Delaware announces massive $195 million investment in Edgemoor port terminal

The Edgemoor port terminal site near the Port of Wilmington will get a big cash infusion, state officials announced Wednesday afternoon.

The state of Delaware plans to chip in $195 million, about a third of the $635 million committed to what the state says will be the "largest shipping terminal in Delaware since the current Port of Wilmington opened in 1923."

The public-private partnership, with port operator Enstructure, will help create a "green port" that state officials say will quadruple the Wilmington port’s capacity for container cargo, and allow service to the new class of bigger container ships being sent through the world's ports.

State officials call the new Edgemoor terminal the most important new infrastructure project in Delaware since Route 1.

“This investment to expand the Port will position Delaware to compete for container cargo and larger ships," said Gov. John Carney in a statement. "It will bring new, good-paying union jobs to Wilmington.”

When complete, the state apparently plans to rename the new combined entity "Port Delaware." The existing Port of Wilmington will be dubbed "Port Delaware South," while the new Edgemoor terminal will be "Port Delaware North."A proposed nickname is also already in place: The First State Gateway.

The state has planned to build a terminal at Edgemoor, a former DuPont site north of the port's existing facility, ever since acquiring the site in 2017. However, progress was slow under former port operator GT USA Wilmington, a subsidiary of Gulftainer, which struggled financially.

Ever since Massachusetts-based Enstructure took over port operations in July, the money's been rolling in.

The new $195 million will bring the state's total investment to about $250 million, or 39% of the total, including money from the state-owned Diamond State Port Corp. and federal ARPA money pledged by Carney in July.

Federal transportation officials also pledged another $50 million in November.

According to the release Wednesday, port operator Enstructure will be responsible for the majority of construction and equipment costs. Enstructure's investment will total $335 million, about 53% of the funds committed to the project so far, according to state officials.

As part of its deal to take over the Port of Wilmington, Enstructure also agreed to spend at least $45 million by 2032 to upgrade the current port.

The state funds pledged to the project will come from excess abandoned property revenues, say state officials. Those funds had already been made available for one-time users, including maritime terminal development, in previous state bond bills, officials said.

When complete, the Edgemoor terminal will create nearly 6,000 new jobs, including 3,100 direct jobs, officials say, bringing in $39 million annually in state and local taxes. Construction will account for another 3,900 jobs and $42.3 million in tax revenues, according to the same release.

Construction will take place in three phases. The first, completed over a 32-month period, will involve dredging and building a sea wall, along with a high deck. Terminal construction on land will come later, officials say.

In accepting the money, Enstructure CEOs Matthew Satnick and Philippe De Montigny said they were “excited to partner with the State of Delaware."

Matthew Korfhage is business and development reporter in the Delaware region covering all things related to land and money: openings and closings, construction, and the many corporations that call the First State home. Send tips and insults to mkorfhage@gannett.com.