East Coast ports and terminals: Moving dirt, doing deals

By Peter Hull

In October 2006, when the citizens of Panama voted in favor of investing more than $5 billion to expand the Panama Canal, the forthcoming consequences were felt the length of the U.S. East Coast.

Port operators and shippers knew that come 2014, when the project is set for completion, larger ships hauling more freight would be headed to East Coast ports.

But many ports were already operating near capacity. A wider waterway in Panama would only benefit those who could handle the expected spike in demand.

Nearly three years since that referendum passed, ports up and down the Eastern seaboard are frantically moving dirt, or doing deals.
Here’s a snapshot of ongoing developments at East Coast ports.
 
Maryland
In April, the Maryland Port Administration put its Seagirt Marine Terminal up for lease.

Stating there was no other way to pay for dredging and other improvements, the agency sought potential bidders who would be required to invest in a new 50-foot berth and new cranes at the 200-acre terminal.

Any arrangement is expected to last for at least 30 years. The MPA estimates the upgrades will cost about $80 million.The MPA would retain ownership of Seagirt, but a private partner would oversee the terminal’s operation.

Proposals were due May 18. Officials hope to have an agreement in place by the first quarter of 2010.
 
Virginia
In March, the U.S. shipping industry was stirred by an Oak Brook, Ill., company that said it wanted to run the Virginia Port Authority’s state port system.

The deal offered by CenterPoint Properties Trust would be worth more than $8 billion to the State of Virginia during the course of a 60-year partnership.

After a review by the state Secretary of Transportation’s office, the bid was publicly posted on March 27, beginning a four-month period during which the state will solicit competing bids, all due by July 27.

Under CenterPoint’s proposal, the company would lease Virginia’s three marine terminals in Norfolk, Portsmouth and Newport News, and an inland rail and truck terminal. It also would acquire its nonprofit affiliate, Virginia International Terminals Inc., which currently operates the terminals.

To view the CenterPoint proposal, visit www.portofvirginia.com.
 
South Carolina
After years of delays amid public opposition, in May 2007 the South Carolina State Ports Authority finally broke ground on its 280-acre, three-berth terminal on part of the former Navy base in North Charleston.

Phase I of the overall $600 million expansion is scheduled to open in 2013. At build-out, the new terminal will increase capacity at the Port of Charleston by about 50 percent, or about 1.5 million TEUs.

Work has already started to construct a 5,000-foot-long containment structure built out 850 feet from the shoreline toward the main shipping channel.

Meanwhile, in what is arguably the biggest port project nationwide, the SPA and the Georgia Ports Authority have taken joint ownership of 1,518 acres along the South Carolina side of the Savannah River, on which the two ports plan to build the giant Jasper Ocean Terminal.

The proposal to build a massive terminal complex on site currently used for dredge disposal creates a bi-state authority that would own the port equally.

The two states signed an Intergovernmental Agreement in January 2008. Opening of the terminal is at least a decade away.

Florida
Like South Carolina, Florida is all about port expansion.

At Port Everglades, where containerized cargo volume grew by 92 percent in the last six years, construction of a 41-acre terminal at Port Everglades is underway.

The terminal is expected to be complete by early 2010, and will expand cargo acreage by 15 percent. Work also includes deepening channels and adding longer and larger docks to handle larger container ships.

In northern Florida, the Port of Jacksonville opened its TraPac terminal in January. The 158-acre terminal was built in partnership with West Coast container terminal operator TraPac and serves as the U.S. South Atlantic base of Tokyo-based Mitsui O.S.K. Lines.

The terminal doubled Jacksonville’s container handling capacity. In December, port officials additonally signed a 30-year lease with Hanjin Shipping Co. of Seoul, Korea a partnership which paves the way for construction of a 90-acre container facility, also at the Dames Point Marine Terminal.

The $300 million Hanjin terminal is expected to open in late 2011 and will be a key hub for the steamship line’s East Coast port activity. It will be the shipping line’s first dedicated U.S. operation away from the West Coast, a strategic move that has one eye on the
Panama Canal.

In This Issue

News, Trends & Analysis
New Items

One big reason for a weak global trade outlook

Supply Chain
Public-private partnerships:
Inviting others to the table

Keeping your cargo cool

Compliance Corner: What you need to know about export commodity control numbers

Supply Chain product review
Communication technologies

Features
Gateway at a glance Latin America

U.S. domestic shipping looks ahead

Ports & infrastructure
East Coast ports and terminals moving dirt, doing deals

Port Product Review
Refrigeration technologies

Commentary
Difficult times create opportunities

Who, What, Where, When

Final Say