Gov. O’Malley announces 50 year contract with Ports America to operate Port of Baltimore's Seagirt Marine Terminal

Governor Martin O’Malley announced a 50-year agreement between the Maryland Port Administration (MPA) and Ports America Chesapeake that will allow the MPA to lease its 200-acre Seagirt Marine Terminal to Ports America.  In return, Ports America has agreed to construct a 50-foot berth for the Port of Baltimore that is expected to result in increased business opportunities and larger vessels that will be able to dock at the Port.  The partnership between the MPA and Ports America is expected to produce 5,700 new jobs, while the total investment and revenue from this agreement to the State of Maryland has the potential to reach more than $1.3 billion over the life of the agreement and will generate $15.7 million per year in new taxes for Maryland. The agreement must be submitted to the Board of Public Works for approval.

“This public-private partnership is about three things:  jobs, jobs, and more jobs,” said Governor O’Malley.  “These challenging economic times call for new ways of doing business.  We welcome an internationally respected partner in the maritime field for this unique long-term joint venture. With this agreement, we are able to secure the Port’s long-term future with a 50-foot berth, apply an immediate influx of capital for system preservation of roads, tunnels, and bridges, and provide an extended revenue stream to the State.”

Once the agreement is finalized, Ports America will be responsible for running the daily operations of the Seagirt Marine Terminal, as well as investing in a new 50-foot berth, cranes, and other infrastructure at Seagirt.  Ports America will make an annual payment and provide ongoing revenues to the MPA during the life of the agreement.  The State of Maryland would continue to own Seagirt.

“On behalf of the Maryland delegation, I want to congratulate Governor O’Malley for securing this long-term business partnership at the Port of Baltimore. Today’s announcement is good news for Maryland and for jobs, jobs, jobs. The Port of Baltimore is a major economic engine for Maryland and America. That’s why I’m proud to fight every year after year to put money in the federal checkbook to keep it safe, secure and growing. This new business partnership is a coup for Maryland’s economy, our Port and the lives and livelihood that depend on it,” said Senator Barbara A. Mikulski, Chair of the Maryland delegation.

Of the 5,700 new jobs that will result from this agreement, 3,000 jobs will be one-time construction jobs over the next three years for Port and Maryland Transportation Authority (MdTA) highway improvements.  Another 2,700 permanent direct, indirect and induced jobs will come from the increased and sustainable container business that the Port will see upon completion of the 50-foot berth in 2014.

Under the agreement, the MdTA, as the current owner of Seagirt, will receive an immediate payment in excess of $100 million to pay for needed system preservation of its roads, tunnel, and bridge facilities.  It also is projected that this agreement will generate $15.7 million per year in new taxes for the State.

Ports America is the current operator of the Seagirt Marine Terminal and has operated the facility since Seagirt opened in 1990.  Ports America has also run operations at the Dundalk Marine Terminal since 1996.

“Ports America Chesapeake has been an important part of Maryland's maritime tradition since 1921,” said Ports America Chesapeake Chairman Christopher Lee.  “We are looking forward to building on this foundation, as we and the Maryland Port Administration partner together in this key initiative, under the leadership of Governor O'Malley, to implement the critical infrastructure required to maintain the Port of Baltimore’s competitiveness and importance to the Maryland economy and high quality and sustainable employment for many years to come.”

In addition to full control over daily operations of Seagirt and the obligation to desig