Report says Port of Fernandina Needs Nearly $20 Million in Repairs to Stay Competitive

By Mike Lednovich/Editor

FERNANDINA BEACH - The operator of the Port of Fernandina told Ocean Highway and Port Authority commissioners Wednesday that the aging port faces nearly $20 million in infrastructure repairs and upgrades, ranging from chronic flooding and deteriorating docks to aging cranes, failing electrical systems and a federally mandated U.S. Customs facility.

During an OHPA meeting, Relay Terminals President Ted McNair presented what the company described as a priority list of projects needed to maintain the port’s competitiveness and long-term viability. The presentation portrayed a facility burdened by decades of deferred maintenance while making the case for substantial public and grant-funded investment.

The list totals approximately $18.5 million to $19 million, depending on equipment costs, and comes as OHPA continues to grapple with longstanding tensions involving port operations, infrastructure responsibilities and its relationship with Relay, the company that manages day-to-day operations at the city-owned port.

Among the major projects presented to commissioners were:

• $5.5 million in dock repairs

• $5.5 million in flood mitigation

• $3.3 million for a new U.S. Customs and Border Protection facility

• $2.2 million in secondary infrastructure repairs

• $1.5 million to $2 million for heavy equipment replacement and refurbishment 

Relay’s presentation argued much of the port’s infrastructure has deteriorated over time.

“Generally, the Port of Fernandina Beach has infrastructure that has been neglected for years,” the presentation stated, while noting Relay has already invested in warehouse improvements, lighting, dock repairs and construction of a new warehouse.

One of the largest expenses outlined by Relay involves chronic flooding that regularly impacts port operations.

According to the presentation, moderate flooding events routinely cover roughly 20% of the terminal in saltwater, creating operational disruptions and accelerating wear on infrastructure. Relay said simply elevating the terminal would likely be impractical because of rail infrastructure crossing the property and the high cost of raising the site’s elevation.

Instead, Relay hired engineering firm APTIM to pursue a more targeted solution while seeking federal Port Infrastructure Development Program funding. The proposed approach includes new drainage, underground water storage and a pumping system designed to move water off the terminal. Relay estimates the flood mitigation project at approximately $5.5 million, though no federal award has yet been announced.

"It wouldn't totally fix it (flooding), but it would definitely help it," McNair said.

Relay also warned commissioners about deteriorating dock infrastructure.

According to the presentation, an inspection conducted by APTIM found the dock to be in “C-minus” condition, with needed topside repairs and underwater concerns including cracked pilings, deteriorating deck beams and aging cathodic protection systems designed to prevent corrosion. The estimated repair cost: $5.5 million.

"There's no blinking red light saying 'hey, we've got to reduce capacity.' It's (the docks) going to fall in the water," McNair said. "We're good, but it needs to be fixed. We have some cracked pilings."

The condition of the dock is significant given the port’s role as a breakbulk and niche container facility serving forest products and Bermuda-bound cargo through Somers Isle Shipping Line. Relay described Fernandina as a strategic port asset with a 38-foot draft capable of handling large breakbulk vessels and maintaining rail access through CSX.

McNair said Terminal was applying for state and federal grants to help with repairing the big-ticket items.

Relay also outlined concerns about aging cargo equipment.

The port currently relies on two container cranes dating to 1990 and a mobile harbor crane built in 2008, according to the presentation. One container crane is already scheduled for refurbishment this year in coordination with the Florida Department of Transportation at a cost of $2.2 million.

"The theme is that especially the cranes and the container handling ability, the equipment's just pretty worn out," McNair told commissioners.

As part of a second phase of investment, Relay said it hopes to refurbish the mobile harbor crane, retire a second aging container crane and replace container handling equipment. Two of the existing machines still in operation date to 1991 and “constantly break down,” according to the presentation.

Relay also told commissioners that the future of international cargo operations depends on maintaining a viable U.S. Customs and Border Protection presence.

The current CBP office, housed in a small historic building, no longer meets federal standards, according to the presentation. Relay said CBP has demanded a replacement facility and federal policy requires the host port to pay for construction. Relay estimates the cost at approximately $3.3 million, though it said $1 million to $2 million in outside funding may already be available.

The presentation also emphasized Relay’s own financial investment in Fernandina amid years of friction between the port authority and the operator over issues including the operating agreement, potential tax liabilities and the controversial fabric storage structure erected without city permits that is currently being dismantled.

Relay said it has already spent $2.3 million on OHPA assets, including crane repairs, building improvements, networking equipment and fender replacements. The company said another $2.6 million in investment is planned for 2026, including forklift purchases, crane rebuilding, warehouse relocation and lighting and gate upgrades through a security grant.

The presentation comes weeks after OHPA Vice Chair Scott Moore publicly warned that the Port of Fernandina stands at a “crossroads,” citing concerns about long-term governance and operations at the port.

Moore said Relay's presentation brought OHPA's July meeting on port assets into sharper focus.

"This highlights the importance of the July equipment evaluation, you know the top to bottom evaluation of all the equipment, the facilities, the services that's supposed to be done," Moore said.