Philadelphia Regional Port Authority Moves to Support Necessary Deepening of the Delaware River
Local Sponsor of Project Seeks to Protect Thousands of
Family-Sustaining Jobs and Millions of Dollars in New Economic Development
PHILADELPHIA, November 6, 2009... The Philadelphia Regional Port Authority (PRPA), local sponsor of the Delaware River Main Channel Deepening Project, today filed a motion to intervene in the lawsuit the State of Delaware has filed to block the long delayed project. The PRPA will be represented by Pennsylvania Attorney General Tom Corbett.
Delaware filed a lawsuit Oct. 30 to block the deepening just days after the U.S. Army Corps of Engineers announced it would move forward on the project, which was first authorized by Congress in 1991. The suit has been filed in U.S. District Court for the District of Delaware. Should the Court grant the motion, the PRPA would become a party in the lawsuit along with the current defendant, the United States Army Corps of Engineers. In its papers filed today, the PRPA has argued that it should become a party because of the significant economic development interests of the Port of Philadelphia at stake in the lawsuit, as well as PRPA’s required financial investment as the local sponsor of the project.
“We are taking this action today both because of how important it is to the people and businesses of Pennsylvania, Delaware and New Jersey and because it is critical that this regional project not be further delayed while other East Coast ports, like the Port of New York/New Jersey dredge to prepare for larger vessels,” said John H. Estey, chairman of the PRPA. “Deepening will not only make passage safer, but ensure continued economic growth of the tri-state economy. There have been dozens of environmental and economic studies conducted consisting of over 12,000 pages of research and analysis. The science shows that this is an environmentally safe and responsible project.”
On Oct. 24, the Corps announced it would deepen the Delaware River from 40 to 45 feet after almost 20 years of debate and delay. The Corps has been working with Delaware officials to address the state’s concerns since the project’s inception. There is already a contract in place to begin maintenance dredging of the river that can be expanded to include the deepening early next year. Additional deepening is not expected in Delaware waters until 2011. Maintenance dredging of the channel is conducted every year to maintain the current depth of 40 feet.
The $311 million project will deepen the main shipping channel five feet from the Beckett Street Terminal in Camden, N.J., to the mouth of the Delaware Bay. Without deeper drafts, larger modern shipping vessels will not have access to ports located along the river, threatening thousands of existing jobs and thwarting growth opportunities. The Commonwealth of Pennsylvania has committed $30 million to begin the project.
The exhaustive environmental studies that have been conducted on the project show that the project will have no adverse impact on the environment. In fact, Delaware will reap benefits from the project with the nourishment of Broadkill Beach and the restoration of wetlands on Kelly Island.
In October, the project gained the public backing of two major business groups in Delaware when the presidents of the New Castle County Chamber of Commerce and the Delaware State Chamber of Commerce wrote letters in support of the project to Delaware Gov. Jack Markell. Earlier this year, the PENJERDEL Council, a leading business advocacy group for the tri-state region of Pennsylvania, New Jersey, and Delaware, unanimously voted in favor of the “Resolution in Support of the Delaware River Main Channel Deepening Project.”
They joined scores of others in the maritime industry who support the project.
The Philadelphia Regional Port Authority is an independent agency of the Commonwealth of Pennsylvania charged with the management, maintenance, marketing, and promotion of publicly owned port facilities along the Delaware River in Philadelphia, as well as strategic planning in the port district. PRPA works with its terminal operators to modernize, expand, and improve its facilities, and to market those facilities to prospective port users. Port cargoes and the activities they generate are responsible for thousands of direct and indirect jobs in the Philadelphia area and throughout Pennsylvania, as well as numerous other economic benefits.
Delaware Business Leaders Announce Support for Deepening Project
Project Will Aid Economic Development Through Region
PHILADELPHIA, OCTOBER 23, 2009… The proposal to deepen the Delaware River gained the public backing of two major business groups in Delaware this week when the presidents of the New Castle County Chamber of Commerce (view letter) and the Delaware State Chamber of Commerce (view letter) wrote letters in support of the project to Delaware Governor Jack Markell. This strong show of support comes just weeks after the State of Delaware denied a permit application to the Army Corps of Engineers to begin the long planned and necessary deepening.
In their separate letters to the Governor, the two business leaders noted that with the continuing recession, it is important to invest for the future and encouraged the Governor to grant any necessary permits as soon as possible if the Army Corps of Engineers determines it is necessary to reapply for the permit.
James Wolfe, the President and CEO of the Delaware State Chamber of Commerce wrote that the members of the Chamber “firmly believe that dredging the Delaware River Channel to the depth of 45 feet is a critical economic development project that will bring millions of dollars into Delaware’s economy and will supply employment to hundreds of Delawareans.”
In his letter, Mark Kleinschmidt, the President of the New Castle Chamber of Commerce stated, “Now more than ever, action is necessary to preserve and grow our State’s economy by protecting one of our last dependable engines for well-paying union and nonunion jobs in Delaware.”
The Army Corps of Engineers is expected to announce shortly whether it intends to reapply for the permit. Historically, navigable waterways are under the direct and sole control of the Army Corps of Engineers.
These letters also represent another sign of the strong support for deepening from the business community in Delaware. Earlier this year, the PENJERDEL Council, a leading business advocacy group for the tri-state region of Pennsylvania, New Jersey, and Delaware, unanimously voted in support of a “Resolution in Support of the Delaware River Main Channel Deepening Project”.
The Philadelphia Regional Port Authority, an independent agency of the Commonwealth of Pennsylvania, is the local sponsor for the federal project to deepen the Delaware River main channel from 40 to 45 feet.
MAYOR, PORT OFFICIALS PRESIDE OVER “TOPPING OFF” CEREMONY FOR NEW PRODUCE CENTER
LAST PIECE OF STRUCTURAL STEEL LAID FOR 667,000 SQUARE FOOT REFRIGERATED BUILDING, ON SCHEDULE TO OPEN IN 2010
PHILADELPHIA, PA, October 15, 2009… With the final piece of structural steel applied to the superstructure of the new Philadelphia Produce Center on Wednesday, October 14, the end is finally in sight: Philadelphia will soon have a bustling new regional produce market whose main centerpiece will be the largest indoor freezer in the world, a facility that will serve hundreds of regional produce vendors and retain for the city the famous produce operation.
Presiding over the official “Topping Off” ceremony at the site of the new facility was Philadelphia Regional Port Authority (PRPA) Chairman John H. Estey, Esq., who welcomed many supporters of the project to the dais, including Philadelphia Mayor Michael R. Nutter, Philadelphia City Council President Anna Verna, PA State Senator Lawrence Farnese, and PRPA Executive Director James T. McDermott, Jr. Also participating in the ceremony were those integrally involved in the project, including Sonny DeCrecchio, Executive Director of the Philadelphia Regional Produce Market and real estate developer Brian O’Neill of O’Neill Properties Group.
PRPA will be the landlord of the new Philadelphia Produce Center, PRPA’s first project of this scale outside the port district. PRPA, an independent agency of the Commonwealth of Pennsylvania, worked with other agencies of the Commonwealth, the City of Philadelphia, various financial firms, and the city’s produce industry interests to bring about the financing, construction, and leasing agreements for the new facility.
A diverse variety of individuals and organizations were thanked from the podium during the noon outdoor event, from the financial firm AIG (which came through with a loan at the height of last year’s financial crisis) to PRPA Chief Counsel Gregory Iannarelli, who oversaw numerous contractual and financial issues as they moved between several public and private interests during both the pre-construction and construction phases. Mayor Nutter also made it a point to acknowledge and thank Philadelphia’s expert union labor force for its skilled and efficient work.
Looking at the half-completed structure behind him on October 14, developer Brian O’Neill said from the podium, “If this facility was turned on its side and stood straight up, it would be taller than the Empire State Building. This is going to be the largest freezer unit in the world, and it’s here in Philadelphia. We all have much to be proud of today.”
PRPA is particularly pleased to be involved with this project, as the Port of Philadelphia is one of the country’s prime movers of perishable products, including winter fruit from Chile and bananas from Costa Rica. The current Produce Center in South Philadelphia has been a critical component of the port’s perishables operation for more than thirty years and the new center in Southwest Philadelphia will continue in that tradition, even more so due to the closer working relationship it will have with PRPA.
For more information about the Philadelphia Regional Produce Center- both how it came to be and updates on its impending grand opening- visit the “news” section of PRPA’s web site, www.philaport.com.
The Philadelphia Regional Port Authority is an independent agency of the Commonwealth of Pennsylvania charged with the management, maintenance, marketing, and promotion of publicly owned port facilities along the Delaware River in Philadelphia, as well as strategic planning in the port district. PRPA works with its terminal operators to modernize, expand, and improve its facilities, and to market those facilities to prospective port users. Port cargoes and the activities they generate are responsible for thousands of direct and indirect jobs in the Philadelphia area and throughout Pennsylvania, as well as numerous other economic benefits.
PORT OF PHILADELPHIA HANDLES SIZABLE MILITARY CARGO IN OCTOBER,
SECOND BIG MILITARY OUTLOAD IN 45 DAYS
PHILADELPHIA, PA, October 15, 2009… This past weekend and continuing into this week, the Port of Philadelphia is handling its second shipment of important military cargo in 45 days, again demonstrating the agility of its two largest terminals, said John H. Estey, Chairman of the Philadelphia Regional Port Authority (PRPA). The cargo that arrived in Philadelphia this past weekend is heading back from Iraq to the Pennsylvania Army National Guard facilities at Fort Indiantown Gap, PA. The Guard needs to have this equipment returned quickly so it can be repaired and be available for training and other state emergencies.
The added benefit of using the Port of Philadelphia for this latest cargo is that the soldiers supervising its movement, who have been deployed overseas for over a year, can remain close to their homes instead of traveling to out-of-state locations away from their families, Chairman Estey said.
The two shipments are estimated to contribute more than $2 million to the region’s economy. U.S. Sen. Arlen Specter and Congressman Bob Brady have worked closely with the Department of Defense (DOD) to make Philadelphia a distribution hub for military cargo moving between the United States and theaters of operations around the world. Senator Specter and Congressman Brady have praised the Port of Philadelphia for working in conjunction with DOD to ensure that the Port’s workforce, facilities and technologies are available to move equipment back from Iraq to waiting repair facilities located throughout Pennsylvania and the greater Northeast and Midwest. In a letter to U.S. Transportation Command and U.S. Army Material Command, they highlighted the economic and logistical benefits of shortening the distance cargo must travel to return to its home unit or to a military depot to be reset.
The Port of Philadelphia, along with Pennsylvania-based commercial and military repair facilities, have been preparing to be a major player in the movement, storage and refurbishing of the thousands of pieces of equipment that must be returned from Iraq, repaired, and quickly made available for use again. Noted Senator Specter and Congressman Brady, “As DOD draws down forces in Iraq it will be a major challenge to get this equipment repositioned and repaired. In the past this has been a major pitfall for DOD and we are hopeful that we here in Philadelphia can play a leading role to insure that this effort happens more efficiently than it has in the past.”
The two lawmakers worked closely with U.S. Sen. Bob Casey, PA Gov. Edward G. Rendell, State Rep. William F. Keller as well as port officials and the military to make Philadelphia a Strategic Military Seaport and/or optimize that designation. Several commonwealth agencies, including PRPA, have invested in workforce training and facility improvements in the years since the designation. The Delaware River Maritime Enterprise Council (DRMEC) has collaborated with DOD and the Commonwealth of Pennsylvania and has successfully deployed new next generation virtual information-sharing services to move cargo more rapidly and securely through complex global DOD and commercial supply chains.
The first military shipment this year, in September, was handled by Holt Logistics LLC, operators of PRPA’s Packer Avenue Marine Terminal in South Philadelphia. It supported deployment needs of the 10th Mountain Division, headquartered at Ft. Drum New York, to Southwest Asia.
The current Pennsylvania National Guard operation is being handled by Delaware River Stevedores, operators of the Tioga Marine Terminal in Port Richmond. It includes equipment and vehicles assigned to the 56th Combat STRYKER Brigade of the Pennsylvania Army National Guard returning from its deployment to Iraq.
“The port has handled 27 military shipments since it was designated a strategic military seaport in 2002”, said James T. McDermott, Executive Director of PRPA. Referring to the current Tioga operation, he continued, “This most recent military cargo, utilizing a different terminal than usual, as well as- for the first time- commercial carrier and trucking concerns, demonstrates our flexibility and adaptability. Delaware River Stevedores, Central Gulf Lines, Landstar Trucking, the Delaware River Maritime Enterprise Council, the Pennsylvania Army National Guard, and the U.S. Army’s Surface Deployment and Distribution Command are working together to deliver a job well done.”
The Philadelphia Regional Port Authority is an independent agency of the Commonwealth of Pennsylvania charged with the management, maintenance, marketing, and promotion of publicly owned port facilities along the Delaware River in Philadelphia, as well as strategic planning in the port district. PRPA works with its terminal operators to modernize, expand, and improve its facilities, and to market those facilities to prospective port users. Port cargoes and the activities they generate are responsible for thousands of direct and indirect jobs in the Philadelphia area and throughout Pennsylvania, as well as numerous other economic benefits.
The Delaware River Maritime Enterprise Council’s (DRMEC) mission is to serve as a catalyst and facilitator of collaborative efforts that advance and promote the growth and development of the Delaware Regional Marine Transportation System, enable and promote rapid technology transfer and collaboration between commercial, government, military and academic institutions for high speed time sensitive commercial and military shippers and transporters on a regional and national basis and leverage commercial transport and logistics assets to improve strategic mobility and informational capabilities for federal, state, and local law enforcement and other agencies. DRMEC is a Pennsylvania not-for-profit organization that has received funding
from the Commonwealth of Pennsylvania as well as the Federal government, including the departments of Defense, Homeland Security and Transportation.
PORT OF PHILADELPHIA WELCOMES DIRECT CONTAINER CARGO FROM EUROPE
Mediterranean Shipping Company S.A. Agreement will Sustain Hundreds of Jobs
PHILADELPHIA, PA, September 8, 2009 —The Philadelphia Regional Port Authority and Holt Logistics Corp. today announced formal completion of the plan to welcome Mediterranean Shipping Co. S.A of Geneva, Switzerland’s direct container service, to the Port of Philadelphia. Beginning in October, MSC will make weekly calls into the Commonwealth of Pennsylvania’s Packer Avenue Marine Terminal. The new European service will help support hundreds of family sustaining jobs in the region.
“The Port of Philadelphia continues to be a major economic engine for the commonwealth, and we welcome this new service from Europe,” said Governor Edward G. Rendell. “Commitments from shipping giants like MSC go a long way in helping the entire Philadelphia region withstand the global economic downturn and support existing jobs.”
MSC, the second-largest container ship operator in the world, committed to the new cargo in addition to the shipments that it already brings to the Port of Philadelphia from the west coast of South America.
“This new service is great news for our Port and the entire region. We are very excited about MSC’s decision to expand its presence in Philadelphia,” said Thomas J. Holt, Jr., President of the leasehold company which leases the Packer Avenue Marine Terminal under a long-term lease with the Philadelphia Regional Port Authority. “Shippers have expressed a lot of interest in having direct European service with the Port of Philadelphia. MSC is a leader in the field and continues to grow, even in the down economy.”
The agreement, which helped attract the new service, was approved by both the Philadelphia Regional Port Authority (PRPA) and the Commonwealth earlier this month. MSC’s Board of Directors formally approved the plan.
“MSC is thriving in a tough economy, and this weekly service will serve as a gateway to new shipments through PRPA terminals as they continue to grow their business,” said John H. Estey, Chairman of the Philadelphia Regional Port Authority. “The efficient and hard working team at the Packer Avenue Marine Terminal helps to attract shippers, and keep them. We are looking forward to a long relationship with MSC that will grow over the years.”
“This announcement would not have been possible without the tremendous leadership of Governor Rendell and the PRPA,” Holt said. “They recognized this opportunity and moved decisively to help attract this business to Philadelphia.”
MSC’s service arrival is particularly vital during the global recession. At the Philadelphia terminal, total cargo was down through June 30 from 2 million tons to 1.7 million tons, a decline of 15 percent. The Port remains a backbone of both the Philadelphia and regional economy, and the new service could potentially erase the current cargo deficit by end of the year.
About the Philadelphia Regional Port Authority
The Philadelphia Regional Port Authority (PRPA) is an independent agency of the Commonwealth of Pennsylvania charged with the management, maintenance, marketing, and promotion of publicly owned port facilities along the Delaware River in Philadelphia, as well as strategic planning throughout the port district. PRPA works with its terminal operators to modernize, expand, and improve its facilities, and to promote those facilities to prospective port users. Port cargoes and the activities they generate are responsible for thousands of direct and indirect jobs in the Philadelphia area and throughout Pennsylvania. www.philaport.com
About the Packer Avenue Marine Terminal and Holt Logistics Corp.
The Packer Avenue Marine Terminal (PAMT) is the region’s largest container terminal. Located under the Walt Whitman Bridge, the terminal is superbly connected to regional highways and three Class I railroads. The Holt family has operated PAMT since 1988, turning it into a state-of-the-art marine terminal. Holt Logistics is a logistics management, technology, marketing and corporate service organization. Holt logistics provides the international face to the Port in cooperation with the Philadelphia Regional Port Authority, an agency of the Commonwealth and owner of the PAMT. www.holtlogistics.com
STATEMENT FROM PRPA REGARDING THE STATE OF DELAWARE'S DECISION TO DENY DREDGING PERMIT APPLICATION
PHILADELPHIA, PA, July 24, 2009 - The following statement was issued on Friday, July 24, 2009 by Dan Fee, spokesperson for the Delaware River Main Channel Deepening Project, on behalf of the Philadelphia Regional Port Authority:
"We are disappointed to learn of Delaware’s decision on the permit application for the necessary deepening of the Delaware River.
Although we understand the procedural reasons they did not approve the permit request, the Philadelphia Regional Port Authority, the non-federal sponsor of the project, and the Commonwealth of Pennsylvania, a major funder of the project, remain committed to it.
We believe that the clear economic and safety benefits of the project are the reasons why business leaders in Pennsylvania, New Jersey and Delaware support it. The deepening will not only create more than 13,000 new jobs and provide millions of dollars of positive economic benefit, but it will improve the safety of the river for every ship that pulls into port.
We look forward to continuing to work with leaders in the three states and the Army Corps of Engineers to reach a resolution and make this project, begun over 20 years ago, a reality."
PHILADELPHIA REGIONAL PORT AUTHORITY AND PANAMA CANAL SEAL TIES TO PROMOTE TRADE AND ECONOMIC GROWTH
PHILADELPHIA, PA, June12, 2009 – The Philadelphia Regional Port Authority (PRPA) and the Panama Canal Authority (ACP) signed a Memorandum of Understanding (MOU) today to encourage economic growth and commercial activity between the two entities. Signed by PRPA Board Chairman John H. Estey and ACP Administrator/CEO Alberto Alemán Zubieta, the MOU will help generate new business by establishing an agreement to promote the “All-Water Route,” a shipping route from Asia to the U.S. East Coast via the Panama Canal.
  
“The strategic alliance with the Panama Canal Authority will increase job opportunities at our regional ports and attract new business,” says PRPA Board Chairman John H. Estey. “This collaboration aligns with our mission to become one of the most competitive U.S. East Coast seaports and has an increasingly marked contribution to the economic health of the state.”
Under the agreement, which is renewable after two years, PRPA and ACP will conduct joint activities and share best practices. Specific areas of focus will include marketing, research and data interchange, technical advancements and personnel training programs. The agreement demonstrates each organization’s dedication to meeting the anticipated increased levels of international trade.
“The Memorandum of Understanding with the Philadelphia Regional Port Authority comes at a critical time in the world economy,” said ACP Administrator/CEO Alberto Alemán Zubieta. “This agreement highlights our shared goals of improving customer service, increasing service offerings and business opportunities. We look forward to working together for continued trade between Latin America, Asia and the United States.”
In 2008, PRPA cargo transiting the Canal, either on its way to or from its destination, totaled 1,906,343 long tons and represents half of all cargo handled by PRPA. Moreover, this number is up nearly 17,000 long tons from the year before.
Both PRPA and the ACP are working on expansion projects to foster increased trade.
PRPA is sponsoring a five- to seven-year project to deepen the Delaware River Main Channel from 40 feet to 45 feet, which will better position the Port to accommodate the next generation of vessels that require deeper drafts. The Panama Canal Expansion Program will build a new lane of traffic along the Canal through the construction of a new set of locks, which will double capacity, allowing increased traffic and wider ships. The waterway’s expansion has an expected completion of 2014 and to date, continues to progress on-time and on-budget.
About the Philadelphia Regional Port Authority
The Philadelphia Regional Port Authority (PRPA) is an independent agency of the Commonwealth of Pennsylvania charged with the management, maintenance, marketing, and promotion of publicly owned port facilities along the Delaware River in Philadelphia, as well as strategic planning throughout the port district. PRPA works with its terminal operators to modernize, expand, and improve its facilities, and to
promote those facilities to prospective port users. Port cargoes and the activities they generate are responsible for thousands of direct and indirect jobs in the Philadelphia area and throughout Pennsylvania. www.philaport.com.
About the Panama Canal Authority (ACP)
The ACP is the autonomous agency of the Government of Panama in charge of managing, operating and maintaining the Panama Canal. The operation of the ACP is based on its organic law and the regulations approved by its Board of Directors. For more information, please refer to the ACP's Web site: www.pancanal.com.
MEMORANDUM OF UNDERSTANDING
between the
PANAMA CANAL AUTHORITY
and the
PHILADELPHIA REGIONAL PORT AUTHORITY
This Memorandum of Understanding (MOU) is entered between the Panama Canal Authority (ACP), an autonomous legal entity established by the Constitution of the Republic of Panama under public law and having its main offices in Balboa, Panama in the Republic of Panama and the Philadelphia Regional Port Authority (hereinafter collectively referred to as the “parties”).
WHEREAS,
The parties hereto believe it is in their mutual interest to establish an alliance of cooperation aimed at generating new business by promoting the all water route between Asia and the Port of Philadelphia via the Panama Canal;
Such new business would help to increase the present level of economic growth by increasing job opportunities and revenues at the Port of Philadelphia and increasing revenues at the Panama Canal;
The parties are constantly undertaking a series of activities aimed at improving customer service; and,
The parties desire to cooperate in achieving a generation of new improved business and increasing their level of services available.
NOW, THEREFORE, the parties agree to:
- Undertake joint initiatives, subject to their respective regulations, to satisfy the above stated objectives which will include
- Joint Marketing Activities – As convenient, the parties may elect to undertake joint marketing efforts to generate new shipping business. These joint marketing efforts may include, but are not limited to, joint advertising activities aimed at promoting the all water route; joint exhibitor booths at maritime events; joint press conferences; editorial placement and other public relations materials or activities of mutual interest.
- Data Interchange - The parties may elect to share data that may be helpful in forecasting future trade flows, developing marketing strategies and obtaining additional knowledge about the shipping market. The parties may also exchange information that may include, but is not limited to transit information, type of commodities, cargo tonnage, future plans, and liner services.
- Market Studies - The parties may elect to exchange information contained in studies performed by them or by their consultants or representatives that may be of interest to the other party. The information contained in the studies shall be treated in a confidential manner. The parties may also elect to perform joint studies that address their areas of respective interest.
- Modernization and Improvements - The parties may elect to share information regarding improvements and/or modernization efforts being undertaken and which may have as a purpose the need of satisfying an increase in demand or improved customer services.
- Training - The parties may elect to share information on training programs and may develop joint training seminars as well as cross-training activities.
- Technological Interchange - The parties may elect to share their technological capabilities and programs as well as the information contained in them.
- It is intended that this relationship will continue for two years, and be renewable for an additional period upon mutual agreement by both parties.
- Either party may terminate the relationship, by informing the other, in writing, and giving a thirty (30) day notice of termination of this Memorandum of Understanding.
- Both parties are free to form other partnerships, of a similar or identical nature, with other entities.
- This Memorandum sets forth the complete agreement of the parties with regard to this alliance of cooperation. It may be amended in writing only, and such amendment shall be signed and dated by both parties.
- It is the intention of this document to set forth the general intentions of the parties, and not to set forth any legally binding rights or obligations. This MOU will be effective upon signature by the authorized representative of each of the parties
Panama Canal Authority Philadelphia Regional Port Authority
__________________________ __________________________
By: Alberto Alemán Zubieta By: John H. Estey Esq.
Title: ACP Administrator/CEO Title: Chairman, PRPA
Dated: June 12, 2009 Date: June 12, 2009
PHILADELPHIA REGIONAL PORT AUTHORITY
WELCOMES STATE CAPITAL INVESTMENT IN
SOUTHPORT MARINE TERMINAL DEVELOPMENT
PA Responds to a Maritime Industry Hit Hard by Global Economic Crisis
PHILADELPHIA, PA, May 22, 2009 – Philadelphia Regional Port Authority (PRPA) Board Chairman John H. Estey and Executive Director James T. McDermott commended Governor Edward G. Rendell today for his decision to invest state capital funds in the Southport Marine Terminal development project. The $25 million investment will fund a variety of pre-construction activities on the site, including design work, permitting, site preparation and utility infrastructure. Chairman Estey and Mr. McDermott issued the following joint statement:
“Our team at the PRPA has been working hand-in-hand with the Commonwealth, and believes the Governor is making a wise investment. As the world’s financial markets are beginning the road to recovery, the maritime industry is still feeling the sharp effects of the economic downturn. In the first quarter of 2009, world trade volumes plummeted by double digit percentages and ocean carriers grappled with some of the lowest container rates on record, leaving the maritime industry in a challenging position.
“Long term projections, which take into consideration capacity constraints at neighboring ports and the expansion of the Panama Canal to accommodate larger cargo vessels, make a strong argument for continued expansion at the Port of Philadelphia and investment along the Delaware River, particularly in southeastern Pennsylvania. With pre-construction work underway and necessary permitting moving forward, we expect final bidding on the Southport Marine Terminal to be more robust that originally expected, which will enable the Commonwealth to recoup its investment.
“The Port of Philadelphia is on the cusp of a tremendous expansion that will strengthen its competitive position among US East Coast seaports and greatly expand its contribution to the economic health of Pennsylvania. Governor Rendell’s prudent and timely investment will add to the thousands of family-sustaining jobs at our terminals and assure the future of the regional port industry for generations to come.”
The Philadelphia Regional Port Authority is an independent agency of the Commonwealth of Pennsylvania charged with the management, maintenance, marketing, and promotion of publicly owned port facilities along the Delaware River in Philadelphia, as well as strategic planning throughout the port district. PRPA works with its terminal operators to modernize, expand, and improve its facilities, and to market those facilities to prospective port users. Port cargoes and the activities they generate are responsible for thousands of direct and indirect jobs in the Philadelphia area and throughout Pennsylvania. PRPA is currently working with the Governor’s office to secure private investment and identify operators for the proposed Southport Terminal, a new facility which will greatly expand container handling and other cargo-handling capacity at the Port of Philadelphia.
New General Purpose Foreign Trade Zone Now Serving Philadelphia Region
5K Logistics, Inc. Opens New Facility in Bucks County, PA
PHILADELPHIA, PA, April 28, 2009 - The Philadelphia Regional Port Authority (PRPA) and 5K Logistics, Inc. are pleased to announce the opening of a new General Purpose Foreign Trade Zone serving the Greater Philadelphia area. The facility is now open in Bensalem, Pennsylvania, on Interstate 95, just minutes north of the Port of Philadelphia. PRPA is the Grantee of Foreign Trade Zone #35 and 5K Logistics, Inc. is a full-service logistics provider to the goods movement industry.
“Vessels, marine terminals, and cargo activity are PRPA’s main business, but we like to remind people that the Port of Philadelphia does more than that when it comes to economic development,” said PRPA Chairman John H. Estey. “Our Foreign Trade Zone program, for example, has been a model for the nation in many ways, bringing about new economic engines throughout the region such as this strong new General Purpose Zone status for a major transportation partner, 5K Logistics. I’m thrilled that an already proactive, vigorous company will now work in our region more effectively than ever, attracting new business activity and making it easier for its client businesses to succeed here.”
The Foreign Trade Zone Program is a US Federal government initiative to promote US manufacturing. It creates a special area on US territory, outside US Customs jurisdiction, giving businesses a way to reduce or delay customs duties and to facilitate quota limits. General Purpose FTZ status is designed to benefit all shippers and manufacturers, especially small and mid-sized companies, and can assist with such services as specialized processing, export packing and labeling.
With PRPA facilitating the application process, approval for the Zone was recently granted to 5K Logistics by US Customs and Border Protection and the National Association of Foreign Trade Zones. The new facility is located in an 80,000 square foot warehouse owned by 5K Logistics. Delaware Valley shippers and manufacturers can now benefit from this important new addition to 5K Logistics’ many services, which can save companies substantial costs on customs duties and improve logistics chains.
At the new warehouse, which 5K Logistics opened to coincide with the facility’s new General Purpose Zone status, the company offers the following services:
- Foreign Trade Zone
- Ocean Freight / Air Freight
- NVOCC / IATA
- Freight Forwarding Documentation
- Project Logistics – Over dimensional
- Distribution Center
- Warehouse
- Export Packing and Crating
- Trucking
- International Network – global network of contacts and resources
- Detailed letters of credit
- Critical “in the trenches” shipping knowledge with shipping lines, airlines, truckers, port authorities, banks, and government entities
One customer, Michael Ulmer of Selas Fluid, commented, “5K is a logistics manager's trusted right arm. Experienced, technically skilled, boots on the ground management you can depend on every time.”
According to David K. Harvey, a PRPA Strategic Planning official, “5K has the entrepreneurial mindset to help shippers both domestically and internationally. We are glad it took the initiative on the General Purpose FTZ Program. This program will be a big advantage to local and international manufacturers and shippers. We look forward to this program increasing cargo through-put at the Port of Philadelphia.”
Paul McGrath, President of 5K Logistics, Inc., said, “At 5K we have earned a reputation for responsiveness. This new FTZ will allow us to serve our customers even better, allow them to tie in to other 5K offerings and services, as well as access the Port of Philadelphia.”
The Philadelphia Regional Port Authority is an independent agency of the Commonwealth of Pennsylvania charged with the management, maintenance, marketing, and promotion of publicly owned port facilities along the Delaware River in Philadelphia, as well as strategic planning throughout the port district. PRPA works with its terminal operators to modernize, expand, and improve its facilities, and to market those facilities to prospective port users. Port cargoes and the activities they generate are responsible for thousands of direct and indirect jobs in the Philadelphia area and throughout Pennsylvania. PRPA is also the Grantee of Foreign Trade Zone #35, and actively promotes the FTZ program to businesses in the region.
5K Logistics, Inc. is a full services logistics provider with a strong reputation in the tri-state region for serving all aspects of the goods movement logistics industry.
Paul McGrath, President of 5K Logistics, at the opening of their new General Purpose FTZ warehouse in Bensalem, PA.
At their new 80,000 sq. ft. warehouse, 5K Logistics provides export packing and crating, distribution capabilities, and other logistics services.
LEADING TRI-STATE BUSINESS GROUP ENDORSES
DELAWARE RIVER CHANNEL DEEPENING PROJECT
Group Cites Project’s Job Creation and Economic Development Power
PHILADELPHIA, PA, April 17, 2009… The PENJERDEL Council, a leading business advocacy group for the tri-state region of Pennsylvania, New Jersey, and Delaware, recently came out strongly in support of the Delaware River Channel Deepening Project, citing the project’s impact on job creation and overall economic development for the region. The Council’s “Resolution in Support of the Delaware River Main Channel Deepening Project” was unanimously adopted by the PENJERDEL Council Board of Directors at its March 12, 2009 meeting. PENJERDEL made the initial regional announcement on the resolution, and PRPA is now following up with its own announcement to the port industry and other constituents in the business community.
“PENJERDEL Council members believe if the tri-state region is to remain competitive with other east coast ports it is imperative that our facilities and waterways accommodate and attract today’s modern large cargo vessels,” PENJERDEL Council Executive Director Andrew L. Warren wrote in a latter sent to area members of Congress and other elected officials. “On behalf of the hundreds, if not thousands, of men and women who are employed in tri-state port related industries, the PENJERDEL Council encourages your support of the Delaware River Main Channel Deepening Project.”
For the past 50 years, PENJERDEL has been an advocate of economic development projects that will attract and retain businesses in Southeastern Pennsylvania, Southern New Jersey and northern Delaware. They have been at the forefront of support for a number of important projects in the tri-state region that have had significant impacts on infrastructure, transportation, recreation and conservation.
The Philadelphia Regional Port Authority is the local sponsor of the deepening project. Last June, PRPA and the United States Army Corps of Engineers signed the Project Partnership Agreement to deepen the Delaware River’s main shipping channel to 45 feet. The project, which is estimated to cost about $277 million, will take five to seven years to complete.
By deepening the shipping channel to 45 feet, the Port of Philadelphia will be better positioned to accommodate the next generation of vessels that require deeper drafts. According to a study last year by the Economy League of Greater Philadelphia, the Port of Philadelphia’s competitive position is threatened without a deeper channel. The project will enable the port to attract new cargoes, especially from Asian shippers looking to expand into North American markets. The channel deepening project is expected to create thousands of permanent family-sustaining jobs, where the annual average salary including benefits is $80,000.
“The PENJERDEL Council represents major business interests through the tri-state region, so this endorsement means so much to the PRPA and our allies,” said PRPA Chairman John H. Estey. “While the project has been repeatedly vetted and found to be economically sound and environmentally responsible, there’s nothing like independently-minded business people coming forward and saying that channel deepening needs to get done. We’re honored and pleased to have our friends at the PENJERDEL Council support us on this issue.”
Here is the complete text of the PENJERDEL Council’s resolution:
RESOLUTION IN SUPPORT OF THE DELAWARE RIVER CHANNEL DEEPENING PROJECT
WHEREAS, the PENJERDEL Council is a regional business advocacy group, focusing on southeastern Pennsylvania, southern New Jersey and northern Delaware;
WHEREAS, the PENJERDEL COUNCIL has as one of its core missions the attraction, development, and improvement of business entities in the tri-state area, to facilitate the growth and prosperity not only of the business enterprises, but also of the workers and residents of the communities;
WHEREAS, the PENJERDEL COUNCIL recognizes the importance of the port entities in these three states as a vital economic engine with a potential for sustainable growth;
WHEREAS, the US Army Corps of Engineers, in conjunction with the Philadelphia Regional Port Authority, are positioned to undertake the deepening of the Delaware River and Bay from 40’ to 45’, thus enabling significant future growth for direct and indirect port businesses;
WHEREAS, the Delaware River Main Channel Deepening Project has been thoroughly vetted, and has been shown to be economically beneficial as well as environmentally sound;
WHEREAS, the PENJERDEL Council wishes to affirm its support of this project as a critical infrastructure improvement for the region;
NOW, THEREFORE, BE IT RESOLVED:
That the PENJERDEL Council strongly affirms its full and unqualified support for the Delaware River Main Channel Deepening Project. Further, the Council calls upon the region’s elected officials to act in an expeditious manner to bring this project to fruition. The Council further directs that a copy of this resolution be sent to the Governors of Pennsylvania, New Jersey, and Delaware, the United States Senators of these three states, and the entire Congressional delegation of each state.
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Background:
PHILADELPHIA REGIONAL PORT AUTHORITY: The Philadelphia Regional Port Authority (PRPA) is an independent agency of the Commonwealth of Pennsylvania charged with the management, maintenance, marketing, and promotion of publicly owned port facilities along the Delaware River in Philadelphia, as well as strategic planning throughout the port district. PRPA works with its terminal operators to modernize, expand, and improve its facilities, and to market those facilities to prospective port users. Port cargoes and the activities they generate are responsible for thousands of direct and indirect jobs in the Philadelphia area and throughout Pennsylvania.
THE PENJERDEL COUNCIL: For over half a century, the PENJERDEL COUNCIL has been one of the region’s key business advocacy groups, and has encouraged a regional focus on development throughout southeastern Pennsylvania, southern New Jersey and northern Delaware. PENJERDEL and its member businesses work to create a competitive environment that will attract and retain businesses and to solve problems that impede the tri-state region’s growth and prosperity. PENJERDEL also aims to enhance the region’s overall quality of life.
THE DELAWARE RIVER CHANNEL DEEPENING PROJECT: This vast public works initiative was conceived over 20 years ago when it became apparent that deeper water was critical to the future viability and prosperity of the Port of Philadelphia and other maritime interests along the Delaware River. The project aims to increase the depth of the Delaware River’s main channel from 40 to 45 feet, so that it may accommodate today’s larger cargo vessels. This project advanced a major step forward on June 23, 2009, when the Project Partnership Agreement (PPA) was signed by the Philadelphia Regional Port Authority and the United States Army Corps of Engineers. PRPA and the Army Corps are optimistic about the long-awaited project finally commencing in late summer or early fall.
Army Corps of Engineers Declares Delaware River Deepening Project Safe to Environment
New Environmental Assessment a Major Milestone in Project
PHILADELPHIA, PA, April 8, 2009... The Army Corps of Engineers has concluded that the proposed deepening of the Delaware River poses “no significant adverse environmental effects” in a newly released environmental assessment (EA). The new EA paves the way for the commencement of project construction and the thousands of family-supporting jobs that will accompany increased commerce along the Delaware River.
“This Environmental Assessment confirms what the Philadelphia Regional Port Authority, the Army Corps, and the many supporters of the channel deepening project have been saying all along: the environmental impacts of this project have been studied thoroughly and this project will bring good, high paying jobs to our region at a time when they are so desperately needed,” said John H. Estey, chairman of the PRPA.
The Delaware River Main Channel will be deepened to 45 feet from 40 feet, 102 miles from Beckett Street Terminal in Camden, N.J. to the mouth of the Delaware Bay.
The EA examined ten years of data, the findings of the original Environmental Impact Statement and the Supplemental Environmental Impact Statement. It also reviewed three changes to the project and two to the project area:
- Dredged material quantities: Since the estimated amount of dredged material to be removed from the channel has significantly decreased, the four new upland disposal sites identified in a 1997 study are no longer needed.
- Broadkill Beach DE sand replenishment: Instead of offshore sand stockpiling as stated in a previous study, the current plan calls for direct placement on the Broadkill Beach of enough sand to replenish and rebuild the beach, following the recommendations of regulatory agencies.
- Deferment of Egg Island Point NJ restoration: Due to significant reduction of dredged material quantities available, restoration of intertidal habitat adjacent to Egg Island Point has been deferred.
- Athos oil spill will have no significant impact on dredged material: A January 2009 report by the National Oceanic and Atmospheric Administration (NOAA) concluded the 2004 oil spill would have no significant adverse effect on sediments to be dredged to construct the deepening project.
- Limiting areas to protect Shortnose sturgeon: Since surveys indicate the number and distribution of the federally listed shortnose sturgeon is likely to expand, and could be in the vicinity of the Marcus Hook rock blasting area, the Army Corps will restrict and monitor that work, as previously committed in the earlier environmental studies. The Corps will also comply with all recommendations by the National Marine Fisheries Service to minimize any potential adverse effects on the shortnose sturgeon.
The Delaware River deepening project has been strongly supported by the public, workers and business leaders across the region. Most recently, the PENJERDEL Council, a leading business advocacy group for the tri-state region of Pennsylvania, New Jersey, and Delaware, announced its support, citing the project’s impact on job creation and overall economic development for the region.
Last June, the Philadelphia Regional Port Authority (PRPA), the local sponsor of the dredging project, and the United States Army Corps of Engineers signed a Project Partnership Agreement. The project, which is estimated to cost about $277 million, will take five to seven years to complete.
The EA and links to supporting documents can be viewed on the Corps website at www.nap.usace.army.mil
The Philadelphia Regional Port Authority (PRPA) is an independent agency of the Commonwealth of Pennsylvania charged with the management, maintenance, marketing, and promotion of publicly-owned port facilities along the Delaware River in Philadelphia, as well as strategic planning throughout the port district. PRPA works with its terminal operators to modernize, expand, and improve its facilities, and to market those facilities to prospective port users. Port cargoes and the activities they generate are responsible for thousands of direct and indirect jobs in the Philadelphia area and throughout Pennsylvania.
PRPA ENGAGES MOFFATT & NICHOL TO PERFORM STRATEGIC ASSESSMENT
OF ALL PRPA TERMINALS AND FACILITIES
PHILADELPHIA, PA, March 30, 2009… Taking a proactive, long-range view of the Port’s future business needs, the Board of Directors of the Philadelphia Regional Port Authority (PRPA) earlier this month approved the selection of worldwide engineering firm of Moffatt & Nichol to perform a strategic assessment of all PRPA marine terminals, warehouses, and other waterfront facilities. The aim of this comprehensive assessment will be to provide the PRPA Board and senior managers with the information they need to chart the future path of the port agency for the foreseeable future.
Moffatt & Nichol emerged as the company best suited for the project after an internal evaluation and selection process involving many companies interested in performing the work. In approving the contract with Moffatt & Nichol, the Board followed PRPA staff recommendations.
“This assessment will give us the informational tools required to successfully implement the cargo initiatives we want to accomplish, as well as help us to develop new initiatives,” said PRPA Executive Director James T. McDermott, Jr. “Moffatt & Nichol will take a long, hard look at our facilities, and at the marketplace, and make independent, expert recommendations for the Board to consider.”
As further described in a recent statement issued by Moffatt & Nichol, “The objective of this study is to perform a condition inspection of the facilities owned by the PRPA to determine whether these facilities need to be rehabilitated, reconstructed, or replaced over the next ten years. The study will establish a program of phased capital improvements geared to meet both system preservation and market driven needs.”
The study will include market assessments, an analysis of current capacity, and a plan to address the disparity between current capacity and forecasted growth. Financial assessments, the economic benefits of various paths, and the pros/cons of existing facilities vs. proposed development projects will also be addressed.
The strategic assessment, which will be conducted by personnel in Moffatt & Nichol’s New York and Baltimore offices, will begin immediately and is expected to be completed by September of this year. PRPA will issue further information on this major study as appropriate.
Finally, although Moffatt & Nichol will be the primary contractor for the Strategic Assessment, other engineering/contracting firms will team up with Moffatt & Nichol to provide support functions for the project. These include O’Donnell & Naccarato, A. Strauss-Wieder, Inc. (a woman-owned firm), and Mark Ulrick Engineers, Inc. (an MBE firm).
The Philadelphia Regional Port Authority (PRPA) is an independent agency of the Commonwealth of Pennsylvania charged with the management, maintenance, marketing, and promotion of publicly-owned port facilities along the Delaware River in Philadelphia, as well as strategic planning throughout the port district. PRPA works with its terminal operators to modernize, expand, and improve its facilities, and to market those facilities to prospective port users. Port cargoes and the activities they generate are responsible for thousands of direct and indirect jobs in the Philadelphia area and throughout Pennsylvania. Learn more about PRPA at www.philaport.com.
About Moffatt & Nichol: Moffatt & Nichol was founded in 1945 to provide design engineering services to the evolving maritime infrastructure on the west coast of the United States. Early success in port facility planning and coastal structures design earned the firm a reputation for innovation and creativity. By the next decade, Moffatt & Nichols practice had expanded to support the larger demands of the goods movement industry in the United States, Canada, the United Kingdom, and Latin America. Today the firm provides clients worldwide with customized service and a level of excellence that have become Moffatt & Nichol’s hallmark. Moffatt & Nichol offers clients a comprehensive project view, with core practices that reflect the unique interrelationship between place and project, providing breadth of vision from planning through design as idea becomes infrastructure. Learn more about Moffatt & Nichol at www.moffattnichol.com. |
