Tampa port warehouse reignites fruit fight with Port Manatee

PORT MANATEE -- A move by the Tampa Port Authority to authorize funding to build a refrigerated warehouse has reignited worries it may compete for a fruit shipping business cultivated by Port Manatee.

On Tuesday, the Tampa authority authorized Port Tampa Bay to spend up to $20.8 million to build the warehouse. It would be the first such building at the port since it exited the fruit business in 2009 and tore down the last of its aging fruit warehouses. The Tampa port has secured half the funding through a state Department of Transportation grant.

The news rubbed members of the Manatee County Port Authority the wrong way this week. The port relies heavily on Mexican and Central and South American fruit imports to fill out its book of business. It is a significant importer of citrus fruits, juice, pineapple and avocados. That produce is stored in up to five refrigerated warehouses on port property.

During the authority's business meeting Thursday, members were particularly critical of the move

because they believe it flies in the face of a mediation process the two ports went through last year to relieve tensions over competition. Over the past two years, the ports have sniped at each other over issues including a rumored Port Tampa Bay merger with Port Manatee and Port Manatee's exclusion from a pineapple conference sponsored by Port Tampa Bay.

Authority members were particularly concerned the new warehouse could bring Port Tampa Bay back into the fruit business. Larry Bustle, the authority's recent past chairman, said if Port Tampa Bay pursues Port Manatee's customers to fill a new warehouse, the state will be complicit in the move.

"If the state is matching the port with grants then that implies that the state is supporting what it's doing," Bustle said. "And that worries me."

Authority Member Vanessa Baugh was more blunt.

"We need to realize in business that not everyone is above board and honest," Baugh said. "We have another port nearby that doesn't necessarily play by the same rules that we want to play by."

Port Manatee has three shippers bringing fruit and vegetable products into its warehouses, Fresh Del Monte, melon importer Fresh Quest and shipper World Direct Shipping.

Not necessarily a threat

Carlos Buqueras, Port Manatee executive director, struck a conciliatory tone during the discussion. He said the fact Port Tampa Bay is looking to get back into the fruit business is not necessarily a threat to Port Manatee. He said it would be good for the overall shipping business in Tampa Bay if more fruit companies did more trade with the area's ports.

"Obviously, we are glad to see that the Port of Tampa has a plan to expand business," he said. "Because from the state perspective, they made it very clear, the state does not want to invest money to move cargo from one port to another."

Before the meeting, Buqueras said he doesn't believe the two ports should go head-to-head in the fruit import market. "We would not be in favor of moving the fruit around," he said.

Port Tampa Bay officials did not respond to a request to comment on its warehouse or what types of cargo it would pursue to fill it.

Port authority members agreed they should discuss the issue with the state Department of Transportation Secretary Jim Boxold.

Even if Port Tampa Bay is looking at developing new business, the move doesn't come at a good time for Port Manatee. The port is seeking private funding to pay half the cost of a new refrigerated warehouse that could cost as much as $24 million. The other half would come from state matching funds. The port has already received $7 million in state grants for the project.

Port Manatee fruit shippers use four port warehouses full time and a fifth periodically. An added sixth warehouse will require increased imports from existing customers or new business.

Fresh Del Monte and stevedoring company Logistec could be potential funding partners in the project, Buqueras said.

Matt M. Johnson, Herald business reporter, can be reached at 941-745-7027, or on Twitter @MattAtBradenton.

This story was originally published March 20, 2015 at 12:00 AM with the headline "Tampa port warehouse reignites fruit fight with Port Manatee."