Port Budgets 2016: Cleveland

Cleveland: Port Authority Board Approves Millions in Capital Investments for 2016

Under the budget approved last month by its board of directors, the Port of Cleveland will continue to make strategic capital investments in maritime operations in 2016, including a new warehouse, infrastructure maintenance and replacement of equipment. Financing will come from $6.4 million in outside grants leveraged by $1.3 million of port cash.

The port experienced a cargo surge in 2015 thanks in great part to the Cleveland Europe Express (CEE). Operated by the Spliethoff Group, the CEE provides Northeast Ohio direct maritime access to European markets, with ships calling Cleveland at least twice monthly. Container volumes alone jumped by more than 400 percent and cargo tonnage by more than 300 percent from 2014 levels.

The board also approved a one-year maritime services lease agreement with C-Port, to manage the new Dock 22 warehouse. C-port will track all inventory for the warehouse and invoice customers for storage. C-Port also has served as stevedore for CEE liner service since September 2014, and will continue in that role moving forward.

"With the board’s approval of the 2016 budget, we expect another year of dynamic growth for the Port of Cleveland," said Port President and CEO Will Friedman. "We saw continued increases in cargo through our docks in 2015 with the success of the Cleveland Europe Express, and we expect 2016 to continue the trend."

In development finance matters, the board approved a series of resolutions to help facilitate key regional economic development projects through a combination of bonds and other agreements. The projects include:

The $80 million redevelopment of the 21-story Standard Building in downtown Cleveland into 285 apartments and 10,000 square feet of street level retail.
The $260 million Pinecrest mixed-use development in Orange Village consisting of retail, office, multi-family, and hospitality.
A new $18 million, 74-unit assisted living community in Brecksville developed by Jennings Center for Older Adults.

"The Port of Cleveland’s development finance department is pleased to help these catalytic developments gain access to necessary private capital through our creative financing and development tools," said Brent Leslie, the Port’s Chief Financial Officer.