International Trade Disputes Create Paper Losses For Port Of Wilmington - Gross Revenues Grow But Higher Expenses Cut Bottom Line

The Port of Wilmington set new records for revenue and cargo tonnage in the fiscal year that ended in June; 5 million tons of cargo moved over Port facilities, an increase of 2% over the previous year.  Revenues at the port continue to grow, with FY 2001 revenues 5% above FY 2000 and operating income, before interest costs, of $1,152,000.  The Port had a positive cash flow of over $4 million, and depreciation costs were $3.6 million.  At the same time, international trade disputes, which seriously dented steel imports, were a major cause of an accounting loss of $1.6 million for the year on revenues of $25.9 million.  The loss itself will not result in the need for any further financial support from the State.  This net loss compares with net income of between $100,000 and $200,000 in the prior two fiscal years.

Steel imports from around the world have been a vital source of revenues for the Port of Wilmington, producing large numbers of jobs. In 2000, steel imports of 250,000 tons generated 141,000 hours of work at the Port and over 157 direct and indirect jobs at Port and Port-related facilities. By contrast, in 2001 steel imports fell by 57% to 147,000 tons generating 88,000 hours of work and 90 direct and indirect jobs at the Port and related facilities.

Jobs and revenues from steel imports have declined over the past three years as government- imposed restrictions took hold. Port officials remain concerned that new or more severe restrictions, such as the probe on steel imports undertaken by the US International Trade Commission, could further erode the Port's steel volumes and result in a continuing loss of port jobs and revenue.  "We hope to build on the great success working with Delaware's congressional delegation to defeat recent moves to impose import restrictions on grapes," said Adam McBride, Executive Director for the Pot of Wilmington. "Now we must turn our attention to the vital steel imports that support so many jobs here in Delaware."

The State has invested over $80 million in State investments to improve facilities at the Port of Wilmington since acquiring it from the City of Wilmington six years ago. "The Port is an important strategic asset and job center for the State," said Economic Development Director John Wik. "We've been watching the situation closely."

State finance offices were aware of the Port's situation. "Helping to build the capacity of the Port to sustain itself was an important priority for this Administration." said Finance Secretary David Singleton. "With revenues getting tighter, we wanted to make sure that the Port was on solid financial footing going forward." Working with the state's Bond Bill Committee, the Minner Administration is working to restructure some of the Port's existing debt to reduce interest payments and to increase cash flow for future investments at the Port. "The Port's business is still continuing to grow, but this restructuring gives the Port added leverage to adapt to changing business conditions and to make strategic investments when the return of the investment makes sense."

Founded in 1923, the Port of Wilmington is an important asset for the local and regional economy, generating more than 5,800 jobs and contributing over $22 million in annual tax revenues to State and local government.  The Port is owned and operated by the Diamond State Port Corporation, a corporation of the State of Delaware.  For further information, digital photos, free tours of the Port and free speakers contact:  Vered Nohi-Becker, Marketing Services Manager at the Port of Wilmington @ (302) 472-7819, e-mail: vnbecker@port.state.de.us