For more than a century, Sparrows Point churned out steel destined for the Golden Gate Bridge, naval destroyers and other projects. Once the largest steel mill in the world, it closed in 2012 after decades of decline. But next year, workers will return to the site—only now to sort packages for FedEx Corp.
Investors who bought the mill plan to announce this week that they have signed leases for warehouses to be built by FedEx and Glencore PLC’s Pacorini Metals. They also have a commitment for an automotive shipping terminal.
The hope is to eventually build about 15 million square feet of industrial property—about the size of six Empire State Buildings—most of it in the distribution and logistics industries. The project could add as many as 12,000 jobs over the next decade, the investors say.
Maryland is supporting the proposal with tax breaks for companies that sign on, and Baltimore County has asked the state to pay for as much as $100 million in road and bridge improvements near the project. State lawmakers are expected to discuss the request during this year’s legislative session.
“When I first bought this thing, people said I was crazy. They said, ‘What are you going to do with an old steel mill?’ ” said Roberto Perez, executive vice president of Hilco Redevelopment Partners, the real-estate arm of the firm that bought Sparrows Point out of bankruptcy in 2012 for $72 million. “My mind went immediately to logistics. I think we can become one of the most efficient places to move products in North America.”
Source: WSJ