The Board of Directors of the Maine Port Authority is pleased to release a report on port strategy by the Cornell Group of Fairfax, Virginia. The Board engaged the Cornell Group to conduct a thorough assessment of Maine’s port infrastructure and to make recommendations for the future. The report is the product of more than 40 interviews and extensive market research. Its recommendations represent the findings of an outside, objective assessment by a company with significant expertise in the shipping/port industry worldwide and will be useful to, but not binding on, the Authority.

Among its recommendations, the report makes clear that Maine must make critical decisions now to secure a meaningful role for its ports within the United States and the rapidly shifting global economy. The report suggests that we must carefully explore and exploit niches where we have advantages. Further, the report identifies a tangible opportunity for Maine to generate the types of jobs many Mainers need and want. The long-term positive economic benefits that might flow from the overall approach outlined within the report are significant.

The report findings are recommendations only, however. The report will be used to help make informed decisions with respect to port development, based on the unique circumstances of Maine. Importantly, the Port Authority Board remains committed to the State’s three port strategy and recognizes the State’s commitment to the Sears Island Agreement and Joint Use Planning Initiative. In that context, the Report considers the three ports of Portland, Eastport and Searsport and the Authority intends to move forward in each region as follows:

Portland:
With respect to Portland, the Port Authority will continue to assist the City of Portland in the development of its container operations and short-sea services at the International Marine Terminal (IMT). The IMT has expanded into the area formerly occupied by the CAT and will use the space to accommodate growth in its operations. The Port Authority plans to continue to invest in the facility in support of these operations. If a container facility at another location is developed, the terminal may be continued as a container port and/or converted for use as an additional break-bulk or Ro-Ro and heavy lift facility, as demand dictates.

Eastport:
The Port Authority recommends that Eastport continue its operations serving the Domtar Woodlands Mill at Baileyville as efficiently as possible. The Port Authority will assist the Port of Eastport to identify and attract additional customers. The Port Authority will assist the Port of Eastport in the further development of its facilities in support of the diversification of its customer base.

Searsport:
Perhaps the most significant finding of the study is that there is a large, market-driven opportunity to develop a new container terminal at Searsport, to service Maine and other markets, which will have a profound positive economic impact on the state. While we will not prejudge the outcome of the work of the Joint Use Planning Committee (JUPC), the report did find that the opportunity exists and the Board recommends that such a facility should be considered consistent with the outcome of the JUPC process and a full review of the build-out potential at Mack Point to meet these needs. With respect to financing such a facility, the report makes it clear that the vast majority of the funding required would come directly from a port developer, with only a small percentage coming from state and federal funds, including in-kind contributions of land and infrastructure. The Port Authority does plan to continue to build out the infrastructure at Mack Point at Searsport to accommodate both liquid and dry cargo to meet market demand.

Land Banking:
Another finding of the report that applies to each of the three ports is the requirement for land banking. The Port Authority Board recommends that wherever possible land be purchased to support future port development. Opportunities for securing land for commercial marine use are increasingly rare. There remain, however, opportunities at each of the three ports. The Port Authority recommends that the State of Maine should seek to purchase these properties whenever they become available in support of the future economy of the state.

It is hoped that this study and these recommendations will inform the debate about the future of Maine’s ports. They have been a vital element in the state’s economy throughout history and they remain so today. With wise and prudent investment, they will continue to contribute to the economic success of the state and its people into the future.

For further information, please contact John Henshaw, Executive Director, at (207) 624-3564 or via email at john.h.henshaw@maine.gov.

The Board of Directors of the Maine Port Authority