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Maryland terminates agreement with CSX for Baltimore intermodal yard

   Maryland’s Department of Transportation has terminated an agreement with CSX to build the Baltimore Rail Intermodal Facility at Morrell Park and has pulled all state funding from the project.
   “CSX has worked to develop an intermodal transfer facility that balances the needs of the community, the State of Maryland, the City of Baltimore and the railroad for five years without success. This is very disappointing for all concerned,” said  Maryland Transportation Secretary James T. Smith, Jr. on Thursday.   
“But we remain deeply committed to working with all stakeholders to develop a long-term solution that brings double-stack capacity to the state and enhances the competitiveness of the Port of Baltimore.”
   Maryland’s DOT has been working with CSX since 2009 to develop near-dock, double-stack rail capability for the Port of Baltimore’s Seagirt Marine Terminal.
   Vertical clearances along CSX’s rail network prevent double-stack trains from reaching Seagirt Marine Terminal by rail. In September 2012, the state and CSX announced that a new intermodal container transfer facility would be constructed south of CSX’s Howard Street Tunnel — currently the biggest clearance impediment — at CSX’s Mt. Clare Yard in southwest Baltimore City. The purpose of the investment was to increase international container business through the Port of Baltimore and carry it to destinations in other states by CSX railroad.
   Since then, the state said residential and business communities of Morrell Park, Wilhelm Park and Saint Paul have voiced concerns over the potential impacts the project would have on their community.
   “I made clear from the start, I wanted a project that was compatible with the neighboring community,” said Baltimore City Mayor Stephanie Rawlings-Blake. “While I support the continued strength of industry at the port, it can’t be at the expense of our residents and local businesses.”
   Maryland’s DOT said it would work with stakeholders over the next year “to assess the feasibility of other initiatives that could improve freight movement through Baltimore, such as implementing cost-saving operational efficiencies at Seagirt Marine Terminal, introducing potential shipping incentives for international cargo, and incorporating double-stack freight capacity into the replacement of Amtrak’s Baltimore & Potomac Tunnel.”
   Maryland Port Administration Executive Director James J. White said, “We are viewing this as an opportunity to regroup and come up with a better alternative. It is in Maryland’s and the local economy’s interest to keep looking for a long-term solution that will provide double-stack access for all freight railroads servicing Maryland’s marine terminals.”
   CSX said in a statement that it “remains committed to leveraging intermodal freight as a competitive advantage for the Port of Baltimore.” It added, “We continue exploring — with the state, the port and Ports America — an approach that maximizes the available resources to strengthen Baltimore’s leadership position as a key facility in the U.S. east coast freight network. At the same time, we have heard the concerns of residents and businesses in several communities, and want to be responsive to the issues raised. We are working toward a solution that will benefit everyone involved.”
   The Maryland Department of Transportation’s commitment of $30 million
in capital funding and the remaining planning funding balance of
approximately $1.45 million will not be included in the department’s
draft six-year budget to be released on Sept. 2.

Chris Dupin

Chris Dupin has written about trade and transportation and other business subjects for a variety of publications before joining American Shipper and Freightwaves.