BMW has signed a five-year agreement with the Port of Baltimore, Maryland to ship 50,000 automobiles a year through its facilities beginning in 2010. BMW will also share a vehicle processing centre adjacent to the port with Mercedes-Benz for five years.

The move comes as the German automaker seeks to gain better access to markets in the American Midwest.

“This is very welcome news for the Port of Baltimore’s auto business,” Maryland Gov. Martin O’Malley said in a statement. “This very challenging economy has had a direct effect on many of the Port’s key commodities, including automobiles.”

The move is a net loss for the Port of Charleston, which had been handling the business, although it was not immediately clear whether or not the decision would result in any additional South Carolina layoffs.

Port officials in South Carolina say the decision was “expected,” although they say that expansions at BMW’s North American headquarters in Greer, S.C. will result in a “significant increase in exports” at the Charleston port in the years to come.

They also say the port – which has seen its competitive position plummet in recent years – is hoping to find a “processing partner” that will enable it to become more competitive in the vehicle import market.

BMW sold nearly a quarter of a million vehicles in the U.S. a year ago.

The move represents a 12% increase in the port of Baltimore’s automotive traffic.