Upcoming editorial: Port of Baltimore finally gets its 50-foot berth
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For a decade, a 50-foot-deep berth at Seagirt Marine Terminal has been on top of the wish list for Baltimore’s port. Good things — including 2,700 permanent jobs — must come to those who wait because it’s beginning to look at lot like Christmas has finally arrived in South Baltimore.
In a first-of-its-kind arrangement for the port, state officials have negotiated a contract to lease Seagirt to a private company, Ports America Chesapeake, for the next 50 years. In return, Ports America would build the much-anticipated berth at a cost of $105 million.
But wait, there’s more. The company has also agreed to invest $500 million to maintain and improve the terminal over time and to give the Maryland Transportation Authority (which has financed Seagirt’s development) $100 million once the deal is approved.
As Seagirt’s sole operator, Ports America would also make payments to the Maryland Port Administration depending on the volume of container traffic. The amount would increase once the volume hits 500,000 containers a year (from the current 350,000).
And in one more important trade-off in the deal, Ports America would surrender 65 acres at Dundalk Marine Terminal so the MPA could expand the importing of cars and trucks. Right now that potentially lucrative trade is at a roadblock because the port lacks sufficient space to temporarily park the vehicles.
The MPA has been looking for a public-private partnership deal for years, but this, at least at first glance, would seem to exceed expectations. In unveiling the arrangement Friday, Gov. Martin O’Malley envisioned it creating a total of 5,700 jobs. That includes the 3,000 temporary jobs made possible by construction at the port and on whatever projects the Transportation Authority chooses to pursue.
Just as importantly, the investment means the port can attract the much-anticipated massive container vessels made possible by upgrades to the Panama Canal that are expected to be completed by 2014. Baltimore’s shipping channel is deep enough to serve such mega-ships, but its current berths are not, nor are the existing cranes large enough to reach across their oversized decks.
Bigger ships mean lower shipping costs for trade from Asia to the East Coast (and then connected by rail to the Midwest). Baltimore is uniquely situated to take advantage of the opportunity. But financing the 50-foot berth through traditional means — the Maryland Transportation Trust Fund — was all but impossible given the competing highway and transit needs.
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