Delaware partners with Enstructure on US$635M Edgemoor terminal

The State of Delaware has announced plans to join Enstructure, the private operator of the Port of Wilmington, to build a new port terminal at a site in Edgemoor, Delaware.

The project is valued at US$635 million, with Delaware committing US$195 million. It aims to quadruple the port’s container cargo capacity, enabling the servicing of larger ships. Construction of the Edgemoor port is expected to take about three years.

The Edgemoor container facility has been described as a ‘historic infrastructure project’ and the largest shipping terminal in Delaware since the current Port of Wilmington opened in 1923. The aim is to create economies of scale and maximize the port’s operating capacity.

The public-private partnership includes the ILA workforce and a Project Labor Agreement with the Building and Construction Trades Council.

Construction of the new ‘green port’ facility will be conducted in three phases, with the first to be completed over an estimated 32-month period. The initial focus will be on waterside infrastructure development, encompassing the construction of a seawall, a high deck, and associated dredging activities.

The landside construction of the actual terminal will come later with proactive public participation and community engagement. Phases two and three of the project are contingent upon business demand for expanded capacity and will be undertaken by Enstructure.

Enstructure will pay most of the construction and equipment costs, beginning with US$170 million to support Phase 1 and an additional US$165 million to complete phases 2 and 3, which equals 53% of the entire project.

The remaining costs will come from federal sources and the Diamond State Port Corporation (DSPC). State funds will be drawn from surplus abandoned property revenues, previously earmarked for specific one-time purposes in prior state bond bills, including the development of maritime terminals.

Moreover, Enstructure plans to invest US$45 million by 2032 to upgrade the existing port.

Once finalized, the new combined entity will be renamed Port Delaware, and it will consist of two terminals: Port Delaware South (existing Port of Willmington) and Port Delaware North (Edgemoor terminal), creating a ‘major Mid-Atlantic gateway’ to service all Delaware importers and exports.

Port Delaware South will be in charge of handling containers, bulk, breakbulk and auto/RoRo cargo, while Port Delaware North will handle container shipments including retail goods, perishables, frozen food, forest products etc.

By 2027, the gateway is expected to have a capacity of 1.6 million TEU.

“This investment to expand the port will position Delaware to compete for container cargo and larger ships. It will bring new, good-paying union jobs to Wilmington,” said Delaware Governor John Carney.

The Edgemoor industrial site was purchased in 2017 by DSPC, which subsequently secured the necessary permits to construct a new port terminal. Nevertheless, progress on the expansion front stalled under the previous operator, GT USA Wilmington, a subsidiary of Gulftainer, amid financial woes.

Enstructure assumed control of the Port of Wilmington from GT Americas in July 2023, following its selection by DSPC and the state of Delaware as the new operator tasked with overseeing the Edgemoor expansion. Enstructure owns and operates an integrated network of marine terminals and logistics assets on the East Coast, Gulf Coast and Inland River System of the United States.

Port Wilmington accommodates a diverse range of cargo types, including containers, perishables, breakbulk, dry bulk, liquid bulk, Ro-Ro, and project cargos. Presently, its container handling capacity stands at 500,000 TEU per annum.