NewHavenBIZ

New Haven Biz-March 2022

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16 n e w h a v e n B I Z | M a r c h 2 0 2 2 | n e w h a v e n b i z . c o m By Liese Klein S itting in traffic at the Tomlinson Bridge just out- side the Port of New Haven, it's hard to appreciate the importance of the ships passing below. But that barge maneuvering ever-so-slowly under the span and chugging its way toward New Haven Harbor represents one facet of a state maritime industry with $11.2 billion in annual economic impact that employs nearly 60,000 people across Connecticut. at barge is also an avatar of New Haven's busy port — a waterfront economic engine that got busier last year due to the national supply chain crisis. e number of ships visiting the port jumped by 35% in 2021 compared to 2020, and cargo tonnage for last year is expected to exceed pre-pandemic levels, accord- Harbor project primes New Haven's port for future growth ing to port officials. "It's tied to the things you've been reading about, the supply-chain issues worldwide," said Sally Kruse, executive director of the New Haven Port Authority. With container ships idling off major shipping hubs, "people are looking at using other ports." Drive the rutted streets within the New Haven port and you'll see towering piles of lumber packaged in plastic from companies like Pfeifer, a European wood processor. Semi trucks by the dozen sit empty and parked in the swales awaiting loads as fuel tankers rumble past to get to the interstates. Wood products and concrete raw materials started flooding in and out of the Elm City, "when things started to pick up with the economy and the construc- tion industry," Kruse said. "ose demands are being served by the port." Cargo like steel, gas and oil has been arriving at a steady pace as exports like scrap metal begin to recov- er to pre-pandemic levels. e success and potential of New Haven's port was endorsed recently by the U.S. Army Corps of Engi- neers, an agency known for hedging its bets on major infrastructure projects. With the help of the state's Washington delegation, the Corps earlier this year greenlighted a $63 million effort to dig out and deepen the federal navigation channel within New Haven Harbor, along with the ship maneuvering area and turning basin. e channel, now filled with silt to a level a bit shallower than its 35-foot authorized depth, will be dredged then deepened to 40 feet over the next few years. at will allow for larger ships to visit the port directly and fewer delays due to shallow waters at low tide. Fill from the excavation will be repurposed to create salt marsh, reefs and shellfish habitat. When completed, the New Haven Harbor Naviga- tion Improvement Project is expected to generate $99 million in additional sales, about 1,000 new jobs and $51 million more in wages and benefits for the state and region, according to the Corps' economic analysis. "ere is anticipated growth in both bulk and liquid cargo coming into the port," said John Henshaw, exec- utive director of the Connecticut Port Authority. New Haven's port, the second-busiest in New En- gland, has advantages that have helped push forward projects like the deepening, he added. "It has a history, it has a track record. It has proxim- ity to the places where the cargo is going," Henshaw said. New Haven port takes the lead Among the state's three deep-water ports, New Ha- ven alone is poised for commercial growth in the near term, Henshaw said. Bridgeport's cargo volume has declined over decades as its harbor gets shallower due to silt, to the point that the federal government is re- luctant to invest in dredging or deepening its channel. New London's State Pier, currently closed for an overhaul, has been designated mainly for use by the offshore wind industry in coming years, but may be- come a future player for other cargoes. In the short run, New London's revamp has been be- set by delays and cost overruns. Initially set to cost $93 million and open this month, the project is estimated to take at least another year and cost $235.5 million or more. e key role in the State Pier project played by Konstantinos Diamantis, the ex-state official fired by Gov. Ned Lamont last year over alleged misconduct, has added to controversy. New Haven ranks at around No. 50 nationwide in terms of port tonnage, with 9.3 million tons of cargo handled in 2019, not far behind Boston, with 16 mil- lion tons, and far ahead of Bridgeport, with 1.8 million tons. (All Northeast ports are dwarfed by Gulf petro/ container behemoths like Houston, with 285 million tons in 2019.) Most ports nationwide saw a drop-off in cargo in 2020 due to the onset of the COVID-19 pandemic but New Haven expects to more than recover when 2021 data is released by federal agencies later this year. As of now, New Haven lacks the space and special equipment like gantry cranes needed to handle con- tainer and cruise ships. Port fuels region's petroleum needs New Haven's port, a 366-acre district bordered by harborfront and the Quinnipiac River, is mostly privately-owned land and dominated by seven com- mercial operators with facilities called terminals. e largest, Gateway Terminal, specializes in bulk cargo like asphalt, petroleum, cement, steel and salt and has drawn the most business in recent years. Its operations are centered at 400 Waterfront St. Petroleum products dominate at the Getty, Gulf and Magellan terminals, with their barbed-wire-encircled tank and storage complexes lining Forbes Avenue and Waterfront Street. About 70% of the state's home heat- ing oil, gasoline, diesel, jet fuel, ethanol and biodiesel passes through the New Haven port, along with much of the fuel supply for western Massachusetts. Manufacturing also happens at the port at the Economic Engine Connecticut Port Authority Executive Director John Henshaw sees growth ahead for the Port of New Haven. PHOTO | TIM GREENWAY

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