CONNECTICUT PORT AUTHORITY SELECTS GATEWAY AS NEW OPERATOR OF STATE PIER NEW LONDON

Final Agreement Positions State Pier for Strong Economic Future

(New London, CT) – The Connecticut Port Authority (CPA) has reached an agreement with Gateway New London LLC for the long-term operation of State Pier in New London. The decision comes after a rigorous competitive selection process designed to determine the highest and best use of State Pier and to find a partner with the capability to deliver expanded economic opportunity to the state.

“Gateway shares the CPA’s vision for strengthening Connecticut’s maritime economy and creating new jobs through expanded operations at State Pier,” said Scott Bates, Chairman of the CPA.

Under terms of the 20-year agreement, Gateway assumes operation of State Pier on May 1, 2019, with an option at the end of the term for the CPA to extend for two additional ten-year periods. The new contract requires that an annual fixed fee of $500,000 be paid to the CPA, increasing by $250,000 every five years. The CPA will also receive a variable fee of 7% of Gateway’s gross revenues at State Pier, with a minimum annual guarantee of $500,000 that has the potential to increase every five years based on Gateway’s percentage increase in gross revenues. Finally, Gateway will pay an annual wharfage and dockage fee equal to 50% of all wharfage and dockage user fees at State Pier. All together, these terms will provide CPA with a substantial increase in revenue versus the current operations.

“We look forward to working with our new partners to increase the movement of conventional cargo through our ports, while simultaneously capturing the opportunities presented by emerging markets,” Bates continued. “This is a welcome balance as we look to better leverage Connecticut’s unique maritime assets. We are confident this selection presents the best future for State Pier and the taxpayers of Connecticut.”

This agreement presents an opportunity to expand the port’s role as an economic driver by increasing the overall traffic flowing through this key point of entry. Businesses and workers around the state will benefit from greater access to valuable markets.

“After months of effort on behalf of the CPA staff and Board, we are pleased to partner with Gateway on the continued development and expansion of State Pier,” said Evan Matthews, Executive Director of the CPA. “The CPA and Gateway have undertaken an extensive process to maximize outcomes and potential, and we see this partnership as the next step towards fulfilling a key objective of our 2018 Maritime Strategy.”

Maximizing the potential of State Pier is the top priority of the 2018 Connecticut Maritime Strategy, released by CPA earlier this year. In support of that strategy, the CPA will work closely with Gateway to invest the funds provided through the recent Purchase Power Agreement and Zero Carbon initiative to make the pier even more attractive to the offshore wind industry and other emerging opportunities in the region.

“We are excited to partner with the Connecticut Port Authority to operate and expand State Pier,” said Larry Smith, founder of Gateway Terminal. “Our partnership not only positions New London as a potential offshore wind hub for the northeastern United States, but also supports the local harbor community and existing uses, which we believe will expand when we begin our operations.”

Contract Highlights

• The new contract will guarantee a minimum of $1 million in revenue for the CPA in 2019, increasing by $250,000 every five years.
• The annual Fixed Fee revenue generated by this deal will increase by 2.5x from its current level in the first year, and grow to a level approximately 6x the current level over the course of the 20-year agreement.
• Gateway is committing a minimum of $30 million in capital improvements at State Pier during the duration of the agreement.
• In 2018, Connecticut has either invested or secured $48 million for improvements to State Pier, the largest investment in the pier in Connecticut’s history. The State Bond Commission allocated $25.5 million for improvements to State Pier, and an additional $22.5 million has been committed by the private sector through the recent Purchase Power Agreement and Zero Carbon initiative undertaken by the state.
• This agreement has the potential to produce enough revenue to finance a large portion of the CPA’s statewide operations, allowing for an eventual reduction in reliance on state funds.

Click here to download the Connecticut Maritime Strategy 2018

Executive Summary

Connecticut Port Authority to lead State Pier revitalization in New London

Governor Malloy Announces $15 Million Investment

(New London) – Governor Dannel Malloy has announced the State Bond Commission is expected to approve $15 million for an infrastructure improvement project that will revitalize State Pier in New London to maximize the port’s potential as a regional economic engine. The commission is scheduled to meet Friday.

The Connecticut Port Authority (CPA) will oversee the project, and work has already begun on preliminary planning.

Scott Bates, the chairman of the CPA, praised Governor Malloy for his decision to continue his administration’s large scale investment in the Connecticut maritime economy:

“Governor Malloy has worked hard to rebuild Connecticut’s infrastructure as a way to create jobs and long term economic growth. This investment in State Pier will pay dividends for years to come in this region and across Connecticut. At the Connecticut Port Authority, we are ready to tackle this new project as we continue our work strengthening the maritime economy across the state.”

State Pier in New London is the only major port, from the mid-Atlantic to Maine, without the bridge obstructions or hurricane barriers that can restrict ships from entering other harbors.

This is a major advantage when it comes to using State Pier to support development initiatives along the east coast of the United States. The same natural assets that made New London the Whaling City, and a major area of regional commerce in the early days of the United States, are still assets today.

The governor’s announcement of further investment in State Pier follows an announcement earlier this month of a new partnership with Electric Boat that is expected to help create nearly 2,000 jobs in the region.

Local Waters. Global Solutions.

Connecticut is home to three deepwater ports (Bridgeport, New Haven, and New London) and a multitude of small harbors, rail lines, and interstate highways crisscrossing the state. Connecticut is uniquely located at the intersection of maritime access and distribution networks, and a thriving maritime industry in Connecticut means stronger economic growth across each of these assets.

The Connecticut Port Authority is overseeing new investments in infrastructure, dredging and intermodal terminal capabilities that are expanding the foundation of Connecticut’s maritime industry and building a thriving network of efficient, customizable transportation solutions.

The Small Harbor Improvement Projects Program

The Small Harbor Improvement Projects Program (SHIPP) will provide grants for the
preparation of plans and studies, as well as construction projects that improve state,
municipal, or other properties in or next to Connecticut waters.

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