An agreement to cover higher-than-expected costs of raising power lines to accommodate large cargo ships at JaxPort received the first of three necessary approvals Feb. 24 when the Jacksonville Port Authority board signed off on it.
The board unanimously approved a $32.5 million contribution by JaxPort toward elevating the high-voltage lines near the Blount Island Terminal from their current 175 feet to at least 225 feet.
In May 2022, the global engineering firm Worley Group conducted a feasibility study under contract with JEA in which it estimated the cost of the project at $42 million to $54.4 million.
When the design process was completed, the cost estimate more than doubled to $117 million.
The $32.5 million approved by the JaxPort board adds to $52 million committed previously by the port, the state Department of Transportation and the city of Jacksonville to raise the lines.
According to an interlocal agreement for the additional funding, FDOT committed to providing $22.5 million and the city will contribute $29.5 million, including $7 million in cost savings credited to the city from funding previously approved for the $420 million deepening of the St. Johns River harbor channel to allow larger ships to use the port. That project was completed in 2022.
The bulk of the city’s funding came through legislation approved in 2023 to contribute a $10 million grant, a $12.5 million loan and a $5 million bridge loan for the project.
According to the interlocal agreement, the city would provide an additional $5 million in contingency funding that would be used if the costs of the project exceed $117 million.
On Feb. 25, the JEA board is scheduled to vote on matching JaxPort new funding with a $32.5 million contribution from the city-owned utility.
JEA reported that its funding for the project would come from increased sales of electricity in fiscal year 2024 and would not affect customer rates.
JEA hired the Houston-based design and construction firm Quanta to carry out the work setting the guaranteed maximum price at $90 million. The additional $27 million that will come through the increased funding from JEA and JaxPort will go toward materials, new towers for both banks of the St. Johns River, and other materials and equipment.
In 2022, JaxPort and St. Johns Bar Pilot Association conducted a simulation that found large ships would need a minimum 197 feet of clearance to safely navigate under the power lines.
JaxPort CEO Eric Green said raising the lines was “a critical project for our community.” He said it would help maintain a steady flow of cargo through JaxPort, which processes the largest volume of container cargo of any Florida port, and would help protect thousands of jobs at the port and in related positions such as trucking and logistics.
In addition to the JEA board’s approval, the agreement also would need to clear the Jacksonville City Council to be finalized.