JEA to pay $32.5 million and city $29.5 million on raising power lines for mega-ships

After going down into the St. Johns River and deepening it so Jacksonville can handle the depth of global cargo container ships, the next big construction project will go up in the air where helicopters will replace clamshell dredges on a $117 million project that will create more space for those ships when they pass under JEA power lines.

JEA would pay $32.5 million and the city of Jacksonville would spend $29.5 million to help JaxPort compete for international cargo by raising the high-voltage power lines that cross the St. Johns River near the Blount Island terminal under the terms of an agreement unanimously approved by the JaxPort board on Monday.

The state Department of Transportation would chip in $22.5 million and JaxPort would pay $32.5 million for elevating the transmission lines that create an above-water restriction on ocean-crossing cargo ships that keep growing in size when they call on East Coast ports.

JEA will use crews in helicopters to help with the aerial work and barges on the river for bringing in most of the big equipment. But some neighborhoods on the Ft. Caroline side of the river will experience an increase in construction-related traffic.

The JEA board and Jacksonville City Council must still sign off on the cost-sharing agreement. The city's participation would be three times the amount of the cash grant it previously agreed to in 2022 when the estimated cost of the project was far less.

JaxPort CEO Eric Green said the investment will pay off by bringing more cargo through Jacksonville, spinning off jobs on the docks and throughout the region for businesses involved in shipping goods.

"It's really about jobs," Green said. "It's a boost to the economy. It's a boost to the area and to this region."

Mayor Deegan says project will boost port growth

Mayor Donna Deegan supports the financing partnership and "believes this is a critical investment that will grow Jacksonville's economy and pay dividends for decades to come," spokesman Phillip Perry said.

"Our port has been increasing its capabilities and is well positioned to grow Jacksonville's standing as a global leader in trade" he said. "If we did not complete this project, we would run the risk of falling behind over time as ships grow larger and larger."

He said the financial commitments by the city, JaxPort, JEA and state "show how important the port's success is to the city, region and state."

The U.S. Army Corps of Engineers finished the $375 million deepening of the St. Johns River in 2022 to handle bigger cargo container ships. But the power lines, which have a 175-foot operational air clearance for ships passing under them, are shaping up as a barrier to Jacksonville's port being able to handle the massive ships that move goods around the world in stackable steel boxes.

The operational air clearance would increase to 205 feet after JEA raises the power lines.

"We've just got this other hurdle we've got to cross to be able to realize and maximize the big ships that we see coming and calling on the other ports on the East Coast," Green said.

JEA will have March 6 open house for public to ask questions

JEA will be in charge of the project that will involve the construction and installation of massive towers holding six transmission lines that are critical links in the electrical grid serving several hundred thousand JEA customers.

JEA has set up a web page that provides information about the project at jea.com/fultoncut and will have an open house on March 6 from 5 to 7 pm. at the Police Athletic League cafeteria, 3450 Monument Road. The open house will give the public a chance to ask questions about the project and learn more about how JEA will do it.

On the Fort Caroline side of the St. Johns River, JEA says it will seek to minimize impact on neighborhoods by using barges and helicopters to transport most of the large equipment. But the project will require moving construction vehicles through the Beacon Hills and St. Johns Landing neighborhoods.

JEA says construction traffic will follow a designated route and be limited to the transport of workers, construction equipment, and materials such as concrete and dirt. JEA will post signs so construction-related traffic will stick to the designated route, according to the utility.

JEA says there could be "limited times" when construction will require extended hours on nights and weekends, which the utility would do after providing advance notice "to minimize any inconvenience."

The current timetable calls for JEA to finish design this spring, start moving equipment to the site in the summer and then build the new pole foundations for erecting the replacement towers. The installation of power lines on the taller towers would tentatively be done by the end of 2026 and removal of the current towers would be finished by summer 2027.

The cost has risen sharply from $45 million in 2022

The estimated cost of the project was $42.5 million to $45 million in 2022. At the time, the city agreed to pay $10 million in cash and also loan $12.5 million to JaxPort for the port authority to pay its share. JaxPort would have repaid the loan with interest over 10 years. The state rounded out funding by saying it would pay $22.5 million.

The new proposed financing arrangement replaces the 2022 agreement.

The current height of the power lines is not an obstacle to most of the ships that call on Jacksonville, including ships that serve the city's busy trade lane with Puerto Rico and the Caribbean, vessels carrying automobiles, and cruise ships.

The above-air conflict is for the big cargo container ships that connect the East Coast with Asia and Europe. As companies serving those trade lanes replace ships in their fleets, they are ordering even larger ships to carry more containers on each trip.

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In Jacksonville, ships able to carry the equivalent of 14,000 20-foot cargo containers have been sailing up the St. Johns River since 2023. Elsewhere on the East Coast, ships are clocking in a 15,000 units in size. Earlier this month, the Port of Charleston set a new record for the biggest ship to call on it when the OOCL Iris that has capacity for about 16,800 units docked in South Carolina.

Green said the SSA Jacksonville Container Terminal, located on Blount Island just east of the Dames Point bridge, handles about 250,000 cargo container units per year currently. He said the terminal, which has been undergoing $72 million in improvements by SSA Marine, could grow to 750,000 units a year after the power lines are raised.

Green said when cargo grows, it feeds into the rest of the transportation industry in the Jacksonville area, resulting in growth in the tax base from those businesses.

The cost of deepening the St. Johns River came in under the Army Corps of Engineers budget and enabled partial refunds of contributions on that project. For the power line raising, the city will use $7 million in leftover money from the dredging project as part of its $29.5 million commitment.

( This story was updated to add new information. )

This article originally appeared on Florida Times-Union: JEA and city of Jacksonville partner with JaxPort on power lines