BMW has signed a five-year agreement with the Port of Baltimore, Maryland to ship 50,000 automobiles a year through its facilities beginning in 2010. BMW will also share a vehicle processing center adjacent to the port with Mercedes-Benz for five years.
The move comes as the German automaker seeks to gain better access to markets in the American Midwest.
“This is very welcome news for the Port of Baltimore’s auto business,” Maryland Gov. Martin O’Malley said in a statement. “This very challenging economy has had a direct effect on many of the Port’s key commodities, including automobiles.”
The move is a net loss for the Port of Charleston, which had been handling the business, although it was not immediately clear whether or not the decision would result in any additional South Carolina layoffs.
Port officials in South Carolina say the decision was “expected,” although they say that expansions at BMW’s North American headquarters in Greer, S.C. will result in a “significant increase in exports” at the Charleston port in the years to come.
They also say the port – which has seen its competitive position plummet in recent years – is hoping to find a “processing partner” that will enable it to become more competitive in the vehicle import market.
BMW sold nearly a quarter of a million vehicles in the U.S. a year ago.
The move represents a 12% increase in the port of Baltimore’s automotive traffic.
By Ynot December 17, 2009 at 8:57 am
Where the hell is Sanford on this big move?
Isn’t he concerned at all about the newest loss of jobs or did Boing off set the Charleston numbers.
Sanfraud… yooohoooo…. job losses.
By southernmapart December 17, 2009 at 9:13 am
Wishin’ the article explained a little more significance of the move and gave us some numbers. Here in the Upstate, we hardly know what a port is, much less the effect of port changes on the state’s economy.
By darth December 17, 2009 at 9:27 am
Thank ya Democrat Ketih Summey for blockin tha Portz Authority for real estate develepers and Joe Riley for plans to put condos on Ports Authority property over lookin the bay where sweage coming down the Cooper and the Ashley mix before pooping out into tha Atlantic…
Whatever happened to that Navy base that brought billions into SC… ohh developing Daniel Island was more important for real estate commissions and emptying carpetbaggers pockets? But my questions digress.
By darth December 17, 2009 at 9:28 am
Ynot, maybe it was Boeing in the bong…
By 29401 December 17, 2009 at 2:55 pm
Darth,
“But my questions digress” that was the most disjointed and incorrect post I have seen in quite some time; those who do not live around Charleston (presumably including Darth) might like to know that contrary to almost everything Darth posted:
Keith Summey is a Republican – Mayor of N Chas is non-partisan, but he has identified himself as a Republican in the past, endorsed Bush and McCain, and was previously elected as a Republican on County Council. He is most certainly not a Democrat.
Joe Riley plans on placing condos (as well as a park) on a property that was once public housing, the Ports Authority does not own it. The Ports Authority, along with the City, is redeveloping the passenger terminal, it will mean some empty warehouses that the Port owns will be converted but there will be no decrease (nor is there an opportunity for an increase) in available space in terms of port operations.
Daniel Island was not established until the late 1990′s, the decision to close the base was made by the BRAC in 1993 with the official closing in 1996. Even if the timelines were connected, Riley and Summey had nothing to do or say about it (BTW Summey was not mayor when the decision was made). Fritz and Strom and Cousin Arthur tried to do what they could but in fairness the BRAC is set up precisely to limit the sway of political forces (most think for the better).
By Philip branton December 17, 2009 at 2:56 pm
Where is THIS news in the POST and Courier…!?!?!?!?
By lurker December 17, 2009 at 2:56 pm
Don’t get me wrong with all good that BMW has done for SC, and with all the issues around the union at the SCPA I can understand the comlexity of this topic, but maybe SC ought to look at all those tax breaks that BMW gets when it decides to locate part of its operation outside of the state…there ought to be a penalty when it outsources it to another state, or a recision of some of those tax breaks/incentives cause I am sure the idea of using the SC port was part of the deal and thoughts that allowed the tax breaks initially.
By dirtbogger December 17, 2009 at 3:27 pm
lurker, what kind of message would that send to any company looking to move to South Carolina.
By Richard Mazyck December 17, 2009 at 8:49 pm
BMW is spending a fortune to send its imports by rail from the SPA’s Union Pier in Charleston to BMW’s Greer facility where they undergo “vehicle preparation” (remove cosmoline, install radios, tune engines, put on racing stripes, etc.) before being trucked to dealers around the southeast.
Union Pier, which at 64 acres is very small, is also, according to SPA statements, “operating beyond capacity.” Two years ago BMW diverted its autos destined for dealers in Florida and Alabama from Union Pier to Brunswick, Ga. due to (a) overcrowding at Union Pier and (b) lack of a “vehicle preparation center” (VPC) at Union Pier.
Now BMW is diverting its autos destined for dealers in Maryland, Virginia, West Virginia and Ohio to Baltimore for the same reason.
In 1999, in a no-bid, sweetheart deal, SPA turned over its Veterans Terminal (where SPA now plans to handle autos) to a company mainly owned by a convicted federal criminal named Warren Lasch. Lasch’s “start-up” company was called Charleston International Ports LLC. Lasch was (and is) close to BMW and operates Bavarian Motor Transport, Inc., a car-hauling company described on a BMT web site as a “joint venture” with BMW.
Interesting.
In 2003, after the SPA commissioned a $175,000 “forensic audit” of CIP by PricewaterhouseCoopers, the SPA cancelled its “license agreement” with CIP. PWC reported that CIP had “zero equity.”
Interesting.
When will we learn what happened to Reinhard Fischer, BMW-USA VP of Inland Transportation and Dealer Relations, Lasch’s main contact at BMW-USA? What do the documents found in Fischer’s file after he was “removed” from the company say?
Why did lawyer (and CIP Vice President) Ric Tapp send a proposal to BMW about CIP and the Veterans Terminal? Why did Ric Tapp recommend in the proposal that it be kept “confidential”?
What shipping expertise does Ric Tapp have?
What is the connection between Tapp, Lasch and Glenn McConnell, who arranged for Tapp and Lasch to get the Veterans Terminal deal with the SPA, no shipping experience required?
Maybe… the Hunley?
Because… Lasch promised, publicly, to raise $15 million for the Hunley?
Because… McConnell is Chairman of the Hunley Commission?
BMW, the SPA and the State Commerce Department (Robert Royall and Hartley Powell) worked closely together until the CIP “crash.” Now the SPA is looking desperately for “private” funding to upgrade the former CIP terminal (“Veterans Terminal” today), but Wallenius Line is not biting.
Why did the SPA pay nearly $5 million to settle the lawsuit CIP filed against it?
There are so many questions and secrets, so much money, and so little “light” on this subject.
Richard Mazyck
Charleston
By southernmapart December 18, 2009 at 7:06 am
Mazyck, wow! Thanks for the comments. I gotta wonder how much the Hunley is costing the state.
A couple years back, McConnell spoke at a Rotary luncheon in the Upstate. He told about Air Force personnel asking congress for funding and that ol’ Strom told them he couldn’t think about airplanes when he didn’t have funding for a submarine. Fed funds came in on the submarine and the Air Force got their airplanes.
By Huhhh??? December 18, 2009 at 11:45 am
If we’re talking about BMW imports from Europe, it makes sense to have them come to whatever port is closest to the ultimate destination.
I doubt BMW will send their Greer products to Baltimore to be sent to Europe.
By Ben December 18, 2009 at 1:44 pm
This is not a big deal, other than the fact our state should not be in this business in the first place. Taking cars on and off ships is not a big jobs engine for our state-contrary to what the SPA propaganda machine would like for you to believe.
If Baltimore can ship trains more efficiently, they can have the business. I’m just glad BMW didn’t shake us down and make us spend millions to handle the business.