Commentary: Major Shipbuilding Project Heads To Texas, Not Baltimore

By Marc King

Gov. Wes Moore has once again failed to secure a significant opportunity for the workers of the Baltimore area and the taxpayers of his state. Just last Friday the following headline was published in Defense News: “Saronic picks Brownsville, Texas, for $3 billion Port Alpha shipyard”

The article refers to the maker of remotely piloted small craft – the type that were recently used to rescue two downed pilots in the Persian Gulf and to blow up the submarine repair facilities along the coast of Iran. Saronic is set to build Port Alpha, a shipyard the company describes as the most advanced in the world, at the Port of Brownsville, Texas. Was Maryland, specifically the Port of Baltimore, even considered for this opportunity?

Remember that Baltimore shipbuilding played a significant role in providing Liberty Ships throughout World War II because it had steel mills and water – the kind of water that you need to float ships. Today the steel mills are gone but the water remains and surrounding the water is lots of vacant land where the steel mills once stood. In the area known as Trade Point Atlantic there is currently an estimated 3,300 acres of land available for development.

The Saronic development is an initial 835-acre site with room to grow to 4,400 acres. It is an investment the company puts at more than $3 billion. The site was chosen over competing sites in California and Virginia, among others. So, with 3,300 acres available, Wes Moore could not sell Maryland. Saronic estimates Port Alpha could create up to 10,000 direct jobs over the next decade, from welding and machining to robotics, software engineering, and naval architecture. The company also projects $264.5 billion in economic impact for Texas and $160 billion for Cameron County.

Baltimore was on the list of perspective sites – so why not Baltimore? Well, it is the usual list that we have seen so often in the states failure to launch …

1. Regulatory Environment – Texas has a more business friendly regulatory environment, less regulations, and lower taxes.
2. Incentives: Texas offers a range of incentives for businesses, including tax breaks and grants that can be more attractive than those in Maryland.
3. Lower Costs: The overall cost of doing business, including labor, utilities, and real estate, tends to be lower in Texas. This can significantly affect operational expenses for manufacturing firms.
4. Wages: Texas has a lower average wage structure compared to Maryland, which can be a deciding factor for companies looking to minimize costs.

It may not be the Golden Goose but for Baltimore and the state of Maryland it is about as close as they could come – It is just too bad Wes Moore is at the helm

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