The State Ports Authority Makes a Comeback

By Glenn McNeil

The South Carolina State Ports Authority projected volume growth and $77 million in upgrades. The plan includes terminal upgrades and projections for a seven percent increase in container volume.

Projects to Start in July

Terminal improvements should start as early as July 1, 2010 with equipment upgrades and new information systems. Facilities will receive the largest area of spending - $35 million total. More than $16 million will be used for construction on a new 286-acre container terminal

The State Ports Authority's website quoted Bill Stern, chairman of the SCSPA board, as stating "These investments strengthen South Carolina's ability to serve our clients' growth, which will be driven by the deepest channels in the Southeast and this state's pro-business climate."

     The SPA has also started a new rail-served warehouse program. According to the SPA's website, "the new business development program aims to build new business through the port and 14 rail-served warehouses with 2.7 million square feet of space in the Charleston area.” 

  The plan of the program is to transload commodities such as cotton, lumber, woodpulp and food products from rail to shipping containers for sealift. The warehouses are great trans-shipment points because of their storage space and access to plenty of equipment.
  Byron Miller, Director of Marketing, Public Relations & Planning stated "the goal is to improve the port's   competitiveness, productivity and safety, bringing more business and jobs to the maritime industry and South Carolina."

Most South Carolinians welcome the new turn of events for the state port's authority. Like the economy nationwide, 2008 and 2009 were economically challenging years for the ports.

The Year in Review

A review of the State Ports Authority's facts sheet indicated 1,802 ships and barges were serviced at the Charleston and Georgetown seaports in 2009. Breakbulk cargo at the Charleston terminal totaled over 549,000 tons.

Commodities included agricultural products, consumer goods, machinery, metals, vehicles, chemicals, and clay products. Ranked as the eighth largest Customs district in terms of dollar value of international shipments, Charleston cargo was valued at more than $62 billion.

The terminal in Georgetown handles breakbulk exclusively, surpassing 286,200 tons of cargo in fiscal year 2009.

One major advantage for the Charleston ports is deep water. Charleston's deep channels often handle container vessel drawing 47 feet of water. When expansion of the Panama Canal is complete in 2014 Charleston deep channels will be become even more significant to the port.

State Ports Authority to Continue with Maersk

The situation with Maersk was a damper on the SPA's economy. In 2008 Maersk-Sealand, the largest supplier to the Charleston port, announced it would pull out some of its business because of failed negotiations between the SPA, the International Longshoremen and Maersk.

Maersk- Sealand accounts for 25% of the ports container traffic. That's a considerable amount of business based on any standard. According to a Dec 2008 article in Fitsnews.com the Port of Charleston's biggest customer is "gone baby gone."

The news of Maersk's departure was, of course, bad news on top of more bad news. Even before the recession had kicked into high gear business at the port had declined. As noted in Fitsnews.com, "the Port of Charleston was dropping like a rock compared to other U.S. ports, slipping from No. 4 to No. 8 in the nation".

Keeping Maersk-Sealand was vital to business. When the SPA realized Maersk's departure was a real possibility, they engaged with all parties to ensure their largest customer remained in Charleston.

The port's efforts appeared to be successful. In October 2009, the SPA announced the Maersk line would continue doing business with the SPA through 2014.

Maersk praised State Senators Larry Grooms, Glenn McConnell and Hugh Leatherman for their role in the negotiations.

A Different Perspective

Not everyone agrees with the South Carolina State Ports Authority's initiatives. Dana Beach, Founder and director of S.C. Coastal Conservation League is concerned with ships' emissions as well as other issues that affect the environment.

According to his website, Dana Beach and his foundation has worked to preserve historic South Carolina interests such as the Angel Oak tree, beach fronts and waterways to name a few.

The website stated "The Conservation League won’t hesitate to file a legal appeal against an environmental permit or sue to stop a project. The league has more than a dozen suits and appeals outstanding now".

In a recent 'battle' with the State Ports Authority, the Conservation League sought to limit cruise ships in Charleston, clean up air pollution in North Charleston and stop a huge apartment complex near a landmark live oak tree on Johns Island.

As the league enters its third decade, Beach has launched initiatives to bolster rural communities and to promote energy efficiency. Not to misunderstand, Beach is a realist and understands some concessions of success.

But with a world renown organization such as the Conservative League, Beach is also in-tune with ecology and wants everyone to be reminded of that.

The SPA is well-aware of Beach's initiatives and tries to keep the ecology at the fore-front of business as it goes about the tremendous task of moving passengers and cargo.