Florida Budget Proposal Would Impact Florida Ports With Cuba Services

The Honorable Richard Lynn “Rick” Scott, Governor (R) of the State of Florida, has included language on page 221 of his 363-page 2017/2018 budget that would, if approved by the Florida Legislature, impact the ports located in the state which are the location of exports to the Republic of Cuba and/or imports from the Republic of Cuba.  

Governor Scott was inaugurated on 4 January 2011 and is term-limited; his final term ends on 5 January 2019.

The impacted ports may include: Port Everglades, Jaxport (Jacksonville), Port Manatee, Port Miami, Port of Palm Beach, Port of Pensacola and Port Tampa Bay.

Florida Department of Transportation

1873   FIXED CAPITAL OUTLAY
       SEAPORT - ECONOMIC DEVELOPMENT
        FROM STATE TRANSPORTATION
         (PRIMARY) TRUST FUND. . . . . . .                        15,000,000

1874   FIXED CAPITAL OUTLAY
       SEAPORTS ACCESS PROGRAM
        FROM STATE TRANSPORTATION
         (PRIMARY) TRUST FUND. . . . . . .                        10,000,000

1875   FIXED CAPITAL OUTLAY
       SEAPORT GRANTS
        FROM STATE TRANSPORTATION
         (PRIMARY) TRUST FUND. . . . . . .                       140,097,833

1876   FIXED CAPITAL OUTLAY
       SEAPORT INVESTMENT PROGRAM
        FROM STATE TRANSPORTATION
         (PRIMARY) TRUST FUND. . . . . . .                        11,448,082

"No funds in Specific Appropriations 1873 through 1876 may be allocated to infrastructure projects that result in the expansion of trade with the Cuban dictatorship because of their continued human rights abuses."

How the words "result in" and "expansion" could be interpreted has created challenges for officials representing ports located in the State of Florida.  In January/February 2017, three (3) ports declined to execute Memorandums of Understanding (MOU) with the Port Authority of the Republic of Cuba.  

The wording of the budget proposal could be interpreted expansively- that if a port uses state funds to add a crane or expand a container facility and months later Crowley Liner Services increases on one vessel the number of containers transported from Port Everglades to the Port of Mariel, the increase could be interpreted as having been a result of changes to port infrastructure.

The vagueness of the wording was precisely what Governor Scott and his staff sought- to create uncertainty and, as a result, negatively impact the desire of exporters in the United States to engage commerce with Cuba.

In July 2016, the Florida Department of Transportation issued its 2015 Florida Seaport System Plan within which was the following passage:

3.8.3 EXPANSION OF TRADE WITH CUBA
Reaching back as far as the first Seaport Mission Plan, published in1990, the topic of resuming normal trade with Cuba has been listed as a significant issue for Florida’s seaports. Due to the proximity of the state to Cuba and the cultural ties, expanded trade opportunities could be dramatic. Many U.S. companies, educational institutions, humanitarian consortiums, and public officials seek to better understand future opportunities.

Meeting Minutes from the Tampa Bay Ports Regional on 13 August 2014 included the passage:

Primary Meeting Action Items:
Shared Strengths: Research, Manufacturing, Land capacity, Shared channel, Roads and Rail, Proximity to the Panama Canal, Cuba, Central and South America, Shared consumer markets along I4 corridor.