Regulating port commerce for economic growth
Senate Bill 426 currently being considered in the Florida Senate, and its counterpart House Bill
267, are a vital protection for our deep-water ports in Florida. This important legislation would ensure commerce in all of Florida’s ports is uniformly regulated at the state level, providing a predictable environment that encourages increased economic growth.
I recently had the opportunity to participate in a panel discussion on seaport regulation before the Florida Senate Committee on Transportation and share why I believe legislation addressing this issue is very much needed. As a native Key Wester, and local ships’ agent, I have seen firsthand the consequences that other localities could face if we maintain the status quo and continue to allow port operations to be subject to shifting political winds.
During the November 2020 election, three local referendums were passed in Key West that significantly limit the size and capacity of cruise ships. These referendums effectively exclude 94% of all cruise-ship traffic already scheduled into the Port of Key West.
This will have devastating impacts on local businesses, the workforce and the Key West economy. According to data collected by the Greater Key West Chamber of Commerce, cruise passengers account for more than 20% of tourist spending in Key West when you do not include the cost of lodging and local cruise spending accounts for more than $90 million per year. This will be a significant loss to businesses and to the city’s budget, which will lose millions of dollars in disembarkation fees.
It is the hope of those who pushed for these referendums that the smaller cruise ships Key West is now expecting to attract and their passengers, who pay higher per diems, will be sufficiently wealthy to spend more in town. However, this highlights how the size restrictions they designed will exclude larger ships with lower fares that allow people of moderate means to enjoy a Key West port call.
Intentional or not, the promotion of ships catering to the well-to-do over those carrying people of modest income is a form of economic bigotry. And that is not what Key West, and its One Human Family, have ever been about.
These referendums were also billed as a necessary compromise to protect the environment and bring in better, smaller ships, but their very language prevents the newest, most environmentally advanced ships from calling on Key West because of the strict size restrictions.
But this is not just about cruise ships, and it’s not just about undoing these ill-conceived referendums in Key West. Senate Bill 426 and House Bill 267 seek to protect maritime commerce — including both cargo and cruise activities — in all of Florida’s 14 deep-water ports. This legislation is needed because the economic benefits of that commerce extend far beyond the locality in which the ports are located, contributing $117.6 billion in economic value to the state, and our ports should be regulated with that statewide impact in mind.
Florida’s ports are major economic drivers and have become global hubs for maritime commerce. Sen. Keith Perry, during last week’s hearing, was rightfully concerned that Key West’s referendums could open a Pandora’s box that threatens the continued success of our ports. That is why maritime commerce should be responsibly regulated by the state.