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Foreign Trade Zone, Inc. 12292 Intraplex Pkwy Gulfport, MS 39503 Phone (228) 896-5020 ftz@mscoast.org |
Full 2002 FTZ Report ANNUAL REPORT MISSISSIPPI COAST FOREIGN-TRADE
ZONE NO. 92 PART History Foreign-Trade Zone No. 92 was approved by Board Order No.
232 on Manufacturing authority was granted to Friede Goldman
Offshore (now known as VT Halter Marine, Inc.) by Board Order 1001 on At the end of the report period, the General Purpose Zone consisted of 13 sites, designated as follows:
Marketing During the FY 2001-2002, the Ports of Gulfport, Zone Report. Although General-Purpose Zone activity
dropped during FY 2002, the Zone project as a whole continued to demonstrate
the positive economic effects of the U.S. Foreign-Trade Zones program along the
Subzone 92-A includes four sites in
Ingalls Shipbuilding, acquired by Northrop Grumman in 2001 and operator of Subzone 92-B, is a major high-tech manufacturing firm that specializes in high-tech defense systems, shipbuilding, and information technology equipment. The Northrop Grumman subzone operation continued its project of upgrading two frigates for the Venezuelan Navy under a $315 million contract; however, activity on its cruise ship construction project was suspended because of the bankruptcy filing of the cruise ship owner. The company completed a two-year, $130 million facilities construction program on the West Bank that has generated more than $70 million in contracts to dozens of construction firms and material/services suppliers, which at peak involved more than 1,000 construction jobs. Regular employment exceeds 10,000. Northrop Grumman, operator of Subzone 92-C, remained activated during the report period, but processed no foreign status merchandise. This 122-acre facility was very active in construction of barges during FY 2002, but no production was related to a specific FTZ project. Employment totals 298 people. Chevron Products Company’s refinery in Pascagoula is operated as Subzone 92-D. The utilization of Zone procedures is enabling this petroleum refinery to remain competitive with other refineries worldwide. The Chevron refinery includes approximately 3,100 acres where over 300,000 barrels of crude oil are processed daily. The plant employs approximately 1,200 people and 1,500 skilled and professional contractors. During the year, FTZ No. 92 continued to employ the Foreign Trade Zone Corp. to assist the administration, marketing, and development of the Mississippi Coast Foreign Trade Zone project. Since it began managing the FTZ No. 92 project, the FTZ Corp. has been very instrumental in assisting the Zone expansion application process, the activation of Subzone 92-C for Avondale, gaining manufacturing authority on the expedited minor boundary modification for Friede Goldman Offshore located on Greenwood Island, and two other temporary minor boundary modifications for Ingalls Shipbuilding and Airmar Resources, respectively. FTZ No. 92 is very confident that the ten-year consulting agreement with Foreign Trade Zone Corp. will continue to yield significant Zone-related economic benefits. Liner Services, Inc. served as the agent and supervisor of operations for Duratex North America, Inc., a major wood products importer operating within the General Purpose Zone area at the Mississippi State Port at Gulfport. The Duratex activity continues to be very successful, largely because of the combined efforts of the Mississippi Coast Foreign Trade Zone, Inc. and the Foreign-Trade Zone Corporation’s work with U.S. Congress to enact the Expanded Weekly Entry provision as part of the Trade Development Act of 2000. The Weekly Entry provision guarantees that all Zone operations, including distribution operations such as Duratex, may continue to avail themselves of the logistical efficiencies provided by the U.S. Foreign-Trade Zones program. With a growing area economy, the Board of Directors of FTZ No. 92 looks to continue the expansion of Zone activities in south Mississippi during the year 2003. As noted in previous annual reports, the Grantee organization of FTZ No. 92 has 5 corporate members. Following are reports concerning each member’s general activities: Airport Report The Airport has 1,579 acres of property with another
100 acres in easements and 717 acres in the FTZ. The Airport purchases additional land and
easements every year to protect existing and future approaches. In the Terminal area, approximately 170 acres
are available for expansion of the existing Terminal, construction of
additional terminals, landside facilities and aircraft parking ramps. The Gulfport-Biloxi International Airport has grown
significantly over the last ten years.
The Airport handled a total of 949,229 passengers in calendar year 2000,
879,304 in 2001 and 816,653 in 2002. The
Terminal facility was doubled in size in 1998, which allowed the Airport to
accept two additional airlines, and in 2003 an additional 40% expansion is planned. Five commercial airlines currently operate at
Gulfport-Biloxi International Airport.
AirTran Airways and ASA/Delta provide jet service to Atlanta. AirTran also serves Ft. Lauderdale and Tampa
non-stop. Continental provides daily jet
service to Houston. Southeast Airlines
provides jet service to St. Pete/Clearwater and Orlando/Sanford, and Northwest
Airlines provides several daily jet flights to the Memphis hub. Additionally, charter airlines support
commercial and military passenger demand with weekly flights to several
cities. The Airport is aggressively
pursuing jet service from several airlines, including international passenger
charters to Canada and charter flights to Europe and Latin America. As for runways, the Airport has Runway 14/32, a
9,000-foot long all-weather jet runway, which is the longest in the
region. This runway routinely
accommodates B747 and L1011 aircraft operating on intercontinental
flights. Both the military and
commercial charters regularly operate these large aircraft. The second runway, 18/36, is currently 5,000
feet long, and land acquisition is underway that will allow extension of the
runway to 7,000 feet. This runway
extension is targeted to begin in five years.
Moreover, the Airport Master Plan has indicated that the Airport has
sufficient land to construct a third runway, parallel to Runway 18/36. Airport operations (a landing or take-off) currently
averages 342 per day, or about 19 per hour based on an 18-hour day. Runway capacity is available to allow at least
two times that number, up to 720 operations per day. As aircraft operations increase, aircraft
size also increases. Therefore, the
Airport can accommodate a substantially greater number of passengers with only
a marginal increase in number of operations.
In any event, the Airport is currently operating at less than 50% of
capacity. Over 120 acres of Airport property is earmarked for
cargo and general aviation and is now under development. The first cargo operation has opened for
operation by Transport Specialists, Inc and occupies approximately five
acres. This facility provides both
domestic and international cargo service capabilities in the FTZ. The Air National Guard Combat Readiness Training
Center at the Gulfport-Biloxi International Airport is second to none in the
nation. Military traffic and training is
growing each year. More than 18,000 Air
Guard and Reserve personnel trained at the base last year. Within 10 minutes, supersonic aircraft can
operate in a combat environment over the Gulf or Camp Shelby is Hattiesburg. General aviation activity operated by FBO AvCenter
is a major contributor to the Airport’s aviation service resource. The FBO AvCenter is growing steadily and
provides fuel, maintenance, and aircraft service for all users, including the
expanding charter airline operation. In sum, the Gulfport-Biloxi International Airport
has the land area, zoning, runways, instrument approaches, and the master plan
in place for development that will allow continuous and positive growth of
passenger, cargo, military and general aviation over the next 30 years and
beyond. Over the last ten years, the
Airport’s economic impact has increased from $100 million to more than $600
million annually. Hancock County
Report
Port Bienville was established in 1962 under the jurisdiction of the Hancock County Port and Harbor Commission. The organization is governed by seven (7) Commissioners, and daily operations are managed by an Executive Director and staff of 35. The County Board of Supervisors appoints five of the seven Commissioners, and each of the cities of Bay St. Louis and Waveland appoints one. The Commission operates the Port Bienville Industrial Park, the Stennis International Airport and Technology Park, and the Port Bienville Short Line Railroad. During fiscal year 2002, the Commission participated in 5 trade shows, including trade missions to Merida, Mexico, and Toulouse, France. These activities are part of the new marketing plan the Port and Harbor Commission developed to attract new businesses and industry to the Mississippi Gulf Coast. The Port and Harbor Commission secured over $5.9 million in grant and low-interest loan funding for capital improvement projects at Port Bienville and Stennis Airport during 2002. Port Bienville Industrial Park is a shallow draft port located in Bay St. Louis, Mississippi, in the southwestern portion of the state on the Gulf of Mexico at latitude/longitude 89° 40'/39° 14'. A 12-foot channel connects Port Bienville to the Mississippi Sound and the Intracoastal Waterway. Port Capabilities
Port Bienville’s water, rail and vehicular intermodal capabilities include:
Services offered at the port include:
The Port and Harbor Commission secured $ 610,000 from the Mississippi Department of Transportation to build a new Container Transfer Facility at Port Bienville Industrial Park. This new intermodal yard will increase the port operator storage capacity by 100 %, and will provide a secure state-of-the-art facility able to cope with new port regulations and future growth. According to the Journal of Commerce, Linea Peninsular, the company operating Port Bienville, moved 39,192 TEU’s during the past year, representing a third of the total cargo moved by the Port of Gulfport and almost 20,000 TEU’s more than the Port of Mobile. The Port is serviced by its own railroad, Port Bienville Short Line Railroad, and had over 20,000 interchanges and moved over 1.5 billion pounds of material for park tenants during 2002. The Port’s access road connects directly to U.S. Highway 90, and is 10 miles from Interstate 10 and 18 miles from the intersection of Interstates 10 and 59. Ample land is available for industrial development at Bienville, with 250 acres available on terminal and 700 acres off terminal. Available acreage includes 621 acres in FTZ No. 92. Linea Peninsula, operator of Port Bienville’s ship terminal, is the 44th largest container shipper in the world. Stevedore Services of America operates the Port Bienville bulk barge terminal. Port Commodities and
Industries Port Bienville handles a variety of commodities, including: twine, textiles, apparel, pulpwood, coal, general cargo, ferric sulfate, pressure vessels (reactors), lumber, structural steel and USDA food products. Major tenants involved in international trade at the Port include:
Of the existing Port tenants, potential zone users are: Calgon Carbon Corporation, Con-Tech Power Systems, G.E. Plastics Company, Linea Peninsula, Wellman of Mississippi, Inc., Polychemie, and Eaglebrook. Competitive Advantage
The competitive advantage offered by Port Bienville not available elsewhere in the region is the degree of logistical support in moving goods, particularly the “door to door service” of the niche cargoes. The Stennis International Airpark consists of 100 acres
accessible by four-lane State Highway 603 and Interstate 10. The Airpark's
main access road is 24 feet wide, and all roads within the airpark are designed
to 80,000 lb. load limit
specifications. Utilities available
include 3-phase electric power, water, sewer and natural gas. Land at the airpark is available for lease or
sale. The Port and Harbor Commission has
funds available for special infrastructure needs, such as the construction of
additional warehouse or hangar space. Memphis International Corporation will establish a
Maintenance Repair and Overhaul facility at the Stennis Airpark in 2003 to
refurbish C-130 military aircraft.
Memphis International will employ 40, and could be a pontential user for
the FTZ in the near future. Stennis
International Airport, adjacent to the Airpark, has the third longest runway in
the state (8,500 feet grooved and lighted), with 8 acres of paved aprons, over
50,000-square-feet of maintenance hangars and 24 T-hangars. Plans include constructing additional individual
private hangers. The airport also has an
Automatic Weather Observation System (AWOS).
An Instrumental Landing System (ILS) has been installed and will be
commissioned by the end of January 2003.
The
Airpark's fixed base operator (FBO) provides maintenance services and maintains
aviation gasoline (100 LL) and jet fuel facilities with a capacity of 50,000
gallons. Ten Airpark
tenants employ over 75 people. Airpark
Industries Stennis International Airport is home to a
variety of industries. Major tenants
involved in international trade at the airport include: ·
Aircraft
Packaging, which disassembles, packages and ships aircraft to around the world ·
Hot Sticks
Manufacturing Company, Inc., a major producer of drumsticks ·
Koeing-Stainless,
Inc., fabricator of custom stainless steel galleys for ships ·
Pan-American
Insulators, producer of power transmission hardware The John C. Stennis
Space Center (SSC), a
unique federal facility managed by NASA, encompasses 13,800 acres within a
125,000-acre buffer zone in the heart of Hancock County. SSC is NASA’s lead center for rocket
propulsion testing and remote sensing applications, research and
development. Commercial entities are now
locating at SSC due to many technical services available on site. SSC is also home to
the Naval Meteorology and Oceanography Command, which ranks among the top five
worldwide in supercomputing capability. More than 30
federal, state, academic and private companies are also tenants at SSC, with a
workforce of approximately 4,500 employees, including more than 1,600
scientists and engineers. In addition to
maintenance, administrative, and other support services, MSAAP shares an
on-site fire and emergency response team which is manned twenty four hours a
day, in addition to a gated entrance for security.
Hancock County Job Growth and
Investment since 1996
Harrison County Development Commission Report
The Harrison County Development Commission (HCDC) is a founding member of the Mississippi Coast Foreign Trade Zone Corporation and participates with transportation and economic development agencies in Hancock and Jackson Counties in the operation of Foreign Trade Zone No. 92. Two of Harrison County’s four industrial parks are designated as Foreign Trade Zones. These parks – the Bernard Bayou Industrial District in Gulfport and the Long Beach Industrial Park – total over 2,100 acres and are home to 90 companies that employ over 4,470 people. In support of FTZ No. 92 and international trade, HCDC facilitated several activities in Fiscal Year 2002 including an international sales mission, the development of the Mississippi Coast Trade Council, and participation in both the International Trade Club and World Trade Center of New Orleans. In 2002, the Development Commission participated with the Mississippi Development Authority in a European sales mission and the MIPIM tradeshow in France. The agency also continued to explore trade opportunities with Cuba and established the Mississippi Coast Trade Council as a non-profit corporation to assist area business entities in obtaining the necessary licenses to conduct business with Cuba under new humanitarian trade guidelines. As a result of international business recruiting activities, Future Pipe Industries, a leading manufacturer of high performance, anti-corrosive pipe systems, announced they would locate their first U.S. plant in Harrison County in November 2002. The $7.5 million project will create up to 300 jobs over a five-year period, with an average wage of $14 per hour. The plant will be located on a 32-acre site in the Bernard Bayou Industrial District. A groundbreaking ceremony for the new plant is anticipated in mid-2003. In addition to international prospecting, the HCDC staff met and conducted extensive follow-up with 115 active prospects, whose projects ranged from automotive component manufacturers to major distribution facilities. Industrial prospect activity grew significantly in 2002, especially in the international arena, as a result of continued trade missions to Europe and new markets like Cuba. As a result, the HCDC staff hosted 16 corporate site visits in 2002. The year 2002 yielded several new Harrison County locations and expansions. Over $52 million was invested in capital improvements, with 86% invested by existing companies’ expansions.
In Fiscal Year 2002, the Harrison County Development Commission also completed several capital projects in its area industrial parks. These projects included: A 750 linear foot barge berth was completed in Port
Intraplex, located in the Bernard Bayou Industrial District. The $1 million project was fully leased upon
completion. The primary purpose of the berth
is to accommodate companies who may only need access to the Industrial Seaway a
few times a year, or temporarily. In
2002, the lay-down area was expanded to facilitate temporary storage needs of
current and future tenants. The Long
Range Capital Projects plan includes further expansion of the berth as well as
construction of warehouses. Industrial Seaway Siltation Basin, GulfportA siltation basin project was recently completed in the Industrial Seaway located in the Bernard Bayou Industrial District. The basin was dredged to 20 feet at the head of the Seaway to collect sediment before being deposited into the navigable waterway. The total project cost was $300,000. Long Beach Industrial Park Road ProjectThe entire road system in the Long Beach Industrial Park received a face-lift in 2002 with a park-wide overlay project. The $80,000 project will ensure Oreck, Triton and other LBIP companies will have safe and easy access to their facilities. BBID
Water System Improvement Project, Gulfport To continue to provide uninterrupted water and sewer service to the businesses in the Bernard Bayou Industrial District, a major upgrade and expansion project was completed in 2002. The $425,000 project increased capacity as well and extended service throughout the park. BBID
Drainage Project, Gulfport To complement the almost complete Cowan-Lorraine widening project, the Development Commission undertook a comprehensive, multi-year drainage project. Phase I, which totaled over $150,000, focused on the eastern end of the Park. The final phase is expected to be completed in 2003. Business Technology Center Expansion Due to continuing demand, the Business Technology Center was expanded by 9,600 square feet of manufacturing space at a cost of $540,000 in FY 2002. The Development Commission is currently studying the feasibility of developing another incubator facility in the Long Beach Industrial Park. To ensure there is adequate land and resources for industrial businesses to grow, the Harrison County Development Commission completed year four of a long-range capital projects program. The following projects are programmed for FY 2003 and beyond:
In addition to traditional business recruitment activities and capital projects, the Harrison County Development Commission worked with community leaders on initiatives in the areas of affordable housing, smart growth, and workforce development in FY 2002. The HCDC staff also participated in over 280 community activities, meetings, and presentations in 2002. Finally, the agency continued to help coordinate the activities of several important organizations including the Mississippi Gulf Coast Manufacturer’s Association, the Industrial Park Business Association, the Mississippi Gulf Coast Economic Development Council, the Mississippi Gulf Coast Alliance for Economic Development, the Mississippi Coast Technology Council, the area Council of Governments, and the region’s strategic planning initiative, Coast 21. Jackson County
Port and Harbor Report Jackson County is the most industrialized county in the State, with particular emphasis on port related industries including shipbuilding, oil and chemical industries, fertilizer production, U.S. Navy, and public port operations. Many of these industries rely heavily on international markets for trade and/or product distribution. These port-dependent industries provide over 23,000 direct jobs and are vital to the economic well being of Jackson County, the region, and the State of Mississippi. Many of the industries located within the Port of Pascagoula operate their own private terminals, and most of the traffic and tonnage through the port is handled at private facilities. More than 28 million tons of cargo was shipped through the port in FY 2002, including 612,000 tons through the Jackson County Port Authority’s public facilities. In FY 2002, the port had 525 commercial (cargo) ship calls, with additional traffic from the U.S. Navy, offshore, and shipbuilding industries. Products handled at the private terminals include crude and refined oil products, phosphate rock and fertilizer, and chemicals. The Russian, Central and South American, Caribbean, and Far Eastern markets remained important to the success of the JCPA’s Public Terminals in FY 2002. Major commodities shipped through the JCPA’s public facilities included frozen poultry, paper and lumber products, natural rubber, chemicals, feed grains, and project cargoes. Port staff was reorganized in 2002 and a Manager of Trade Development was added to the organization. A Miami resident was hired to fill this new position, and the decision was made to keep this person in Miami, effectively opening a Miami office. With the expectation that the Latin-American markets present the highest growth potential, a Miami-based Trade Development Manager should be an effective strategy. Facilities rehabilitation work continued in 2002, including the replacement of the Bayou Casotte fender systems and replacement of Terminal “B” roofs. Progress was made on the redevelopment of the grain elevator site in the West Bank Harbor. In the summer of 2002, a contract was let for the demolition of the grain elevator. This contract will remove the grain elevator, storage silos, and all associated out-buildings and equipment. Work on this contract is expected to conclude in January 2003. Removal of the grain elevator will open the last remaining large tract of property on the deep-draft channel for development. This site includes 2500’ frontage on the 38’ depth Pascagoula River Channel and more than 50 acres of property for development. The Port has received interest from several companies on the redevelopment of this site.
The Phase II Harbor Improvement Project was completed in November 2001. This project widened the Bayou Casotte Channel from 225’ to 350’, deepened the entrance channel from 40’ to 44’, and deepened the Sound Channel and a portion of the Bayou Casotte Channel from 38’ to 42’. Chevron, operator of Subzone 92-D, was the first industry to take advantage of the improved channel, bringing in larger and deeper tanker traffic into the Port in FY 2002. C | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Among
its many tenants, MSAAP is home to a Boeing company that brings all the
components of its RS-68 rocket to their MSAAP plant, where these parts are
fully assembled and test fired at the nearby NASA rocket engine testing
facility.