‘Preferred’ bidder named for Wilmington port operation

Posted: December 08, 2012

The state-owned Port of Wilmington took a step Friday toward a partnership that would see Kinder Morgan Inc., a publicly traded energy company, operate the terminal, expand cargoes, and invest $150 million in needed port infrastructure repairs.

The Diamond State Port Corp. named Kinder, based in Houston with operations at Tioga Marine Terminal in Port Richmond and Fairless Hills, Bucks County, as the "preferred" bidder to lease the port.

In coming weeks, Kinder will meet with the port's existing customers, including Dole and Chiquita, and by the end of March a "hard" number proposal should be known, the port's chairman, Alan Levin, told a board meeting in New Castle.

Julius Cephas, president of the International Longshoreman's Association Local 1694-1, said the union is concerned about job preservation, salaries, and the potentially hazardous cargoes that Kinder might export, such as coal and natural gas. The company is one of the largest energy transport companies in North America, with 75,000 miles of pipelines and 180 terminals.

Cephas said workers and nearby residents are worried about the potential for coal dust, air pollution, spills and gas explosions, if Kinder hauls natural gas and coal.

Levin said although Kinder has not confirmed the cargoes it plans, there have been no discussions about storing or shipping coal or petroleum products.

Kinder has given assurances that it will grow the port's existing business, as the largest handler of imported perishable cargo, fruits and vegetables in the United States, and the largest banana port in North America.

Kinder has not pledged to immediately invest $500 million to construct ship berths on the Delaware River, which had been the Markell administration's goal when exploring a private partnership in May.

"They have not given us a guarantee they will spend half a billion dollars on the Delaware River, but they will do what is necessary to maximize the value of the port," said Levin.

The board will likely take up the matter again in April, or possibly sooner. Delaware lawmakers will be apprised of the authority's final decision, although it is unclear whether they would actually vote on it, he said.

The port is now accessible by docks on the Christina River. Expanding on the Delaware would to open Wilmington to deeper bottom vessels.


Contact Linda Loyd at 215-854-4822 or lloyd@phillynews.com.

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