HALIFAX (April 10) — Port and rail officials are trying to put a positive spin on Friday’s announcement that Halifax lost its bid to become the new East Coast superport.

Shipping giants Maersk Line and Sea-Land Service Inc. chose an incentive-laden offer to expand their current facilities at the Port of New York and New Jersey. The two carriers also considered a proposal from Baltimore as they looked to develop a deep-water port to serve the entire Northeast and Midwest.

A deep-water port is needed to accommodate post-Panamax vessels, which are too large to fit through the Panama Canal. New York-New Jersey reportedly pledged at least $600 million in improvements to port infrastructure and the Kill van Kull, the waterway that separates Staten Island from New Jersey and allows ships to get to the port. The channel needs to be dredged.

The decision against Halifax was not unexpected. Several months ago, officials with Maersk and Sea-Land began to indicate that Halifax was too far from major North American markets.

While organizers of the Halifax bid said they were disappointed by the decision, they believe the Port of Halifax will benefit from the increased international exposure the competition for Maersk and Sea-Land’s contract generated.

“This competition has put Halifax on the world stage of shipping,” said David Bellefontaine, president and CEO of the Halifax Port Authority. “We have demonstrated our attractiveness as a competitive port. We are confident that this positive exposure will translate into new business and increased activity in the future.”

The added that Maersk and Sea-Land said Halifax will continue as a port of call, and that volumes will remain at current levels.

Canadian National, which would have hauled containers from the Port of Halifax to southern markets, said it remained committed to Halifax and is confident the port will attract new container volumes destined for the U.S. Midwest.

Maersk and Sea-Land said they had analyzed the cost structure of each port; terminal infrastructure and landside infrastructure; rail access; the number of rail carriers serving the port; the port’s plans for dredging and deepening its berths and channels; as well as its geographic location and access to major markets, both locally and in the Midwest.

The group responsible for the Halifax bid included the federal and provincial governments, the Halifax Port Authority, CN, the International Longshoremen’s Association, and local business groups. The campaign reportedly cost $1 million, with $590,000 from government coffers.