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Trade Development: Tampa Bay

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Tampa Port Board Approves Long-Term Port Tenant Leases to Increase Cargo Business

Port Tampa Bay’s board of commissioners approved two important lease agreements during its regular meeting on November 17.

The first is an agreement is with Titan Florida, Inc., which has already leased some 25 acres from the port authority for the import and export of cement and aggregates for about 9 years. Under the new agreement, Titan will lease five acres at Port Sutton for the importation of fly ash, a byproduct of coal used in combination with cement to make concrete. The 10-year agreement, which includes two five-year lease extension options, is expected to generate about of 120,000 tons of fly ash product cargo annually.

The commissioners also agreed to enter into an amended and restated lease with port customer Sea-3 of Florida, Inc., which already leases 12.4 acres at Port Sutton to import and export liquid propane gas (LPG). This new agreement allows Sea-3 to make site improvements aimed at making the operations more efficient and more responsive to changing business conditions.

Sea-3’s lease will be in effect until the end of 2020, with three lease extension options of 10 years each. Sea-3 is expected to move 2,000,000 barrels of LPG annually and will likely add a rail extension to enhance its operational flow in the future. Sea-3 has been a port tenant since 1999.

"The leasehold items approved by our board not only bolster the port’s own business model, but more importantly, they underscore how our existing tenants are adjusting to market conditions and expanding their own unique business models," Paul Anderson, port president and CEO, said. "The port is proud to support the growth initiatives of its customers and tenants, and it is gratifying to see additional long-term leases come to fruition."

Port Tampa Bay’s private and public terminals handled some 37.4 million tons of cargo during the fiscal year ending September 30, a 3 percent increase from FY 2013-14.  Port authority terminals alone experienced a 16 percent jump, to nearly 11.1 million tons, thanks in part to gains by cement (+116 percent) , limestone (+35 percent)  and steel (+69 percent) resulting from the growth and recovery in the Florida construction and building sector. Tonnage gains were also posted by juice shipments, petroleum, liquid sulfur and sulfuric acid. It was a strong year, too, for the port’s container trade, with increases from FY 2013-14 of 17 percent and 20 percent, respectively, in TEUs and containerized cargo tonnage.

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