By Karen E. Thuermer, AJOTWith automobile processors like Pasha, Mercedes-Benz USA (MBUSA) and Amports operating a various terminals at the Port of Baltimore, it’s no wonder that the seaport is ranked No. 1 in America for ro-ro business. BMW became a new customer at the port when the auto manufacturer signed a five-year deal in March with Mercedes-Benz USA to prepare its vehicles coming through the Port. BMW is using the MBUSA vehicle preparation center to inspect, process and repair all pre-delivery vehicles coming into the United States through the center. The agreement calls for BMW to ship some 50,000 cars per year through the port, a figure that represents a 12 percent increase in auto shipping traffic over previous volumes, says James J. White, executive director of the Maryland Port Administration (MPA). Automobiles are one of the main commodities handled at the Port of Baltimore’s public marine terminals. In 2009, the Port of Baltimore handled about 375,000 cars in total. BMW sold nearly a quarter of a million vehicles in the U.S. a year ago. MBUSA operates a facility at the Port of Baltimore’s Fairfield and Masonville auto terminals. Location is Key Attraction So what makes it attractive for BMW and MBUSA to partner on this type of project? “We wanted to streamline the time and distance it takes for our vehicles to reach its’ customers,” remarks Charlene King, spokesperson for BMW of North America, LLC’s (BMW NA). According to King, BMW NA’s decision to import vehicles through the Port of Baltimore was primarily based on location. “Using the port results in a more streamlined approach. It reduces logistical complexity and transportation distance to customers,” she comments. In addition, she sites that fact Baltimore is the closest Atlantic port to the Midwest and that the seaport is located near an extensive network of interstate access and rail connections that give BMW access to any point in the United States. “Plus, Baltimore is considered to be an `automobile friendly’ city, having a number of companies catering to the import of vehicles,” King adds. BMW anticipates that approximately 50,000 cars will be destined for the central region, which includes Chicago. Prior to the deal, BMW models arrived in Charleston, South Carolina, and were shipped to nearby Spartanburg (home of BMWs assembly plant) for inspection and pre-delivery work. But sources close to the company say that plant will be “no longer appropriate” once the X3 (crossover) starts production this year. By shipping the cars via the Port of Baltimore, BMW can save shipping fees since Baltimore is closer to Midwest and central markets than Charleston. In fact, Ernst Lieb, CEO of Mercedes-Benz USA, was quoted by Automotive News as saying BMW and Mercedes Benz are also evaluating whether or not to use a joint shipping company to handle their brands once the cars are processed in Baltimore. It makes economic sense. Starting this year, about a fifth of all BMWs sold in the United States now travel through the port of Baltimore. Lieb was also quoted as saying that if this deal works out, it’s possible that the two brands could have a similar arrangement at other vehicle processing centers at other seaports. Lieb likes to refer to the Baltimore deal as a “win-win situation.” But deal signed in March does not just apply to BMW vehicles. It includes MINI automobiles as well. Other Auto Business Port officials see other automobile business also taking off at the port. Automakers, including General Motors, Ford, and Chrysler do much of their overseas exporting through the Port of Baltimore. Ford Motor Co. is importing more new Ford Fiestas through the port. These cars are manufactured in Mexico, and began arriving at the Port of Baltimore’s Dundalk Marine Terminal on board a “K” Line ro-ro vessel in June. Ford plans to ship the imported cars to the port throughout the rest of the year. Information is not available, however, as to