SC Legislature Commits $300 Million to Charleston Harbor Deepening

Charleston, SC - In a strong show of support for the deepening of Charleston Harbor, the South Carolina Legislature now has committed $300 million to fund the construction of a post-45-foot harbor project for the Port of Charleston. This allocation would cover the entire estimated cost to deepen the harbor to 50 feet, once the project receives authorization from Congress.

A conference committee comprised of leaders from both legislative houses announced today the amended state budget, which increased the cash contribution in the Harbor Deepening Reserve Fund to $300 million from $180 million previously approved by both the House of Representatives and Senate.

"We are tremendously grateful for the forward-thinking leadership in our legislature for recognizing how vital this project is to the entire state," said Bill Stern, chairman of the South Carolina Ports Authority (SCPA). "The Members of the House Ways & Means and Senate Finance Committees, joined by the Members of the Review and Oversight Commission on the South Carolina Ports Authority, have guided this appropriation across the finish line. This deep commitment is proof positive that South Carolina is serious about competing in a truly global business in order to boost jobs and opportunity for its citizens."

Following the completion of the Post 45 Project's feasibility study and authorization by Congress, the Harbor Deepening Reserve Fund would be used to pay for the actual construction of the deepening project, which is estimated at $300 million.

The cost-sharing structure for a Post 45 depth is 60 percent funded by the state, or $180 million. The additional $120 million in the fund would cover the federal share of the project's construction if federal funding is not available. The funds also could be used to keep the project moving forward, thereby losing no time due to funding constraints. Expenditures from the fund would require approval by the Joint Bond Review Committee comprised of both House and Senate Members.

"This level of commitment instills a great deal of confidence in our customers and shows that the Port of Charleston is ready and able to meet their long-term growth needs," said Jim Newsome, president and CEO of the SCPA. "We have a good partner in the Corps of Engineers, and we will continue our productive collaboration to deliver a true post-Panamax harbor in the South Atlantic as quickly as possible."

"I believe the entire legislature views the Port of Charleston's deepening project as our state's number one economic priority," said Sen. Hugh Leatherman, who chairs the Senate Finance Committee. "Last budget year, we committed that our state would find the money for this project. South Carolina has now fulfilled our end of the bargain, and we look forward to the Corps of Engineers delivering a timely study so that the work can get underway as expeditiously as possible."

"We recognize that our state's future is tied very much to the vitality and growth of our port," said Rep. Brian White, chairman of the House of Representatives Ways and Means Committee. "A large number of the companies that located in the Upstate and call South Carolina home chose our state because of our world-class port. By investing in the Port of Charleston, we are charting the course for a bright future."

"The port is South Carolina's gateway to global commerce," said Sen. Larry Grooms, chairman of the Senate Transportation Committee and the Review and Oversight Commission on the SCPA. "It would be hard to overstate how much our economic well-being depends on this project. If we want our state to grow, if we want to welcome new jobs, if we want to succeed on the world stage, our port must stay competitive. This is a major win."

"The future of South Carolina really is contingent upon the growth of our port, and the Charleston Harbor Deepening Project is an essential part of that," said Rep. Jim Merrill, vice chairman of the Review and Oversight Commission on the SCPA. "By funding the construction costs of the deepening now, we are showing that we as a state are serious about our competitive position relative to other ports in this region and the Port of Charleston's role as a major player in global shipping."

Charleston's Harbor Deepening Project has built considerable momentum since the project's feasibility study began last summer. Earlier this year, $3.5 million toward the project's feasibility study was included in the President's Budget for fiscal year 2013. That allocation, along with the funds already included in the Corps' Work Plan, means that the federal share of the feasibility study is more than halfway funded.

Already the deepest harbor in the region, Charleston's deepening project would open the port to the biggest vessels 24 hours a day, under any tidal condition. The Corps stated in its Reconnaissance Study in 2010 that Charleston is likely "the cheapest South Atlantic harbor to deepen to 50 feet."

About the South Carolina Ports Authority:
The South Carolina Ports Authority, established by the state's General Assembly in 1942, owns and operates public seaport facilities in Charleston and Georgetown, handling international commerce valued at more than $58 billion annually while receiving no direct taxpayer subsidy. An economic development engine for the state, port operations facilitate 260,800 jobs across South Carolina and nearly $45 billion in economic activity each year. For more information, visit https://scspa.com.

SC Ports Adds Reinecke to Executive Sales Team

Charleston, SC - The South Carolina Ports Authority (SCPA) has hired Robert G. “Bob” Reinecke to the newly created position of Vice President, Global Account Sales. As such, he will lead Midwest sales and additional business development efforts for South Carolina’s public ports system.

Reinecke reports to Paul McClintock, Senior Vice President & Chief Commercial Officer, and is based in the Chicago, Ill. Area.

“Bob’s broad experience in the industry will be a tremendous asset to the South Carolina Ports Authority as we work to grow our Midwest presence,” said Jim Newsome, President & CEO of the SCPA. “This market is strategically important as we continue to expand exports and capitalize on Charleston’s deep water. We are pleased to welcome Bob to our organization.”

Reinecke brings to the SCPA nearly 30 years of experience in the shipping industry, with expertise in the retail and agricultural sectors. Most recently, he was Director of Midwest Sales for Hanjin Shipping, where he was responsible for a 14-state region and team of sales executives. Prior to that, he served as the President and General Manager for an agricultural-based NVOCC, assisting Midwest companies export to foreign markets.

The majority of his career was spent at CP Ships in various management roles across the company’s brands. Reinecke later worked at Hapag-Lloyd, which acquired CP Ships in 2005.

Reinecke earned a bachelor’s degree in business from Western Illinois University. He is a member of several trade organizations in the Midwest and serves on the advisory panel for the United States Soybean Export Council.

About the South Carolina Ports Authority
The South Carolina Ports Authority, established by the state's General Assembly in 1942, owns and operates public seaport facilities in Charleston and Georgetown, handling international commerce valued at more than $58 billion annually while receiving no direct taxpayer subsidy.  An economic development engine for the state, port operations facilitate 260,800 jobs across South Carolina and nearly $45 billion in economic activity each year.  For more information, visit www.scspa.com.

SC Ports Plans $147 Million in Capital Spending, 8% Container Growth

Charleston, SC - On the heels of a 10 percent increase in container volume last month, the South Carolina Ports Authority (SCPA) Board today approved the most aggressive investment plan in the agency’s 70-year history, underscoring the anticipated growth of South Carolina’s ports from big ship traffic, the expansion of the Panama Canal and increased exports from the region.

During its regular monthly meeting, the Board approved the SCPA’s budget for the 2013 fiscal year, which begins July 1. The plan projects an eight percent increase in container volume and $146.9 million in capital spending on major investments such as the construction of the new Navy Base Terminal and upgrades to facility infrastructure and information systems.

“This aggressive investment plan for our ports mirrors the significant investment of our state toward realizing the Charleston Harbor Deepening Project,” said SCPA Chairman Bill Stern, referring to the $180 million budget allocation approved by both houses of the South Carolina legislature this session. An additional $120 million toward the deepening project’s construction is being considered by the budget conference committee.

Stern continued, “In making these commitments to our port infrastructure, we are ensuring that South Carolina has the tools to spur the economic growth and job creation that comes with having world-class port facilities.”

“We continue to challenge our organization to grow above the market,” said Jim Newsome, president and CEO of the SCPA. “The aggressive projections for our business growth reflect our belief that deep water will drive port selection by cargo interests.”

Also included in the FY2013 budget is a six percent planned increase in breakbulk and non-containerized cargo at South Carolina’s public seaports. Breakbulk tonnage has been a major growth factor for the SCPA, buoyed by the completed $23-million project to transform Columbus Street Terminal into a premier ro-ro, breakbulk and project cargo facility. The terminal handles cargoes such as BMW vehicle exports as well as heavy lift moves for the power generation industry.

Furthermore, the budget plan calls for an increase in personnel, with the addition of nine jobs in the operations and maintenance areas during the next 12 months.

Volume Results & Approved Projects

The Board also discussed during the meeting the port system’s current business climate. May’s container volume of 132,498 20-foot equivalent units (TEUs) was a nearly 10 percent gain over the same month last year.

In the 2012 fiscal year to date (from July 2011 to May 2012), TEU volume in the Port of Charleston was up 3.4 percent from the previous year while pier tons of non-containerized cargo in Charleston and Georgetown climbed 43.1 percent.

In other business, the SCPA Board approved a $2 million paving and container yard improvement project for North Charleston Terminal, to be completed by Banks Construction Co. The Board also authorized a contract related to electrical upgrades needed at that facility to replace four older dockside container cranes with four new cranes, which the SCPA plans to purchase within the next year.

Additionally, the Board approved a resolution authorizing the SCPA, as Grantee, to apply to reorganize Foreign-Trade Zone (FTZ) No. 21 under an alternative site framework. This reorganization would increase the FTZ service area along the coast and broaden the benefits to both new and existing companies using the program. The SCPA serves as Grantee of the FTZ program for FTZ No. 21 along the South Carolina coast and FTZ No. 38 in the Upstate.

About the South Carolina State Ports Authority
The South Carolina State Ports Authority, established by the state's General Assembly in 1942, owns and operates public seaport facilities in Charleston and Georgetown, handling international commerce valued at more than $58 billion annually while receiving no direct taxpayer subsidy.  An economic development engine for the state, port operations facilitate 260,800 jobs across South Carolina and nearly $45 billion in economic activity each year.  For more information, visit www.scspa.com.

Container Traffic at SC Ports Up 8% in April

Charleston, SC - Container volume in the Port of Charleston rose nearly 8 percent last month over 2011 levels, in results announced during the South Carolina Ports Authority’s (SCPA) Board meeting earlier today.

In April, the SCPA handled 123,439 20-foot equivalent units (TEUs) in the Port of Charleston, the strongest April seen at the port since 2008 and a 7.7 percent increase from the same month last year. Containerized traffic in TEUs for the 10 months comprising the fiscal year to date (June through April) is up 2.7 percent from the same period last year while container volume for the calendar year to date (January through April) increased 7.3 percent over 2011 levels.

SCPA President and CEO Jim Newsome described that two new, weekly container services connecting the Port of Charleston to markets in Asia, including the first direct Vietnam call for the port, will begin in June.

The SCPA’s non-containerized cargo continued its upward trend, with breakbulk tonnage in the Port of Charleston up 57 percent with for the month of April and up nearly 24 percent in the fiscal year to date.

In the Port of Georgetown, pier tons were fairly flat in April compared to the same month last year, but activity there has more than doubled in the fiscal year to date.

Newsome also provided the Board an update on Charleston’s harbor deepening project, describing that he is “extremely pleased” with recent progress.

“This project has a high degree of recognition,” he said. “We are in a time when the urgency of improving ports and harbors is understood by all levels of leadership.”

The U.S. Senate Appropriations Committee last month retained $3.55 million in funding allocated to the deepening project’s feasibility study through the Administration’s budget for fiscal year 2013, which begins in October.

In the state legislature, the South Carolina House of Representatives has set aside $180 million in non-recurring funds for the harbor deepening construction as part of the state budget, currently under review in the Senate. This allocation would cover the state’s 60 percent share of the estimated $300 million cost for construction. Last month, the South Carolina Senate passed a bill authorizing the state to borrow up to $120 million to complete the project if federal funds are not available.

First Westinghouse BreakBulk/Project Cargo Shipment Arrives at Port of Charleston

Charleston, SC - The first project cargo shipment for Westinghouse Electric Company in a series of deliveries spanning several years has arrived at the Port of Charleston's Columbus Street Terminal. This high, wide and heavy cargo is being shipped through the port to support South Carolina Electric & Gas Company's (SCE&G) nuclear plant expansion near Columbia, SC.

Over the next two days, crews will be offloading a large amount of specialty cargo from the vessel HR Recommendation, operated by BBC Chartering. From here, the cargo will travel on rail cars and trucks to SCE&G's project site.

"This is a project that will boost port volume and maritime jobs over the course of several years," said Jim Newsome, president and CEO of the South Carolina Ports Authority. "We are very pleased that Westinghouse selected the Port of Charleston for this project, which further establishes our port as the premiere East Coast port for power generation moves."

In 2011, the Port of Charleston held a full half of the South Atlantic ports' market share in the non-containerized power generation segment.

"For this project, we are managing first-of-a -kind logistics, unprecedented in our business," said Carl Rossi, director of Global Logistics for Westinghouse. "Westinghouse is combining multiple companies including Toshiba Logistics, Landstar Logistics, the Port of Charleston, stevedores, major railroads and multiple trucking companies into a fully integrated delivery system."

The project, which is scheduled for completion in 2018, involves handling about 24,000 tons of equipment that will be deployed at V.C. Summer Units 2 and 3 in Jenkinsville, SC.

A total of about 30 ships will deliver machinery and equipment - some pieces weighing up to 700 tons apiece - for delivery by rail and truck to the site approximately 30 miles northwest of Columbia.

A $23-million improvement project completed last year at the 135-acre Columbus Street Terminal enhanced the facility's mix of on-dock rail, storage and heavy-lift capabilities. The terminal handles a variety of non-container cargoes, including autos, other rolling stock, breakbulk cargoes, heavy-lift and project moves, including power generation equipment.

Westinghouse Electric Company, a group company of Toshiba Corporation (TKY:6502), is the world's pioneering nuclear energy company and is a leading supplier of nuclear plant products and technologies to utilities throughout the world.

About the South Carolina Ports Authority
The South Carolina State Ports Authority, established by the state's General Assembly in 1942, owns and operates public seaport facilities in Charleston and Georgetown, handling international commerce valued at more than $58 billion annually while receiving no direct taxpayer subsidy. An economic development engine for the state, port operations facilitate 260,800 jobs across South Carolina and nearly $45 billion in economic activity each year. For more information, visit www.scspa.com.

For more information:
Allison Skipper, APR
Manager, Public Relations
South Carolina Ports Authority
843-577-8121
www.scspa.com

Charleston Adds New NWA/Evergreen Far East Service

Charleston, SC - The New World Alliance consortium of ocean carriers and Evergreen are launching a new Far East weekly container service in June, marking the third new container service announced this year for Charleston and the first service for the port with a direct call in Vietnam.

The SVS (South China/Vietnam-US Southeast) service is a Suez service deploying 10 ships of capacity between 4,600 and 5,600 20-foot equivalent units (TEUs). The service originates in Cai Mep, Vietnam and includes calls in Hong Kong and Yantian in China, Singapore and Algeciras, Spain.

Significantly, Charleston is the last port outbound on the service, which highlights the port’s prominence in handling the region’s and the nation’s export demand.

“Charleston’s position in this service demonstrates that ships will be taking on a significant amount of cargo here, relying on our deep water to fill up the ship with heavy exports,” said Jim Newsome, president and CEO of the South Carolina Ports Authority.

Charleston Harbor is the deepest in the Southeast region, with 45 feet of depth at mean low water (MLW), and can handle ships drafting up to 48 feet on the tides. Charleston’s next harbor deepening project is currently underway.

Participating in the SVS service are the alliance carriers of APL, Hyundai Merchant Marine and Mitsui OSK Lines (MOL), as well as Evergreen. The weekly service will call the Port of Charleston’s Wando Welch Terminal on Saturdays, adding 52 ship calls a year to the port and supporting jobs across the maritime industry.

About the South Carolina Ports Authority
The South Carolina Ports Authority, established by the state's General Assembly in 1942, owns and operates public seaport facilities in Charleston and Georgetown, handling international commerce valued at more than $58 billion annually while receiving no direct taxpayer subsidy.  An economic development engine for the state, port operations facilitate 260,800 jobs across South Carolina and nearly $45 billion in economic activity each year.  For more information, visit www.scspa.com.

CKYH Picks Charleston for New Asia Service

Charleston, SC - The CKYH alliance of ocean carries has picked the Port of Charleston for a new, weekly container service with coverage across Northeast Asia.

The AWE-6 is a new service offering for the carrier group, which includes COSCO, K-Line, Yang Ming and Hanjin. Charleston is the last U.S. port call on the service, providing South Carolina exporters additional options to reach markets in Asia, which have demonstrated increasing demand for products from the U.S. Southeast.

“Exporters from this area are finding additional trade opportunities in Asia, and we have been heavily marketing the Port of Charleston for more shipping services in that trade lane,” said Jim Newsome, president and CEO of the South Carolina Ports Authority, which owns and operates the Port of Charleston. “Our state not only has goods that are attractive to overseas markets, but we are also ideally positioned to serve a broad import base across several states in the region.”

Shippers will be able to take advantage of direct trade routes to Yantian, Ningbo and Shanghai in China as well as Pusan, South Korea via the Panama Canal.

The carriers will deploy nine ships for the service, which will add 52 ship calls a year at North Charleston Terminal. The first Charleston call is expected around June 19.

About the South Carolina Ports Authority
The South Carolina Ports Authority, established by the state's General Assembly in 1942, owns and operates public seaport facilities in Charleston and Georgetown, handling international commerce valued at more than $58 billion annually while receiving no direct taxpayer subsidy.  An economic development engine for the state, port operations facilitate 260,800 jobs across South Carolina and nearly $45 billion in economic activity each year.  For more information, visit www.scspa.com.

Charleston Box Volume Up 12% in March

Charleston, SC - Container volume in the Port of Charleston rose 12 percent in March, the strongest month for containerized traffic at the port since October 2008.

In results announced at today’s regular Board meeting, the South Carolina Ports Authority (SCPA) handled 134,857 20-foot equivalent units (TEUs) in the Port of Charleston in March, up 12 percent from the same month last year and up 13 percent from February.

“We continue to work hard to grow our cargo volumes above the market and attract new shipping services to our ports,” said Jim Newsome, president and CEO of the SCPA.

For the fiscal year to date (July through March), TEU volume is up just over two percent in Charleston, while container volume for the quarter (January through March) increased seven percent from the same quarter last year. A number of drivers, including a new Europe service with APL, were said to be drivers of this growth.

“There is no turning back on the big ship trend, and we’re seeing how harbor depth and access can influence carriers’ service decisions,” Newsome said, referring to Charleston’s deep shipping channels and post-45 harbor deepening project, which is currently underway.

At the same time, the SCPA’s non-containerized cargo figures remain strong, reflecting the agency’s cargo diversification strategy. The Port of Charleston handled 111,236 pier tons of non-containerized freight in March, up 53 percent from the same month last year.

BMW export vehicles and other roll-on/roll-off cargo handled at Charleston’s Columbus Street Terminal saw their best month since March 2008. The SCPA completed last year a $23-million improvement project at that terminal to support the growth of non-containerized cargo.

In the Port of Georgetown, pier tons were up 37 percent, with 34,119 tons handled across the docks. Petroleum coke and bulk cement continue to be the largest commodities handled at the port.

Pre-1994 Trucks Eligible for $10,000 Financial Incentive to Upgrade

Charleston, SC - The South Carolina Ports Authority (SCPA) is encouraging local truck owners to replace their older trucks with newer, cleaner rigs and is doubling the financial incentive for their participation. Eligible truck owners can now get a $10,000 incentive, plus the scrap value of their pre-1994 truck, to use toward the purchase of a 2004 or newer model.

There also will be a mobile office set up at the port's Wando Welch Terminal each week to make it even easier for truckers to learn more about the benefits of upgrading their rigs, such as improved fuel efficiency, lower maintenance costs and decreased air emissions.

Seaport Truck Air Cleanup Southeast, or STACS, is a voluntary truck replacement program launched last fall that provides truck owners who are frequent port users a financial incentive to replace pre-1994 model year trucks with 2004 or newer models.

The incentive for the program is funded by the SCPA, along with the South Carolina Department of Health and Environmental Control (DHEC) through an Environmental Protection Agency (EPA) grant.

This is the first such truck replacement program in the region, making upgraded equipment attainable and financially viable for all truck owners, both companies and independent owner-operators. Twenty-four trucks already have been replaced in the local drayage fleet.

The program is being administered by Cascade Sierra Solutions, which has managed similar programs in other ports on the West Coast. Cascade Sierra Solutions' local office is at the SCPA's Columbus Street Terminal, and the company is establishing a mobile office at the Wando Welch Terminal once a week. The mobile office will offer regular hours of 9 a.m. to 12 p.m. every Tuesday, starting April 24.

According to a truck survey commissioned by the SCPA, about two percent of the trucks that frequent the Port of Charleston are 1993 or older model years. Based on EPA estimates, moving from 1993 or older trucks to 2004 or newer trucks reduces emissions by about 60 percent.

The STACS program is part of the SCPA's Pledge for Growth environmental program that has already helped fund $5 million in retrofits, upgrades and replacements to trucks, tugs and other port equipment.

About the South Carolina Ports Authority
The South Carolina State Ports Authority, established by the state's General Assembly in 1942, owns and operates public seaport facilities in Charleston and Georgetown, handling international commerce valued at more than $58 billion annually while receiving no direct taxpayer subsidy.  An economic development engine for the state, port operations facilitate 260,800 jobs across South Carolina and nearly $45 billion in economic activity each year.  For more information, visit www.scspa.com.

Charleston Architecture Board Green Lights Cruise Terminal

Charleston, SC - Charleston's new cruise terminal has the official green light from the City's Board of Architectural Review (BAR), which unanimously granted final approval to the project's design.

Wednesday's vote marked the final in a three-step process initiated last summer, when the South Carolina Ports Authority (SCPA) voluntarily entered the formal architectural review process. The BAR previously voted to grant preliminary approval in November and conceptual approval to the project last August.

Charleston Mayor Joe Riley praised the cruise terminal's design, calling it a "wonderful transformation" of an existing warehouse and a "great achievement."

"What we have now is a very fine building that graces this city," Mayor Riley said during the meeting.

After a presentation by the SCPA's design team, led by CH2M Hill with local partners LS3P and Design Works, the BAR approved the design plan.

The new terminal is the conversion of an existing cargo-handling building into a functional and attractive passenger terminal, and the design is reflective of input received from numerous meetings with stakeholders as well as feedback previously received from the BAR.

By incorporating public input and design influences seen around Charleston like siding, louvres and tabby, as well as maritime-influenced railing, the design fits contextually into the rest of the area.

Importantly, the conversion of the structure to a cruise operation re-knits the site into the City, replacing the chain link fence that currently surrounds the property with landscaped edges and re-establishing Concord Street through the entire site. The new cruise terminal is the first step in the larger redevelopment of Union Pier Terminal.

For additional images of the terminal's design, visit our Union Pier Plan online gallery.

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