Port of Philadelphia exudes optimism as $300 million capital plan advances

A newly announced $300 million infrastructure program for the Port of Philadelphia is one of those holiday gifts that will keep on giving for years to come. Indeed, Santa arrived just a bit early. Unveiled by PA Gov. Tom Wolf two days before Thanksgiving and further detailed in a Dec. 21 press conference, the four-year capital investment initiative is getting under way this year to, among other benefits, more than double the Port of Philadelphia’s container-handling capacity.

“This is a tremendous opportunity for our city,” exulted Philadelphia Mayor James F. Kenney. Jeff Theobald, the former Ports America and APL executive who in August succeeded the retired James T. McDermott Jr. as executive director and chief executive officer of the Philadelphia Regional Port Authority, has been quick to point out that improvements are to proceed in an environmentally responsible manner. Also, he said, a new diversity outreach program will ensure inclusion of women, minorities, veterans and others as contractors and subcontractors. The infrastructure initiative, to be funded via state bonds, is advancing at a particularly propitious time, what with Panama Canal expansion having been finished last year and deepening of the Delaware River channel to 45 feet from as few as 40 feet slated to be done by mid-2017. “This major capital investment, affecting the Port of Philadelphia’s busiest sectors, will complement other regional and industrywide improvements to bring about more cargo for Philadelphia,” Joseph Menta, the Philadelphia Regional Port Authority’s director of communications, told the American Journal of Transportation. “In particular,” Menta said, “the imminent completion of the 45-foot Delaware River channel deepening project and the recent completion of the Panama Canal expansion project will work along with our soon-to-be-improved facilities to welcome a wider array of vessels than we’ve ever seen at the port.” Also welcome will be a projected 65 percent boost in total port employment, to 17,020 from the current 10.341; a 56 percent increase in yearly state and local taxes generated by the port, to $108.4 million from $69.6 million; and a more-than-tripling of annual revenue, to $18.9 million from $5.7 million. About $200 million of the infrastructure investment is targeted for Packer Avenue Marine Terminal, the port’s largest maritime facility, which is to see its annual container-handling capability grow to 900,000 twenty-foot-equivalent units from its current capacity of 400,000-plus TEUs. Additional investment could bring that capacity as high as 1.2 million TEUs, “Packer Avenue Marine Terminal will be a prime beneficiary of the state’s capital improvement plan,” Menta said. “Infrastructure, warehousing, the terminalwide electrical system, the number of container cranes and so many more aspects of the terminal are slated for improvement, with all geared to improve efficiency and capacity at this major facility.” In addition to the three new electric post-Panamax container cranes set to be put in place by the landlord port authority at Packer Avenue, a fourth such gantry is to be added by terminal tenant Astro Holdings Inc., while an adjoining 40-acre site owned by another Holt Logistics Corp. unit is being improved for container operations expansion. Packer Avenue marginal berths are to be deepened to 45 feet to match the new depth of the Delaware River main channel. Thomas Holt Jr., chief executive officer of Holt Logistics, parent company of Greenwich Terminals LLC, which operates the Packer Avenue Marine Terminal, commented, “These capital improvements, which we’ll complement with our own additional improvements, will allow us to serve the world’s ocean carriers, and the customers those carriers serve, better than ever before. “It will also position us as one of the fastest-growing containerports on the East Coast,” Holt added. Some $90 million from the development initiative is to be spent on the port’s automobile-processing terminal, adding 155 acres of secure, paved Southport property to operations that currently occupy 84.2 acres. Also, a former seaplane hangar is destined to be converted into a second processing facility. According to port officials, these improvements, affording a 166 percent capacity gain, will create a cost-competitive, world-class auto port to meet Glovis America Inc.’s needs for Hyundai and Kia imports, as well as provide ability to expand into vehicle exporting. The expansion of the auto facility supplants previously announced intent for a new marine terminal to be undertaken at Southport by a public-private partnership. About $12 million from the state-backed plan is to go toward enhancements at the port’s Tioga Marine Terminal, which is anticipated to realize a 21 percent increase in breakbulk-handling capacity thanks to warehouse improvements, mobile harbor crane acquisition and erection of a modular office building. The Tioga facility, traditionally a hub for Chilean produce imports, is now handling Fibria wood pulp shipments from Brazil, as most of the fruit now comes in via containers to Packer Avenue docks. The Port of Philadelphia continues to enjoy strong volumes of such longtime cargos as forest products and cocoa beans, according to Menta. The expanded capabilities should enhance the Port of Philadelphia’s ability to aggressively compete for further diverse regional market share, more fully capitalizing upon its location within 500 miles of 60 percent of U.S. and Canadian consumers.