Miami-Dade County Mayor Daniella Levine called the potential fuel supply issue at PortMiami “an issue of critical importance” when speaking at a meeting of the Board of County Commissioners on Oct. 9
Cruise Industry News, the port’s fuel depot, which is privately owned and located on the nearby Fisher Island, was sold to a developer in late September.
She noted that the port is a key economic driver for the community, with both its cargo and cruise operations.
“It’s clear that we must have a long-term solution in which the port can own and control its own fuel supply to support its continued growth,” she said.
Cava highlighted the importance of cruise operations for the local economy, highlighting the impact on a wide range of areas, including services, transportation and hospitality.
“I appreciate that the port is sitting in a unique position, given it’s located on an island with a limited footprint and facing enormous opportunities to grow and meet new demands,” she continued.
“So, in a perfect world, the port would have an on-site facility to provide greater control and service delivery for the industry.”
Cava noted that in the real world, the port finds itself with a challenge and that the county is actively pursuing a path for the acquisition of the Fisher Island fuel depot.
Options include an eminent domain process or an agreed purchase from the new owners.
As directed by the Board of County Commissioners, the administration is also analyzing an on-port solution, she added.
Cava said that the county’s teams took a tour of the perimeter of the fuel depot and met with HRP Group, the buyer of the facility.
At the meeting, both parties agreed to mediation, during which documents and information will be shared in a confidential setting.
The mediation will take place on October 21, she noted, adding that HRP later contacted the county with a proposal.
She said that the investor group proposed to buy a new fuel depot on port for TransMontaigne, the previous owner of the Fisher Island facility, at their own expense.
“The cost is estimated at $200 million. We appreciate that this was a significantly improved offer from prior proposals, which had the port leasing the fuel facility for either 30 or 40 years,” Cava continued.
The lease would cost over $1 billion for the port over the term, with no guarantees after the contract expiration date.
“Given the incredibly important decision that must be made by the board and my administration, I recommend that we exhaust a comprehensive review with detailed findings to this board and share those within 15 days,” Cava added.
She noted that the administration sees challenges in building a fuel facility on port, including lack of available acreage, lack of berth availability and impacts to operations that could limit future revenue and growth.
“I do recognize that other major ports have fuel facilities on-site, but we are unique. We are not like those other ports, not just nationally but internationally,” Cava added, emphasizing that PortMiami is located on an island in “the middle of Downtown.”