News Article

Port of Baltimore seeks bidders for Seagirt terminal


(4/15/2009) The Maryland Port Administration put its Seagirt Marine Terminal on the market for lease Wednesday, saying it’s the only way to pay for dredging and other improvements.

The agency released a request for qualifications from potential bidders, who would be required to invest in a new 50-foot berth and new cranes at the 200-acre terminal.

“As ships get larger, it is critical that the Port of Baltimore have a 50-foot berth by 2014 when the completed expansion of the Panama Canal will bring more cargo and larger vessels from Asia to the U.S. East Coast,” MPA Executive Director James J. White said in a statement. “We feel strongly that, at this time, having a private partner contribute significant capital investment is the best option for us to go forward.”

The operator would get the portfolio of business under contract at Seagirt, the MPA’s main container terminal. It would be required to guarantee a minimum amount of cargo levels. The contract is expected to be for 30 years.

Proposals are due next month. The MPA expects to make a recommendation on a bidder by the end of the year. The Maryland Port Commission and state Board of Public Works will have to approve the contract.

The MPA is working with Orlando-based Public Financial Management to identify potential private partners.

The port moved ahead with the lease after conferring with the General Assembly during its legislative session, which ended Monday. That was despite concerns from state budget analysts that committing to a long-term lease might not be the the best way to pay for the needed infrastructure improvements.

Dredging of a 50-foot berth is expected to cost $80 million, White has said.

The port receives funding for large capital projects from the Transportation Trust Fund, the same pot that covers maintenance and construction of roads, transit systems and airports. But the fund has been strapped recently, faced with declining income from gasoline taxes and other transportation-related fees.

Baltimore handled about 500,000 containers in 2007. Competing ports that focus more closely on container traffic posted higher numbers, including 4 million in New York, 2 million in Savannah, Ga., and 1.5 million in Norfolk, Va.

Baltimore’s public ports, which also include Dundalk and North and South Locust Point marine terminals, spread cargo totals largely across containers, paper products, breakbulk and roll-on/roll-off cargo.


By: Scott Dance, Staff - Baltimore Business Journal

© 2009 American City Business Journals, Inc. and its licensors.

Link to the article: Port of Baltimore seeks bidders for Seagirt terminal

Source: Baltimore Business Journal