Teamsters disagree on Southport cargo terminal

The Philadelphia city controller says the "greatest economic impact" in jobs and tax revenue for the 200-acre Southport section at the eastern end of the Navy Yard would be as a marine terminal for container cargo.

Controller Alan Butkovitz said in a 15-page report released Wednesday that putting an energy port on part of the land also made "long-term economic sense," but should not impinge on the scale needed for a modern container ship terminal. Officials in recent years have suggested use of this undeveloped site for a marine terminal, energy port, or auto-processing facility.

The leader of Pennsylvania's Teamsters union criticized the report, calling it "one-sided."

Butkovitz cited the expansion of the Panama Canal, which will bring larger ships from Asia to East Coast ports. "Most analysts believe that there will be plenty of business to go around," the controller said.

In an interview, Butkovitz said his interest in "maximizing economic opportunities" at the port originated when he served in the Pennsylvania legislature with State Rep. Bill Keller, a former longshoreman and South Philadelphia Democrat who lobbied for years to assemble the acreage for Southport.

"This is one of those projects that was talked about and then didn't get off the ground," he said. "It still has appeal to port operators and private investors."

The report, prepared by the controller's staff, concluded that a modern container terminal, handling 1.1 million additional 20-foot containers a year, would create 8,100 direct jobs, 12,150 indirect jobs in industries such trucking and warehousing, $336 million in wages, and $12.4 million in city wage taxes annually.

The report did not look at wages, taxes, or jobs if the land were used only for an energy hub or an auto-processing facility.

William Hamilton, president of the Pennsylvania Conference of Teamsters, said the report ignored jobs already at the port, where 150,000 Hyundai and Kia automobile imports from South Korea are processed annually for showrooms. Auto processors say they need more space on the Delaware River to expand.

While others are talking about future energy jobs, Hamilton said, the auto-processing jobs are available now. "We can put to work" inner-city kids, he said, adding that the controller's report "distorts" the real facts.

Gerard Sweeney, chairman of the Philadelphia Regional Port Authority (PRPA), said, "We applaud the initiative taken by the city controller" and others such as Keller and International Longshoremen's Association Local 1291. Keller and the union for years have supported using part of the tract for a marine terminal.

"It's exciting to see that everyone is aligned in their passion to grow the port. Now it's a matter of determining the best tactic to get there," Sweeney said. "From the governor's perspective, and from the board - many members of which Gov. Wolf just appointed - we are really determined to define what Philadelphia's competitive advantage is, how we can use that to accelerate the growth of family-sustaining jobs, and position the port to be one of the region's largest economic contributors."

The regional port authority first sought bids for Southport in spring 2009, but tight credit and the rocky economy stalled the project. In 2010, with an uptick in shipping and the Delaware River navigation channel being deepened from 40 feet to 45 feet, the project appeared to have new life.

Delaware River Stevedores and parent companies SSA Marine and Ports America Group secured the bid in October 2010 to develop the site, with Hyundai Merchant Marine as a shipping partner. Hyundai later dropped out.

In April 2014, Delaware River Stevedores and its team withdrew from Southport because they could not secure a steamship company to partner in the finance and construction.

The regional port authority again sought "expressions of interest" for Southport last October. Sixteen firms expressed interest. They included energy companies, marine terminal operators, and auto processors. None was a steamship company.

Among those expressing interest was Philadelphia Energy Solutions, operator of the former Sunoco refinery in South Philadelphia, which wants to develop an energy port with a wharf to handle oil tankers. CEO Philip L. Rinaldi has said all 200 acres may not be needed.

"I certainly believe there will be plenty of room left for other things for the port," Rinaldi told the regional port authority board in September.

Butkovitz's report said that "Philadelphia's ports are nearly maxed in their capacity to handle the boxes. ... As other ports expand and modernize, this could drive container business away from Philadelphia altogether."

Source: Philly.com