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

August 29, 2014 12:17 p.m.

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.

Editor'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.