Finance: Alabama, Nanaimo, San Diego

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Standard & Poor’s has affirmed its "A-' rating for the Alabama State Port Authority’s outstanding dock facilities revenue bonds. The Port of Nanaimo contributes directly to employment and the economy in the region through its operations and activities, according to a newly released study. Unaudited financial results for Fiscal Year 2014 indicate that the Port of San Diego earned a $12.5 million surplus during the fiscal year ending June 30, 2014.

Standard & Poor’s Affirms Alabama State Port Authority’s A- Rating

Standard & Poor’s has affirmed its "A-' rating for the Alabama State Port Authority’s (ASPA) outstanding dock facilities revenue bonds. The rating agency’s endorsement recognized the port authority's diversification of revenue sources in recent years, positive cargo trends, and strong financial margins.

Standard & Poor’s also took note of the port authority’s increased debt service coverage and cash flow coverage, limited competition from other U.S. Gulf Ports and its strong niche position in the coal trade. The stable outlook assessment reflects the port authority’s increased financial margins and low liquidity levels.

"Our management team has been highly focused on securing new business streams and alternative forms of financing our capital programs short of entering the bond market," said Port Authority Chief Executive James K. Lyons. "This strategy has met our objectives to modernize terminals and expand our services, service our debt, and maintain a strong cash position."

Nanaimo Port Authority 2014 Economic Impact Study 

The Port of Nanaimo contributes directly to employment and the economy in the region through its operations and activities, according to a newly released study. The results arebased on a review of 2014 operations and include:

Total Employment: 6,400 jobs and 5,700 person years.

Employees Earnings: C$350 million in wages and salaries.

Port of Nanaimo operations contribute to an estimated:

C$585 million in total gross domestic product (GDP).

C$1.24 billion total economic output to the provincial economy.

Taxes paid on an annual basis byemployers and employees at Port of Nanaimo are estimated at C$76 million:

Federal government at C$50.16 million per year (66 percent of total contribution).

Provincial government received C$24 million in tax revenues (31 percent).

Municipal governments benefit through the collection of property taxes andpayments in lieu of tax, amounting to C$2 million paid by Port of Nanaimo and itstenants (3 percent).

Click here for the full study text.

Port of San Diego Financial Statements Reflect Strong Performance, Large Surplus

Unaudited financial results for Fiscal Year 2014 indicate that the Port of San Diego generated a $12.5 million surplus during the fiscal year ending June 30, 2014.

FY 2014 revenue of $157.8 million exceeded the budget forecast of $150.4 million, while expenses of $133.3 million fell below the budgeted of $139.3 million. That resulted in the surplus after deducting $12 million for debt service, capital items and reserves.

"In recent years, the Port of San Diego has been faced with hard choices that prompted us to take a fresh look at how we run this vital agency," said Port District Board Chairman Bob Nelson. "Our strong budgetary performance for Fiscal Year 2014 shows that we have achieved a financial recovery, providing us with additional resources to support our stewardship of San Diego Bay. This budget surplus reflects the combined efforts of port staff, labor partners and the board. We’re on our way out of this economic downturn, and we are emerging stronger and even more focused on our mission."

Highlights of actions during the past five years include:

In FY 2009, the port enacted a hybrid retirement plan for all new hires that shifts more financial responsibility to the employee – saving $70 million over 20 years.

In FY 2011, the port began a multi-year reorganization that included an early retirement incentive program, furloughs and a hiring freeze. The port has continued to reduce its workforce through attrition, without layoffs. The current number of budgeted employees is 527, a 19 percent decrease from 649 in 2009.

In FY 2013, the board adopted a policy on cost recovery to charge user fees.

Also in FY 2013, the port increased revenues through various business initiatives. For example, it began opening the B Street Cruise Terminal parking lot for public parking on non-cruise days, thus providing new public parking opportunities along the waterfront while generating revenue for port operations.

In FY 2014, the port continued its cruise and cargo marketing and business development to recover cruise and cargo volumes to pre-recession levels.

In FY 2014, the port continued promoting its commercial real estate business and celebrated the initiation of private development projects that improve the waterfront while generating revenue and creating jobs.