Sunday, September 29, 2024

Delaware and Enstructure Unveil $635 Million PPP for Edgemoor Port Expansion

WorldDelaware and Enstructure Unveil $635 Million PPP for Edgemoor Port Expansion

USA- Delaware is embarking on a transformative public-private partnership with Enstructure, the private operator of the Port of Wilmington, to develop a new port terminal at the Edgemoor site. This ambitious $635 million project is set to significantly enhance Delaware’s maritime infrastructure, marking the largest port expansion since the current Port of Wilmington opened in 1923.

Governor John Carney announced that the state will contribute $195 million, roughly 31% of the project’s total cost, while Enstructure will handle the majority of construction and equipment expenses. The project’s funding will also be supplemented by federal sources and the Diamond State Port Corporation. This investment aims to position Delaware to compete for container cargo and larger ships, bringing new, high-paying union jobs to Wilmington.

The construction of the new Edgemoor terminal will occur in three phases over an estimated three-year period. The first phase, expected to take 32 months, will focus primarily on waterside construction, including building a seawall, high deck, and associated dredging. Enstructure has committed $150 million to support this initial phase. Subsequent phases will proceed as business justifies the additional capacity, with Enstructure projecting to invest $50 million in the second phase and $115 million in the final phase.

This new state-of-the-art “green port” will quadruple the port’s capacity for container cargo, accommodating larger vessels and significantly improving Delaware’s competitiveness in the maritime industry. The Edgemoor terminal is expected to create nearly 6,000 jobs, including over 3,100 direct positions and more than 3,900 construction jobs. The economic impact of the project is substantial, with total state and local taxes generated from Edgemoor estimated at $39.4 million annually. Once fully operational, Port Delaware, including both the existing and new terminals, will generate about 11,480 jobs and $76.2 million in tax revenues for the state.

The current Port of Wilmington, rebranded as Port Delaware South, has a capacity of 400,000 twenty-foot equivalent units (TEUs). It is a major hub for fresh fruit, ranking among the top ports for bananas in North America, handling 200,000 refrigerated containers annually. The new Edgemoor terminal, referred to as Port Delaware North, will have a capacity of 1.2 million TEUs, attracting container vessels carrying a diverse range of cargo, including retail goods, perishables, frozen foods, forest products, and various export products.

Enstructure’s commitment to the project includes significant infrastructure improvements at the Port of Wilmington. Terms outlined in their deal with state officials in 2023 include $87 million in upgrades, with $45 million to be spent before the end of 2032. This investment covers buildings, cranes, equipment, and site improvements, further enhancing the port’s operational capacity.

The project has received strong bipartisan support from Delaware’s political leaders. Governor Carney emphasized that the expansion will create new, good-paying union jobs and enable Delaware to compete for larger ships and container cargo. House Speaker Valerie Longhurst highlighted the long-term economic benefits for Delaware families, while Senate Democratic Caucus co-chair Senator Jack Walsh praised the project for its potential to support thousands of workers.

The Edgemoor terminal will be developed with a strong focus on community engagement and environmental sustainability. The project will include a project labor agreement with the Building and Construction Trades Council and the International Longshoremen’s Association union workforce. Additionally, efforts will be made to make the port one of the most energy-efficient and environmentally friendly ports in the country.

In summary, Delaware’s partnership with Enstructure to develop the new Edgemoor terminal represents a significant investment in the state’s maritime future. The project promises substantial economic growth, job creation, and enhanced competitiveness in the global shipping industry, marking a historic milestone for Delaware’s port infrastructure.

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