Posted on October 7, 2020
Two capital projects critical to the long-term growth of the Port of Baltimore continue to move forward amid a slew of proposed cuts across the Maryland Department of Transportation’s business units due to the coronavirus pandemic.
Overall, the Department of Transportations plans to reduce capital spending by $1.9 billion during fiscal years 2021-2026 because of revenue declines in the state’s Transportation Trust Fund. Of those cuts, $227 million impact the Maryland Port Administration (MPA). Traffic has declined across all modes of transportation and despite recent stabilization, cargo remains down at the Port of Baltimore.
The MPA’s capital budget for the next six years totals $899 million, compared to $1.16 billion in the prior six-year spending plan approved last year. Reconstruction and renovation of two berths at the Dundalk Marine Terminal have been delayed. A stormwater management project at Fairfield/Masonville Marine Terminal has also been delayed.
Despite the reductions, the MPA continues to move forward with the high-profile reconstruction of the Howard Street Tunnel and construction of a second 50-foot deep berth at Seagirt Marine Terminal, officials said during a meeting of the Maryland Port Commission on Tuesday. MPA Executive Director Bill Doyle attributed the continuity of those projects to the successful use of public-private partnerships.
Transportation Secretary Greg Slater said such partnerships are crucial because they enable projects to continue moving forward even when the state has to cut its budget “to the bone.”
“It’s really important that we’re thinking differently and innovatively with these partnerships because they can set us up for the next wave [of projects] that we’ll have to deal with,” Slater said.
At Seagirt, MPA is teaming with Ports America Chesapeake on the $33.8 million construction of a second deep-channel berth that will enable the Port of Baltimore to unload cargo from two super-sized container ships simultaneously.
MPA officials last year said they hoped to have the berth completed by this fall. Though it has been delayed, Doyle said the project continues to proceed and he now expects it to be ready by August 2021. Underwater analysis is being completed right now, he said.
Ports America Chesapeake, which operates Seagirt through a public-private partnership with the state, will pay $18.4 million for the construction. The state will complete the dredging, which Doyle estimated will cost about $10 million. Once the dock has been finished and dredging is completed, Ports America Chesapeake will bring in four new “super cranes” to be used for unloading containers from the ships.
Jim White, the former executive director of the MPA who retired in December, said last year Ports America Chesapeake will spend about $105 million on new cranes and modifying the new berth.
Reconstruction of the Howard Street Tunnel also continues to move ahead, Doyle said. The $466 million project, being completed through a public-private partnership with CSX Corp., would increase the clearance of the 125-year-old tunnel to allow for double-stacked shipping containers. Expanding the height of the tunnel is crucial for transporting the growing amount of cargo coming into the port.
“Everything is on target,” Doyle said.
CSX completed an environmental assessment for the project and filed it with the Federal Railroad Administration on Oct. 2, Doyle said. The federal government will conduct a 30-day review and then issue a record of decision. CSX remains onboard with its $113 million funding commitment, and there are “no issues” with Pennsylvania’s portion related to construction of bridges.
The Port Commission participated in a closed session during its meeting on Tuesday to “consider a matter that concerns the proposal for a business or industrial organization to locate, expand or remain in the state to discuss business proposals related to rehabilitation of the Howard Street Tunnel.” Officials provided no further information about the proposals.
Source: bizjournals
