Deal brings second container crane to Port Manatee

PALMETTO – It's about Port Manatee entering the big leagues. That's why the executive director of the port advised the Port Authority to approve the purchase of a second container crane Thursday.

In a 6-0 vote, the authority members approved the purchase, subject to the review and approval of the Florida Department of Transportation and the port's counsel. In the middle of the meeting, he said the DOT had approved the purchase.

The second crane will enable the port to increase its container-handling ability, David McDonald said.

"This would be an identical crane to the one that we have in the harbor right now," he said.

The port reached a 15-year agreement with Logistec USA, he said, and it shows the rest of the world that the port is serious about getting into container operations and willing to compete with other ports for traffic.

"Securing this second crane is essential for Port Manatee as we prepare for increased shipping traffic expected from the expansion of the Panama Canal," McDonald said in a press release. "You have to have a minimum of two such cranes to get the attention of the industry that you're moving into their field of expertise."

The port won't know the exact cost of the crane until the day of the purchase because of the fluctuation of exchange rates, he told the members.

Logistec will be responsible for the operations, maintenance and insurance for the crane.

Logistec asked for a hardship clause in that in month six of the fifth year of the agreement, if the crane is being used at least 600 hours per year, the Port Authority could work with them to lease it to another company; buy it outright from Logistec for the remaining balance of the $2 million on the loan; or sell it outright, pay off the loan and keep the balance of the cash.

It's basically a five-year lease with 10 one-year options, McDonald said. At every anniversary, Logistec has the option to renew or not. They're comfortable with the value of the crane versus the loan, he said.

The cranes can be used for other cargoes, including break-bulk such as lumber and aluminum, and bulk materials. The company intends to use the crane for that purpose.

"All of the tenants of the port will benefit because of the very fast recycle time that a crane like this has," he said. The current crane has been used when there have been unloading failures.

Member Carol Whitmore said she was happy at the news. "I'd be trying to figure out how to get a third one," she said.

The port expects delivery and operational certification of the crane by Oct. 1.