Governor O'Malley and Port of Baltimore Sign New Agreement Keeping Jobs in Maryland
Six-year extension with leading international shipping company will protect hundreds of Maryland jobs
BALTIMORE, MD (April 30, 2009) –Governor Martin O’Malley today joined officials of Mediterranean Shipping Company (MSC) to sign a six-year extension of the current contract between the Port of Baltimore and the Geneva-based international container shipping giant. The deal maintains 628 direct jobs and the continued shipment of MSC containerized cargo through the Port of Baltimore.
“In these difficult economic times, I am very pleased to receive an extended commitment from one of the top container shipping companies in the world,” said Governor O’Malley. “This extension keeps good-paying, family-supporting jobs at the economic engine that is the Port of Baltimore. Maryland is proud to be signing the third long-term contract in a year when many ports are facing much harder times.”
The new agreement extends the current contract with MSC, the Port’s top container shipping company, to December 31, 2014. The extension requires MSC to bring a minimum of 100,000 containers annually to the Port – three times the amount the original 10-year contract required.
“We are very happy to secure MSC, our top container customer, for another six years,” said Maryland Port Administration (MPA) Executive Director James J. White. “This extension amends the original contract and requires MSC to bring more business to this Port for the next several years.”
In addition to maintaining the 628 jobs, the agreement also will retain about $25 million in wages and salaries and $14 million in state and local taxes as a result of keeping MSC at the Port of Baltimore.
MSC began a weekly service to Baltimore in 1988. In 1988, about 4,500 containers were brought to the Port of Baltimore on MSC vessels. By 2008, that number increased 30 fold to more than 136,000 containers. MSC also was the first container shipping company to work out of the Seagirt Marine Terminal after it opened in 1990.
“At this time of great uncertainty in the global economy it’s refreshing that the relationship between Mediterranean Shipping Company and the Maryland Port Administration is stable and based on mutual respect and cooperation,” said Captain Nicola Arena, chairman of the board and chief executive officer for MSC. “We look forward to many more years at the Port of Baltimore.”
In addition to the MSC contract, the Port of Baltimore has signed long-term, 10-year contracts with Taiwan-based container company Evergreen Marine Corporation and Finland-based paper manufacturer UPM within the last year. Earlier this week, the Port also kicked off the first of its record 79 cruises in 2009, including the first year-round cruising program.
The Port of Baltimore employs about 16,500 workers. Out of about 360 U.S. ports, Baltimore is ranked number one for handling roll on/roll off cargo; trucks; imported forest products; and imported gypsum, sugar and iron ore. The Port of Baltimore is ranked 14th nationally for total foreign cargo tonnage and 12th for total dollar value of cargo. In 2006, the Port was responsible for $3.6 billion in personal wage and salary income. Activities at the Port of Baltimore generated $388 million in state and local taxes.
As a result of its outstanding work to increase U.S. exports, the Maryland Port Administration (MPA) which oversees the public terminals at the Port of Baltimore, was honored in 2007 with the Presidential “E” award. The award was created in 1961 to recognize persons, firms, or organizations that contribute significantly to increase U.S. exports. The MPA was awarded this special distinction for its increased export business over the last several years. The MPA, which also won the “E” award in 1964, is only the 23rd port organization out of 361 total ports in the U.S. to win the highly acclaimed recognition. It is only the fourth port to win the award twice
