Box lunch: Latin American shippers get a price break as a competition sets in for Miami-bound containers.

Port Everglades, although three times larger and handling about three times the tonnage of Miami, only moves about half as many container cargo shipments. And Miami's container traffic to and from Latin America and the Caribbean dwarfs that of its nearby competitor, just an hour's drive north.

But the Fort Lauderdale port is boldly trying to expand its container traffic, now a fraction of its business. In part, the port is adding facilities, services and Latin American and Caribbean routes. It also has attracted some carriers away from Miami with reduced tariffs and fees--35% lower in some eases.

"When ports are fat and happy, their attitude is 'tough luck,'" says Dominic Obrigkeit, vice president at Evergreen America, which switched its Caribbean and Central America business to Everglades in early 2002. "When they are hungry, they will do almost anything to get your business." Port Everglades, Obrigkeit says, is as hungry as they come.

Port Everglades--the No. 12 port in the United States--is fighting hard for its share of container cargo for two reasons: The movement toward free trade agreements in the hemisphere, its managers figure, will eventually increase container cargo shipments to South Florida.

And, container cargo is more profitable. The facility handled 554,041 20-foot-long metal cargo containers, called ton equivalent milts or TEUs in 2002, compared to Miami's 980,743 TEUs the same year. According to Port Everglades' master plan, however, it will handle at ]east 1.5 million TEUs by 2020,

Partly in response to lower tariffs, two major shipping consortiums--the Americas Service and the Independent Carriers Alliance--over the past 18 months have left Miami for Everglades.

U.S. food company Chiquita Brands International in August signed a 10-year lease agreement for a container cargo terminal at Port Everglades. Chiquita expects to handle 30,000 containers in its first year of operation.

Moving Caribbean service to Port Everglades slashed annual operating costs by 25%, says Jean-Serge Martins, sales and marketing director in South Florida for French shipper CMA CGM. "In the end, we were looking to cut costs and the numbers we negotiated with Port Everglades were more competitive, The dock hours are more flexible for loading and unloading cargo," says Martins. Shipping showdown. The battle for container cargo is part of a bigger competition to build the most efficient South Florida intermodal system for the transfer of cargo between ships, trucks, trains, warehouses and airplanes.

Miami is adding warehouse space and loading ramps and improving access roads mad signage around its airport and port. Broward is fighting back with a 20-year master plan that calls for integration of air and sea traffic between Port Everglades and Fort Lauderdale Hollywood International Airport. The plan also envisions an intermodal container transfer facility at the port's connection with a major railway.

Port officials downplay any rivalry. "I want to dispel this notion of competition because that's not how to grow a port," says Carlos Buqueras, director of trade development for Port Everglades. Says Port of Miami cargo development manager Ray Mauri, "We are not in a competitive posture with any port."

The Port of Miami, nevertheless, also is gearing up to handle bigger carriers. The port is deepening berths and has ordered two super post-Panamax cranes with an option for two more, for a total of 16 gantry cranes. Port Everglades has nine cranes, seven of which are post-Panamax. The Fort Lauderdale port is also adding two new container yards totaling 86 acres.

Everglades geared up its container cargo business in recent years by allowing private companies to operate terminals shared by independent shipping companies. Previously, only major shippers with their own terminals served Port Everglades. Independents had to strike deals with large carriers. Miami has long had third-party terminal operators.

Despite infrastructure improvements, Everglades couldn't compete with Miami until it cut cargo rates in February 2002. "We were too expensive," Buqueras says. Port of Miami administrators left rates unchanged in March 2003. The move was not a response to Port Everglades, but part of an industry trend, says Mauri.

"Lots of ports including Miami decided not to take an increase because shippers were getting hit with rising costs."

Port Everglades is a long way from truly challenging Miami. Everglades has more than two dozen carriers moving through about 150 ports in more than 70 countries. Miami has about 40 carriers calling on more than 250 ports in more than 100 countries But No. 2 in South Florida has made a 20-year bet it can become No. 1, and shippers are pleased to see competition for their dollars.