Port leaders defend investments as DLS flags FY27 operating and capital shifts
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Summary
DLS told the subcommittee the Maryland Port Administration’s FY27 operating budget falls by $1.8 million while capital funding declines about $87.2 million; MDOT and MPA officials described Howard Street Tunnel progress, dredging and federal grants for zero-emission equipment to keep the Port of Baltimore competitive.
Department of Legislative Services analyst Sam Quest told the Senate subcommittee on Feb. 13 that the Maryland Port Administration’s FY27 operating budget decreases by about $1.8 million (to $58.5 million) and the FY27 capital total decreases by about $87.2 million (to roughly $339 million), driven in part by one‑time FY26 spending and cash‑flow shifts across multi-year projects.
Quest summarized recent cargo trends: foreign cargo reached a high in FY23 and declined after the Francis Scott Key Bridge collapse but was projected to rebound in FY25; general cargo and container metrics show mixed year‑to‑year performance. DLS noted major capital items in the six‑year program including the Mid Chesapeake Bay Island ecosystem restoration project and the Howard Street Tunnel, and recommended continuing committee narrative reporting on Howard Street tunnel progress and federal grants.
Acting Transportation Secretary Katie Thompson and MPA Executive Director Jonathan Daniels described projects the state says will preserve port capacity and competitiveness. Daniels told the committee the Howard Street Tunnel reconstruction is ahead of schedule and will create a double‑stack rail corridor that could increase port container capacity by about 160,000 containers annually and is projected to support more than 13,000 additional jobs. Daniels also described a $147 million federal Clean Ports program grant supporting zero‑emission vehicles and equipment for terminals.
MPA officials reviewed dredged material management: Poplar Island has restored more than 1,700 acres but is approaching capacity, and the Mid Chesapeake Bay island restoration at James and Barren Islands is intended to provide multi‑decade placement capacity and environmental benefits. Daniels and DLS staff described several federal grants and reimbursements tied to projects such as the Howard Street Tunnel and Dundalk Marine Terminal resiliency work.
Senators pressed MPA on tariff uncertainty, effects on cargo composition and vessel calls, local infrastructure repairs, and confined disposal capacity for dredged material. Daniels said early 2025 pre‑positioning related to tariff uncertainty boosted first‑quarter throughput and that the port has seen more vessel calls but not a proportional increase in cargo per ship. He stressed that other states are making large port investments—citing $1.4 billion in Virginia and multibillion-dollar programs in Georgia—and argued Maryland must continue capital investment to remain competitive.
DLS recommended the committee concur with the governor’s capital allowance and requested ongoing reporting on federal reimbursements and Howard Street tunnel progress. The hearing concluded without votes and committee staff said they would continue follow-up on grant reimbursement status and project timelines.