ProvPort looks for $20M bond to expand footprint along Allens Ave.

THANKS TO THE EXPANSION OF THE PANAMA CANAL, the Port of Providence is expecting increased cargo shipping to hit the East Coast, and as a result is looking to expand its footprint to capture some of that traffic. / COURTESY PROVPORT
THANKS TO THE EXPANSION OF THE PANAMA CANAL, the Port of Providence is expecting increased cargo shipping to hit the East Coast, and as a result is looking to expand its footprint to capture some of that traffic. / COURTESY PROVPORT

PROVIDENCE – ProvPort Inc., the nonprofit corporation that operates the Port of Providence, is seeking a state bond issue that would enable it to expand and accept cargo from ships that require ports with refrigeration capacity.

The legislation, sponsored by Senate Majority Leader Dominick J. Ruggerio, D-North Providence, would authorize a statewide referendum for up to $20 million for acquisition, expansion and infrastructure improvements. The funds would be applied to up to 25 acres of land and facilities between Allens Avenue and the Providence River.

A recent economic development impact assessment study, commissioned by ProvPort, found that Providence could benefit from the expansion of the Panama Canal, which it said is expected to result in an influx in larger ships to U.S. ports by the fourth quarter of 2016. Although the Port of Providence cannot accommodate the largest ships, they are expected to displace smaller operators from ports who will be looking for alternate destinations.

“With the addition of land resources, ProvPort could be well positioned to develop a terminal anchored around small to mid-size shipping lines,” according to the report overview.

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The study, completed March 18, was prepared for the port by M. John Vickerman, president of the Vickerman & Associates LLC, a Virginia-based consultant and planner of port and intermodal facilities.

Vickerman is expected to be among those testifying when the Senate Finance Committee on Wednesday holds a public hearing on the plan. The session is to begin at 3 p.m.

If authorized by the General Assembly, the bond referendum would be scheduled for Nov. 6.

The report prepared by Vickerman indicates that the $20 million bond could be applied to the first phase of a port expansion, which would add 14.8 acres of land that could support a structure that would accept containerized cargo. The cargo would be trucked in from the existing port facility, which has a pier and crane that could unload arriving ships.

The economic impact would reach $19.6 million annually, assuming the ProvPort terminal accepts up to 45,886 20-foot containers.

If authorized by voters, the Phase I investment would include $10.2 million in land acquisition costs and $9.2 million in improvements.

The land has not been identified specifically, and could include any number of parcels, according to Bill Fischer, a spokesman for ProvPort.

The impact study identifies three potential parcels that would make up that acreage: 9.04 acres owned by Cumberland Farms Inc., a 0.51-acre easement of the City of East Providence and 5.27 acres owned by ACR Realty Inc.

According to the study, Phase I consists of 14.82 acres and would include terminal improvements with refrigerated container yard storage areas.

The project, for just the first phase, would create 296 jobs and support 292 additional jobs through indirect payments.

Two additional phases of development – which are not proposed for immediate funding – would expand the port to include 60 additional acres, including a port terminal with five berths accommodating barges and other ships. The acreage cited in the report includes 31 acres of submerged lands.

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