- Briefing Room
|Project Sponsor / Borrower||
Maryland Department of Transportation / Maryland Port Administration
Ports America Chesapeake, LLC
Seagirt Marine Terminal is a 284-acre dedicated container terminal that handles 97 percent of container volume at the Port Baltimore. Opened in 1990, it currently handles an annual volume of 1,000,000 twenty-foot equivalents (TEU) and has the highest vessel productivity rates in the country with 38 moves per hour. The Port of Baltimore is one of four ports on the East Coast served by a 50-foot channel, allowing it to accommodate post-Panamax ships.
In late 2009, the Maryland Port Administration entered into a 50-year long-term lease concession with Ports America Chesapeake to operate and maintain Seagirt Marine Terminal and make certain capital investments over the life of the lease. Ports America also provided an upfront $140 million payment to the state to support highway, bridge, and tunnel projects serving the Port of Baltimore area. This asset recycling element of the deal has helped fund improvements along I-95 and US 50.
The long-term lease concession involves operation of existing terminal assets, which include three berths, seven container cranes, and 12 gantries. The private partner also agreed to construct a fourth berth (Berth IV) with capacity to accommodate post-Panamax ships. This $100 million expansion was completed in 2014 and added 4 additional container cranes 10 gantry cranes. Beyond the upfront investment in highway infrastructure and Berth IV expansion, the deal, valued at nearly $1.5 billion, includes annual lease payments to the state, a per-container fee on all movements over 500,000 annually, maintenance activities, and additional capital investments in technology and capacity.
$1,465 million - Estimated revenue and benefits accruing to the state over the 50-year lease term
|Project Delivery / Contract Method||
Long-term Lease Concession (50 years)
Ports America Chesapeake, LLC - part of Ports America Group owned by
|Project Advisors / Consultants||
To Maryland Port Administration
To the concessionaire
|Duration / Status||
Preferred bidder selected November 20, 2009
Maryland Board of Public Works approval December 16, 2009
Concession conclusion 2060
Financial close January 7, 2010
Ports America used the Series A bond issue to fund the $140 million upfront concession payment to the Maryland Department of Transportation. The concessionaire used the remaining Series A bond proceeds, the Series B bond proceeds and equity to fund capital and operation reserve accounts and pay for transaction fees and preliminary capital expenditures.
|Related Links / Articles||Maryland Port Administration|