percent for rentals, 11.2 percent for general cargo and 20.5 percent for other uses.

Port Director Richard Wainio has said the diversity of revenue would protect the port during turbulent economic times.

Reporter Ted Jackovics can be reached at tjackovics@tampatrib.com or (813) 259-7817.