At issue is the port’s desire to convert an out-of-service tank farm into a new liquid bulk terminal facility, where renewable energy resources such as ethanol could be imported, stored and distributed along with other fuels. Port Everglades issued a request for letters of interest earlier this year. Multiple companies responded, and three were selected for full-fledged proposals and presentations.
Of those, Magellan Midstream Partners’ proposal is financially superior and deserves to be judged on its strong financial merits. Magellan’s proposal calls for an initial capital investment of $75 million in new construction on the property, compared to a $35 million refurbishment proposed by Magellan’s opponent.
In addition to the strong financial return, Magellan’s proposal provides for more than 270,000 m³ of storage capacity. The Magellan proposal also commits to providing 80,000 m³ of the storage capacity for marine fuels for Port Everglades to support its cruise and cargo ships along with a strategic gasoline reserve that can be utilized in the event of a hurricane.