Project Financing: Cleveland, Everglades

 

The Board of Directors of the Port of Cleveland met to review and approve a development finance agreement that will link $38 million in private party investment funds to Charter Steel’s expansion of its Cuyahoga Heights facilities through the port’s development finance program.

 

Charter Steel, North America’s leading producer of carbon and alloy steel wire rod, is building a new rolling mill to serve the growing cut-to-length steel bar market. The new facility will be built adjacent to Charter Steel’s existing coil mill and steelmaking operations in Cuyahoga Heights, and adds an additional 25 jobs, bringing Charter’s local employment total to approximately 355 employees. Total project cost of the expansion is $146.6 million, representing the largest investment in the company’s history.

 

In maritime matters, the Board approved a one-year agreement authorizing Federal Marine Terminals, Inc. (FMT) to continue as terminal operator for Warehouses A, 24, 26, and the Maintenance Shed. The new deal also expands FMT’s role to Dock 22 and Warehouse 22, including providing stevedoring services to the Cleveland-Europe Express (CEE), the only scheduled container vessel service between the Great Lakes, Europe, and points beyond. "FMT has proven itself a strong service provider on the Port of Cleveland’s docks," said Dave Gutheil, Port Vice President, Maritime & Logistics. "This new agreement will help streamline and improve efficiencies at our facilities." Gutheil also stated that the deal represents a meaningful increase of 5.5% in lease revenue from the 2016 agreement.

 

 

Port Everglades expects multi-million-dollar investments in terminal and transportation facilities to generate returns that benefit the cruise industry as well as the port’s bottom line.

 

Some of the improvements will be visible as soon as guests arrive at the port’s entrance, such as new wayfinding signage that combines functionality with art. 

 

Port officials worked with Broward County, Florida’s Cultural Division to engage an environmental graphic design artist to find interpretive art solutions for directional signage. The result, which will be unveiled in time for the start of the 2018-2019 cruise season, will be colorful Florida environmental images to create an intuitive and colorful visual map for port visitors to find their destinations. In addition, the port is improving its outdoor aesthetics in with art installations at the security entrances and within several highly visible medians and roadside locations.

 

The port is also working with its cruise line partners and investing in cutting-edge terminal improvements that reflect the new wave of cruise ship technology and tailored guest services.

 

For example, Carnival Corporation has made a multi-million-dollar investment in technology and aesthetics to transform Cruise Terminal 2 into the first and only facility in the world specially equipped for its new Ocean Medallion interactive wearable technology service. 

 

Princess Cruises, one of five Carnival brands operating at the port, introduced this technology aboard Regal Princess this past fall and the terminal enhancements were a large part of the guest experience. The retrofitted cruise terminal features a movie theater and more comfortable pre-boarding areas, transforming guests' experience as they prepare to depart for their cruise vacation.

 

Port officials are also working with Royal Caribbean Cruise Line Ltd. to completely expand and remodel Cruise Terminal 25 for the new Celebrity Edge’s arrival in November of this year. 

 

Cruise Terminal 22/24, which was used strictly for baggage laydown and Customs clearance, has been demolished to make way for a single, supersized Cruise Terminal 25. The $100 million-plus renovation includes expanding the footprint, adding second floor check-in and waiting areas, and significantly improving traffic circulation to create a streamlined, futuristic facility.