Expanding the Port of Wilmington
You’ve probably seen this article in Sunday’s NJ that spins out a vision by Tom Gordon to expand on the Port of Wilmington by building a new facility directly on the Delaware River capable of handling the larger ships coming through the world’s seaways. This new facility would be south of the current port, just south of the Delaware Memorial Bridge. I give Tom Gordon some credit for thinking about capitalizing on the current Port asset. I wrote about this alot when I was writing about Kinder Morgan and I’m still surprised that this isn’t higher up on the economic development agenda.
To be sure, this is spun out in a way that best showcases Tom Gordon. There have apparently been some private meetings with the current owner of the property and the longshoremen. You’d think that people from the State and the current Port leadership would also be at the table to help shape this concept. This effort won’t be successful unless all of the stakeholders are rowing in the same direction. Certainly the kind of private investment that Gordon’s plan seems to call for won’t come anywhere near this thing unless the State and the current Port aren’t on board. I’m less clear about how the Boxwood road site might be a part of this.
Still, at least someone is thinking about how to expand on the Port and its business. This is going to be important and we are behind the curve here if we think about this in terms of the kind of planning that Ports competing with us have done and built on. Lots of folks at the Port and with businesses outside the fence dream about a pier that would extent into the Delaware that might accommodate deeper draft ships. There’s plenty of questions about this venture — including whether developing this site is better than developing the empty land directly adjacent to the Port for expansion. Remember that the Kinder Morgan episode started when it became clear that they were NOT going to expand the Port as previously sold — they were just going to enter into a long lease and make some repairs and improvements to the current footprint. Money is going to be an issue, as is deciding the import and export targets. Wilmington has a great niche in the fruit and vegetables business. What else can be done that won’t interfere with that? What else could be done that might enhance that and lock in that expertise? An economic study would be a good start (and the article says that Gordon is going to try to get the money from the County Council),and that study should include the businesses outside of the Port fence who have been instrumental in building new lines of imports and exports. These people are already thinking about how to better use the Port and are employing a great many locals who are benefiting from that expansion.
It’s good that some strategic thinking about the Port is going on. Time to get the State and the Port’s Board in on the action.
This is another of Gordon’s pipe dreams. No one else is taking him seriously except his union pals. It’s gravy for him either way: If it succeeds, he can run for governor as a job creator; if it fails, he can run as an outsider against the Dover Establishment that’s blocking progress.
One of the words in “pipe-dreams” is dream… and that is something totally lacking from the Markell administration this second term. Instead of “dreams” we get slog.
I’m tired of slog. I want dreams. if they don’t pan out, let them be pipe dreams.. But with dreams, at least we have hope… I’m tired of slog.
(Looking over historical documents Markell was not the slogger in the 2008 Primary. Carney had that role. Markell got into office on “dreams”… ) Looks like we got the pipe on that one….
It might be a pipe dream, but the thing he is working here is the fact that a bunch of people at the Port (working inside and outside of the fence) still feel pretty bruised over the Kinder Morgan thing and feel that the State isn’t paying much attention to helping them compete with other ports.
TG’s CFO – David Grimaldi, a Morgan Stanley wunderkind fresh out of Cal State and former US Real Estate specialist at Minmetals (China) has the background and contacts to pull off a private equity venture – Boxwood Road or a new port in New Castle.
Question is ‘Cui bono’ or who benefits from yet another Delaware government marriage with corporate interests.
The Kinder Morgan marriage proposal went away after the true costs to Delaware and it’s taxpayers were revealed.
Are there any investigative reporters left in Delaware?
I am happy someone is actually thinking about ways to create good paying middle class jobs. I don’t know if this is the right way, but at least it’s something. And, I think the GA shares at least equal blame with Markell on the “slog”.
The issue with this whole deal is that it is not clear where the money would come from, who would own the land, who would build the port, and why the county is a part of it. This is a project that involves state and federal resources. The county has nothing to give, except maybe tax breaks. Besides this, it is in the city of New Castle, which would not bring the county anything. ANON is right in his question “‘Cui bono’.”
In addition to all of these questions, there is the issue of dredging the river, and all the environmental issues and regulations that come with this. This is a purely political move and has nothing to do with bringing jobs. If there is investment funding out there for this, why not use it to expand the current port, build the new piers, and buy the necessary equipment to service these larger ships? Wouldn’t that provide the same amount of jobs?
ANON: If Grimaldi had the skill to put together a deal like this, there’s no way in hell he’s working for Gordon.
Nevertheless, Gordon, like any other politician, has the right to dream big, and this is a concept that is worthy of further exploration.
Port jobs are probably the best hope for blue-collar workers, and the site’s access to interstate highways is the equal of what Philadelphia has to offer. However, the ships that would offload here would have to take some goods back to their home ports, and I’m not convinced that U.S. manufacturing (or agriculture) is on such an upswing that we’d be able to load all those ships in Wilmington without stealing from Philadelphia’s business. And Wilmington would have to show shippers plenty to convince them to leave Philadelphia. (Not to mention that stealing business from Philly might help Wilmington in the short term, but all it really does is move the unemployment into another state.)
I doubt that anything will come of it because the costs will undoubtedly scare off government agencies, and the banks will likely decide that it’s too risky for their tastes. But still more promising than sinking millions of dollars into a dying casino industry.
Um, folks? Guess what. The state Coastal Zone Act prohibits new “bulk transfer” facilities. A new port is bulk transfer. Read the Act, its quite clear. While its not out of the question that the Act could be changed, opening up the Act is not something that is palatable to the environmental community, as it could erode the one real statewide natural resource protection we have.
Besides which, the newly dredged River channel goes only to 45′. The new Panamax ships (which I think this project would target) require at least 50′ (perhaps more) of navigable depth.
Its interesting that there is no mention of these two issues in the press or by the Gordon administration. Reality? We don’t need no stinkin’ reality!
That said, we do need to be looking for opportunities for good paying blue collar jobs. It almost seems wrong to talk about something this big and unrealistic and get people’s hopes up. Especially if you are just doing it to look good so you can run for governor.
We had a nice opportunity for blue collar jobs right here in little old Newark. Unfortunately Amy Roe and her band of know-nothing NIMBYs pushed them out the door.
And have pledged to fight the project wherever it goes!
I suspect their act may not play so well in Middletown or Newport.
But Newark will continue to thrive with an economy based on selling food to college kids (and rooftop/dumpster sex videos). Not.
XYZ:
The problem with the proposed data center/power plant in Newark was that the people who wanted to build it could not explain what they were doing, and when they tried to explain it, it came out more power plant and less data center, which was not what UD was looking for when the original lease was signed.
And those blue-collar jobs you’re talking about are construction jobs — jobs that will last 2-3 years and then be gone. It wouldn’t be blue-collar workers monitoring and maintaining the computer servers after the data center is constructed … though there might be a few people hired to vacuum the dust off the floors and walls in the rooms where the servers are set up.
So, don’t blame Amy Roe for this one. Blame the promoters who couldn’t sell their proposal.
Yes, there may be a place for a data center/power plant elsewhere in Delaware, and that’s probably a good idea, but let’s hope that the next group to make a proposal can clearly explain what they’re trying to do.
This project wouldn’t target Panamax ships (and if it does, that would be plenty stupid). Handymax size ships can go to Paulsboro or Philly so that would be the extent that new development needs to go. Personally, I’d want a pretty detailed explanation as to why they’d want to develop south of the bridge rather than expand into the land next to the existing port.
“Personally, I’d want a pretty detailed explanation as to why they’d want to develop south of the bridge rather than expand into the land next to the existing port.”
That is exactly (one of) the question(s) that needs to be asked. The probability of a new port with the regulations, building costs, and sheer time it would take to build this, negates the project. What it does do is gets some of the unions riled up, puts Gordon in a position that he is “trying to create jobs, but the current governor/ administration is stopping him.” It is a tactic to look like he is accomplishing something, when in reality, it is an impossibility.
If there is funding to build a new port, then there is funding to expand the current port, creating these jobs and making the ability of capitalizing on the idea of a “shipping trade increase” more possible in the short term. The new port idea is akin to a legislator proposing a dozen bills that either get tabled, or never make it out of committee. They can say “I proposed_____,” but no one looks, or cares to look, on whether it came to fruition. Should someone ask, then the answer is “the powers that be are conspiring against us, but I was on your side all along.”
Sadly, this tactic works quite a bit. Its not the viability of the proposal that matters, its the perception of dedication to the cause of the one making the proposal.
I understand that Gordon’s people were first approached about this plan by the port workers. And Vic Singer, a CZA expert who wrote portions of the Act, says the plan is compliant – “The CZA and the Coastal Zone Regulation (CZ Reg) absolutely prohibit new heavy industry and water-borne new bulk product transfer facilities in the Coastal Zone. The CZA and CZ Reg also ENCOURAGE light industry within the Coastal Zone, subject only to pre-programmed offsets “more beneficial to the environment in the Coastal Zone than the harm done by the negative environmental impacts associated with the permitting activities themselves.” (Ref CZ Reg Section I.1.a (AKA Section 9.1.1))
Decisions as to what activities distinguish between Heavy Industry and Light Industry are the proper province of local rather than state government (Ref. CZA at 7 Del. C. 7005(a)(1) requiring “approval by the appropriate county or municipal zoning authorities”) though limited by CZA 7 Del. C. 7002(e).
The UDC addresses the issue at Section 40.33.270 Industrial Uses via designation of which NAICS categories are Heavy Industry and which are Light Industry. Note that warehousing and associated trucking are Light Industry.
It seems reasonable to regard warehousing and associated transportation of containerized cargo and/or cargo in discrete parcels – – like Volkswagens – – as light industry whether the transport is by truck or by waterborne vessels. “
The area proposed for this new port is not under NCCo jurisdiction. It is within the City of New Castle, and it is zoned as an industrial office park. See map. (http://newcastlecity.delaware.gov/files/2011/09/comprehensive_plan_2009_update_maps.pdf) I suspect there are some in New Castle who might envision a steady flow of green downstream into the city coffers, but I bet residents of The Strand and denizens of Battery Park won’t be enthused by the prospect of container ships marring their view of the Delaware Memorial Bridge.