Early cargo could offset Caribbean loss

Asian ships might come in early.

It's not a plan set in stone, but it could help offset a 25 percent downswing in trade with Puerto Rico at Jacksonville's ports.

Roy Schleicher, Jaxport's senior trade development director, reported to the authority's board of directors Wednesday that Mitsui O.S.K. Lines Ltd. may begin making stops at Talleyrand in April or May. A permanent terminal for the Japanese shipping giant is under construction at Dames Point and is expected to open in late 2008.

"The only real markets that are growing right now are in Asia," Schleicher said. "The Puerto Rican markets are pulling us down."

Economic troubles in the Caribbean U.S. territory have contributed to a 25 percent dip in Puerto Rican cargo in Jacksonville, he said. It's a substantive decline, he added, because Puerto Rican business accounts for 75 percent of Jaxport's container trade.

Port Authority Executive Director Rick Ferrin said the possibility of Mitsui starting early is a welcome surprise.

"It would help us," he said.

There are a number of hurdles to clear for the temporary Mitsui terminal plan, though. The St. Johns River's depth is among the obstacles.

Ferrin said the water at Talleyrand is 38 feet deep, compared with the 40-plus feet of water Mitsui ships will be able to draw from when the permanent terminal opens. Even a few feet make a difference for large ships loaded with cargo.

Schleicher said the ships may offload some cargo elsewhere to lighten up before arriving in Jacksonville. Even with a partially loaded ship, the idea is to begin serving customers and building up business before the Dames Point terminal opens, he added.

"This is helping to roll out the carpet to what we'll have next [year]," said Dennis Kelly, regional vice president for TraPac, the company that will operate the permanent Mitsui terminal.

Mitsui's temporary loading point would be at the Hamburg Sud terminal, but the German-based company, which already shares cargo space with Mediterranean Shipping Co., has not signed an agreement.

"The idea has been floated, but there's no decision," said Rainer Dehe, Hamburg Sud's North American operations director. "Nothing is impossible, but there have been no formal negotiations."