Highstar closes on Seagirt concession

Ports America Chesapeake, a subsidiary of Highstar portfolio company Ports America, is providing 100% of the funding to build a new, 50 foot-deep berth at the Port of Baltimore’s primary marine container terminal.

Ports America, a marine terminal operator owned by New York infrastructure private equity firm Highstar Capital, has completed the financing for its contract to operate the primary marine container terminal at the Port of Baltimore, according to a statement.

Under the terms of the deal, Ports America Chesapeake, a subsidiary of Ports America, will provide 100 percent of the funding to build a new, 50 foot-deep berth for larger container ships that are due to start arriving at the port once the Panama Canal finishes its widening project in 2014.

Ports America Chesapeake will also receive a 50-year operating concession, or right to collect revenues, for the Seagirt Marine Terminal, where the new berth will be located. The Maryland Port Administration, which has operated the terminal since its opening in 1990, will receive a share of the revenues under the concession.

Highstar did not disclose any financial details on the transaction and executives couldn't be reached for comment Tuesday night. However, the firm said that the transaction will provide more than $1.3 billion in value to the State of Maryland, create 5,700 jobs and provide more than $15 million in annual new tax revenues.