Case Study: Miami Port Expansion Stalled by Marine Equipment Delivery Delays (2021)
Project Overview
• Name: Port of Miami Expansion Phase 1
• Location: Miami, Florida
• Year: 2021
• Project Size: $480 million
• Scope: Expansion of container handling facilities and dredging operations
• Lead Agencies/Contractors: Miami-Dade Port Authority /
Category of the Issue, Problem, or Challenge
• Supply Chain Disruption
• Specialized Marine Equipment
Summary of the Issue, Problem, or Challenge
Delays occurred when delivery of specialized dredging and lifting equipment was postponed due to international shipping disruptions and manufacturing slowdowns in Asia.
Root Cause Analysis
- Global supply chain bottlenecks during COVID-19 pandemic.
- Dependence on foreign manufacturers for critical marine equipment.
- Lack of alternative equipment suppliers or rental options.
- Inadequate scheduling buffer for long lead-time equipment.
Impacts Due to the Issue, Problem, or Challenge
• 5-month delay in dredging and quay wall construction.
• Cost overruns due to equipment rental and schedule acceleration (~$6.5 million).
• Impact on port operational expansion and shipping schedules.
Corrective Actions Taken
- Negotiated rental agreements for interim equipment.
- Sought additional suppliers and equipment rental providers.
- Improved international shipping logistics tracking and contingency planning.
Lessons Learned
- Global equipment sourcing requires robust contingency and rental plans.
- Early procurement and schedule buffers critical for long lead-time items.
- Close coordination with manufacturers and logistics providers essential.
Audit & Prevention: Project Control Questions to Ask on Future Projects to Help Control the Situation
- Are long lead-time equipment orders placed with sufficient buffer?
- Are rental or alternate supplier options evaluated?
- Is international shipping risk assessed and mitigated?