Major Shipping Terminal Coming to Urban Core

January 12, 2010 20 comments Open printer friendly version of this article Print Article

Metro Jacksonville takes a look at one of the urban core's largest construction projects currently underway: Keystone Coal.

About the project

Keystone Coal has filed plans with Jacksonville City Hall for construction of a $100 million marine terminal that would handle shipments of bulk materials such as products for road-building.

The company plans to start construction this year at the 67-acre site, which is  near the Talleyrand Port area, and hopes the first cargo ship will dock in 2010, said Mike Meyer, an executive with Keystone Coal.

Jacksonville coal shipping facility completion expected by 2024
The city granted a conditional capacity availability statement to Fort Myers-based Keystone Industries LLC for initial construction of the Keystone Coal Terminal, a proposed coal receiving facility on the St. Johns River. The project's 67.2-acre site is on Wigmore Street at Talleyrand Avenue and will include a 500,000-square-foot building. According to the concurrency application, the $100 million project is scheduled to be completed in three phases ending in 2014, 2019 and 2024, respectively. As well, the application states that the coal facility is expected to bring 620 jobs to the area.

History of the Tallyrand industrial site

National Container Corporation's paper mill was established in 1938 by Sam Kipnis, a Russian Jewish immigrant. The paper mill replaced what had previously been a fertilizer plant along the St. Johns River.

National Container had become America's third largest box maker by the time it was purchased by Owens-Illinois in 1956.

Under court order to divest, Owens-Illinois sold the Tallyrand mill to Alton Box Board Company in 1965. In 1981, Jefferson Smurfit completed their takeover of the Alton Box Board Company.

The merger of Jefferson Smurfit and Stone Container in 1998 would be the downfall of the mill. The merger resulted in the removal of 1.1 million tons of capacity from company operations. The Jacksonville containerboard mill, along with mills in Circleville, OH, Alton, IL and Port Wentworth, GA were indefinitely shut down by the end of 1998.

The mill that produced the rancid smell that once blanketed the urban core and earned Jacksonville's nickname as "The Armpit of Florida" was no more.

Sources: container kipnis&f=false

About Keystone Coal Company

Keystone Coal Company with corporate offices in Fort Myers, FL is a supplier of high quality coal that meets industrial and domestic demand around the world.  

As a US coal company, Keystone produces and supplies high quality coal from its mine in Charleston, WV and from locations in Venezuela and Indonesia.

Keystone's plans for the Jacksonville terminal

Keystone Coal Company, a unit of Keystone Industries LLC (Fort Myers, Florida), has filed with the planning department of the city of Jacksonville, Florida, to construct a $100 million, 10 million-ton-per-year marine terminal to handle imports of coal and other bulk materials such as petroleum coke, cement, grain and lime.

The application requests city planners to verify that the road system near Keystone's property at the northern end of Talleyrand Avenue has enough capacity to handle traffic from the planned terminal. If not, the construction timetable could be set back.

Keystone has purchased the structural steel and is currently entertaining bids from contractors for the site work, dredging and construction of a 1,000-foot berth. The company hopes to break ground by the end of the year. Bids for the material-handling equipment will be released during the next few months, with construction of the terminal to occur in stages, starting with a dock for ships. The first cargo ship could dock in late 2010 or early 2011, while construction continues on the terminal, ramping up production capacity as the market warrants.

As part of the project, Keystone is also planning to build a rail loop on the 70-acre property that will connect with Norfolk Southern Corporation's (NYSE:NSC) (Norfolk, Virginia) rail line, which runs to a line belonging to CSX Corporation (NYSE:CSX) (Jacksonville) and RailAmerica Incorporated's (Jacksonville) Florida East Coast Railway, a short-line railway running from Jacksonville to Miami.

One of the benefits of building a terminal at the Port of Jacksonville is that it will allow the markets in the Southwest and Midwest regions of the United States access to cheaper South American coal.

Coal from South America is much like coal found in the Powder River Basin, which is cleaner and has lower sulfur content than coal from the Appalachia region. The terminal is expected to provide customers with imported coal that is 10% to 20% cheaper than coal from the U.S.

Keystone officials anticipate a high demand for lime and building products as the economy begins to recover. The company plans to spend millions of dollars to refurbish a 245-ton-per-day rotary kiln on the project site left by the former Smurfit paperboard mill and to build silos to store and produce industrial lime.

Industrial Info Resources has been tracking this project since October 2005. Construction plans were delayed for almost two years while Keystone owner Tom Scholl and the Jacksonville Port Authority battled in court about ownership of the land and the port's right to eminent domain. Delaying construction of the terminal until now may prove to be more cost-effective for the company.

Scholl said the terminal will also be capable of handling petroleum coke, grain and lime. There is a large market for lime because most Florida consumers, who use it to treat water and scrub coal processors, have to have it shipped by rail from Alabama. Scholl plans to spend millions to refurbish a kiln on the site and build silos on the property to process lime. coal jacksonville

When complete, the Keystone Terminal could bring as many as 620 industrial jobs to Jacksonville.

Article by Ennis Davis
Photographs by Robert Mann