Hey, it’s Thursday

Delaware is now poised to move forward  on a  lease deal with Emirates-based Gulftainer.

That’s good news for a state that can ill afford a badly needed expansion of the port to the former Chemours Edgemoor site or make further upgrades to the existing site on the Christina River.

The General Assembly unanimously approved the deal, despite opposition from some who  felt  the port would be less secure under Gulftainer. Not answered was how this security lapse would happen, since all ports remain under scrutiny by federal agencies.

While investments of upwards of $600 million by Gulftainer and hundreds of new jobs are projected, nothing is set in cement. At a minimum, the state will receive an injection of a few million dollars a year from lease payments.

Market conditions will determine the timing for a port at the Chemours site and even under the most optimistic estimates, work on the site is a few years off. An economic downturn could push that timetable further into the future.

A recent report from economist John Stapleford  shows depressed shipping activity  in the Northeast.

At the same time, the  East Coast is seeing growth   as big container ships  can now get through the Panama Canal. The West Coast has infrastructure issues in getting containers off the docks and on trains for long shipments.

 The Edgemoor site could handle such ships and save owners money over sailing up the river to Philadelphia.

We won’t know whether that scenario plays out until we see construction cranes show up in Edgemoor.

Have a great day and enjoy the sunshine and warmer temps. – Doug Rainey, Publisher