Maritime Economic Development: Corpus Christi, Everglades

 

Vitol Inc. and Harvest Pipeline Company are leasing a 22-acre/8.9-hectares tract from Port Corpus Christi for development as a crude oil export terminal.  The agreement was approved December 19 by the port authority’s governing commission. 

 

The crude oil terminal development will provide deepwater water outlet for the export of Permian Basin crude oil via a 16-inch/40.6-centimeter lateral pipeline.

 

"Crude demand, particularly in emerging markets, continues to grow and U.S. shale has an important role to play in satisfying this demand," said Mark Couling, Vitol’s head of crude oil trading. "Our new pipeline and terminal will facilitate the efficient delivery of U.S. crude to global markets, thereby increasing marketing opportunities and optimizing value for U.S. producers." 

 

Nearly 4.2 million short tons of crude oil were exported from Corpus Christi in 2016 – the year following the federal government’s repeal of a 40-year ban on the export of U.S. crude oil,

 

"Port Corpus Christi continues to help develop maritime facilities and provide services to customers that are committed to sustainable growth, and building the future of our community," said Port Executive Director John LaRue. "We are looking forward to growing a long-standing relationship with Vitol and Harvest Pipeline Company with mutual benefits for the future of our region." 

 

 

Sol Shipping Services is expecting to grow its business at Port Everglades under a newly approved five-year lease on a 6.54-acre/2.65-hectare marine terminal and a guarantee to move to a 7-acre site in June 2018. 

 

Sol's operations, primarily importing melons from Central America to South Florida, are estimated to support 246 direct, induced and indirect jobs in the Broward County area, with a total annual wage and salary income impact of more than $16.3 million. In addition, local businesses receive more than $22.5 million in sales revenue from providing services for the ocean cargo activity. Sol's guarantee of at least 16,000 container moves annually is also expected to generate nearly $1.7 million in state and local tax revenue.

 

Sol has been moving cargo through Port Everglades since 1993. In 2012, the Broward County Board of County Commissioners approved a 5.34-acre, five-year lease for Sol to operate its own marine terminal.  The agreement approved December 12 by the County Commission approved the new agreement projects Sol will generate $1.6 million in lease revenue and $4.3 million in maritime-related revenue for the port during the lease term.

"We are delighted to renew our partnership with Port Everglades. The port is very important to us and has been very supportive to us over the past years as our business constantly grew. We look forward to many more years of working together," said Enda Walsh, president of Fyffes North America and director of Sol.