Diversification in funding sources and income avenues is helping ports achieve more financial stability and security, as well as boosting the bottom line.<\/p>\n
By Sandy Smith<\/em><\/p>\n When Hurricane Katrina \u2013 and a 24-foot storm surge \u2013 destroyed the Port of Gulfport in 2005, the port had a choice: rebuild the port back to its original layout, or take this as a once-in-a-lifetime opportunity to rebuild, restructure and grow.<\/p>\n While the port received a $570 million grant through the U.S. Department of Housing and Urban Development (via the state of Mississippi), it was just the drop in the bucket of what would be needed to capitalize. That set a path of exploring a variety of funding options, using the HUD grant as just the starting point.<\/p>\n \u201cThe only thing we haven\u2019t done is hold a bake sale,\u201d said Jonathan Daniels, the port\u2019s executive director and CEO.<\/p>\n There is no need to polish brownie baking skills \u2013 at least not yet. Ports these days are exploring a variety of options when it comes to diversifying their funding sources and for good reason.<\/p>\n \u201cPorts are capital intensive and it\u2019s not only the docks and wharfs and need for bigger cranes,\u201d said David C. Miller, managing director of PFM Financial Advisors, LLC. \u201cIt\u2019s also about providing efficient rail and highway access. Most ports aren\u2019t generating the lease revenue and tariffs to pay for all the capital they need. They\u2019re looking for help, whether it is federal grants or state and local money or private sector participation.\u201d<\/p>\n To be sure, most ports are sitting on a potential gold mine of opportunity \u2013 if they can get the funding to invest. \u201cWith the cost of energy and changes in the shipping industry, there is some opportunity for ports,\u201d said John Pauling, national director of ports and harbors for Cardno. \u201cIt\u2019s not a static or declining market. It\u2019s a dynamic and growing market.\u201d<\/p>\n