The Delaware River will see more commerce when the greenfield Southport Marine Terminal becomes a reality. To be developed by the Philadelphia Regional Port Authority (PRPA) in partnership with other companies, the terminal will be located in the City of Philadelphia south of the Walt Whitman Bridge.
Packer Avenue Marine Terminal at the Philadelphia Regional Port Authority
A Request for Expressions of Interest, or REI, was issued on October 1 to establish and eventually determine a Public Private Partnership (PPP). The Southport Complex is centrally located to serve one of the most densely populated consumer markets in the United States. It is anticipated to encompass two parcels – the Southport Marine Terminal (119 acres) and the Southport West Terminal (75 acres), as well as Pier 124 North Berth. Pier 124 is a 1,132-foot long finger pier adjacent to the 119-acre site.
The surrounding area includes substantial highway, rail and water access, including rail yards serviced by two Class-I railroads: Norfolk Southern and CSX, as well as a federal navigation channel that is currently being deepened to 45 feet.
“Unlike most other US ports, which face major limitations when seeking additional land to grow, the Port of Philadelphia has hundreds of acres of prime space along the Delaware River to expand our operations,” says PRPA Chairman Charles G. Kopp, Esq.
On November 14, the PRPA received 16 proposals from interested members of the maritime-industrial community to PRPA’s REI. All three sites received multiple expressions of interest from respondents.
“We were truly gratified at the level of responses to our request for expressions of interest,” says PRPA Chairman Kopp.
Holt Logistics Corporation was one of the companies that responded to the REI. In an interview with AJOT, Leo A. Holt, president of Holt Logistics, expressed support for PRPA’s integrated approach to exploiting an overall campus for Southport.
The terminal has the potential to be a hub for the energy industry, which is expected to boom thanks to large deposits of oil in the Marcellus shale region in Northwest Pennsylvania, Northeast Ohio, and southern New York.
“People talk about it being an energy hub,” Holt says. “We believe the use of energy as part of this whole mix is complimentary with its many uses.”
He contends that the robust energy sector could have a downstream impact on a variety of industries.
“We think that in the long term, it’s very positive for marine terminal development,” he says.
PRPA is evaluating the 16 proposals and will eventually recommend one or more to the PRPA Board of Directors. They will make the final selection of a company or companies to develop and operate the Southport sites.
Kopp is hopeful that the current Southport initiative will bring about a partnership between PRPA and one or more private firms.
“These quality responses bring us a major step closer to turning that potential into reality,” he says.
PRPA already has completed substantial pre-development work at the three facilities.
Other Developments
The Southport project coincides with PRPA’s deepening of the Delaware River channel.
Don Brennan, Director of Governmental and Public Affairs and co-chair of the Project Coordination Team, tells AJOT that the Delaware River Main Channel Deepening Project is “moving ahead on schedule and continuing to make remarkable progress.”
“In 2015, PRPA anticipates the removal of material from the port’s most southern reach in Delaware Bay for the environmentally beneficial restoration of Broadkill Beach in Delaware,” Brennan says. “Also, subject to funding, we expect to continue exploration in the Marcus Hook area to sharpen our estimate of the amount of rock we need to remove so that we can advertise for a responsible and acceptable contract bid for the work.”
The project is now about 60-65 percent complete. “That completion of the next phases will get us to 70-75 percent completion, with high hopes for full completion by 2017,” he adds.
Meanwhile, Holt Logistics is investing about $10 million in capital improvements to Packer Avenue Marine Terminal that include what will be one of the most advanced gate management systems in North America.
Holt admits its deployment comes when Packer Avenue just received news that Horizon Lines is being acquired by Maston Lines, and hence, departing the Jones Act.
“But at the same time, we’ve had other services come into play like APL and MOL,” Holt comments. “They operate in the very dynamic and growing markets of the North and South America on the west coast of Peru and Ecuador, which boasts strong refrigerated trades.”
Consequently, Holt reports that a project is underway to increase the reefer flow capacity from 1,400 to 2,000 reefer plugs at Packer Avenue.
Holt is hopeful that new gubernatorial leadership in Pennsylvania in January will lend capital support to further opportunity for cargo and job growth at the Port of Philadelphia. “At the same time, we recognize it is important that private capital puts its money where its mouth is. We do this every day.”
New Class of Ships Arrive
Adding to changes at the Port of Philadelphia are the new class of shipping vessels arriving at its terminals. In November, the MSC Judith called at Packer Avenue Marine Terminal after several port calls in northern Europe. To date, the 8,089-TEU capacity MSC Judith is the largest container vessel ever to call at the port.
In October, the Monte Rosa, a 5,500 TEU vessel operated by Hamburg Sud, docked at the same terminal bringing refrigerated cargo to the port.
“The Monte Rosa represents the next generation of refrigerated cargo ships to dock in Philadelphia,” says David Whene, president of Greenwich Terminals LLC, operator of the Packer Avenue terminal.
The first of several 5,500 TEU ships to be phased into the existing East Coast-Brazil service line, the vessel greatly increases the terminals capacity to deliver fresh South American product to the Philadelphia market and beyond.
Besides Hamburg Sud, Alianca, and CSAV are among the other steamship lines calling at the port. Their ships have been coming from the East Coast of South America for many years. Recently, Hapag Lloyd and NYK Line joined that list.
“NYK adds an Asian cargo component to this service, which is very exciting,” says Joe Menta, PRPA spokesman
Further, Yang Ming will be taking part in this service via slot charter arrangement. As a result, Menta contends that its East Coast of South America Service, 20 years strong at the port, will be stronger than ever.
“We’re also excited about our new West Coast of South America Service, comprised of APL, HMM, and MOL calls,” he adds. “Between our East Coast and West Coast of South America services, our Packer Avenue Marine Terminal will be busier than ever.”
There’s news regarding commodities as well. In September, PRPA’s Tioga Marine Terminal began handling the cargoes of Fibria Celulose, a major Brazilian pulp and paper company.
“With the addition of wood pulp cargoes by Fibria Cellulose this past summer, our Tioga Marine Terminal is now busier than ever,” Menta says. “Vessels carrying Fibria’s wood pulp cargoes now arrive regularly from Brazil, with the cargo eventually being used to manufacture facial tissues, paper towels, and other household items.”
Specially modified forklifts that transfer product fast and damage-free move the cargo from berthside to Tioga’s on-dock warehouse, once shipboard cranes discharge the cargo from the vessel.
The business comprises 18 to 20 ship calls per year and five to six days per week of activity at the terminal. The initial business is expected to amount to 30,000 metric tons per month, resulting in about 360,000 tons annually. Officials expect that there could be 500,000 tons per year in the near future
Overall, cargo volumes at the Port of Philadelphia show an upward trend.
“We’re now finalizing our full 2014 cargo statistics, and it’s clear that 2014 will represent the fifth consecutive year of double-digit growth at the Port of Philadelphia,” reports Menta. “This fact reinforces the need for a deeper channel and more cargo capacity, both of which we’re aggressively addressing. We’ll soon have a 45-foot channel and our Southport Project is now gaining strong momentum, as the high level of responses to our recent Southport RFP demonstrated.”
