A new container ship terminal planned for Sparrows Point is expected to significantly bolster Maryland’s economy over the next decade. According to an economic impact study released by Tradepoint Atlantic, the developer of the proposed terminal, the project is anticipated to create more than 8,000 direct and Port of Baltimore-affiliated jobs, contributing an impressive $1.54 billion annually to the state’s economy.
Located at Tradepoint’s logistics and distribution hub on the former site of Bethlehem Steel in Baltimore County, the $1 billion project represents a major investment in the region’s economic infrastructure. The new terminal is projected to generate over $305 million in employee salaries annually, according to research by advisory firm Infrata. Additionally, it is expected to contribute $57 million per year in state and local tax revenue, primarily through corporate and individual taxes. These figures illustrate the significant multiplier effect of the terminal’s container handling activities, which will support both direct employment and jobs in surrounding communities.
Kerry Doyle, managing director of Tradepoint Atlantic, described the proposed terminal as a “once in a lifetime opportunity” to secure the Baltimore port’s standing for generations to come. The terminal, to be built at Coke Point, is part of a joint investment with Terminal Investments Ltd., a subsidiary of Mediterranean Shipping Co. (MSC), one of the world’s largest container ship operators and the port’s largest shipping line. This partnership was announced in October 2022 and aims to significantly enhance the port’s container-handling capacity.
The development will include an on-dock rail facility and various support structures, which are expected to provide the much-needed additional capacity for handling containers. This enhancement will offer the Port of Baltimore a substantial competitive advantage along the East Coast, potentially increasing port operations by 70%. Mediterranean Shipping Co. had previously emphasized the need for additional container-handling capacity, a necessity that was underscored by the Francis Scott Key Bridge disaster.
In late March, the freighter Dali struck the Francis Scott Key Bridge, causing its collapse and the deaths of six construction workers. This disaster blocked access to most cargo vessels, forcing the port, including its main container terminal Seagirt (operated by Ports America), to shut down for weeks. During this shutdown, Tradepoint Atlantic’s existing terminal at Sparrows Point, located south of the bridge, was the only terminal in Baltimore open to large vessels. Tradepoint managed to double its capacity for monthly automobile shipments by increasing storage and extending operating hours. The existing terminal currently handles “roll-on/roll-off” vehicles as well as bulk and breakbulk cargo, which are goods stowed on ships without being stored in containers.
To expedite the construction of the new terminal, Tradepoint Atlantic has worked with state legislators to reopen the possibility of using Baltimore County’s Hart-Miller Island as a disposal site for dredged sediments. This move could accelerate the terminal’s completion by two years, aiming for a 2026 opening instead of the previously estimated 2028.
The economic impact study reaffirms that the additional container terminal represents a significant growth opportunity for Maryland. The new facility is expected to position Baltimore as a leading East Coast port and the most efficient gateway to the Midwest for containerized cargo. With the shortest rail distance to some of the largest U.S. consumer markets, the terminal is poised to offer substantial logistical advantages.
Tom Van Eynde, Terminal Investments’ director for North America, stated in the news release that the investment aims to create the necessary extra capacity to allow shipping lines to use Baltimore not only for its current hinterland but also as a major intermodal gateway.
The project has garnered significant support from various stakeholders. Scott Cowan, president of the International Longshoremen’s Association, Local 333, highlighted the job creation potential, noting that the new facility would create thousands of new, family-sustaining jobs and secure Baltimore’s position as a premier East Coast port. Governor Wes Moore also expressed the state’s commitment to working with Tradepoint to maximize the terminal’s potential and solidify Baltimore’s place as one of the nation’s most efficient ports.
Overall, the proposed Sparrows Point container ship terminal represents a pivotal investment in Maryland’s economic future. By enhancing the port’s capacity and competitive standing, the project promises to generate substantial economic benefits, job creation, and increased tax revenues, ensuring Baltimore’s prominence in the global shipping industry for years to come.