Port Canaveral at odds with commercial space companies over dock access
Port Canaveral commissioners are pushing back on a request from officials of three commercial space companies, who say their industry should, in effect, get the first crack at leasing port land along the water when it becomes available.
Officials of Blue Origin, Relativity Space and Stoke Space Technologies told port commissioners in a letter that they want Port Canaveral's charter changed to assure that commercial space launch companies get a chance to lease areas along the waterside at the port when existing leases with other parties are not renewed or are canceled, or when new commercial property is added to the port.
"The space industry is here to stay, and its continued growth and economic footprint in Brevard County depends on reliable access to usable port space," their letter contends, citing the space sector's importance to the local economy, the job market and U.S. national security.
Commercial space companies currently use or have future plans to use waterfront space for various operations, including for the recovery of boosters from rocket launches and for handling of other space components coming into the port.
But the five port commissioners say, while they support the local space industry, they are not inclined to show favoritism to commercial space firms over the cruise and cargo industries or other major port customers.
Canaveral Port Authority Chairman Kevin Markey says waterfront space is at a premium at Port Canaveral, and demand is high for those facilities. So the port cannot afford to tie up that property for ships and barges operated by the commercial space companies when those vessels are sitting idle, rather than being involved in an ongoing mission.
The other four port commissioners chimed in when Markey brought the matter up during Wednesday's Canaveral Port Authority meeting, agreeing that the space companies should not get special treatment. They say the port needs flexibility in leasing property to the most appropriate type of business, and should not be required to offer any available waterside property at the port to the space companies.
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Port Canaveral Chief Executive Officer John Murray told commissioners that the port is "100% committed to the space industry," including making road improvements to accommodate large boosters coming through the port. But Murray added that the port needs to balance its efforts for the commercial space companies with its other business operations.
Murray said SpaceX ― which currently is the port's major space-related customer and did not sign the letter to port commissioners ― works well with Port Canaveral, and moves its idle ships and barges to different areas at and near the port as necessary to avoid conflicts with cruise and cargo ship traffic at the port. He also noted that SpaceX has such a frequent cadence of launches from the Space Coast that its vessels often are out to sea, and not in need of dock space at the port.
Having space company vessels move to different locations when they are idle is "not a perfect solution, but it does work," Murray said, adding that this process is how it should be for other space businesses.
"If it's an asset that's not actually conducting an operation, and it's just hanging around, there's got to be another place for it," Murray said, noting that booster recovery vessels can be up to 300 feet long. "There's got to be other options for parking idle craft than at a commercial dock at Port Canaveral. We need to make sure our commercial docks are free to conduct business. That's what a port does. We have a tremendous economic impact to this state, the local region and the community as a whole."
Dale Ketcham, Space Florida's vice president for government and community relations, said his agency is spearheading a wharf study related to finding solutions to the issues the commercial space companies raised.
"This issue has been percolating for a while," Ketcham said.
The first phase of study ― which should be completed by the fall ― includes whether there also may be alternative locations the commercial space companies could use, including at Cape Canaveral Space Force Station or on NASA property. A second phase of the study then will determine whether other Florida ports could be added to the mix for the space companies to use.
Murray noted during the Port Authority meeting that the commercial space companies asking for the charter change might want to pursue working with military officials on securing federally run land at the port to help accommodate their operations ― as United Launch Alliance currently does.
In their three-page letter, the space companies took some digs at the cruise and cargo companies that are Port Canaveral's biggest revenue sources.
They said in the letter that, "although cruise lines may bring large revenues to the port, none are headquartered on the Space Coast," adding that many of the cargo companies are foreign-owned.
"The significant differentiator between our industry and these other port clients is the local employee base, who live and work in Brevard County," the letter said.
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But Port Commissioner Fritz VanVolkenburgh noted that the major space companies aren't based in Brevard County, either, and what they want is "just too much of an ask" for the Port Authority to approve.
The space companies also contend that the port charter should include specific language for the space industry that is similar to what is provided in the charter for the commercial fishing industry ― that the Port Authority "take reasonable measure to provide sufficient usable bulkhead space" for that industry.
Port Authority Vice Chair Micah Loyd said, when he was approached by a space industry official about issues with the need for dedicated waterfront areas, he recommended that the company official contact Port Canaveral management so they can work together to "draft friendly language" for a proposed charter change that would "work for everybody." Instead, Loyd said, the three space companies got together and sent their joint letter directly to the five port commissioners ― a letter Loyd characterized as "pretty aggressive."
Loyd said Port Canaveral supports the space industry, but added that "our mission as a community is making sure that we protect tourism, we protect cargo, we protect all the different areas, and we maximize the use of this port."
He and other port commissioners cited a resolution that port commissioners unanimously approved in 2019 affirming the port's support for the space industry, and said the port will "continue to remain committed to the growth of the space industry."
VanVolkenburgh said he would like port staff to continue to study the issue of the balance between the space industry and other port sectors, and bring back to port commissioners what options might be appropriate.
In the budget year that ended Sept. 30, 2022, boosters and other space-related cargo generated $1.36 million in revenue for the port, representing about 9.7% of the $13.95 million in total cargo revenue from all commodities. In comparison, cruise-related operating revenue totaled $99.01 million for the budget year.
Most of the port's space-related revenue to the port comes from SpaceX, with some from Blue Origin.
The port charter now is undergoing its once-a-decade review by a special 10-member Charter Review Committee, which would submit its proposed charter changes to the Canaveral Port Authority for approval.
Contact Berman at dberman@floridatoday.com, on Twitter at @bydaveberman and on Facebook at www.facebook.com/dave.berman.54
This article originally appeared on Florida Today: Dock access has Port Canaveral, commercial space companies in conflict
