Port of Fernandina positions itself for huge growth amid supply chain challenges

Port of Fernandina positions itself for huge growth amid supply chain challenges (Courtesy of the Jacksonville Business Journal) —

The Port of Fernandina has leaned into its reputation as a niche port and is reaping the benefits from it.

After a record-setting 2021, the 106,995 tons of cargo the port handled during the first quarter was 30% increase over the same period last year. The majority of that growth has come through its breakbulk operations because of a quartet of contracts that port operator Worldwide Terminals signed late last year.

Worldwide Terminals is the only operator in Fernandina. Its CEO Chris Ragucci said his company has signed agreements a Swedish shipper to import forestry products — meranti plywood from Brazil and Southeast Asia as well as imports of Swedish sawn timber.

Breakbulk cargo represented 65% of the Fernandina port’s business last year. Thus far, the 88,534 tons of breakbulk cargo is 67% better than the first quarter of 2021. The growth is such that the Nassau County Ocean Highway & Port Authority is looking to hire its first full-time Executive Director in many years later this spring.

“We were able to capture it because there are limited port facilities available in the Southeast with capacity,” Ragucci said. “Savannah is congested. Brunswick is mostly focused on cars. Jacksonville is going for the large container ships, and most of their breakbulk is full.”

Jaxport has also witnessed breakbulk growth during the first half of its fiscal year because shippers are looking to avoid the supply chain snarls that have slowed container cargo. Nevertheless, Jaxport makes a majority of its revenue through container and auto cargo.

In Fernandina, its 3,298 TEUs and 18,461 container tons during the first quarter are 7% and 59%, respectively, lower than last year. The reason, Ragucci said, is because Worldwide has focused more on breakbulk business.

Worldwide is finalizing a contract with a container company that, if consummated, would bring 15,000 TEUs annually. The breakbulk contracts, as well as the potential container opportunity, are why Ragucci estimates the port’s revenues will grow 50% this year.

Florida ports have championed their availability to handle additional cargo since the supply chain crunch began to be felt late last summer. While most of the discussion has focused on container cargo at larger ports like Jacksonville, Port Everglades and Port Tampa Bay; facilities that focus on breakbulk, like SeaPort Manatee and Port of Fernandina, are witnessing explosive growth.

“A lot of it starts with the growing population in the Southeast,” Ragucci said of the state’s breakbulk opportunities. “Forest products are not raw materials. They are manufactured materials that are going to mills (like) Georgia-Pacific, Proctor & Gamble that make consumer products. Kimberly-Clark is a big recipient of these materials. …These are recession-proof commodities. The factories need more wood pulp. The good infrastructure we have in Florida ports has been discovered and utilized to accommodate the growth.”

Photo courtesy of the Florida Ports Council