Companies that import and export goods and perishables between the Americas should pay attention to one of the world’s leading hubs for commerce located in South Florida. PortMiami sits conveniently on the southern tip of North America, with prime access to South and Central America, Europe, and even Asia. The Port in Miami has the capability to welcome mega-sized cargo ships and is the closest U.S. container port to the Panama Canal, making it a priority point of entry for any major industry that does business with the United States. With a prime location closest to Caribbean, Central, and South American ports, immediate access to rail and highway systems, state-of-the-art security, and the benefits of thousands of square feet of warehouse space within a Foreign Trade Zone, strategic business operators know that their cargo is perfectly positions for distribution within the U.S. and beyond by way of PortMiami.

Rail & Highway Access

With a new tunnel connecting the port directly to the highway system in Miami, PortMiami boats being the only U.S. port with direct non-stop access to the U.S. Interstate system. Additionally, the port is connected directly to Hialeah Rail Yard with links to the national rail system. For industries such as perishables, this means produce can reach 70% of the U.S. population in under four days when brought in through Miami’s port. Same day delivery of products is available to locations in Central Florida, and next day delivery to Atlanta and the Southeast is easily guaranteed with a shipment through PortMiami.

Security Priorities

With valuable cargo arriving regularly, safety and security of shipments is top priority at PortMiami. Several U.S. and local agencies provide services to ensure the safety of the port, from U.S. Customs and Border Patrol to Miami-Dade County Police and Fire Rescue. Through radar surveillance, video management, and features such as an automated vessel identification system, cargo coming in and out is closely monitored and recorded for top-level security and comfort.

Warehouse Space within a Foreign Trade Zone

PortMiami is located within Foreign Trade Zone (FTZ) 281, which is a general purpose FTZ established under the Alternate Site Framework. This FTZ stretches from SW 8th Street to the Broward County line; out to the western development line in Doral, and over to Miami Beach. The area surrounding the port is home to 228,000,000 square feet of warehouse space, with 13 plus bulk warehouses under construction, providing thousands of square feet of key storage space for companies to import and manufacture goods under the tax and tariff benefits of an FTZ. Much of this space comprises refrigerated warehouses for quality storage of perishables and produce. Due to the ease of access through the interstate and rail system, products coming through PortMiami can be quickly and easily warehoused for distribution in the U.S. or beyond.

PortMiami is truly the cargo gateway of the Americas. With direct access to much of the U.S. population, and the benefits of operating under the structure of a Foreign Trade Zone, there are many reasons why industries should consider operating through and around the port. As the only U.S. port designated as a U.S. Customs Center of Excellence and Expertise for agriculture and prepared products, PortMiami continues to be a top port of entry for companies who want to extend the shelf life of valuable produce and product being brought into or through the U.S.

For more information on PortMiami, please visit their website at http://www.miamidade.gov/portmiami or call 305-347-5515. Their mailing address is 1015 North America Way, 2nd Floor, Miami, Florida 33132.

If you are looking to lease or purchase a warehouse building near PortMiami then please contact the ComReal Miami Industrial Team at 786-433-2380.

References:

PortMiami. (n.d.). Retrieved August 2017, from http://flaports.org/ports/portmiami/

County, Miami-Dade. (n.d.). Retrieved August 2017, from http://www.miamidade.gov/portmiami/cargo.asp

County, Miami-Dade. (n.d.). Retrieved August 2017, from http://www.miamidade.gov/portmiami/statistics.asp

There is no doubt that the expansion of the Panama Canal and the Port of Miami will impact the Miami industrial real estate market. More trade means more cargo which occupies larger warehouse spaces. The vacancy is now 9% and you may expect this to fall steadily as we reach 2014; the year the construction in Panama is completed. We might also hear announcements from local industrial warehouse developers about new projects. Not only will the demand for Miami warehouse spaces increase. The demand for office space should increase from those that service the international trade industry, plus retail space may be needed for all of those international shoppers and visitors. To read more about the Port of Miami and the following projects: Port of Miami tunnel, FEC rail and deep dredge, please <<click here>>.

On Friday, February 18th, brokers from the Miami industrial warehouse team attended the Panama Canal Expansion event presented by World City and RCA Miami. This comprehensive event included speakers from the Port of Miami, POMTOC, Miami-Dade County, Florida East Coast (FEC) Railway and the Panama Canal. The event was sponsored by Miami International Airport, Miami-Dade County, Seaboard Marine, Port of Miami, American Airlines Cargo and SeaFreight Agencies. About 200 people attended the event. If you would be interested in any of the presentations, please contact us and let us know. We would be happy to forward to you.

Several takeaways for myself included the comment about the USA’s Jones Act from Mr. Rodolfo Sabonge of the Panama Canal Authority. He stated that has an effect on the USA’s maritime economy. Since I was not familiar with what the Jones Act (aka the Merchant Marine Act), I looked it up on Wikipedia. see <<Jones Act>>. With the 100th anniversary coming up in 2014 and the completion of the expansion of the Panama Canal, it is very timely to visit Panama and take into consideration the business opportunities. Miami-Dade County will be conducting a business development mission to Panama in June of 2011. Another thing  that I took away from this event is that even if Miami did not get the deep dredge, our port would still prosper. Instead of getting the larger containerized ships, Miami might become more specialized. For example, the Port of Miami may become more diversified by receiving more cargo headed for South & Central America; refrigerated and freezers containers; smaller ships; non-containerized cargo such as buildings supplies, heavy equipment, automobiles, etc.; and have higher traffic with quicker unload times. From Panama, Miami is the closest city on the eastern coast of the USA; so this would likely remain a competitive advantage in either case.

For an aerial photo and map of the Port of Miami from Google just <<click here>>.

Exciting news is that the Miami port was just awarded the grant of $22,000,000 which will be used to renovate  the rail service between the Port of Miami and the Florida East Coast railroad. This rail will transport freight to the rail yard in Hialeah and then on to the national rail system. Since Miami, South Florida is at the southern end of the Florida peninsula, it is important that sea freight cargo and freight have access to the national rail system to take further north. This has been a project masterminded by the Florida Department of Transportation and the Florida East Coast Railway.

Miami’s industrial real estate market and economy is going to change Post Panamax by 2014. You can read more about this by reading: “Miami warehouses Post Panamax“. The Port of Miami Director, Bill Johnson, is attempting to successfully lobby for $75,000,000 of federal funding to deepen the channel to 50′ which would allow the large ships to access the Miami port. This is known as the deep dredge. Most of our customers and officials we speak with believe that this has a very high probabilty of happening and making the “deep dredge a reality”. You can visit the Port of Miami website at www.miamidade.gov/portofmiami/cargo.asp.

To learn more, visit the Port of Miami tunnel at www.portofmiamitunnel.com. The third project that is now well underway is the Port of Miami Tunnel. Most Miamian’s know that the Port of Miami is on an island, Dodge Island. So getting the cargo off the island as soon as possible to make room is of vital importance.

The new tunnel is being constructed from Dodge Island then underneath Biscayne Bay which will then lead to I-95 and I-395 highways. The Director balances between the dual-purpose port which is known both as the “Cruise Capital of the World” and the “Cargo Gateway of the Americas”.

Cargo Ship in Panama Canal

Those of us in the Miami warehouse industry are patiently awaiting Post Panamax and the potential dredging of the Port of Miami harbor. In 2014, the Panama Canal will be able to serve the supertankers and the largest container ships (i.e. Post Panamax). Given Miami’s international trade routes and relationships, we will be a likely recipient of increased cargo entering the Port of Miami also called the “Cargo Gateway of the Americas”. The Port of Miami serves over one hundred nations and imports over 4M tons annually. As soon as $75 million is secured, the channel will be dredged to a depth of 50 feet which will receive the largest of cargo ships passing through the Panama Canal. Visit Port of Miami Cargo to learn more. Also, click here for a great map to the Port of Miami Tunnel.

Presently, the Miami warehouse market is about 250,000,000 square feet with about a 9.6% vacancy rate. If the channel is deepened, will Miami have enough warehouse space to hold the influx of more Miami cargo containers? ComReal Miami’s prediction is probably not. Just a couple years ago the vacancy rate for Miami warehouses was under 5%. The significance of having a 50′ channel combined with Post Panamax will surely make Miami a prime destination for cargo ships to unload their containers.

Map of Panama Canal in 2014

Fortunately, there is still plenty of vacant industrial land to build new, class A warehouse buildings. In addition, older generation, less functional buildings with lower ceilings can be demolished and/or renovated. Miami could potentially foresee new class A warehouse spaces with at least 28′ clear ceilings and possibly an increase in active railroad served warehouses by both FEC and CSX railroads.

Properties near the Port of Miami and/or the Miami International Airport with railroad access could become in higher demand. One such warehouse in Miami is The 7000 Building. This 127,000 sq. ft. is located near MIA on the FEC Rail. It is dock height, sprinklers throughout with all concrete construction. The property is currently available for sale or lease. It is ideal for large volumes of cargo and freight. Visit www.MiamiAirportWarehouse.com for more details.

If you are interested in more information on the warehouse in market in Miami, please contact The Miami Warehouse Team at 786-433-2380. We help serve our domestic and international customers with their local Miami industrial real estate needs.