1 / 8

Maryland Port Administration Seagirt Marine Terminal Public/Private Partnership Presented to By James J. White Executive

Maryland Port Administration Seagirt Marine Terminal Public/Private Partnership Presented to By James J. White Executive Director Maryland Port Administration. Seagirt Marine Terminal Public-Private Partnership Overview/Key Outcomes.

dianthe
Download Presentation

Maryland Port Administration Seagirt Marine Terminal Public/Private Partnership Presented to By James J. White Executive

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Maryland Port AdministrationSeagirt Marine TerminalPublic/Private PartnershipPresented toByJames J. WhiteExecutive DirectorMaryland Port Administration

  2. Seagirt Marine Terminal Public-Private Partnership Overview/Key Outcomes The proposed Public-Private Partnership accomplishes several important goals: • Funds construction of Seagirt Berth IV with 50 foot depth and four cranes in economically challenging times. • Repays the Maryland Transportation Authority for its investment in Seagirt. • Provides an ongoing revenue stream to the Maryland Port Administration (MPA) for administrative and other port purposes. • Ensure MPA maintains direct control of port security functions.

  3. Seagirt Marine Terminal Public-Private Partnership Competitive Process A competitive and open process was used to solicit and obtain offers: • MDOT/MPA retained Public Financial Management (PFM) as an advisor. • Valuation analyses were undertaken by both PFM and other consultants to estimate the value of the deal and provide reasonableness checks. • The solicitation was widely dispersed so that the State’s goals were advertised and interested parties had an opportunity to participate. • Two respondents qualified based on technical standards. The short-listed firms performed operational and financial due diligence. • Once an offer was received, confidential negotiations proceeded to obtain the best offer and protect business sensitivity. • The Maryland Port Commission and the Maryland Transportation Authority were engaged throughout negotiations, and both bodies approved the final proposal. • Outreach to select members of the Maryland General Assembly (Legislature) as well as the Governor, Comptroller and Treasurer during every phase of the process.

  4. Seagirt Marine Terminal Public-Private Partnership Ports America and Highstar Capital Qualifications Ports America • Ports America is the largest independent terminal operator in the Americas operating at 84 terminals in United States handling over 12m TEUs annually. • Proven Long-standing Operator, operating in Baltimore for over 88 years. • Strong Labor Relations with the International Longshoremen’s Association. • Existing Business with Major Shipping Lines. Highstar Capital • Independent, value-added infrastructure investment fund that currently manages over $4.5 billion in investor capital commitments and $15.0 billion in assets. • Long-term investor and partner that facilitates growth organically and through the execution of strategic acquisition strategies. • Commitment to the public trust with high standards for safety, environmental, customer service and labor relations.

  5. Seagirt Marine Terminal Public-Private Partnership Negotiations and Final Offer Summary of Financial Components

  6. Seagirt Marine Terminal Public-Private Partnership Protections and Transfer of Risk The Seagirt Agreement protects the State’s interest while transferring risk to the private sector. • Ownership of Seagirt Marine Terminal remains with the State. • A number of risks are assumed by Ports America Chesapeake: • Operational and cargo volume/growth risks • Construction risks • Future capital, infrastructure maintenance and enhancement risks • Performance • Ports America Chesapeake is obligated to use Seagirt primarily as a container terminal • Ports America Chesapeake must perform all maintenance to Seagirt Marine Terminal including but not limited to all infrastructure, system preservation and capital investments throughout the term. • Commitment from both parties to a continued successful business relationship is very strong.

  7. Seagirt Marine Terminal Public-Private Partnership Value to the State of Maryland The total investment and revenue from this Agreement has the potential to reach $1.8 billion over the life of the Agreement. • 5,700 new jobs, and new tax revenues of $15.7 million. • A commitment to invest $105.5 million in a new, deeper Berth IV at Seagirt, and associated cranes, to be operational by 2014. • Maryland Transportation Authority, as the current owner of Seagirt, receives an immediate payment in excess of $140 million to pay for needed system preservation of roads, tunnels and bridges. • MPA will receive an annual lease payment for Seagirt, as well as revenue sharing for business in excess of 500,000 containers per year. • Ports America Chesapeake has committed to future system preservation and capital expenditures to maintain Seagirt as a world class container facility. • Acreage on Dundalk Marine Terminal is returned to MPA to grow the important roll-on/roll-off and auto business.

  8. Seagirt Marine Terminal Public-Private Partnership Lessons Learned • The process was very time consuming for executive staff. • A need to go deeper into staff resources to better manage the process.

More Related