Port Everglades Finance

Port Everglades (Broward County) — Finance and Credit Analysis

Port Everglades is the third-largest cruise port globally and a major cargo and petroleum hub serving South Florida and the broader Caribbean trade network. Operated as a department of Broward County (not an independent authority), the port benefits from county-level governance while maintaining enterprise fund autonomy. With $208.4 million in operating revenue and 2.89x senior lien debt service coverage in FY 2024, Port Everglades has demonstrated strong recovery from the COVID-19 pandemic and sits in solid investment-grade territory (Moody's A1, S&P A, both Stable outlook).

Disclaimer: This article is AI-generated for informational purposes only and does not constitute financial, investment, or legal advice. All data should be independently verified before use.

Changelog
2026-02-23 — Initial publication from official statements and EMMA filings.

Introduction

Port Everglades stands as one of Florida's crown jewels for maritime commerce and passenger operations. Located on the Atlantic Intracoastal Waterway between Fort Lauderdale, Hollywood, and Dania Beach, the port spans 2,190 acres and operates three distinct areas: Northport, Midport, and Southport. The port's three-legged revenue model—cruise, containerized cargo, and petroleum throughput—provides inherent diversification, though cruise operations remain the dominant revenue driver.

As a county-operated entity (rather than an independent authority), Port Everglades functions as an enterprise fund within Broward County's governance structure. Bond issuance is authorized by the Broward County Board of County Commissioners and secured solely by port net revenues—not by the County's full faith and credit. This structure means the port operates with operational autonomy while benefiting from county-level oversight and, implicitly, the county's fiscal strength as a creditworthiness signal.

The port competes directly with PortMiami for cruise and cargo market share in South Florida. However, Port Everglades' geographic position, existing cruise terminal infrastructure, and diversified revenue base (including significant petroleum operations) give it competitive advantages in serving certain Caribbean itineraries and as a fuel supply hub for South Florida and the Southeast.

The port's credit profile has strengthened considerably following the COVID-19 disruption (FY 2020–2021), and the recent 25-year Carnival Cruise Port agreement (CY 2024–2049) provides a structural revenue floor that significantly de-risks the cruise operations segment. The FY 2025 bond issuance ($130.16 million) reflects management's confidence in capital investments and operational momentum.

Entity Overview

Governance and Organizational Structure

Port Everglades is operated as a department of Broward County government, not as an independent special authority. The Broward County Board of County Commissioners (9 members) serves as the governing body. Day-to-day operations are managed by Port Director Joseph Morris (Chief Executive), supported by Deputy Port Director and Chief Operating Officer Glenn A. Wiltshire, under the oversight of County Administrator Monica Cepero. This governance structure means all major decisions—tariff rates, capital spending, debt issuance—require County Commission approval, but it also provides the port with the resources and administrative support of a county government.

Physical Assets and Operational Capacity

The port encompasses 2,190 acres and features a main turning basin with 42-foot depth and an outer entrance channel with 48-foot depth, accommodating modern mega-ships. The facility is divided into three operating areas: Northport (north), Midport (central), and Southport (south, expansion area). The port maintains dedicated cruise terminals for major cruise lines (Carnival Corporation entities including Celebrity Cruises, Holland America, and Princess; Disney Cruise Line; and Royal Caribbean Group), as well as private container terminals operated by professional stevedore companies. Petroleum tank farms provide substantial storage and distribution infrastructure for gasoline, jet fuel, and other petroleum products.

Operational Scale and Business Mix

Port Everglades is a top-3 cruise port globally by passenger volume. In FY 2024, the port handled 4.1 million multi-day cruise passengers, representing one of the world's busiest cruise homeports. Containerized cargo throughput reached approximately 1.1 million TEUs (twenty-foot equivalent units) in FY 2024, positioning Port Everglades as a significant container gateway for Latin America and Caribbean trade. Petroleum operations are substantial: the port serves as a major import point for gasoline, jet fuel, and other refined products serving South Florida and beyond, with petroleum tariff revenue representing a meaningful component of the port's total operating revenue. The port also handles break-bulk cargo (steel, cement, lumber) and provides warehousing and demurrage services.

Financial Summary

Operating Revenue and Expense Trends

Port Everglades has experienced strong revenue growth post-COVID, with operating revenue increasing from $86.7 million in FY 2020 (cruise shutdown nadir) to $208.4 million in FY 2024. This 140% increase over four years reflects both cruise recovery and cargo strength. Operating expenses have grown more modestly, from $97.5 million in FY 2020 to $127.4 million in FY 2024 (31% increase), demonstrating improved operational leverage as the port recovered to near-capacity operations.

Metric	FY 2024	FY 2023	FY 2022	FY 2021	FY 2020
Operating Revenue	$208.4M	$189.0M	$167.8M	$108.9M	$86.7M
Operating Expenses	$127.4M	$116.0M	$107.7M	$98.3M	$97.5M
Net Operating Revenue	$81.0M	$73.0M	$60.0M	$10.6M	($10.8M)
Net Revenue (per indenture)	$92.2M	$81.6M	$70.0M	$33.6M	$22.5M
Senior Lien Debt Service	$31.96M	$31.96M	$31.96M	$31.96M	$24.79M
Senior Lien Coverage	2.89x	2.55x	2.19x	1.05x	0.91x
All-In Debt Service	$39.13M	$39.00M	$38.80M	$38.67M	$31.62M
All-In Coverage	2.36x	2.09x	1.80x	0.87x	0.71x

Debt Service Coverage and Covenant Compliance

The port's recovery trajectory is evident in debt service coverage metrics. Senior lien coverage fell below 1.0x in FY 2020 (0.91x) and FY 2021 (1.05x) when cruise operations were suspended by government mandate. The port drew on reserves during this period but avoided default. Since FY 2022, coverage has climbed steadily: 2.19x (FY 2022), 2.55x (FY 2023), and 2.89x (FY 2024). All-in coverage (including subordinate obligations) shows a similar recovery pattern: 0.71x (FY 2020) to 2.36x (FY 2024).

This coverage trajectory demonstrates two key points: (1) the port's structural earning power is substantial—at normalized cruise and cargo volumes, the port generates net revenues sufficient to cover debt service by nearly 3x—and (2) the port's covenant structure and reserve funds were adequately sized to weather an unprecedented demand shock. The Additional Bonds Test requires 1.25x coverage on a senior lien basis; with current coverage at 2.89x, the port has substantial capacity to issue additional debt if capital needs warrant.

Revenue Composition

While the skill file does not itemize the specific breakdown of cruise charges, cargo wharfage, petroleum tariffs, rentals, and parking within the $208.4 million FY 2024 total, all three segments (cruise, cargo, petroleum) are material. Cruise revenue is driven by per-passenger charges, terminal rental arrangements with cruise lines, and stevedoring fees. Cargo revenue includes wharfage fees per ton, container handling fees per TEU, and demurrage. Petroleum revenue is based on per-barrel throughput tariffs. Parking and miscellaneous rentals (warehousing, office space) round out the revenue mix. The tariff structure is set by Broward County Commission resolution under Tariff No. 11 (effective 10/01/2017, as amended).

Bond Structure & Credit Ratings

Outstanding Debt and Security

As of the November 2025 Official Statement, Port Everglades had approximately $691 million in outstanding senior lien bonds, with the FY 2025 Series adding $130.16 million. Bonds are issued by Broward County but secured solely by net revenues of the port—they are NOT general obligations of the County and are NOT payable from ad valorem (property) taxes. This revenue bond structure means bondholders look exclusively to port operations for repayment.

Series	Par Outstanding	Tax Status	Purpose
2019A	$99.48M	Non-AMT	Port improvements
2019B	$323.16M	AMT	Port improvements
2019C	$18.53M	Non-AMT	Refunding
2022	$119.64M	AMT	Port improvements
2025	$130.16M	AMT	Port improvements
Total Senior Lien	~$690.96M

FY 2025 Series Details

The Series 2025 issuance totaled $130.16 million in aggregate par and was structured to provide long-dated funding for capital improvements. The serial portion ($63.49 million, due 2026–2045) carries a 5.00% coupon with yields ranging 3.18%–4.49%. The term bond due 2050 ($28.9 million) is priced at 5.25% with a 4.64% yield. The term bond due 2055 ($37.775 million) is priced at 5.50% with a 4.68% yield. This maturity ladder extends the port's debt repayment over 30 years, consistent with a long-lived infrastructure entity.

The underwriting team included Jefferies LLC as senior managing underwriter, with Ramirez & Co., Inc. and Wells Fargo Securities as co-managers. PFM Financial Advisors served as municipal advisor, and U.S. Bank Trust Company, National Association serves as trustee. Bond counsel and disclosure counsel were Bryant Miller Olive P.A. / Marcelo Llorente, P.A. and Greenspoon Marder LLP, respectively, reflecting the deal's institutional quality.

Credit Ratings

Moody's Investors Service rates the port's senior lien bonds A1 (upper-middle investment grade, ninth of ten levels above speculative grade) with a Stable outlook. Standard & Poor's rates the port A (also upper-middle investment grade, seventh of ten levels above speculative grade) with a Stable outlook. Both rating agencies have assigned stable outlooks, indicating no expected rating action over the next 12–24 months. These ratings reflect the port's strong debt service coverage, essential services role, diversified revenue base, and recovery momentum post-COVID.

Subordinate Debt and Other Obligations

The port may issue subordinate covenant bonds with the County Commission's approval. Additionally, the port carries loans from the Florida Inland Navigation District (FIND) and the State Infrastructure Bank (SIB) program, which rank behind senior lien bonds in the flow of funds. These subordinate obligations do not materially impair the security of senior lien bondholders, as evidenced by the strong coverage ratios.

Capital Program & Development

Carnival Cruise Port Expansion (Terminals 4 & 5)

The most significant capital initiative is the Carnival Cruise Port expansion, authorized under a 25-year cruise port agreement running from calendar year 2024 through 2049. Carnival Corporation (operating as Celebrity Cruises, Holland America Line, and Princess Cruises) has committed to constructing two new cruise terminals (Terminal 4 and Terminal 5) at Port Everglades using its own capital. This represents a major infrastructure upgrade to accommodate larger and newer cruise vessels.

Under the agreement, Carnival has guaranteed a minimum of 700,000 passengers per year by calendar year 2029, increasing from the baseline. This guaranteed minimum provides a structural revenue floor that protects the port from a significant drop-off in cruise traffic from its largest customer. The 25-year term also locks in the Port Everglades location as a priority homeport for Carnival brands, reducing competitive risk from rival ports like PortMiami, Tampa, or others seeking cruise lineups.

Southport Turning Notch Extension

A major cargo infrastructure project underway is the Southport Turning Notch Extension, which expands the container berth capacity in the port's southernmost operating area. This project increases the port's ability to handle mega-ships and larger container volumes, supporting the port's position in the Latin American and Caribbean containerized cargo market.

Slip 2 Improvements and General Infrastructure

Slip 2 improvements include container terminal modernization, reflecting ongoing investment in competitive cargo infrastructure. The capital program also encompasses channel and berth deepening to maintain competitive draft depth for modern container ships, uplands infrastructure (roads, utilities, warehousing), and berth rehabilitation to extend asset life.

The FY 2025 bond proceeds ($130.16 million) are allocated to fund authorized capital projects. With 2.89x coverage on senior lien debt service, the port has demonstrated adequate cash flow to service existing debt while executing a robust capital program, a sign of financial health.

Competitive Position & Market Dynamics

Cruise Market Position

Port Everglades is the third-largest cruise port in the world by passenger volume and the largest cruise port in Florida by this measure. The port is a turnaround homeport (passengers embark and disembark) rather than only a port-of-call, which generates higher per-passenger revenue and stronger year-round employment. The port's geographic position provides excellent Caribbean itineraries—shorter sailing distances to the Caribbean than Tampa or the Gulf Coast ports.

The port competes directly with PortMiami (Miami-Dade County) for cruise line presence and passengers. However, the 25-year Carnival agreement provides competitive protection: Carnival (the world's largest cruise company by capacity) has committed infrastructure (Terminals 4 & 5) and guaranteed passenger minimums at Port Everglades, reducing the risk that Carnival shifts cruise operations to rivals. Disney Cruise Line and Royal Caribbean also maintain dedicated capacity with guaranteed minimum passengers.

Cargo and Containerization

Port Everglades handled approximately 1.1 million TEUs in FY 2024, positioning it as a significant container port for Southeast Florida and a gateway to Latin America. The port operates private terminal facilities and competes with PortMiami and ports further north (Port of Charleston, Port of Savannah). Container volumes are driven by regional economic activity, import/export patterns, and transshipment traffic to and from the Caribbean.

The port's cargo segment provides important revenue diversification beyond cruise operations. Container tariffs are more stable and less cyclical than cruise revenue (which is discretionary spending), though container traffic can be affected by economic downturns and global trade shifts. The Southport Turning Notch Extension supports the port's ability to capture growth in container traffic over the 25-year Carnival agreement period and beyond.

Petroleum and Fuel Distribution

Port Everglades is a critical gateway for petroleum product imports serving South Florida, the southeastern United States, and the Caribbean. Gasoline, jet fuel (particularly for Fort Lauderdale and Miami area airports), and other refined products flow through the port's petroleum infrastructure. This segment provides both revenue diversification and a strategic function in regional fuel supply.

Petroleum tariffs are volumetric (per barrel or gallon throughput), making this segment less dependent on passenger or container variables. However, petroleum throughput can be affected by regional fuel demand, refinery closures, and shifts in trade flows. The existence of substantial petroleum operations at Port Everglades distinguishes it from PortMiami (which is primarily cruise and container focused) and supports the port's resilience.

Federal and Intermodal Connections

The Florida East Coast (FEC) Railway maintains intermodal connections with Port Everglades, allowing container drayage to and from the rail network. This intermodal capability supports the port's competitiveness in the container sector and provides inland connections to major distribution centers and markets throughout the Southeast.

Credit Strengths & Risks

Credit Strengths

Essential Services and Monopoly Position: Port Everglades operates as a critical piece of South Florida's maritime infrastructure. No alternative port in the immediate region provides the same combination of cruise, container, and petroleum capacity. The port's services are essential to regional commerce and tourism.

Diversified Revenue Base: Three distinct revenue segments (cruise, cargo, petroleum) provide natural diversification. A downturn in one segment can be offset by strength in others. This was evident post-COVID: while cruise operations were suspended, container and petroleum operations continued, preventing a total revenue collapse.

Strong Recovery and Normalized Coverage: Post-COVID recovery has been robust. FY 2024 operating revenue of $208.4 million represents 140% growth over FY 2020, and senior lien coverage at 2.89x significantly exceeds debt covenants. This demonstrates structural earning power and operational resilience.

Long-Term Cruise Agreement: The 25-year Carnival agreement (CY 2024–2049) with guaranteed passenger minimums (700,000 by CY 2029) provides revenue visibility and protects against cruise line defection. Carnival's commitment to build two new terminals anchors the port as a strategic hub for the world's largest cruise company.

Investment-Grade Ratings: Moody's A1 and S&P A ratings, both Stable, reflect creditworthiness and access to capital markets at reasonable cost. These ratings are investment-grade and well-positioned for a port entity.

County Governance and Implicit Support: While bonds are not backed by Broward County's general credit, the County's fiscal strength and willingness to maintain the port as a premier enterprise provide implicit comfort. Broward County has never needed to subsidize the port (pre-COVID era), indicating it is self-sufficient.

Adequate Reserve Funds and Covenant Structure: The port's ability to draw on reserves during FY 2020–2021 cruise suspension and avoid default demonstrates that reserve fund sizing and indenture covenants were adequate for stress scenarios.

Credit Risks and Monitoring Items

Cruise Industry Dependency: Despite three-legged revenue model, cruise operations remain a material component of total revenue. The cruise industry is discretionary spending and cyclical; recessions or travel restrictions (as demonstrated by COVID-19) can severely reduce demand. While the Carnival agreement provides a floor, a broader cruise market downturn could still impact overall volume and profitability.

COVID-19 Demonstrated Vulnerability: The pandemic showed that external shocks can rapidly eliminate cruise revenue. While FY 2020–2021 coverage fell below 1.0x, the port avoided default by drawing reserves. A similar but longer crisis could exhaust reserves and force rate increases or cost reductions. Ongoing monitoring of the port's reserve adequacy is warranted.

Competitive Pressure from PortMiami: PortMiami is a fierce competitor for cruise and cargo market share. Any loss of cruise line berth capacity or cargo volume to Miami could pressure Port Everglades revenue. However, the Carnival agreement and geographic considerations (faster Caribbean itineraries from Port Everglades vs. Miami) provide some insulation.

Economic Sensitivity: Container volumes and petroleum throughput are tied to regional and global economic activity. A severe recession could reduce both cargo volume and fuel consumption, impacting two of the three revenue legs. Tourism demand (which drives cruise revenue) is also cyclical.

Capital Program Execution: The Southport Turning Notch Extension and Slip 2 improvements require successful completion and integration with existing operations. Project delays or cost overruns could pressure the port's capital reserves. However, Carnival's funding of Terminals 4 and 5 (not port-funded) reduces capital risk in the cruise segment.

Tariff Rate Risk: Port rates are set by Broward County Commission resolution. A commission decision to hold rates flat during inflationary periods, or to grant customer rate concessions (to retain or attract cruise lines or cargo operators), could compress margins. However, the port's strong coverage provides some flexibility for rate moderation without breaching covenants.

Fuel and Petroleum Dependency: Petroleum throughput depends on regional refining and distribution patterns. A shift in fuel sourcing (e.g., increased renewable energy adoption, refinery relocations) could reduce petroleum revenue. This is a long-term structural risk rather than an immediate threat.

Subordinate Debt and County Spending Pressure: If Broward County faces fiscal stress, the County Commission might pressure the port to distribute more surplus to the general fund, reducing port reinvestment and reserves. However, current covenant structures protect senior and subordinate bondholders first. The port's recent strong coverage suggests any such pressure is unlikely in the near term.

Related Articles

Cruise and Port Finance
Port Everglades is a major cruise port and cargo hub. Related articles provide broader context on cruise port finance, port credit analysis, and competitive dynamics:

• Cruise Port Finance — Overview of cruise port revenue models, passenger economics, and financial structures
• Port and Harbor Credit Analysis — Credit framework for analyzing U.S. port authorities and maritime entities

Competitive Ports
Port Everglades operates in a competitive regional market, particularly for cruise operations. These articles cover key competitors and alternative ports:

• PortMiami (South Florida Cruise Competitor) — Finance and credit analysis of Miami-Dade County's major cruise and container port, a direct competitor
• Port Canaveral (Florida Cruise Competitor) — Finance and credit analysis of Brevard County's cruise and cargo port on Florida's Space Coast