Sparrows Point terminal breaks ground for major Baltimore port expansion

Leaders broke ground at the Sparrows Point Container Terminal on Friday morning, marking the start of construction for one of the biggest projects in the Port of Baltimore's history.

The 168-acre terminal and on-dock rail facility, located at Coke Point, will add 8,000 jobs, including union jobs, and expand container capacity for the port by 70%. 

The project is a joint venture by Tradepoint Atlantic and Terminal Investment Limited, a port operator owned in part by Mediterranean Shipping Company (MSC), the largest shipping line in the world.

"This project will add capacity efficiency, not just for the local community, [but] for the Mid Atlantic and the Midwest. That's why it's important for the country," Ammar Kanaan, CEO of Terminal Investment Limited, said.

The project plans to generate $1.5 billion in economic activity for the region and is dubbed one of the largest private container terminal investments in the country. The goal is to lift the Port of Baltimore to the third-largest container port on the East Coast.

Funding for the terminal includes more than $1 billion in private funds, as well as state and federal dollars. The project also received the largest tax credit in Baltimore County's history.

The planning process for Tradepoint Atlantic and the container terminal has been years in the making, and it broke ground in the water earlier this year. Dredging began to increase the depth so larger ships could come to port.

"This juncture is perhaps the most consequential in the history of Sparrows Point," Kerry Doyle of Tradepoint Atlantic said.

Coke Point will soon feature seven cranes and two 52-foot-deep berths, which can hold two container ships.

This terminal is the next phase of Tradepoint Atlantic's plan to revitalize the former Bethlehem Steel site.

"This place where we now gather, is a symbol of American renewal and innovation. It is like the phoenix rising from the ashes," Sen. Chris Van Hollen said at a press conference marking the groundbreaking.

New job opportunities

The International Longshoremen's Association (ILA) Local 333 boasts 2,500 members in Baltimore and says there could be as many as 500 new jobs when the terminal opens in a few years.

"This is a great day for our workers. This is a great day for our families," Gov. Wes Moore added.

The plan is to add 1,100 permanent union jobs once the facility is up and running. The ILA says the new terminal will contribute to a net gain of jobs, which is positive for its members.

"This is the biggest thing that can probably happen to ILA in this port in decades," Scott Cowan, President of ILA Local 333, tells WJZ.

The new terminal could place a strain on the existing sites owned by Ports America Chesapeake. Once open, MSC will no longer send ships to the Seagirt Terminal, prioritizing the new Sparrows Point facility. In a meeting minutes before a December Maryland Port Administration gathering, Mark Schmidt from Ports America Chesapeake said the company would have to find other business to replace MSC.

"The State grants will assist the TPA terminal to the detriment of Seagirt, as the number of containers going through Seagirt will be reduced as MSC redirects containers to the new terminal, thereby reducing State revenues tied to Seagirt container volumes," the minutes read.

The longshoremen's union says it expects to add hundreds of jobs when the terminal opens and that it is much-needed relief for their workforce, who in the last six years have dealt with port closures due to the COVID-19 Pandemic, the collapse of the Francis Scott Key Bridge, and a three-day port worker strike in 2024.

"It was rough here for a little bit in Baltimore, but we've gotten most of our cargo back. We're still not back to where we were pre-bridge collapse, but we're getting there," Cowan said. "This is a big deal because containers are the price of the maritime industry for these ports."

The union says it hopes the state doesn't forget about the other port terminals and piers. It hopes that more public investments will follow this private venture.

"Got to take care of what we got too and add this into the portfolio and grow the port as a whole, instead of just one in one area," Cowan said.

The first ships are scheduled to be at port in 2028, with the project's completion date set in 2030.