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FAQs -- General

UPDATED 04/10/2007

Why build the Port of Miami Tunnel?

The tunnel will:

• Provide direct access between the Seaport, I-395 and I-95

• Create an alternative to the Port Bridge, now the only connection to the mainland

• Keep the Port of Miami competitive, at the same time maintaining its importance as Miami-Dade County’s second largest economic generator

• Improve traffic safety in downtown Miami by removing cargo trucks and cruise line buses from already-congested streets

• Facilitate ongoing and future development plans in and around downtown Miami.

Why is the tunnel the best alternative for creating additional access to the Port?

Various alternatives were explored during the initial Project Development and Environment process, including several different corridor alignments, a high-level bridge over the Main Channel, and the “no-build” alternative. All were found to be less effective than the tunnel. Based on the engineering and environmental criteria, the tunnel best improves safety conditions, reduces traffic congestion, creates no significant long- or short-term environmental impacts and has no long-term effects on marine navigation. 

How will the project be built?

The project will be developed as a public/private partnership (PPP) under a Concession Agreement.

How much will the project cost?

Preliminary estimates are for a total cost in excess of $1 billion.

What is a PPP?

A PPP is a contractual agreement between a public agency, in this case the Florida Department of Transportation, and a private sector proposer or bidder.

What is a Concession Agreement?

It will be the contract entered into by FDOT and the winning private sector proposer selected in a competitive bidding process.

Is there a term for the successful bidder?

The successful bidder is known as the concessionaire.  

Why is a PPP the best approach for this project?

The Port of Miami Tunnel is a highly complex project.  The PPP structure will transfer substantial risk for construction overruns and the long-term cost of operations and maintenance to the concessionaire.  The concessionaire will be paid for performance by FDOT over the life of the PPP rather than upfront.  If the concessionaire underperforms, FDOT will be able to reduce payment.  This will align the interests of FDOT and of the concessionaire in being efficient and providing high-quality construction, upkeep and user service. 

How will the concessionaire recoup its investment?

FDOT will make what are known as availability payments to the concessionaire for providing vehicle access through the Port of Miami Tunnel. These payments will begin once the tunnel opens for use and will continue at regular intervals throughout the duration (30 to 50 years) of the Concession Agreement.  If the concessionaire underperforms it will not receive a full availability payment.

Is the winning proposer, or concessionaire, one company or a group of companies?

The concessionaire will most likely be a company formed by one or more equity investors for the sole purpose of entering into this Concession Agreement with the FDOT. The concessionaire will bring in key subcontractors, such as the project designer, builder and operator, who may or may not be equity investors in the concessionaire. FDOT will evaluate the equity investing members of the team and the key subcontractors during the RFQ process.

What are the other sources of revenue?  

In addition to the private funds put forth by the concessionaire to build the tunnel, FDOT has reserved $150 million in its work program and the citizens of Miami-Dade County have voted to use $100 million from their November 2, 2004 general obligation bond program. Additional local and state contributions will be identified at a later date.

What is the schedule for the project?

How will the community be involved?

Community involvement has been encouraged throughout the initial planning and conceptual design phases. FDOT is committed to continuing this community outreach. The community is encouraged to view details of the project and provide comments through the project web site and questions regarding the Port of Miami Project may be directed to:

Communikatz, Inc.
305-573-4455, Extension 12
4141 NE 2 Ave., Suite 101D, Miami, FL 33137
info@communikatz.com

How will port security be addressed during and after construction? (added 3/17/06)

The specifics on Port security will be further detailed in the RFP.  The Concessionaire will be responsible for choosing the means, methods, actions, and resources it finds necessary to meet the functional requirements.

What are the project limits? (added 3/17/06)

The physical limits of the proposed project are from I-395 at the western termini of the MacArthur Causeway Bridges to the Port roadway system prior to the security gates on Dodge Island.  The improvements include widening of the MacArthur Causeway Bridges, Watson Island surface roadway improvements, tunnel connection between Watson Island and the Port of Miami, and Port of Miami roadway and bridge improvements on Dodge Island.

What is the proposed timeline for the improvements? (added 3/17/06)

Once the Concessionaire is selected in late 2006, the team will be required to submit a detailed schedule, taking into account the integration of final design and construction to achieve an optimal timeframe for completion balanced with costs.  Preliminary results suggest that the most efficient tenor for FDOT will be in the lower range -- most likely 35 to 40 years.

We understand FDOT is leading the project.  What other agencies/entities will be involved in the decision making process? Who are the members of the selection committee?  (added 3/17/06)

FDOT will supervise the procurement process and choose the Concessionaire.  Experts from various disciplines within FDOT will handle the technical and financial evaluation of the SOQs and proposals. Other entities involved in the project will be Miami-Dade County, the Port of Miami (a department of Miami-Dade County) and the City of Miami.

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