Baltimore and International Business

[Itus]

Metastorm extends software reach to South Africa, Sweden
Baltimore Business Journal - by Scott Dance Staff

Metastorm Inc. has opened offices in Sweden and South Africa as it grows sales of its software overseas.

The moves follow the 2007 acquisition of European software firm Process Competence, which extended Metastorm's reach in Belgium, France and the Netherlands. The company is also establishing a presence in the United Kingdom, Germany and Australia.

The company has been striving to bring sales to $100 million a year, with an eye on initial public offering of stock in June, CEO Robert Farrell said in January.

Metastorm specializes in software that helps companies plan the effects of growth and streamline complex processes and procedures.

"Our success selling through partners has proven that the demand for our software is very strong in [Europe, the Middle East and Africa]," Robin Martin, vice president of international operations for Metastorm, said in a statement. "Our international expansion will help us to provide additional resources to our customers and will give us broader reach."

Metastorm already has customers established in the two areas: Eniro, L@W, OMX Group, Scania, SkandiaBanken and Telenor in Sweden, and EPC, Glacier, South Africa Office of the President and Webber Wentzel in South Africa.

http://www.bizjournals.com/baltimore...l?surround=lfn

[Silver Springer]

Two Indian tech companies pick Maryland for headquarters

Wednesday, April 16, 2008 - 8:28 AM EDT

Washington Business Journal - by Robert J. Terry Contributing Writer

Two technology companies with ties to India are setting up U.S. headquarters in Maryland.

Intercontinental Export Import Inc. (IEI) and Prism Microsystems will open offices in the same Centre Park Drive building in Columbia, Md., company executives and county officials said in a Tuesday news conference.

Representatives from both companies accompanied Howard County Executive Ken Ulman on a recent economic development trip to Bangalore, India. IEI, which develops new technologies for recycling and environmental services, plans to add 50 jobs in the next year, CEO Saurabh Naik said in a statement. The company has been headquartered in Odenton.

Prism Microsystems develops security tools for information technology systems and needed more space to grow. A.N. Ananth is head of Prism Microsystems, which has a research facility in Bangalore.

Executives with both companies cited the region's work force and quality of life as reasons for opening the Columbia offices.

A new Howard County-India Trade Committee will promote investment between the county and India, home to a fast-growing technology economy.

[Itus]

Prometric lands $75M contract to administer driving tests in Ireland
Baltimore Business Journal - by Scott Dance Staff
4/21/08

Testing services company Prometric has landed a renewed $75 million contract to manage driving tests in Ireland.

Prometric, based in Baltimore but a subsidiary of Princeton, N.J.-based ETS, was hired to deliver a driving theory test for the Road Safety Authority of Ireland for the next seven years.

The company plans to expand its facilities and staff in Ireland to help streamline its services there. It offers written tests online and at testing centers, including a new "green" center in Ireland, a company release said.

"Prometric is well placed to deliver enhanced customer service levels, introduce the next generation of driver theory testing technology and provide best value," Road Safety Authority CEO Noel Brett said in a statement. "We look forward with enthusiasm to working with our partner Prometric over the next seven years."

Prometric administers tests online and at test centers in 135 countries. It was previously a division of Thomson Corp. (NYSE: TOC) before ETC acquired it for $435 million in October.

http://www.bizjournals.com/baltimore...l?surround=lfn

[Itus]

Beynon Sports Surfaces bought by Canada's FieldTurf Tarkett
Baltimore Business Journal - by Ryan Sharrow Staff
4/22/08

Beynon Sports Surfaces said Tuesday it has been acquired by Montreal's FieldTurf Tarkett.

Hunt Valley-based Beynon Sports Surfaces was launched in 2001 by John Beynon. Terms of the acquisition were not disclosed.

The company's 57 Hunt Valley employees will not be affected by the sale, Drew Beynon, director of business development, said in an interview Tuesday.

Beynon Sports has completed more than 450 outdoor running tracks and 5,000 indoor surfaces. The company built the track for the 2008 Olympic track and field trials at the University of Oregon.

FieldTurf Tarkett is one of the world's largest manufacturers of sports surfacing, including synthetic turfs, hardwood basketball, volleyball and racquetball courts.

The acquisition of Beynon will make FieldTurf the largest running track company in North America, the company said.

http://www.bizjournals.com/baltimore...l?surround=lfn

[Itus]

Cargo service quitting port next week
By Laura McCandlish | Sun Reporter
May 2, 2008

A cargo service that brought nearly 30,000 containers annually into Seagirt Marine Terminal is quitting the port of Baltimore after only two years.

French-owned CMA-CGM and China Shipping, two of the largest global shipping lines, will halt their joint weekly service from Europe to Baltimore on May 8, when it makes its final call here, according to CMA-CGM's North American headquarters in Norfolk, Va.

It's the latest blow to the port administration's efforts to bolster container traffic in Baltimore, which for years has lost market share to East Coast ports that are closer to the ocean rather than up Chesapeake Bay. The port also lacks the ability to efficiently double-stack containers on trains, which is fast becoming the industry standard.

The departure leaves the port with three container carriers that connect Baltimore and Northern Europe: Mediterranean Shipping Co., Atlantic Container Line and Hapag-Lloyd Inc.

"Although we're sorry to see a carrier leave ... I don't think we're going to suffer in man-hours or volumes moving through the port," Maryland Port Administration Director James J. White said.

"It's one less choice that the importers and exporters have. They like as many carriers calling, so they can get the lowest freight rates," White said.

Annual container traffic at Seagirt decreased in 2007 for the first time in at least five years, falling 2 percent to 479,123 TEUs, the equivalent of 20-foot containers. The port's overall container business grew less than 1 percent last year, to 495,909 TEUs, the MPA said.

But as the U.S. consumer economy slumped, nationwide container traffic across the country was down 7 percent to 9 percent last year, White said, so Baltimore fared better than some other ports.

The loss of the shipping service, however, could cut capacity at the port. With the weakened dollar creating a surging demand for exports, space on remaining trans-Atlantic freighters to Europe could become even tighter for U.S. customers.

Eastbound ships that once carried empty containers back to Europe are now laden with U.S. exports, which have become relatively cheaper there as the dollar has fallen against the euro and British pound.

"It's a daily struggle to find timely bookings," said Butch Connor, director of ocean operations for John S. Connor Inc., a global logistics company based in Glen Burnie. "The exports could definitely be even higher than they are if there were more ships going out."

Most of the containers imported through the CMA-CGM/China Shipping route carried goods to be delivered within 100 miles of Baltimore, White said. That could prevent them from being redirected to other ports.

The three remaining trans-Atlantic carriers should pick that business up, said Mark Montgomery, vice president of East Coast operations for Ports America, which runs the Seagirt terminal.

"The cargo is originating here or coming here," Montgomery said. "The boxes will stay in Baltimore, but it's still sad to see the service leave."

CMA-CGM said it can no longer serve Baltimore because its new trans-Atlantic service will share vessels with Danish-giant A.P. Moller-Maersk. Maersk, which has just built a new $400 million container terminal near Norfolk, Va., has not called Baltimore in at least seven years, White said.

The new CMA-CGM/Maersk service will call the ports of Miami; Savannah, Ga..; Charleston, S.C.; and New York. The old CMA-CGM/China Shipping route called Boston, New York, Norfolk and Baltimore.

laura.mccandlish@baltsun.com

http://www.baltimoresun.com/business...,5040565.story

[Itus]

Sparrows Point has a new owner
Severstal deal raises hopes for future of Md. steel complex
By Andrea K. Walker | Sun reporter
May 8, 2008

Russian steelmaker OAO Severstal completed yesterday its $810 million acquisition of the Sparrows Point steel mill from ArcelorMittal with plans to invest significantly in the Baltimore County plant and rev up production.

Sparrows Point management and labor expressed excitement and hope that the Severstal deal will shore up the future of the 119-year-old plant, which becomes a key part of Severstal's plans to expand in the United States.

The plant, which employs 2,500, has languished under a succession of owners, leaving workers anxious about whether it can remain competitive.

"The steel plant and all of us in management are extremely pleased with the outcome of the plant's sale to Severstal," said plant manager Thomas Russo.

"Their vision for Sparrows Point is very exciting and we hope to make sure they are satisfied with the purchase. We believe Sparrows Point will become one of their key assets in North America," Russo said.

John Cirri, president of the United Steelworkers Local 9477, said workers remain optimistic that Severstal will make good on its pledge to invest up to a half-billion dollars in the plant and boost production over the next five years. Severstal has said it could hire more employees as it increases output.

But the union said it is disappointed that the Russian steelmaker has met with labor just once since the Severstal's successful bid was announced March 21.

"I'm just a little disappointed that they, in my opinion, haven't embraced the union down here as much as I thought they would," Cirri said.

Severstal executives were not available for comment yesterday.

But in March when it announced the planned acquisition, Severstal executives, led by a Russian billionaire who is one of the world's wealthiest men, said it plans to run the mill at full capacity and invest in upgrades over the next five years. The plant turned out 2.3 million tons of steel last year, but is capable of producing 3.6 million tons.

The plant has received no significant investment since it was owned by Bethlehem Steel, which went bankrupt in 2001.

The most recent owner, ArcelorMittal, operated Sparrows Point as a "swing plant," adjusting production according to market demand.

Severstal has said it has no plans to cut employment, wages or benefits and that it plans to keep current management in place. The USW signed off on the deal, which also received approval from the U.S. Department of Justice and the Committee on Foreign Investment in the United States.

The Justice Department ordered Luxembourg-based ArcelorMittal, the world's largest steelmaker, to sell Sparrows Point because of antitrust concerns over the production of tin plate, which is used to make cans among other things.

The sale was overseen by a U.S. trustee appointed after a $1.3 billion deal to sell the plant to a joint venture led by Esmark Inc. of Illinois collapsed in December because the buyer was not able to secure financing and a labor agreement.

Esmark last week announced it had accepted a cash buyout offer valued at about $669 million from India's Essar Steel Holdings Ltd.

Under Severstal, the Steelworkers are hoping for a return to the days when labor and management worked together to increase productivity and resolve problems. That atmosphere of partnership dissipated after Mittal bought the plant and instituted a more top-down management approach.

The Steelworkers' contract at Sparrows Point expires in August, which means Severstal won't have long before it will have to sit down with labor to discuss the plant's future.

"We're confident they're going to do what they said they're going to do," Cirri said. "We're hoping to pick up more customers and more orders and start hiring."

Severstal becomes the fourth owner of Sparrows Point in five years.

Severstal has said it sees acquisition of the plant as key to expanding its footprint in the United States. It said Sparrows Point will complement its other U.S. properties, which include the former Rouge Steel plant in Dearborn, Mich., and SeverCorr in Columbia, Miss.

The company expects Sparrows Point to have synergies with its other U.S. operations, saving at least $50 million a year.

Analysts and those who follow the steel industry say the deal should be a positive for Sparrows Point.

"On paper it looks promising and it certainly is a pleasant contrast to the current ownership," said Mark Reutter, author of Making Steel, a history of Sparrows Point. "In its three years under Mittal Steel, Sparrows Point has received no capital investment and no real commitment by that company. It looked like the plant had a real chance of being closed down or being severely curtailed."

Christopher Plummer, managing director of Metal Strategies Inc., said Severstal is known for continually investing in its properties. He said that there is room for additional capacity at Sparrows Point. For instance, its tin mill produces more than 400,000 tons, but has the capacity for 700,000 tons.

"There are many good features to the plant," he said. "I would think Severstal would be looking to enhance the plant rather than running as is."

andrea.walker@baltsun.com

http://www.baltimoresun.com/business...,7299919.story

[Itus]

Metastorm files for IPO
Baltimore Business Journal - by Scott Dance Staff

Metastorm Inc. has filed to go public, seeking to raise as much as $86 million.

The Baltimore technology company, which makes software companies use to streamline complex business processes, filed its initial public offering registration with the Securities and Exchange Commission late Tuesday.

The move ends speculation on whether the company would go public despite a beleaguered stock market. CEO Robert Farrell told the Baltimore Business Journal last year the company was on pace for an IPO at the midpoint of this year.

The number of shares and price of the offering haven't been determined. The $86 million estimate was used to calculate the registration fee.

Jefferies & Co. and Oppenheimer & Co. will be joint bookrunners for the offering, and Needham & Co., JMP Securities and Craig-Hallum Capital will be co-managers for the offering.

The company made $59.7 million in revenue in 2007, 70 percent of it in North America and 30 percent elsewhere, according to its filing. Metastorm totaled $42.1 million in revenue in 2006 and $25.3 million in 2005.

The company lost money each year from 2003 to 2006 -- as much as $15.8 million in 2004. After losing $660,000 in 2006, Metastorm swung to a $586,000 profit in 2007.

Metastorm hopes to sell its stock on the NASDAQ Global Market under the symbol MSTM.

The registration also shows the company has two lawsuits pending against it for patent and trademark infringement that could require it to stop selling licenses for its software.

Metastorm plans to use the money raised from the IPO to acquire additional companies and technologies and expand both sales and marketing and research and development, according to the filing. Metastorm has been on a bit of an acquisition spree of late, buying companies in Michigan and Europe to extend its reach and its product line.

Metastorm's investors include:

Internet Capital Group, a venture capital firm with 32.2 percent of the company;
ABS Capital Partners, which owns 16.8 percent;
3i Group, which owns 12.8 percent;
Wall Street Technology Partners, which owns 9.1 percent; and
CEO Farrell, who owns 2.1 percent.

http://www.bizjournals.com/baltimore...l?surround=lfn

[30 Floors Up]

In game to lure businesses, Baltimore scores high marks
Baltimore Business Journal - by Daniel J. Sernovitz Staff

Greater Baltimore nearly broke the top 10 on a report that ranked the nation's most competitive metro areas, scoring high marks for research spending and work force, according to a new report issued by Suffolk University's Beacon Hill Institute.

Despite that progress, the report listed crime, congestion and expenses such as utility costs -- issues that experts say are threatening to derail the region's economic development if left unchecked -- among the region's weaknesses.

The region ranked 11th out of 50 cities on Beacon Hill's Metropolitan Area Competitiveness Report 2007, an indicator of cities' ability to attract and retain new companies and jobs.

This was Baltimore's first appearance on the report, which in prior years included the region as part of Washington, D.C. The nation's capital ranked fifth, trailing top-ranked Salt Lake City, Boston, Denver and Portland.

[Itus]

This data comes from a survey that the BBJ has done a few times now I think, with the most recent display of results showing up in the June 13-19 edition.

Depending on the company, it could say any number of things regarding the involvement of foreign companies in the Baltimore area and the amount of travel between a home country and here.

There may be companies left off the list because they didn't provide responses to the BBJ as well.

BBJ Largest internationally owned businesses in the Baltimore area (June 13-19, 2008)

Company / Location Local/Total Employment Parent Company / Country
1 Giant Food, Inc / Landover 6456/21000 Ahold / Amsterdam, Netherlands

2 ArcelorMittal USA, Baltimore 2530/15500 ArcelorMittal / Rotterdam, Netherlands

3 Random House, Inc / Westminster 900/(n/av) Bertelsmann / Munich, Germany

4 Zurich North America / Baltimore 755/dtd Zurich Financial Svcs / Zurich, Switzerland

5 Lafarge Corp / Towson 499/90000 Lafarge Corp / Paris, France

6 Sephora USA / Belcamp 488/(n/av) LVMH Moet Hennessy / Paris, France

7 Alcatel-Lucent / Hunt Valley 466/30000 Alcatel-Lucent / Paris, France

8 Cristal Global / Hunt Valley 365/3700 Cristal Global / Jeddah, Saudi Arabia

9 Shire US Manufact. / Owings Mills 325/(n/av) Shire Pharmaceuticals / Hampshire, England

10 Corporate Express / Hanover 300/18000 Corporate Express / Amsterdam, Netherlands

10 Signature Flight Support / Baltimore 300/4000 BBA Group / London, England

12 Custom Direct / Joppa 293/467 Edgestone Capital Partners / Toronto, Canada

13 Games Workshop / Glen Burnie 250/300 Games Workshop Group / Nottingham, England

14 Actavis US / Baltimore 200/740 Actavis Group / Hafnarfirdi, Iceland

15 Bottcher America / Belcamp 193/193 Felix Bottcher / Leipzig, Germany

16 Shimadzu Scientific Instr / Columbia 180/340 Shimadzu Corp / Kyoto, Japan

17 Knorr Brake / Westminster 170/182 Knorr-Bremse / Muenchen, Germany

18 Lehigh Cement Co / Union Bridge 168/70000 HeidelbergCement / Heidelberg, Germany

19 RTKL Associates / Baltimore 166/1166 Arcadis / Arnhem, Netherlands

20 Deutsche Bank Alex Brown 127/78275 Deutsche Bank / Frankfurt, Germany

I think the BBJ said #14 is leaving the area

[Itus]

Medisolv buys Canada's Clinsaver Software Inc.
Baltimore Business Journal - by Scott Dance Staff
6/24/08

Medisolv has acquired Canadian firm Clinsaver Software Inc., a move to help the health care technology company get its foot in the door in that country.

The Columbia-based company makes software used in hospitals in the U.S. and Canada, and leaders hope the deal will help it add customers and grow its market in Canada.

"We already have some customers in Canada," Medisolv Vice President for Marketing and Sales Ray Dudley said in an interview Tuesday. "But this should enhance our capabilities."

The acquisition helps Medisolv get a better grasp of how to serve customers in Canada, where health care is publicly funded and is operated differently than in the U.S., Dudley said. Terms were not disclosed.

It also gives Medisolv a Canadian office to draw in more accounts, he said.

Medisolv and Ontario-based Clinsaver both make software that helps hospitals track data on finances, clinical outcomes and operations to better monitor performance.

The deal also includes Clinsaver subsidiary McCartney Consultants, based in Toronto. Principals from both companies will join Medisolv, and Clinsaver President Elizabeth Fleming will become vice president of Canadian operations for Medisolv.

Medisolv is a graduate of the Howard County Economic Development Authority's Neotech Incubator, where it was one of the initial tenants in 2000.

http://www.bizjournals.com/baltimore...l?surround=lfn

[Itus]

U.K.'s Sagentia sets up U.S. headquarters in Howard County
Baltimore Business Journal - by Scott Dance Staff
6/26/08

British technology firm Sagentia has chosen Howard County for its U.S. headquarters.

Sagentia is based in Cambridge, United Kingdom, and has been publicly traded there for eight years. The company develops technologies and products in the medical, industrial, consumer, chemical and energy fields.

Its clients include Pfizer, Proctor and Gamble, Johnson & Johnson, Thermatru, Markem and CHF Solutions, as well as some startup companies.

The company worked with the Howard County Economic Development Authority and the state Department of Business and Economic Development to choose the site in the Maple Lawn development in Fulton, where it has moved 20 U.S. employees into a 4,000 square-foot office.

Company officials said it picked the location for its proximity to Johns Hopkins University, Johns Hopkins Hospital and the Johns Hopkins University Applied Physics Lab. The company was also enticed by being close to the National Institutes of Health and the Food and Drug Administration, both in Montgomery County.

"We plan to take full advantage of the excellent location to reach out to companies which are in need of technology and innovation support, from the technology incubators and numerous technology centers in the region to the nearby large global technology and government contractor companies," Sagentia President Paul Fearis said.

The company has plans to increase its number of employees in the office to 30 in the next two years.

Gov. Martin O'Malley was scheduled to participate in a ribbon-cutting ceremony for the office's opening Wednesday.

"In today's highly competitive economy, I am extremely pleased that Sagentia has chosen Maryland for its new U.S. headquarters," O'Malley said in a statement.

http://www.bizjournals.com/baltimore...l?surround=lfn

[Itus]

Laureate buys universities in Mexico, Costa Rica
Baltimore Business Journal - by Sue Schultz Staff
7/8/08

Baltimore-based Laureate Education Inc. announced the purchase Tuesday of two prominent universities in Mexico and Costa Rica.

Laureate, which owns and operates online and overseas universities, acquired Universidad Tecnológica de México also known as UNITEC. The system serves roughly 36,000 students at eight campuses throughout Mexico including Mexico City, Guadalajara and Monterrey. The university offers undergraduate and graduate degrees in business, engineering, health sciences, architecture and graphic design.

In Costa Rica, Laureate acquired Universidad Latina, which serves more than 16,000 students. The school has 13 campuses throughout the country.

Laureate officials declined to comment on the cost of the universities. The company has more than 35 universities and 90 overseas campuses with more than 405,000 students worldwide.

http://www.bizjournals.com/baltimore...l?surround=lfn

[Ty Doggie]

Baltimore could use all the International business it can get to help better the economy and leverage the local talent to COMPETE. Better yet, this may be the necessary kick in the ayis that national companies need to keep people locally AND to think outside the box in doing things.

I'd even go so far as to say that the companies should kick-start a serious investment in R&D. This country NEEDS to do that.

[Itus]

Shipping line to extend port pact
Taiwan-based Evergreen adding service for 10 years
By Laura McCandlish | Sun reporter
July 23, 2008

Taiwan-based Evergreen Marine Corp. will sign today an agreement to continue service to Baltimore for 10 years as it eyes an increase in traffic between the East Coast and Asia.

The new longer-term contract keeps Evergreen's guarantee to move at least 40,000 loaded containers through Seagirt Marine Terminal annually. Evergreen is the second largest container line operating in the port and the only one to provide direct service to Asia, a market port officials have tried to expand in recent years.

"To get a major shipping line like Evergreen to commit to the port of Baltimore - we're lucky to get one of these agreements every two to three years," said James J. White, the Maryland Port Administration's executive director. "The growth with this Asian market has just exploded."

Gov. Martin O'Malley and Transportation Secretary John D. Porcari will herald the agreement with White and Evergreen executives at Seagirt this morning. It is the most significant contract White has overseen since he reassumed the top port job last summer after a two-year absence.

As the port struggles to bolster lagging container traffic at Seagirt, its Evergreen service is a bright spot. The volumes Evergreen handles in Baltimore have increased 126 percent, to about 100,000 containers annually, White said. It is the port's fastest-growing container line.

Overall container traffic at Seagirt dropped 2 percent in 2007 to 479,123 TEUs, or the equivalents of 20-foot containers, from nearly 490,000 in 2006. In May, French-owned CMA-CGM and China Shipping halted their joint weekly service that brought nearly 30,000 containers annually from Europe to Seagirt.

Evergreen's extended contract is contingent on the expansion of the Panama Canal by 2014 to allow Asia's biggest ships to pass through. If the plans to deepen and widen the canal fall through, Evergreen has the option to back out of its contract after five years, White said.

Those larger ships would also require a 50-foot-deep berth at Seagirt at a projected cost of $130 million.

Port officials are considering various options to fund the project.

John S. Connor Inc., a Glen Burnie-based global logistics company, said Asian-bound ships are booked up due to a surge in local exports. Shipments on Evergreen's vessels in Baltimore must now be booked a month out, while only a window of a few days was required last year, said Butch Connor, the company's director of ocean operations.

To accommodate such demand, the port has asked Evergreen to bring larger ships into Baltimore, White said.

"It's imports and exports: It's been a great two-way trade for Evergreen," he said.

Baltimore could also benefit as more shipping lines divert service from the congested West Coast, though it requires a day's sail up Chesapeake Bay, said Paul Bingham, a principal with Global Insights Inc. who monitors the port sector.

"It's rarely going to be the first choice of call for an Asian service on the East Coast," he said. "But for certain services it's still going to make sense to reach the inland location."

laura.mccandlish@baltsun.com

http://www.baltimoresun.com/business...,5654625.story


----
I think I recall Glendening taking a trip to Taipei to discuss future deals with Evergreen, including the possibility of adding Eva Air(ways) (same parent company) service from Taipei to BWI many years ago. That is a bit of a laugh now I suppose.

[k25150]

Originally Posted by Ty Doggie

Baltimore could use all the International business it can get to help better the economy and leverage the local talent to COMPETE. Better yet, this may be the necessary kick in the ayis that national companies need to keep people locally AND to think outside the box in doing things.

I'd even go so far as to say that the companies should kick-start a serious investment in R&D. This country NEEDS to do that.

Yup. Losing customer service and manufacturing jobs overseas is one thing. But when you lose R&D, you're done. And we better improve our public schools because our kids aren't learning at the same pace as other nations. Some aren't even learning. This is vital if we are to continue our global dominance.

[k25150]

Originally Posted by Itus

Shipping line to extend port pact
Taiwan-based Evergreen adding service for 10 years
By Laura McCandlish | Sun reporter
July 23, 2008

Taiwan-based Evergreen Marine Corp. will sign today an agreement to continue service to Baltimore for 10 years as it eyes an increase in traffic between the East Coast and Asia.

The new longer-term contract keeps Evergreen's guarantee to move at least 40,000 loaded containers through Seagirt Marine Terminal annually. Evergreen is the second largest container line operating in the port and the only one to provide direct service to Asia, a market port officials have tried to expand in recent years.

"To get a major shipping line like Evergreen to commit to the port of Baltimore - we're lucky to get one of these agreements every two to three years," said James J. White, the Maryland Port Administration's executive director. "The growth with this Asian market has just exploded."

Gov. Martin O'Malley and Transportation Secretary John D. Porcari will herald the agreement with White and Evergreen executives at Seagirt this morning. It is the most significant contract White has overseen since he reassumed the top port job last summer after a two-year absence.

As the port struggles to bolster lagging container traffic at Seagirt, its Evergreen service is a bright spot. The volumes Evergreen handles in Baltimore have increased 126 percent, to about 100,000 containers annually, White said. It is the port's fastest-growing container line.

Overall container traffic at Seagirt dropped 2 percent in 2007 to 479,123 TEUs, or the equivalents of 20-foot containers, from nearly 490,000 in 2006. In May, French-owned CMA-CGM and China Shipping halted their joint weekly service that brought nearly 30,000 containers annually from Europe to Seagirt.

Evergreen's extended contract is contingent on the expansion of the Panama Canal by 2014 to allow Asia's biggest ships to pass through. If the plans to deepen and widen the canal fall through, Evergreen has the option to back out of its contract after five years, White said.

Those larger ships would also require a 50-foot-deep berth at Seagirt at a projected cost of $130 million.

Port officials are considering various options to fund the project.

John S. Connor Inc., a Glen Burnie-based global logistics company, said Asian-bound ships are booked up due to a surge in local exports. Shipments on Evergreen's vessels in Baltimore must now be booked a month out, while only a window of a few days was required last year, said Butch Connor, the company's director of ocean operations.

To accommodate such demand, the port has asked Evergreen to bring larger ships into Baltimore, White said.

"It's imports and exports: It's been a great two-way trade for Evergreen," he said.

Baltimore could also benefit as more shipping lines divert service from the congested West Coast, though it requires a day's sail up Chesapeake Bay, said Paul Bingham, a principal with Global Insights Inc. who monitors the port sector.

"It's rarely going to be the first choice of call for an Asian service on the East Coast," he said. "But for certain services it's still going to make sense to reach the inland location."

laura.mccandlish@baltsun.com

http://www.baltimoresun.com/business...,5654625.story


----
I think I recall Glendening taking a trip to Taipei to discuss future deals with Evergreen, including the possibility of adding Eva Air(ways) (same parent company) service from Taipei to BWI many years ago. That is a bit of a laugh now I suppose.

I'm glad the port is doing well. I'm glad they figured out a way to take advantage of being inland. Bravo to the people who focused on ro-ro, autos and lumber and whatever else they are doing right.

[Maudibjr]

Originally Posted by Itus

Shipping line to extend port pact
Taiwan-based Evergreen adding service for 10 years

Overall container traffic at Seagirt dropped 2 percent in 2007 to 479,123 TEUs, or the equivalents of 20-foot containers, from nearly 490,000 in 2006. In May, French-owned CMA-CGM and China Shipping halted their joint weekly service that brought nearly 30,000 containers annually from Europe to Seagirt.

Evergreen's extended contract is contingent on the expansion of the Panama Canal by 2014 to allow Asia's biggest ships to pass through. If the plans to deepen and widen the canal fall through, Evergreen has the option to back out of its contract after five years, White said.

Those larger ships would also require a 50-foot-deep berth at Seagirt at a projected cost of $130 million.

Port officials are considering various options to fund the project.

I think that a very important related project for our ports continued growth is the expansion and growth of Baltimore's and the regions rail system. This is unfortunately a horribly expensive and long term project.

Md need to help support CSX plans to expand its tunnels to allow doublestack trains on the old B&O line to Ohio. W. Va, Va. and Pa. are already far ahead of us in supporting railroad expansion. Shipping lines will more naturally congregate to ports that have easier and more economical train access.

Beyond that the physical design of the train lines in Baltimore works against us. All of the container shipping ports on on the east side of the harbor, whereas most of the traffic is going to the west. Leaving the city and its aging rail tunnels in between (Curtis Bay and Locast point are specialized non-container ports). We need to encourage either the expansion/reconstruction of the existing lines or some kind of a bypass (underharbor tunnel?) This will clearly not be cheap but I think is necessary for the long term growth of the port. It will also have the advantage of redirecting hazardous freight away from the CBD.

[Itus]

Md. picks Ellicott City firm to launch business development office in S. Korea
Baltimore Business Journal - by Julekha Dash Staff
8/8/08

The state will open its sixth foreign office in South Korea this fall, its first foreign office that will be run by a private company.

Ellicott City firm IDI Corp. will run the Seoul office and will receive funding on the condition that it attract South Korean companies and jobs to Maryland.

This is the first private-public partnership of its kind and will likely serve as a model for future foreign offices, said Karen Glenn Hood, a spokeswoman for the state's Department of Business and Economic Development.

IDI is owned by John Jongun Chang and Lawrence Chang, who have ties with South Korean businesses. It's unclear how many jobs or the amount of investment the office will need to bring to Maryland to fulfill the terms of the agreement.

Maryland exported $181 million to South Korea in 2007, making it the state's 14th-largest trading partner. South Korean imports to Maryland topped $1.1 billion last year, the majority of which were vehicles. Maryland exports last year rose to a record $8.9 billion, an almost 18 percent increase over $7.6 billion in 2006.

South Korea's economy grew nearly 5 percent last year and is Asia's fourth-largest economy, after Japan, China and India.

DBED's other foreign offices are located in China, Singapore, Taiwan, Israel and France. During the last two years, the state has eliminated half a dozen underperforming foreign offices in South Africa, India, Mexico, Brazil and a second office in China.

The state's Office of International Trade and Investment attracts foreign investment in Maryland, offers export assistance for small and midsize Maryland companies and coordinates international trade and investment missions and trade show opportunities for Maryland companies.

http://www.bizjournals.com/baltimore...l?surround=lfn

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Dutch firm sees Suburban as way to bailout

By Andrea K. Walker
November 18, 2008

Dutch insurer Aegon NV is exploring a bid to buy the troubled Suburban Federal Savings Bank in Crofton as a way of becoming eligible for money from the federal bank bailout plan.

The insurance giant, with North American headquarters in Baltimore, was among four insurance companies that applied Friday to the federal Office of Thrift Supervision to become owners of a savings institution as a way to get funding from the Treasury's Troubled Asset Relief Program. OTS officials confirmed Aegon's interest in Suburban.

Suburban Federal, a half-century-old family-owned bank, has been looking for capital as it tries to rebound from a spate of soured loans. At the end of the third quarter, the bank had $29.2 million in bad loans on its books and $8.3 million in capital, according to a financial statement filed with the Federal Deposit Insurance Corp.

The Office of Thrift Supervision issued a cease-and-desist order in March to stop the bank from writing land, development and construction loans without the agency's approval.

Suburban has seven branches and about $354 million in assets.

An Aegon spokesman said the insurance company, which operates the Transamerica and Monumental life insurance companies in the United States, is not looking to become heavily involved in the banking business. Instead, owning a thrift is a way for the company to shore up its access to cash during the continuing worldwide economic crisis. Insurance companies that own thrifts are eligible for a piece of the $250 billion the federal government is using to help cash-strapped financial institutions.

"We're not interested in going around and buying thrifts all over the United States," Aegon spokesman Gregory W. Tucker said. "This is part of our overall strategy to ensure we have the strongest capital position we can in this environment."

The company took an investment worth $3.7 billion from the Dutch government last month as it suffered losses because of the financial meltdown.

Robert L. Morrison Jr., president of Suburban Federal, didn't return calls yesterday, but in a Nov. 7 interview, he said the bank was looking at strategic alternatives to raise capital. He did not provide details.

"Like all banks across the country, everybody is looking at options to increase our capital," Morrison said. "And we are engaged in that."

The Office of Thrift Supervision said in the spring that Suburban Federal had engaged in unsafe and unsound banking practices that resulted in excessive risk to its finances.

The bank was accused of issuing loans without verifying income or assets, among other things. The problems were mainly in the bank's development, construction and land loans.

Morrison said in the interview that the bank his grandfather started 53 years ago was in no danger.

"Certainly we will come out of the [cease-and-desist], and we're in full compliance," Morrison said.

Tucker said a possible acquisition of Suburban is in the "very preliminary stages." He said Aegon has not submitted an offer to buy Suburban or come up with a price tag. He said it is still unclear whether Aegon would be eligible for the federal assistance.

"We're looking at the program to see if we're eligible for it," Tucker said. "Maybe we will, or maybe we're not. We think it's prudent in this environment to pursue all avenues."

He said Aegon chose Suburban because of its location.

"Obviously, the fact that we have a large Maryland presence would have factored into us considering this one," Tucker said.

Tucker said it is unclear how Suburban Federal's financial problems might play into the deal. He was unsure when federal regulators would make a decision on whether to allow an acquisition but said Aegon would have to own a thrift by the end of the year to qualify for financial assistance.

Morrison said this month that the thrift has complied with requirements from the thrift supervision office, including reducing the risky loans by 50 percent.

Morrison said the bank's problems came with the decline in the housing market. He said both developers and individual homeowners defaulted on loans.

He said the bank is an institution with many loyal, local customers.

"We like being a community bank," he said. "We like to serve the people in our neighborhood and do the same thing we've been doing for years."

http://www.baltimoresun.com/business...,2979127.story

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T. Rowe Price launches two new global mutual funds
Baltimore Business Journal - by Rachel Sams Staff

T. Rowe Price Group Inc. is broadening its worldwide reach by launching two new mutual funds, Global Large-Cap and Global Real Estate.

The Baltimore-based money manager now has more than a third of its stock research team based outside the U.S. And even though the financial crisis is rippling around the world, T. Rowe thinks there are plenty of opportunities for strong investments at good prices both here and overseas.

The Global Large-Cap approach will invest in stocks of larger companies in at least five countries, including the U.S. At least 40 percent of the fund’s assets will be invested outside the U.S. The fund will take aim at companies that have seasoned managers and strong balance sheets and are pursuing growth.

Scott Berg, who has six years of experience with T. Rowe, will manage the Global Large-Cap investments. T. Rowe (NASDAQ: TROW) will offer a Global Large-Cap Stock Fund geared toward individual investors, with a special share class available through intermediaries like financial planners. It will also offer an Institutional Global Large-Cap Equity Fund for institutional investors like pension funds.

The Global Real Estate approach will invest at least 80 percent of its assets in stock of real estate companies around the world. The fund can also invest in companies that are related to the real estate industry, but it will not directly own real estate. Typically, it will invest at least 40 percent of assets in real estate firms outside the U.S. In the U.S., the fund will focus on real estate investment trusts. David Lee, a 15-year veteran of T. Rowe, will manage the Global Real Estate strategy.

T. Rowe will offer a Global Real Estate Fund targeted to individual investors, and a version with advisor class shares. Institutional investors who want to use the Global Real Estate strategy can do so through a separate account — a portfolio that a money manager oversees for a client.

The minimum investment in the Global Large-Cap Stock Fund is $2,500, or $1,000 for a retirement plan or UGMA/UTMA account for gifts or transfers to minors. For the Institutional Global Large-Cap Equity Fund, the minimum is $1 million. For separate accounts that want to use either the Global Large-Cap or Global Real Estate approach, the minimum investment is $50 million.

T. Rowe has more than $345 billion in assets under management.

11/20/08
http://www.bizjournals.com/baltimore...d=lfn&brthrs=1