Port of Fernandina – Both a vision and a challenge – An opinion

An opinion submitted by Gene Alley
August 29, 2014 12:17 p.m.
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The Subcommittee of the Fernandina Beach Planning Advisory Board (PAB) has conducted a series of public meetings to solicit comment both from the public and the Ocean Highway and Port Authority (OPHA) in an effort to more fully understand the ramifications and possible impacts of the Port of Fernandina Beach’s future operations on the local community.

These discussions have revealed several significant issues, specifically:

  • The revised OHPA Master Plan as presently written does not reflect the OHPA and Port Operator’s (Kinder Morgan) vision of what is realistically possible within the next ten (10) years. Both the OHPA and Kinder Morgan representatives present at the meetings to date have both stated that they “are not happy” with some of the data and content of this document. The PAB subcommittee has suggested that the OHPA revise and “distill” the existing document to more accurately reflect the OHPA vision of where the Port of Fernandina Beach will possibly be within the next 3-5 years, and 5-10 years.
  • Traffic volume and flow both within the city limits, and the confines of Nassau County is a major concern of the residents of our community.

With these issues in mind, and recognizing that the OHPA may further substantially revise their Master Plan, I believe the review process currently underway offers a unique opportunity to address an existing problem that the present revised OHPA Master Plan attempts to quantify. This issue is the total volume of truck traffic presently on our major traffic arteries (SR 200 and 8th Street). If the data in the existing Master Plan is accurate, the total daily truck traffic on this highway system attributable to the two mills and the port is approximately 1,474 truck trips (Rock Tenn 840, Port 134, and Rayonier 500). While the contribution of the Port is presently relatively small, OPHA anticipates that it may grow somewhat to the levels experienced during 2011.

The issue here is not so much what a modest increase in port truck traffic will have on the community, but rather what impact the total truck traffic has had and will continue to have until an alternative solution is identified and the necessary steps taken to implement an alternative transportation system. It is my belief that Mr. Yulee’s railroad offers a viable solution, one that will not only result in a more efficient and cost effective transportation model, But also at the same time measurably improve the quality of life in our community.

There are those that will say that this has already been looked at, including a test by Rock Tenn’s predecessor that demonstrated that use of the railroad increased the material handling costs, and was therefore not justifiable on an economic basis. In any economic model there are a number of variables, one of which is volume. It is my belief and recommendation that an economic model developed that substantially captured most, if not all, of the raw materials going to both mills, the finished product delivered from these mills, together with the containerized cargos going into and from the Port of Fernandina, that the “unit costs” for handling (loading and unloading) and rail transport will be substantially reduced.

There is a further argument put forward that the use of rail to move a substantial portion of the current truck traffic would have a negative impact on truckers’ income and livelihood. This argument holds water only in so far as the other variables in the economic equation remain unchanged. If the intermodal facility were located in either the Greater Yulee area, or possibly the Crawford Diamond development, it is reasonable to assume that the harvesting area for pulp wood would also be adjusted as well. Depending upon where the intermodal facility is located, it’s quite possible that the total pulp wood truck miles might remain unchanged, and might possibly actually increase. However those truck miles would not be on SR 200 and 8th Street.

The question then becomes how do we get there from here? First, the economic stakeholders need to be encouraged to work together. These entities include Rayonier, OPHA, Rock Tenn and the Genesee and Wyoming Railroad.

Second, the various governmental and NGO organizations need to agree a common goal and then begin working in their respective areas to achieve the goal of a more efficient transportation system. There are multiple benefits to such an approach which I will attempt to identify shortly. Stakeholders on this side of the equation include the Fernandina Beach City Council, the Nassau County Commission, the Economic Development Board, the Chamber of Commerce (city and county), Amelia Island Tourist Development Council, FDOT, our elected representatives (local, state and federal), in addition to the citizens of Fernandina Beach and the rest of Nassau County.

One of the fundamental issues encountered by a comprehensive change such as this is the cost of implementation. Given the benefits derived from developing the railroad as a cost effective solution to the current and future highway and street overload, I believe that much of the infrastructure costs can be defrayed through the use of both State and Federal grants. Grant money can be used for land acquisition, development of an intermodal facility, rail expansion as necessary to handle the increased volume and the possibility of a centralized chipping plant that could handle the raw material requirements of both mills.

Benefits to the various stakeholders include:

  • Improving the cost stability of both mills, securing their place within our community.
  • Permitting the controlled growth of the Port focused on container traffic.
  • Creating additional employment opportunities within the community.
  • Alleviating traffic congestion on SR 200, 8th Street, Gum and Dade Streets.
  • A critical first step in improving the appearance of 8th Street, the front door to historic Fernandina Beach.
  • Alleviating damage to historic structures within the city, including as an example St. Peters Episcopal Church.

The Planning Advisory Board is in a unique position to identify this issue and make recommendations to the City Commission that can move this issue forward. Some may argue that this is a discretionary recommendation, but I believe it can be argued that this is the essence of what a Planning and Advisory Board should be doing. I would encourage the PAB subcommittee to take this idea back to the Planning Advisory Board, and to the City Commission for consideration and action.

Finally, one last thought: Change is inevitable. Those that ignore change are condemned to live with the consequences. Those that recognize change, and plan to incorporate it into their plan s enjoy the benefit of managing how change affects them and their community.

Gene AlleyEditor’s Note: Eugene “Gene” E. Alley is a 67 year old marine engineer who, with his wife, has resided in Nassau County for the past 26 years. He is a graduate of the U.S. Merchant Marine Academy at Kings Point, with graduate studies at Drexel University in Engineering Management. His career, while focused in the marine industry, has been largely influenced by working in the private sector where he preformed various cost benefit analysis, and life cycle cost analysis. He retired in 1995 from the U.S. Naval Reserve as an Engineering Duty Officer having achieved the rank of LCDR.

17 Comments
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Sandra Baker-Hinton
Sandra Baker-Hinton(@sbhsandrabaker-hinton-com)
9 years ago

Forgive a question that probably has been answered but how is rail transporting better for the city except for the obvious of noise and clogging up the streets? I have a business just up the street from the railroad track at the Front Street area. How can this small track and rail system possibly not clog up the Front street area and the Waterfront if trains are transporting in all this stuff. They still have to go through town and I cannot understand how this is not going to totally tie up the waterfront area which we are just now trying to make more beautiful and attractive for tourists and residents alike. Volume is volume and however it gets there is a problem because the island is a bottle neck simply because it is an island. Has thought been given to water access? Barges? I’m sure it has but I have thought and thought about it and can’t see any way except going up 14th street into the back access of the port and the mill as a means of not clogging up the town. I realize this creates even another problem for those who reside on 14th street but that is already 4 lanes a good part of the way. Just some ramblings I guess but brainstorming never hurt a situation.

Dave Lott
Dave Lott(@dave-l)
9 years ago

Great piece Gene and you are absolutely right, just because something was looked at years ago doesn’t mean that things haven’t changed that might result in a different outcome. I don’t pretend to understand all the economics involved with the independent truck drivers hauling their goods, but one would think that a shorter haul distance might lead to an additional trip due to the shorter turnaround to offset the decreased mileage revenue. I’m not sure the Crawford Diamond rail option is viable in the short term due to the routing of the rail lines through Jacksonville, but it certainly should be evaluated to understand the potential.
I still have the basic question to the OPHA and that is if this Master Plan didn’t truly reflect the vision of the Authority, why was it adopted? Where is the true value to the Authority of this costly effort if it is so out of alignment with the beliefs and vision of the Authority’s members? It appears to me, and comments from some of the Authority members seem to support my view, that this plan was the most widely optimistic (some would say fantasy) business plan that could be devised – a best case scenario for the Port and a worst case scenario for the overall community in terms of quality of life impact.

Sandra, you raise the valid point of doesn’t shifting transport modes from truck to rail still result in a major impact to the downtown area? It is sort of like robbing Peter to pay Paul and I think diverting some of the truck traffic to 14th Street is of the same ilk and simply spreads the misery and damage. You would then have two major arteries that would suffer severe damage from the “ruts” that are created in the roadway by the heavy cargo. Barging should be examined as well, although I can’t imagine it would be less expensive (and probably be slower) than an inter-modal transfer to rail. But in the olden days (some would say golden days), there was a large lumber milling operation in an area called Crandall/Reid’s Bluff on the St. Mary’s River of which OPHA’s attorney, Clyde Davis, is very familiar since his family was highly involved in its development and operation.
I jokingly suggest that the best solution (and probably most expensive) is for OPHA to use their authority to build a bridge tollway from the Port over to St. Mary’s Point Peter and restrict its usage to commercial traffic coming to the mills and port.
Everyone have a safe Labor Day.

Robert Warner
Robert Warner (@guest_21221)
9 years ago

Gene Alley’s analysis is very useful.

chuck hall
chuck hall(@bob)
9 years ago

Great idea. I like looking at the big picture, too. This isn’t going to help us right now, however. The Port is up against a time limit, and they intend to submit a Master Plan soon.
Please attend the Public Forum on Tuesday Sept. 10th at 6:30 PM at St. Peters Church, 8th and Centre St. The Master Plan will be discussed. This is intended to be a fact-sharing forum, and we hope to learn more.

Faith Ross
Faith Ross(@faith-ross)
9 years ago
Reply to  chuck hall

Chuck,
The date of the Public Forum is SEPTEMBER 2nd, Tuesday at 6:30PM at St. Peter’s Church, NOT the 10th. Thank you for bringing this to the attention of the public.

Ron Lindhart
Ron Lindhart(@lindhartgmail-com)
9 years ago

No one has discussed the increased diesel particulate air pollution problem from the higher number of truck trips. The rail solution is a reasonable solution if there is an appropriately located intermodal transfer site. Thanks, Gene!

Faith Ross
Faith Ross(@faith-ross)
9 years ago
Reply to  Ron Lindhart

Funny thing about saying, “Let’s use rail.” The Port has NO CONTROL over how cargo arrives. It is the responsibility of the CUSTOMERS to get the material to the Port. And their choice of transport is trucks! You can give the Port all these choices, but the PORT does not transport anything. It simply loads and unloads goods from ships. The Port has NO CONTROL over how its cargo arrives or leaves. Only the users of the Port provide the transportation to and from the facility.
When the Port, in its Master Plan, states that it needs to turn the trucks around in 15 minutes, it knows what’s coming! The FDOT study was completed concerning truck traffic for a reason.
Let’s talk about the multiple uses for the Port besides the loading and unloading ships, which attracts trucks. We have the Ports of Jacksonville and Savannah close by to handle all of the shipping needs. Let’s all think beyond the container box.

Faith Ross
Faith Ross(@faith-ross)
9 years ago

With global warming, and rising water levels, I would not be surprised if Raynier moved to Crawford Diamond since it is the major stakeholder in this 1,000+ acre industrial park. It is presently advertising that Crawford Diamond is 90 ft above sea level. But they are not leaving any time soon, if at all.
Unfortunately, the Port’s expansion WILL bring more truck traffic to our roads. The Port has the authority to change it’s business model at any time. It has the power to build office buildings, hotels, restaurants, radio stations, residential housing, etc. It pretty much has a carte blanc to do what it pleases WITHOUT paying taxes. It would certainly make more money building historic looking homes in the area than trying to compete in the shipping business. It could also restore the City’s and County’s tax base with residential/commercial properties that would pay real estate taxes.
The Port has been losing money for a long time. And from information gained at the Economic Development meeting held in Yulee recently, 38% of Raynier’s work force is going to retire very soon. Couldn’t we give the Port employees some of those jobs?
The Port Authority Commissioners could be our heroes in alleviating our truck traffic woes by exploring their TOTAL potential rather than following a business model that will still lose money for the next 10 years according to their plan.

Steve Crounse
Steve Crounse (@guest_21497)
9 years ago
Reply to  Faith Ross

Faith, I know i’m late with this post,but with the FDEP Permit on hold and a Town Hall meeting in Oct. Hosted by Atkins and Bean perhaps we, the citizens can change the para-dime. This Port of Fernandina served our community well in 1614, 1714, 1814 even 1914. 2014 not so much. your right, our town and Nassau county would be better served by utilizing that 23.5 acres for some type of development, Put it back on the tax rolls and get rid of five Commissioners. Heck that’s a savings of $120,000/yr. right there.

Robert Warner
Robert Warner (@guest_21228)
9 years ago

Comments are raising important issues. Some background links that may give more structure to what the Master Plan is required to deal with (Appendix D to the Master Plan), the completeness and objectivity of the report particularly in the areas of rail and barge alternatives to truck drayage through city streets, integration of the plan with Terra Point and Crawford Diamond developments now taking shape, historical, environmental and hazardous material concerns, and emergency evacuation issues.

http://www.kindermorgan.com/

http://www.fbfl.us/DocumentCenter/View/14187 (Appendix D to the report

http://amelia-island.net/ameliablog/2011/12/brian-reeves-port-commissioner-points-out-advantages-of-creative-uses-of-ohpa/

https://www.rayonier.com/Businesses/Real-Estate/Terrapointe.aspx

http://www.terrapointeserviceslandsales.com/SearchResults.aspx?searchType=advanced&propertyForSale=1&propertyForLease=1&propertyState=FL&propertyUse=&Page=3

chuck hall
chuck hall(@bob)
9 years ago

Yes the Forum at St Peters is indeed on the 2nd of September, not the 10th. Please invite your friends to attend to get the facts about the new Master Plan.

Pat Gass
Pat Gass (@guest_21233)
9 years ago
Reply to  chuck hall

I understand your desire to rally the community but please.

Sec. 6-28. Placing on vehicles.permanent link to this piece of content

It shall be unlawful for any person to place or deposit any commercial or noncommercial handbill upon any vehicle not his own, or in his possession, upon any public street, highway, sidewalk, road, or alley within the city. However, it shall not be unlawful, upon any street or other public place, for a person to hand out or distribute handbills to any occupants of vehicles that are willing to accept them.

(Code 1955, § 12-39; Ord. No. 399, 4-12-67; Code 1991, § 110.17)

Dave Lott
Dave Lott(@dave-l)
9 years ago
Reply to  Pat Gass

Great point Pat. There is no need to violate ordinances to spread the word. Word of mouth and door to door is the way to let everyone know but I know that takes a lot of time.

Christal Johns
Christal Johns (@guest_21231)
9 years ago

“If the intermodal facility were located in either the Greater Yulee area, or possibly the Crawford Diamond development, it is reasonable to assume that the harvesting area for pulp wood would also be adjusted as well. Depending upon where the intermodal facility is located, it’s quite possible that the total pulp wood truck miles might remain unchanged, and might possibly actually increase. However those truck miles would not be on SR 200 and 8th Street.”

The rail option was looked into and it didn’t work and even if it did there would be an even bigger stink about all the traffic stops at railroad crossings and delays resulting from. People in Nassau County would flip a stick if there were so many trains going thru Yulee and Fernandina like they do in Folkston.

As far as the intermodal facilty… (in my opinion) I don’t see this working either for the same reasons that the rail transport didn’t work (the test was on US 17 near the Weigh Station near Crandall/108 area. Weight restrictions won’t allow log trucks on the interstates in most circumstances(which is a whole other issue) and log trucks coming from Ga via Hwy 17 would have to go way out of way to get to the Crawford Diamond Area. The reason none of these options work is because the immediate areas West, and NE of the mills on the island are in a sense “so close” to the mills. Basically since they are within such a short distance it would cost more to load a trailer of wood, and then truck it and unload it at a chipping plant, actually chip it, then reload it onto a rail car and ship it to a mill.

The writer says “it is reasonable to assume that the harvesting area for pulp wood would also be adjusted as well.” Um, NO! Look at a map. 180 degrees east of the mills is a big blue thing called the Atlantic Ocean. There is no timber coming from the Atlantic Ocean. That would leave 180 degrees of a timberland breadbasket, but not quite. Take out the “greater” Jacksonville area, take out all the subdivision developments that have popped up over the last 10 years that aren’t producing timber anymore, take out the future subdivisions, take out most local, state, and federal government lands (local reserves, state forests, state parks, national parks, national forests, national wildlife refuges, water management districts) as they harvest significantly less timber than private owned timberlands even though these government owned lands are suppose to be “working forest”. Just taking out Jax and the state forests in Nassau I come up with about 60 degrees of non timber area. Add in the Osceola and Okefenokee and there is a huge chunk, 180 degrees is easily less than 100 degrees after a rough look.

I welcome a port expansion, more big rigs, more log trucks, more good paying jobs, more and all of it going east bound on A1A.

Robert Warner
Robert Warner (@guest_21234)
9 years ago
Reply to  Christal Johns

It’s not about log trucks. The Master Plan for port expansion involves hundreds of containers moving by truck drayage, perhaps daily.

Robert Weintraub
Robert Weintraub(@rukbat23gmail-com)
9 years ago

Dave’s bridge idea isn’t so laughable. Someone (DOT?) had drawn up a plan that extended the SR 108 extension due east with a long bridge to the island.

If much of the railroad traffic ran at night, the impact would not be severe.

The Port Authority board is elected by the public. Usually those campaigns don’t get that much attention. That should change.

Dave Lott
Dave Lott(@dave-l)
9 years ago

Bob,
The problem with increased train traffic at night is the City’s desire to make the downtown area along Front Street more desireable. Although supposedly no trains run between 9pm and 7am the Hampton Inn has been pushing for a “quiet zone” (no horn/whistle) for some time and the effort for development north of Centre stalled for somewhat the same reason. And of course more frequent train runs during the day due to limited siding space will disrupt vehicle and pedestrian traffic. Maybe we should have the “Yunnel” – an underground/water tunnel between Yulee and FB? LOL