March 29, 2024
BANGOR DAILY NEWS (BANGOR, MAINE

MDOT committed to Sears Island project

Recent articles and comments regarding the Sears Island cargo terminal project have raised objections to the development, concerning wood chip exports, cost of the facility, and competition with other ports within the state.

The goal of the Maine Department of Transportation is to provide a modern, efficient and expandable facility with the flexibility to handle changing cargo requirements throughout its life span. To achieve this, the design must incorporate sufficient space to manage the currently foreseeable product mix, while allowing for expansion to accommodate new products, as identified through ongoing market research and analysis.

During the conduct of market research, wood chips were identified as a potentially viable cargo to be handled at the new facility, as were containerized cargos and breakbulk forest products such as processed wood pulp and paper. Numerous discussions have taken place, and assuredly more will come, about Maine’s forests and how to manage them to meet the combined industrial, recreational and ecological needs. Those discussions which seek to define forest sustainability are important, and the Maine Forest Service is working hard to identify issues and potential solutions. However, the premise of opposing a transportation project as a means of objecting to forest management practices is poorly conceived, and only serves to harm the other businesses which would benefit from the project.

With regard to economic viability, MDOT is committed to develop this project at the lowest cost possible, consistent with sound operational and environmental concerns. There are several alternative development scenarios which are under considertion at this time. Capital costs, along with operational efficiency and environmental considerations, are all key factors in MDOT studies. Those factors have been, and will continue to be, considered in making decisions about alternatives. The final selection of MDOT’s preferred alternative will reflect a balancing of those factors.

What the actual cost will be, has not been fully determined. Assuming, however, that the inflated value (which has been suggested by some to be $188 million, including both the capital costs and interest that would be incurred on the bonds) is correct, and recognizing that there are, at present, approximately 10,000 people employed by pulp and paper companies that the new port would servce, and that rely on efficient transportation to global marekts, then the total cost of the project represents an investment by the state of roughly $627 per job per year, amortized over the life of the bonds. This seems like a reasonable investment by the state to help preserve employment for its citizens. One must also recgonize that this cost-job-year figure will decreae as new port-related opportunities are recognized and new jobs created. By comparison of investment levels, New Hampshire recently committed to an investment of $60 million, including interest, to support 100 jobs (or $20,000 per job per year, again amortized over the life of the bonds), which suggests that Maine has a considerably more responsible fiscal attitude.

Will Sears Island, Eastport and Portland ever compete for cargo? Actually, it would be nice to see that happen, as it would be an indicator of a very healthy economy for the state. However, all three ports serve significantly different regions with only a minimal overlap. Additionally, there is a substantial volume of Maine products, more than could be handled by any one or two ports, which are being shipped through out-of-state, and out-of-country ports. Those products could be handled here, if the appropriate facilities were available. A third port would help make our existing employers more competitive while creating new employment and economic opportunities for Maine citizens, including the emerging, but as of yet unquantified, import market potential as well. Therefore, we need to cooperatively support the premise of Maine people shipping Maine products through Maine ports.

Brian C. Nutter is the Sears Island project manager of the Maine Department of Transportation.


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