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July 3, 2023

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18 Journal of Commerce | J uly 3, 2023 www.joc.com International Maritime the East Coast as a vital port city and deliver significant economic benefits to the state," the statement said. Along with the Edgemoor investment, Enstructure said it would spend another $45 million on capital improvements to Wilming- ton's existing container terminal, which handles about 600,000 TEUs annually. Enstructure also agreed that its existing operations at Wilmington, which include breakbulk and bulk stevedoring, trucking, transloading and warehousing services, will be managed separately from the port's operations. GT USA's woes Transfer of operating control at Wilmington marks the end of GT USA's unsettled tenure at the port, which began in 2018 when its parent, United Arab Emirates-based Gulftainer, won the concession. At the time, Gulftainer pledged to invest over $500 million in Wilm- ington over the ensuing decade, including the construction of the Edgemoor terminal by 2025. However, GT USA only invested $88 million in Wilmington during its time operating the port, saying it was facing higher-than-expected operating and legacy costs. GT USA has been hit with several lawsuits in recent years. In Septem- ber 2022, it was ordered to pay a $21 million judgment after a Delaware Chancery Court found the company improperly deflated the valuation of a stevedoring company it tried to acquire when it took over the Wilm- ington concession. GT USA has also been the target of lawsuits from the International Longshoremen's Association over alleged missed payments to a union benefits fund, from Norfolk South- ern Railroad over demurrage pay- ments and from oil pipeline operator Buckeye Partners over additional fees levied on tanker trucks access- ing the port. These and other issues at Wilm- ington prompted turnover among its board last October, including the ouster of Gulftainer Chief Executive Peter Richards. JOC email: michael.angell@spglobal.com twitter: @michael_angell Enstructure's $21.5 million investment would go toward devel- opment of the proposed Edgemoor terminal. The facility would offer berths for two neo-Panamax ships with a channel depth of 45 feet. The term sheet for Enstructure's concession said DSPC could also con- tribute another 25 acres of land to Edgemoor's approximately 80-acre existing parcel. DSPC's transfer resolution said that while GT USA tried up to last year to secure financing for the new terminal, it "did not provide a viable long-term financing plan for the expansion at the Edgemoor property and did not properly advance the Edgemoor project." Enstructure said in a statement to the Journal of Commerce that it was working with a "global carrier" on developing Edgemoor into a "best-in-class container terminal." When the project was first conceived in 2016, Edgemoor was expected to cost $477 million. A more recent estimate was not imme- diately available. "Enstructure is looking forward to collaborating with DSPC on the Edgemoor project, which will expand Wilmington's presence on THE NEW OPERATOR of Delaware's Port of Wilmington is making a $21 million commitment toward devel- oping a new 1 million-TEU container terminal after the port's previous operator, GT USA, failed to get financ- ing for the project and faced a bevy of legal and operational challenges. Diamond State Port Corporation (DSPC), the state entity that owns the port, in May transferred the operating concession for Wilming- ton to Enstructure LLC, a privately held operator of bulk and breakbulk terminals and logistics operations across the East and Gulf coasts. The concession runs through 2078. In return, Enstructure will assume up to $200 million in secured debt from GT USA and pay DSPC $1 million per year, adjusted for inflation, through the conces- sion's term. Enstructure will not be subject to a container throughput fee or similar volume agreements. Diamond State development Wilmington port gets new operator aer GT USA's unsettled tenure By Michael Angell Enstructure will invest $21.5 million in the development of the proposed 1 million-TEU Edgemoor terminal. Khairil Azhar Junos / Shutterstock.com "The Edgemoor project … will expand Wilmington's presence on the East Coast as a vital port city."

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