The Diamond State Port Corp.’s (DSPC) announcement last month that it will purchase the former Chemours Edge Moor site on Hay Road has, at a minimum, positioned the Port of Wilmington for expansion possibilities.
While the purchase does not guarantee that a new port facility will be built at Edge Moor, it does give the DSCP, which owns and operates the port, a valuable option to market to potential investors, according to Secretary of State Jeffrey Bullock, chairman of the DSPC.
“The reason we’re moving forward is because it’s on the market,” said Bullock. “The strategic plan told us one of our best opportunities would be on this site at Edge Moor. If we waited, Chemours would have sold the property. We thought the smart thing to do would be to secure the property now.”
Located just north of the Port of Wilmington, the shuttered Edge Moor facility ticks all the boxes of a prime location for possible expansion: its proximity to the river channel, and its access to both Interstate 495 and railway.
“From an intermodal standpoint, all ingredients for a terrific port terminal,” said Bullock.
The site will be marketed with Riveredge, located south of the Delaware Memorial Bridge, as DSPC’s two primary options for expansion, with the hope that both will be developed.
Bullock said potential investors must meet the DSCP’s criteria, which includes maintaining and expanding the workforce; protecting the interests of customers and businesses that rely on the port; and reducing the burden on Delaware taxpayers.
The Port of Wilmington operates one of the largest on-dock cold storage complexes in North America and handles 400 vessels each year, generating
$417 million in annual business revenue. It supports 5,600 jobs annually.
It is the No. 1 importer of fresh fruit, bananas and juice concentrates, serving more than 200 million North American consumers through truck and rail delivery.
This spring the DSPC released a strategic plan that concluded that expansion is vital to the port’s long-term survival. It also detailed the taxpayer cost of maintaining the current facility at $300 million over the next twenty years just to maintain existing businesses and their anticipated growth. The plan provided several scenarios for long- term growth, which the port board endorsed, including the development of the Chemours site at Edge Moor.
According to Bullock, the price tag for maintenance helped the DSCP formulate a plan that looked beyond maintenance of the existing facility.
“For me that was a compelling reason to look to expansion. If we’re going to spend $300 million in taxpayer dollars and not get more jobs, it solidified in my mind the need for expansion.”
The strategic plan examined the strengths of the existing port’s 300-acre location along the Christina River, including its proximity to open and neighboring railway and interstate. But the port lacks a docking berth on the Delaware River like its neighbors in New Jersey and Pennsylvania.
Ronald “Kimoko” Harris, business agent for the International Longshoreman’s Association Local 1883 and a proponent of port expansion, said he was in full support of the purchase of the Edge Moor site.
“Like I have always stated, the port must think big,” said Harris. “If Baltimore can have seven terminals and Philadelphia can have five terminals, we surely can have three terminals.”
The recent dredging of the Delaware River to accommodate larger vessels has resulted in expansion of port facilities along the river, with both New Jersey and Pennsylvania pursuing upgrades to accommodate a broader market.
The South Jersey Port Corp. has already started construction of a new container terminal on a 200-acre brownfield site in Paulsboro. The Port of Philadelphia is also examining possibilities for Southport, at the site of the old Philadelphia naval yard while the Packer Avenue Marine Terminal accepted a new class of vessels in 2014.
“Today is a great day for our entire port community,” said William Ashe Jr., vice president of the International Longshoremen’s Association. “The purchase of this property will provide the additional space required to support our existing customers and allow for increased work for our membership.”
Chemours announced closure of the 114-acre Edge Moor manufacturing operation in August 2015 with the promise that the property would be returned to the benefit of the community and state.
Under the terms of the agreement, Chemours will be responsible for decommission and deconstruction of parts of the facility to ready it for transfer, said Bullock.
The sale is expected to close in early 2017. The agreed sale price is $10 million.
“There is always a risk associated with it,” said Bullock. “This is a business deal and there are no guarantees, but we feel good about our opportunities and we’re encouraged. Time will tell how successful we are.”
