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Havard Final Case

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Harborco

National consortium
from various enterprise
financing/construction/operation of the port
preliminary planning/ design

--> Cannot have license issue by FLA

Project

deep-water port
Located in Seaborne
accommodate a new generation of large cargo ships and supertankers
based on an artificial island of roughly nine square miles
Onshore, an Air-Sea-Cargo Center (ASCC) would be developed

--> . Substantial infrastructure would be needed

--> While components of the port could be operational as early as


five years after construction begins,
the port's full development might not be completed until 20 years later.

--> Cost:4 billions

***Several other parties, however, have an interest


in the deep-water port and Harborco's application for a license.

1.The Environmental League: Harborco's proposed port would seriously damage


the environment of Seaborne and destroy the basic Banksedge River ecology.

2.Local Federation of Labor Unions (The Unions): . They will argue strongly,
however,
that these jobs should be reserved for local union members.

3.Other Ports in the Region: They expect to lose a substantial amount of business
to the new port, if it is constructed. They are extremely skeptical of Harborco's
claim that all
regional ports will share in the economic benefits generated by the new port.
.

4.Federal Department of Coastal Resources (DCR):


The DCR would like to see a deep-water port established somewhere on the East
Coast,
and has the resources and authority to subsidize such a port.

the DCR will insist on certain aspects of port design


before it will contribute to the port.

Veto any federal loan or loan guarantee

5.Governor Sherwood (of Seaborne): is eager to promote development in her state.


eager to see that unions share in the benefits of the port.
FLA: sensitive to level of politica support --> , the FLA will not approve
Harborco's application unless
it is clear that there is substantial support for the project.

Harborco: freedom to choosr industry mix

- No industry excluded --> mix mainly include oil refineries, petrochemical plants,
steel productions plants, and a resource recovery plant.

all industries would conform to existing federal


and state pollution regulations.

• * A primarily dirty industry mix (Option A1),


• * Some harm to the ecology (but within federally and state-prescribed
limits)
(Option B1),
• * No special preference for union workers (Option C4),
• * A $3 billion loan from the DCR (Option D1), and
• * No compensation payments to other ports (Option E5).

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