Port of Wilmington seeks Edge Moor for expansion

• Port of Wilmington officials are negotiating to purchase shuttered chemical facility.
• The negotiations follow months of debate over how to expand the state's shipping economy.
• Closure of the plant, formerly owned by DuPont, was another blow to Delaware's industrial economy.

Officials in charge of the state-owned Port of Wilmington are trying to buy the land that housed Chemours' shuttered Edge Moor chemical plant for future expansion of Delaware's shipping economy.

The governing board for the Diamond State Port Corp., the public-private entity that oversees the sprawling complex, gave port officials permission to enter into negotiations to purchase the 114-acre facility, which manufactured titanium dioxide before being closed nearly a year ago. The complex sits on the Delaware River off I-495.

The move is the port's first step toward acquiring at least one of several tracts that have been scouted for a future container port. Port officials and local politicians see broadening the state's port business as a way to bolster its lagging industrial economy. Friday's action also gave permission for officials to execute the purchase if an agreement is reached.

"There is a significant amount of investor interest in developing the Port of Wilmington beyond its current footprint," said Secretary of State Jeffrey Bullock, who chairs the Diamond State Port board and will be part of negotiations to purchase land. "A lot of that has been focused on Chemours [property]."

Founded in 1923, the port, at the confluence of the Christina and Delaware rivers, employs about 2,000 and serves about 400 vessels. Officials are in agreement that the state-owned port is out of room to grow and needs investment. If Delaware is to take advantage of coming changes to the eastern seaboard's shipping economy, it will need more land, they said.

Federal officials are scheduled to complete the deepening of the river's shipping channel to 45 feet later this year, allowing for traffic from larger container ships. The push to expand onto the Delaware is bolstered by the hope population serviced by ports on the eastern seaboard will continue to grow and Delaware will be able to capture shipping traffic from that growth.

Officials said the Edge Moor facility is the best first step toward expansion.

Bullock declined to discuss how much he expects the property will cost. He said the land will be bought using the port's reserves. The state allocated $15 million to the port for infrastructure improvements earlier this year. Bullock said that money would not be used to buy the property.

"It doesn’t mean we are necessarily going to buy it," Bullock said. "We are going into negotiations."

STORY: $300 million required to support port growth, consultant says

STORY: Chemours Edge Moor plant closing is 'ominous' sign

The port's master plan study found the facility will need $180 million in investment to meet the demands of its current customers over the next decade. Diamond State has been considering how the port might expand for well over a year.

Consultants hired by the port operators to analyze potential growth sites centered on three tracts, including Edge Moor. Of the sites examined by the consultants, Edge Moor was the least expensive to develop and also has the quickest potential to be operational as a container port.

The study found that a container port facility could be built with $500 million and take four years to be operational. The shuttering of the pigment manufacturing plant last year ended more than 80 years of chemical manufacturing on the site. The DuPont Co. first purchased the facility in the 1930s. It operated under the DuPont banner until Chemours was spun off from the company in July 2015.

Bullock said officials believe they need to move quickly to secure the property.

"Chemours has made it clear they are going to sell it and sell it sooner rather than later," Bullock said.

Officials from Chemours declined to discuss potential prices, but said there are competing interests in purchasing the land.

"Consistent with our commitment to return the property to productive use, Chemours has solicited and received several offers from entities interested in the former Edgemoor site," said Robin Ollis Stemple, a Chemours spokeswoman, in an emailed statement.

Stemple said assets on the land that might add value are being sold with the property. Those include the pier, railroad lines, fencing as well as warehouse, administration, research and medical buildings.

Where to expand the port has been the subject of heated debate and has become a political issue in northern Delaware politics.

Local longshoremen and New Castle County Executive Thomas P. Gordon have been advocating for a container facility on 176 vacant acres that are part of the Riveredge Industrial Park south of the Delaware Memorial Bridge. That site was also evaluated by the port’s consultants. AECOM estimated the plan would cost about $882 million. Wilmington and New Castle County governments have split the cost on a $300,000 study of the site.

The port push has been a central pitch in Gordon's effort to woo Wilmington voters to support his run for a fourth term leading county government. Wilmington attorney Matt Meyer, Gordon's opponent in the Sept. 13 Democratic primary, has accused him of making "irresponsible" promises associated with the port pitch.

Diamond State Executive Director Gene Bailey on Friday said the pursuit of the Edge Moor property does not rule out expansion elsewhere.

"We are going to look at this site and concurrently look at the other sites," Bailey said.

International Longshoremen's Association Local 1894 President William Ashe Jr., another proponent of the Riveredge proposal, said he was not discouraged by the state's pursuit of Edge Moor.

"The concept is to make Delaware grow," Ashe said. "We have always agreed to get something done. So if Edge Moor goes first and Riveredge goes right after, we can fill both facilities. It is not an issue. We are still moving forward."

Bullock said expansion at Edge Moor could prove the competitiveness of Delaware's position on the river and spur the larger investment needed at Riveredge in later years.

"If [Edge Moor] attracts the business we would like it to attract, it says to investors that this market is not only viable, but it has the greatest upside potential moving forward," Bullock said.

Bullock said the Delaware market will be poised to grow its port business potentially at two sites as the population serviced by ports on the eastern seaboard continues to grow.

"The economics work as long as the growth continues," Bullock said.

Contact Xerxes Wilson at (302) 324-2787 or xwilson@delawareonline.com. Follow @Ber_Xerxes on Twitter.