Florida’s coastal container port could be a boon for tourism, a new study finds.
But it could also have negative consequences.
A new study released Monday by the Institute for Economic Opportunity says the state’s new Coast Guard Coastal Container Service is an important part of Florida’s recovery efforts, but the service could also make things worse.
The study says the Coast Guard’s new $10 billion Coastal Container Services program has already helped Florida recover from the recession, but it could lead to further job losses and further erosion of the tourism industry.
The program’s $10.9 billion in annual funding would help the Coast Guards fill its 18,000 containers at three facilities in Miami-Dade County.
It also provides $6.6 billion to expand the state-owned shipyard at the St. Johns River in Fort Lauderdale and the $3.7 billion shipbuilding project at the Miami Shipyard.
The institute’s analysis found the Coast guard’s Coast Guard Container Services, a state-funded program, “could have negative impacts on the state economy and tourism.”
“There’s been a huge amount of uncertainty about what is going to happen,” said Richard Schulte, the institute’s director.
“I think the program’s been overly optimistic.
And it’s probably going to cause a lot of jobs to be lost and a lot more job loss than we should be having.”
The report’s authors, economists at Florida Atlantic University and the Miami-based Federal Reserve Bank of Florida, analyzed federal spending on federal government programs that support coastal container ships, which are essentially container ships designed for long-distance shipping.
The federal government provides $8.8 billion annually to support container ships.
In fiscal year 2017, the Coast Defense program provided nearly $9.5 billion.
The new study said the federal program is now under scrutiny because of its projected economic impact on the tourism sector, especially the effect it could have on the St Johns River port.
The St Johns is home to one of the largest container shipyards in the country.
It is part of a $6 billion investment that the U.S. Department of Commerce is planning to complete by 2022 to help ship the containers to ports around the world.
The Coast Guard, which operates about 1,100 containers a day, is a critical part of the $100 billion container ship industry.
The program is expected to generate about $5 billion in economic benefits annually.
“It’s really important that we’re not losing any jobs to the Coastguard, but there’s a lot that could be lost to us as a result of it,” Schultes said.
The report says the program could also increase the cost of shipping container ships from Florida, especially if it increases the price of shipping.
It says a study of the current cost of cargo shipping by the Florida Ports Commission found the price increase could be $3 billion over a 20-year period.
It also says that the program has the potential to increase the number of container ships entering the state and the number heading to other states.
The report says that, without the Coast guards assistance, container ships would likely go through other ports.
The researchers say the program may also reduce the size of Florida ports.
It estimates the current capacity of ports is 5,200 containers, but with the Coastguards support, that capacity could shrink to 2,200 to 4,200, depending on the size and type of container.
The experts say the study also found that the economic benefits from the program have been underestimated.
“There are a lot people who have said, ‘Oh, it’s just going to be temporary, we’re going to do this.’
It’s not going to last forever,” Schulze said.