While U.S. foreign trade flows are pretty much down across the board, one of the sunnier spots is Florida, which continues to bask in the expansion of imports, exports, and foreign direct investment.

In South Florida alone (Broward, Miami-Dade, and Palm Beach counties) foreign trade last year grew by more than $10 billion to a record $90.2 billion thanks in large part to a boom in exports to Latin America.

Exports were clearly the success story, outweighing imports by almost $20 billion and giving South Florida its biggest trade surplus ever. Shipments of high-value goods such as cell phones, aviation parts, and computer parts to Latin America led the sector.

Given its geographic proximity to the state, Latin America is naturally an important market for Florida with a whopping 76 percent of the state’s exports destined for that region, particularly Brazil, Venezuela, and Colombia. And, high-tech goods make up a significant portion of the export mix. In fact, Florida ranks as the nation’s third-largest exporter of high-tech goods, including industrial machinery, computers, television equipment, and surgical devices among the top items being exported.

The Jacksonville Port Authority (JAXPORT) has been working hard to capture its share of foreign trade, not only with Latin America, but with other key markets too, namely Asia. In January, MOL’s TraPac Container Terminal opened at Dames Point. Admittedly, the timing wasn’t the best, though the long-term outlook is decidedly more promising. Dennis Kelly, general manager of the new terminal, said the TraPac terminal had initially expected to handle 120,000 to 140,000 containers during the first year, but said 2009’s figures would probably be in the 40,000 to 50,000 range.

Like other shipping executives with interests in the U.S. Southeast and East Coast, he’s betting big on the Panama Canal expansion project to be a game-changer in the Asia-U.S. trade lane once it’s completed in 2014. In order to prepare for the larger container ships, JAXPORT must dredge the St. Johns River channel to 50 feet, however, and that will cost between $500 million and $1 billion, he told the Jacksonville Business Journal recently.

The addition of Hanjin Shipping to JAXPORT, even though they’re a competitor of MOL’s, would make a stronger case for the need to dredge, acknowledges Kelly.

Last year, Hanjin Shipping approved a 30-year lease agreement for a new container terminal at JAXPORT. The lease calls for Hanjin to build an approximately 90-acre container facility at Dames Point with an option for further expansion. The $300 million Hanjin container terminal is expected to open for business in late 2011 and will be a key hub operation for the carrier’s East Coast port activity.

Kelly added that near- or on-dock rail is another critical component to realizing the port’s full potential while at the same time keeping pace with other ports, especially the Port of Savannah, which is JAXPORT’s “major and toughest competition,” in Kelly’s estimation (see sidebar).

At the Port of Palm Beach, officials announced last month that they had reached a five-year contract amendment with Tropical Shipping that will not only increase revenue at the port but will also provide Tropical Shipping with incentives for increasing annual tonnage through the port.

“We are pleased to have a customer with the proven track record that Tropical Shipping has,” remarked the chairman of the Port Commission. “In these troubling economic times, this amendment is vital to maintaining the port’s role as the economic engine of Palm Beach County.”

Another ‘economic engine’ that has yet to rev up, meanwhile, is the Florida Intermodal Logistics Complex, a proposed inland port that would serve all three ports (the Port of Palm Beach, Port Everglades, and the Port of Miami) in South Florida once it’s eventually built. While the site has yet to be determined, at least there’s consensus on the need for the inland port. One study suggests that 40 to 80 million square feet of additional warehouse and distribution space will be required by 2025 to keep up with demand in the South Florida market, and the Panama Canal expansion will contribute to that growing demand.

At Port Everglades, Transatlantic Chilean Line has begun a new service that offers direct shipping routes from Sao Paulo and Rio de Janeiro, Brazil to Ft. Lauderdale, Florida. The service will increase fresh produce shipments from South America countries, including Chile, Peru, and Argentina, to the port, which provides a strategic location for produce distributors who service Ft. Lauderdale’s cruise ship business.

“There are more than 4 million cruise passengers per year between here and Miami, and they feed you extremely well on a cruise ship,” noted the director of business development for Port Everglades. “They need fruits and vegetables like there’s no tomorrow.”

Further south, the Port of Miami is hoping to get federal funds to build a $1 billion truck tunnel to facilitate the movement of cargo in and out of the port facility, while the Miami International Airport is anticipating the completion of a huge $1.7 billion transportation hub—the Miami Intermodal Center (MIC).

Miami continues to set milestones when it comes to foreign trade. Not only has the Miami Customs district logged a trade surplus for 16 consecutive years, last year it recorded the largest trade surplus in U.S. history at $19.6 billion. Seattle was the previous record holder with a $15.8 billion trade surplus achieved in 2007.

On the state’s Gulf Coast, the Port of Tampa is hoping the federal stimulus package will put a major infrastructure project back on track for the port. The Interstate 4—Lee Roy Selmon Crosstown Connector project would provide a huge boost to the port’s container business by facilitating container drays in and out of the port. Construction on the project was supposed to start in 2010, but was delayed four years due to cutbacks in the Florida Department of Transportation’s budget. Now, money from Washington could move up the time frame again. Tampa Mayor Pam Iorio, who is a commissioner for the Tampa Port Authority, called the plan “the most important project for our region.”

Other transportation and logistics providers also see promise in Florida and the U.S. Southeast. In March, BNSF Railway and CSX Intermodal expanded their current intermodal container service to include several new locations in the Southeast. The new offering will now serve Charleston, S.C.; Savannah, Georgia; and Miami, Orlando and Tampa, Florida, in addition to current eastern hubs at Atlanta, Georgia; Jacksonville, Florida; and Charlotte, N.C.

“BNSF and CSX expanded their original program because it proved to be very successful for both us and shippers,” said Steve Branscum, group vice president, Consumer Products, BNSF. “Our combined service is competitive with highway carriers, saves shippers money and reduces fuel consumption for moving freight. From our new and existing hubs, goods can easily move to destinations throughout the Southeast.”

At the same time, Averitt Express has expanded its less-than-container load (LCL) service known as Asia-Memphis Express with two new origin points, Hong Kong and South China (Shenzhen/Yantian Port). The company launched the service last July with an LCL service focused on shipments originating in Shanghai. With the addition of Hong Kong and South China this past November, Averitt now provides LCL service from four Asian points to any point in the U.S. According to Charlie McGee, Averitt’s Vice President of International Development, the company expects to add more origin points in the future.

International expansion plans were also on the agenda for Southeastern Freight Lines. In October, the company expanded their operations to Mexico with four shipping options.

“More companies doing business in Asia are again considering manufacturing in Mexico, due to longer transit times, high fuel costs, labor challenges and its proximity to the U.S. market,” said Bob Bullock, vice president of Southeastern Freight Lines international operations. “Southeastern has been very successful in its partnerships with best–in–class service providers that align with our commitment to quality service and company culture. We’re using the same approach with regional partners in Mexico to provide shipping solutions to and from Mexico for our customers.”

A good climate for FDI

Supporting the state’s trade activity is a healthy amount of foreign direct investment (FDI), which grew last year (from $203 to $221 billion) even while the actual number of multinationals in South Florida fell slightly from 1,183 to 1,146.

“For a relatively small city, Miami has a big impact on the global economy,” said the president of South Florida-based research firm WorldCity in an interview with the Miami Herald. “You have more than 1,000 multinationals from some of the world’s leading brands making decisions here.”

Burger King, Office Depot, and Carnival are some of the well-known companies with corporate headquarters in South Florida, while multinationals with operations in South Florida come from the UK (55 firms), Spain (52 firms), France (45), and Brazil and the Netherlands, tied with 17 companies each in South Florida.

Enterprise Florida Inc., a public-private partnership devoted to statewide economic development, says that among U.S. states, Florida ranks ninth in total value of inward FDI and fifth in total employment by foreign affiliated firms. The main sources of FDI include Germany and Japan ($3.8 billion each), the UK ($3.7 billion), Canada ($3 billion), Australia ($2.8 billion), and France ($1.3 billion). Key sectors for foreign investment into Florida’s economy include manufacturing, retail trade, wholesale trade, real estate, information, and financial and professional services. In addition, more than 70 foreign and domestic banks have office locations in Miami, including six of the largest 10 banks in the world. New York is the only U.S. city with a larger international banking presence.

In order to keep the momentum going for Florida’s trade activity, Governor Charlie Crist unveiled the Florida International Trade Stimulus program last month, which will create international business opportunities for the growth and prosperity of small- and medium-sized businesses and economic development organizations in the state.

“Florida’s international trade has remained strong, in spite of challenges in other business sectors. Now more than ever, Floridians need as many new open doors as possible for selling their products and services around the globe,” said Governor Crist. “With 60 percent of the world’s consumers beyond our state borders we are wise to tap new markets for the goods produced in the Sunshine State.”

The program is comprised of four separate initiatives developed to facilitate trade and investment opportunities for Florida’s companies.

Sidebar: The Port of Savannah Proves a Tough Competitor

Not only are ports in Florida gearing up for the return healthy trade flows once the economic downturn runs its course, others along the U.S. East Coast have their sights set on the future, including Georgia’s Port of Savannah.

In February, the port announced the arrival of four new super post-Panamax cranes aboard the Dockwise M/V Tern, a specially designed vessel capable of moving large, heavy structures.

“The arrival of four new super post-Panamax cranes is an excellent example of Georgia’s commitment to expand capacity and provide superior services,” said Georgia Ports Authority Executive Director Doug J. Marchand. “The new additions to our fleet will reduce operating costs, increase flexibility and efficiencies for our customers.”

With the addition of the new cranes, Garden City Terminal now has the largest fleet (23) of ship-to-shore cranes at one facility in this country. The new cranes will be operational by mid-summer 2009.

“Our efforts today will create opportunities to gain market share tomorrow,” said Marchand. “These preparations will ensure that when the economy does turn around, our rebound will be that much greater.”

The cranes are part of the Georgia Ports Authority’s long-term strategic growth plan to accommodate 6.5 million TEUs of capacity by 2018, doubling its current capacity, Marchand added.

Fully assembled, the cranes are approximately 425 feet long, weigh 1,369 tons and rise 180 feet above the water with a 34-degree incline.

Modern and environmentally friendly, the four new cranes are the largest of their kind in the world, with the capability of handling super post-Panamax vessels the size of 22 containers wide. The state-of-the art cranes were designed in Finland and built in China by Konecranes VLC in China.

The new cranes are energy efficient and will be powered solely by electricity. “The cranes will generate more than 30 percent of their total energy requirements by tapping into the power of gravity and kinetic energy,” said Georgia Ports Authority’s Director of Engineering and Maintenance, Wilson Tillotson. “For every one hour each of these cranes is operational, it uses its own power for approximately 18 minutes.”