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Thursday, July 18, 2024

Public-private Partnership to Build $635 Million Port Terminal in Delaware

Maritime Activity Reports, Inc.

June 5, 2024

(Image: Enstructure)

(Image: Enstructure)

The State of Delaware will join the private operator of the Port of Wilmington, Enstructure, to build a new port terminal at a site in Edgemoor, Delaware. The Edgemoor industrial site was purchased in 2017 by the taxpayer-owned Diamond State Port Corporation (DSPC) which subsequently secured the necessary permits to construct a new port terminal.

This $635 million infrastructure project will be largest shipping terminal in Delaware since the current Port of Wilmington opened in 1923. The new state-of-the-art “green port” will quadruple the port’s capacity for container cargo and enable new and larger ships to be serviced. Construction of the Edgemoor port will take about three years.

Construction of the new port facility will be conducted in three phases, with the first to be completed over an estimated 32-month period. Much of the early work in the first phase will be focused on waterside construction – building a seawall, high deck and associated dredging.  Landside construction of the actual terminal will come later with proactive public participation and community engagement. Phases two and three of the project will be built by Enstructure when business justifies the additional capacity.

The State will take on responsibility for approximately 31 percent of the cost of building the facility, or $195 million. Enstructure will pay most of the construction and equipment costs, beginning with $170 million to support Phase 1 of the project and an additional $165 million to complete phases 2 and 3, which equals 53 percent of the entire project. Remaining costs will come from federal sources and the DSPC. State funds will come from excess abandoned property revenues made available in previous state bond bills for specific one-time uses, including maritime terminal development.

The new Edgemoor terminal is estimated to create nearly 6,000 new jobs, including more than 3,100 direct jobs. Total state and local taxes generated from Edgemoor are estimated at $39.4 million annually. In addition, building the new facility will create more than 3,900 construction jobs and generate $42.3 million in tax revenues.

Once completed and fully operational, “Port Delaware,” including both the existing and new terminals, will generate a total of about 11,480 jobs and $76.2 million in tax revenues for the state, making it one of Delaware’s largest employment centers.

“For decades, jobs at the Port of Wilmington have been a gateway into the middle class for thousands of workers and their families— the kind of jobs our state and country were built on,” said Governor John Carney. “This investment to expand the Port will position Delaware to compete for container cargo and larger ships. It will bring new, good-paying union jobs to Wilmington. I am pleased to see strong bipartisan support for this important and necessary next step in making the planned Edgemoor expansion a reality.”

“We are excited to partner with the State of Delaware, the Diamond State Port Corporation, the Delaware Building Trades and the International Longshoremen’s Association to significantly expand Delaware’s port infrastructure,” said Enstructure Co-CEOs Matthew Satnick and Philippe De Montigny. “The Port Delaware Container Terminal will broaden Enstructure’s terminal network and logistics services, while enhancing our ability to serve our customers.”