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(Wilmington) Port gets new import contract; Swedish paper firm to end Phila. shipping
May 29, 2004
Luladey B. Tadesse, Staff reporter
Wilmington News Journal

The Port of Wilmington has tentatively agreed to a five-year contract with a major Swedish paper company, which until now has been importing paper rolls into Philadelphia.

Holmen Paper AB plans to switch its business from Philadelphia to Wilmington beginning in June. Holmen is expected to become one of the Port of Wilmington's largest customers and is likely to use some of the port's storage facilities. Port businesses including Norfolk Southern Corp., stevedoring companies and longshoremen also are expected to benefit.

"I think it's going to work out," said Henry Olsson, president of Holmen in Hanover, Md., of the multi-year contract with Wilmington.

Neither Olsson nor Port of Wilmington managers would discuss the amount of the contract or how many jobs are likely to be created.

"It's fair to say, they will be a substantial account for us," said Nathan Hayward III, state secretary of transportation and chairman of the Diamond State Port Corp., the agency that runs the port. He said it would not be as large as the imports of refrigerated fresh fruit and concentrate. Hayward said he did not know the details of the deal.

Robert Martinez, vice president of business development at Norfolk Southern, said Holmen will boost its railroad business at the Port of Wilmington.

"It's a good piece of business ... several thousand tons," said Martinez. "They were looking for a port that had good facilities, sufficient capacity; and we are fortunate working with them on the inland transportation side of it."

Martinez said Holmen plans to ship more products into Wilmington than it has been importing into Philadelphia. Norfolk Southern ships some of Holmen's paper out of Philadelphia.

A Philadelphia Regional Port Authority spokesman said he was unaware of Holmen's decision to leave. He would not say how much the move would cost the Philadelphia port.

The first Holmen shipment into Wilmington is expected to arrive June 18. Martinez said the shipments will begin at once a month and then increase to twice a month.

"It's a good thing," said John Caulahan, vice president of Delaware River Stevedores, which operates in Wilmington, Philadelphia and Camden. Caulahan said Holmen's decision to come to Wilmington would add about 3,000 additional hours of work for his longshoremen.

Reach Luladey B. Tadesse at 324-2789 or ltadesse@delawareonline.com.