It's a Big World and Baltimore is Staking Its Claim

With cargo ships motoring in and out of Baltimore's ports, trains from all across the country stopping at its stations and planes landing and departing from its airport, the city has long been a crucial location for business transactions across the globe.

But many local economic experts say that while Baltimore's strong transportation system is a critical piece of the world's economic puzzle, its academic scene and technology advances have also continued to secure that role.

Brian Castleberry of the Maryland Department of Business and Economic Development (DBED) says Baltimore has matured over the centuries from a stopping point for transport to a hub of economic activity that's now critical to international business.

"So many companies from around the world have forged successful relationships with Baltimore businesses," Castleberry says. "The City continues to be Maryland's anchor for international business, especially with the Port of Baltimore and the wealth of academic environments there. We're anticipating ongoing growth in importing and exporting in Maryland, in large part because of the overseas business Baltimore attracts."

Import and Export 

Baltimore has had several record-breaking years for cargo export, including in 2008, when the Port of Baltimore welcomed $45.3 billion in merchandise through its terminals, an all-time high and an 8 percent increase over 2007. Activity in the entire the Port of Baltimore generates roughly 16,500 direct jobs.

"Last year was another strong year for the Port of Baltimore, even as the global economy began to struggle," Governor Martin O'Malley says in a June 12 statement.  "Clearly, the Port is not immune to the economic downturn. However, with strong management and wise investments, we have been able to sign long-term contracts with major business partners that will help maintain stability at the Port in the days ahead."

 The International Longshoremen's Association is a labor organization with a large presence in the Port of Baltimore. Its members include workers involved in all stages of the shipping process, from marine warehouse freight handlers to grain elevator employees in North and South America.

"Baltimore is a critical place for us to be," says Matthew Benewicz, with ILA Local 953. "From here, we are at a pivotal location within the shipping industry, reaching everyone from fishermen in the Great Lakes to seafood workers from Brazil. It's Baltimore's easy access to the Atlantic seaboard and its central location along the east coast that make it a prime location for our organization. � We've been a little slower with the downturn, but I know we're faring better than many ports along the coast."

Trade Without Borders

The city's foreign trade zone, which covers 14 sites that are technically considered outside of U.S. Custom's territory for tax purposes, is located along the Port of Baltimore and encompasses more than 2 million square feet.  The zone, which stretches over 1,734 acres, caters to 86 businesses from 11 different countries handling more than $1.3 billion in merchandise in fiscal 2007, according to the Baltimore Development Corporation. Among the most significant destinations for goods are China, Korea and Taiwan.

Vernon Martin, a licensed customs broker, has been involved with the flow of goods in Baltimore for many years. He founded Baltimore-based Seabridge International in 1991 as a shipping logistics company to move huge products � from mobile homes to construction equipment � between manufacturers, dealers and customers. The shipments often include personal items, such as from tourists who want their cars shipped overseas for their vacations.

While Seabridge International coordinates shipments all across the Eastern seaboard, nearly 80 percent of its client's exports and imports go through Baltimore ports � like mobile homes shipping from Indiana to Germany or automobiles moving from Maryland to France.

"We've seen the port grow and thrive and have enjoyed growing right along with it," says Martin, a Severna Park native. "We can literally ship from anywhere, but Baltimore's strategic location to the Midwest is a good reason why we're successful. � We plan on being a mainstay in Baltimore for many years to come."

TheBaltimore County Department of Economic Development, which has partnerships with the World Trade Center Institute and the U.S. export center, works with companies trying to grow their markets abroad, often pointing them to appropriate state programs, said Fronda Cohen, director of marketing and communications.

More Than Just A Port...

McCormick & Company, a spice company in Sparks, The Black and Decker Corporation, a tool company in Towson and Procter and Gamble, which manufactures cleaning, personal care and several other products at a Baltimore plant, are just a few of the long list of local companies doing business throughout the world.

"It's not just about the port," Cohen says. "Look at BWI cargo. Everything from being close to Washington D.C. to having integrated transportation of interstates and rail that can easily reach the consumer market are among several location advantages. A large part of the U.S. consumer market is within overnight trucking distance [from Baltimore.] That infrastructure is critical and has been in place for generations."

Baltimore's brain trust is also keeping it in the world's eye. Information technology and science research at Baltimore universities like Johns Hopkins University, Loyola College, University of Maryland Baltimore County and Goucher College, where students are required to spend a year abroad, are proving leaders in the world's academic circles. At Towson University, TowsonGlobal, an international business incubator for early-stage companies, is helping entrepreneurs tap into global markets.

"You have a lot of international brain power here at our universities," Cohen says. "You have a lot of intellectual exchange back and forth. A lot of academic exchange. � It's much more than just the water advantage, although that's Baltimore's historic strength. We live in a global society and a global economy. You see, really the world is shrinking with technology."

Baltimore is also home to several nonprofits helping underdeveloped countries forge their own economic structures. The Catholic Relief Services is one of the largest overseas nonprofits in the U.S. and is headquartered on Lexington Street.

Catholic Relief Services sunk millions into several Third World regions in 2008: $350 million in sub-Saharan Africa, $27 million in Europe, the Middle East and North Africa, $45 million in South Asia, $52 million in South East Asia and $54 million in Latin America and the Caribbean. Its microfinance programs, which provide startup funds for small businesses, have helped more than 1 million people in 36 countries.

Rebecca McClay, a Frederick resident, is a freelance writer of Maryland business, finance and economic stories. She was previously a business writer for The Gazette newspaper group based in Gaithersburg.