The City of Charleston, South Carolina

Port & City Ask Supreme Court to Hear Cruise Lawsuit

Charleston, SC - The City of Charleston, the South Carolina State Ports Authority and Carnival Cruise Lines on Monday filed a joint petition asking the South Carolina Supreme Court to rule on and dismiss a lawsuit filed by the Coastal Conservation League and others against Carnival.

The filing explains how the unprecedented lawsuit filed against Carnival, a valued customer of the port, threatens maritime commerce in South Carolina, making it a matter of great public interest that merits the attention of the State's highest court.

Among other claims, the suit filed against Carnival implies that ships, once docked, become buildings that are subject to local zoning, such as height ordinances. That could also bar other commercial ships docking in the City, such as those carrying BMWs, power generation equipment, and other products shipped by major employers and industries across the State.

By casting a pall on the legality of any vessel calling on any port in this State, the lawsuit chills the [Ports Authority's] ability to recruit, promote and encourage maritime commerce and fulfill its state mandate, according to the petition for original jurisdiction.

Jobs, contractual commitments and investments all hang on this matter getting resolved quickly. Ports Authority President & CEO Jim Newsome and Charleston Mayor Joe Riley stated that the direct and indirect economic effects of port operations cannot be overstated - port activity generates billions of dollars in revenue and wages while supporting 260,800 jobs across the State.

A copy of the petition and supporting documents can be found at: https://scspa.com/cpf.html.

 

SC Ports Post Strong FY11 Results

Charleston, SC - Shipping volume through South Carolina ports increased across all business segments in fiscal year 2011.

Container volume through the Port of Charleston rose 8.3 percent in the fiscal year that ended June 30, with 1.38 million 20-foot equivalent units (TEUs) handled.

South Carolina’s non-container cargo segment increased 32.3 percent, demonstrating success in steps to diversify the state’s port business. Breakbulk tons in Charleston and Georgetown totaled 991,705 tons for the year, with growth in vehicles, project cargo, heavy lift, bulk and traditional breakbulk cargoes.

“These results show the confidence our customers place in the Ports of Charleston and Georgetown, and it means jobs at a time we could really use them,” said Jim Newsome, president & CEO of the South Carolina Ports Authority (SCPA).

At a regular monthly Board meeting, Newsome highlighted other strategic accomplishments for the year, including:

The accelerated deployment of container ships too big for the Panama Canal, including four a week already in Charleston, underscores the national need for a true post-Panamax harbor in the Southeast region.

In July, Charleston hosted its first 9,200-TEU ship and routinely handles large ships actually drafting up to 48 feet.

“Charleston’s deep water capability, combined with our capable facilities, talented people and aggressive capital program, will continue to drive growth and investment in this state and across the region,” said Newsome.

Charleston Moves Largest Container Ship

Charleston, SC - South Carolina welcomed the largest container ship to ever call the Port of Charleston when the MSC BRUXELLES docked at the Wando Welch Terminal on Wednesday.

The 109,000-ton ship is more than 1,100 feet long and 150 feet wide. It can carry the equivalent of nearly 9,200 twenty-foot long shipping containers and has a maximum depth of 49 feet.

Jim Newsome, President & CEO of the South Carolina Ports Authority, said this latest record-setting vessel demonstrates what is happening in the shipping industry now and into the future.

"Big ships are here today, and more are coming," said Newsome. "Based on the attractive economics, carriers will continue to deploy larger ships in ports with the infrastructure to efficiently handle them. With deep channels and a $1.3-billion capital plan -- including a new terminal -- Charleston will continue to strengthen its capabilities to handle big ships."

Today, Charleston routinely handles post-Panamax ships actually drawing up to 48 feet, with the benefit of the tides. This year the port expects more than 200 post-Panamax vessels, or ships too big for the existing Panama Canal, and the Corps of Engineers recently started the next phase of a future deepening project. Even more big ships are expected on the U.S. East Coast following completion of the Panama Canal expansion project in 2014.

The BRUXELLES is operated by Mediterranean Shipping Co. (MSC), the world's second-largest container shipping line and a major employer in the Port of Charleston. The ship is deployed on MSC's "Golden Gate Service" between the U.S. East Coast and China, Southeast Asia and the Middle East.

The vessel arrived from Norfolk and sails to Freeport before heading back through the Suez Canal.

Union Pier Passenger Terminal Design Shared With Community

Charleston, SC - The South Carolina Ports Authority (SCPA) today shared designs for the future home of the Charleston cruise industry, which brings jobs and $37 million a year to the local economy.

The detailed designs and renderings for both the inside and outside of the new $35-million cruise terminal reflect the extensive public feedback received during numerous public meetings.

"We have been working on this project for nearly two years, so presenting the concept design is an exciting step forward," said Jim Newsome, president and CEO of the SCPA. "The feedback and support from the community were critical to developing a design that connects with Charleston's heritage, provides a warm welcome to visitors and offers an attractive, more appropriate setting in Charleston."

The relocation of the cruise terminal to the northern end of the property is the essential catalyst to realizing the Union Pier Concept Plan.

"Since the preliminary concept plans were presented in early June, we have worked with the design team to further reflect public feedback," said Newsome.

Additional elements of the plan, driven by public input, focus on vehicle and pedestrian circulation, ensuring appropriate connection of the terminal to its surroundings and incorporating attractive maritime influences and other Charleston-inspired features into the interior and exterior design.

Specific elements of the design concept include:

Improving Vehicle & Pedestrian Circulation

Connecting Terminal with its Surroundings

The Building's Design

Charleston Mayor Joe Riley spoke to the collaboration between the City, the SCPA and the public. He discussed how community support and involvement have resulted in a project that reflects not only Charleston's heritage, but the surrounding community.

"Shifting the cruise terminal north on Union Pier will greatly mitigate the existing impacts of the cruise operation in a way that improves quality of life for Charleston," said Mayor Riley. "It is the key to opening the redevelopment of the southern portion of the property and will allow the city's residents to realize all the benefits of the Union Pier Concept Plan."

The full presentation can be viewed at www.UnionPierPlan.com.

Conversion of the building is slated to begin in fourth quarter 2011, with the new terminal facility opening in early 2013. Following that, the SCPA will turn attention to the redevelopment planning for rest of the Union Pier property.

Created with extensive public involvement, the Union Pier Concept Plan can be seen at www.UnionPierPlan.com, where public input can also be submitted.

Panama Canal and South Carolina Ports Authority Forge Ties

RENEWED ALLIANCE REINFORCES COMMITMENT TO GROWTH AND MUTUAL BENEFITS

PANAMA CITY, Panama, July 12, 2011 - The Panama Canal Authority (ACP) and the South Carolina Ports Authority (SCPA), which owns and operates the Port of Charleston, renewed their ties today with the signing of a Memorandum of Understanding (MOU).

First signed in July 2003, the MOU, which is renewable for an additional three years, reinforces both entities’ commitment to growth and best practices that benefit customers, Panama and South Carolina.

“As we move closer to the completion of our expansion plans, forging partnerships with ports along the Eastern Seaboard of the United States is a priority for the Canal. Over the past eight years, we have developed an alliance with the SCPA that strengthens our ties, and enables us to pursue mutually beneficial joint activities,” said ACP Administrator/CEO Alberto Alem?n Zubieta.

Areas of cooperation between the ACP and the SCPA include, among others, information-sharing, joint marketing efforts, exchange of data, capital improvement plans, training and technology. This partnership also will continue to promote the “All-Water Route,” the route from Asia to the U.S. East Coast via the Panama Canal.

Moreover, as the expansion of the waterway - with its expected 2014 completion - directs deeper, wider ships to the U.S. East Coast, the Port of Charleston is in a unique position to benefit. Charleston currently has the deepest harbor in the region and is already handling large ships with a capacity greater than 8,000 TEUs with drafts of up to 48 feet.

“We have enjoyed the mutual return on our partnership with the Panama Canal,” said SCPA President and CEO James I. Newsome, III. “We are confident in the ACP’s vision, leadership and ability to successfully oversee the expansion project and eagerly await the anticipated growth that will result from an expanded Canal.”

To accommodate that expected growth, the Port of Charleston is investing heavily in its facilities with a 10-year, $1.3 billion capital plan. Included in the plan are major upgrades to existing facilities and the construction of a new terminal that will boost port capacity by 50 percent. Simultaneously, business is on the rise, with a 17 percent increase in Charleston container volume in 2010.

And the Canal’s expansion remains on track following the recent commencement of the permanent concrete work for the new Atlantic side locks.

The $5.25 billion expansion project will build a new lane of traffic along the Panama Canal through the construction of a new set of locks which will double capacity and allow more traffic and longer, wider ships.

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 $50 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.

About the Panama Canal Authority (ACP)
The ACP is the autonomous agency of the Government of Panama in charge of managing, operating and maintaining the Panama Canal. The operation of the ACP is based on its organic law and the regulations approved by its Board of Directors. For more information, please visit http://www.pancanal.com/. You can also follow us on Twitter: http://twitter.com/thepanamacanal.

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Port of Charleston Named to Environmental Best List for Second Year

Charleston, SC - The Port of Charleston again has been named to an industry best list of organizations "walking the walk" when it comes to the environment.

Inbound Logistics selected global organizations it deems "supply chain visionaries who every day demonstrate their commitment to sustainability" to its 75 Green Supply Chain Partners list.

Charleston was one of only five ports selected for the honor. Several other companies that do business in and around the Port of Charleston, including ocean carriers, trucking companies, third-party logistics providers and others, were also named to the list in the magazine's June issue.

The magazine cited the port's Pledge for Growth environmental program that includes more than $12 million in environmental and community projects, as well as collaborations with public and private industry on projects to reduce emissions from port equipment, trucks, tugs and other harbor craft.

Last month, the Port of Charleston hosted the Environmental Protection Agency, the Environmental Defense Fund and the Coalition for Responsible Transportation for the announcement of a national program aimed at reducing emissions from drayage trucks in port cities by extending the SmartWay program to local truck fleets.

Inbound Logistics magazine's special section is available online.

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 $50 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.

About Inbound Logistics
Inbound Logistics is the leading trade magazine targeted toward business logistics and supply chain managers. The magazine's editorial mission is to help companies of all sizes better manage corporate resources by speeding and reducing inventory and supporting infrastructure, and better matching demand signals to supply lines. More information is available at www.inboundlogistics.com.

CSAL Adds Charleston-Africa Service

Canada States Africa Line (CSAL) is adding Charleston to the port rotation for its bulk, breakbulk and roll-on/roll-off service between North America and southern Africa.

The regular foreign ports of call are Walvis Bay in Namibia, as well as Durban, Richards Bay and Cape Town in South Africa. Ports in other African nations are supported on an inducement basis.

CSAL uses a fleet of three multi-purpose ships with a stern ramp and heavy lift gear for bulk, break-bulk, rolling stock, heavy lift and oversize cargoes. The ATLANTIC ELAND called Veterans Terminal at the Port of Charleston on May 30, followed by the ATLANTIC IMPALA on June 10. Next sailing is scheduled for the middle of August.

From July to May, breakbulk, ro-ro and bulk business at public docks in South Carolina increased more than 44 percent to 883,675 tons.

"The Port of Charleston welcomes CSAL and its new service," said Brad Stroble, the South Carolina Ports Authority's sales and marketing manager for bulk, breakbulk and project cargo. "There are significant opportunities to grow breakbulk, bulk and ro-ro business in South Carolina."

With three dedicated non-container terminals, excellent oversize rail clearance inland, substantial lay-down areas, skilled labor and mobile lifting capacity up to 500 tons, South Carolina's ports offer tremendous capabilities.

"We look forward to serving accounts through the Port of Charleston and building a solid base of cargo," said CSAL line manager Eugene Nutovych. "Our vessels are very flexible, giving us the opportunity to handle just about any shipment."

For more information on the service, contact CSAL Montreal (514-940-0660, milena@csaline.com) or Brad Stroble of the South Carolina State Ports Authority (843-577-8658, bstroble@scspa.com).

Board Approves $6.5M in Projects

Charleston, SC - The South Carolina State Ports Authority (SCSPA) Board today approved its fiscal year 2012 budget, which projects a 6.6 percent increase in container volume and nearly $82 million in capital projects for the year.

In the fiscal year beginning July 1, the SCSPA plans to invest $81.7 million in capital projects. The largest areas of planned spending are terminal infrastructure improvements and Charleston's new cruise terminal. Also included is nearly $17 million related to the new terminal operating system, which consolidates all current information systems at the SCSPA and will be implemented in 2012.

Also included in the FY2012 budget are projections on cargo volume, including a 6.6 percent increase in container volume and a 7.4 percent increase in breakbulk and non-containerized cargo at South Carolina's public seaports.

In the fiscal year to date (from July 2010 to May 2011), pier containers handled in the Port of Charleston were up 9.3 percent from the previous year while pier tons of non-containerized cargo in Charleston and Georgetown climbed 44.6 percent.

"We are investing in South Carolina's future to better serve businesses that create jobs," said Bill Stern, chairman of the SCSPA. "With harbor deepening in Charleston moving forward, these improvement projects will enhance our ability to handle the future growth of the port and our State."

In other business, the SCSPA Board approved $6.5 million in other projects: a $2.09-million contract to Landmark Construction Co. of North Charleston for security improvements at North Charleston Terminal and $4.4 million related to crane relocation and realignment.

Since consolidating container operations at two terminals earlier this year, the SCSPA will relocate two super post-Panamax cranes from Columbus Street Terminal to the Wando Welch Terminal, reposition cranes along the Wando dock and remove one obsolete crane. The crane relocation involves three contracts for electrical work, structural work, as well as the transportation of the cranes.

The crane realignment positions the SCSPA's largest crane assets in locations ideal for working the big ships calling Charleston today and prepares the port for the surge in big-ship traffic following the Panama Canal expansion in 2014. This week, the SCSPA and the U.S. Army Corps of Engineers signed a cost-sharing agreement for the post-45 foot harbor deepening project.

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 $50 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, Corps Sign Contract to Advance Deepening

Charleston, SC - The deepening of the Port of Charleston passed another major milestone today with the signing of a cost-sharing agreement on the next phase of the project, which has been estimated to deliver $106 million in annual national benefits.

Surrounded by members of the U.S. Congressional Delegation, as well as more than 100 business and maritime leaders, the agreement was signed by Jim Newsome, president & CEO of the South Carolina Ports Authority and Lt. Col. Jason A. Kirk, Commander and District Engineer at the Charleston District of the U.S. Army Corps of Engineers (Corps).

"Charleston deepening will open the port to all classes of the world's most modern vessels under any tidal condition," said Newsome. "While Charleston today has the region's deepest channels and handles ships actually drawing up to 48 feet, this project will remove the tidal restrictions associated with the larger ships serving world trade."

Charleston's current channel depths at low tide are 47 feet in the entrance channel and 45 feet in the inner harbor. More than 360 ships too big for the Panama Canal have already called Charleston, three years before the $5-billion canal expansion is completed in 2014. Greater than 80 percent of the ship capacity on order is for ships too big for the existing canal.

In May, the Corps included funding for the feasibility study of the Charleston Harbor post-45 foot deepening project in its Fiscal Year 2011 Work Plan.

More than 20,000 companies in several dozen states use the Port of Charleston to access global markets. These businesses ship goods worth $50 billion a year through the Charleston Customs District and pay more than $600 million in duties into the General Treasury annually.

"This project is important not only for the Port of Charleston's customers and South Carolina, it's essential to our nation," said Bill Stern, chairman of the SCPA Board. "With bigger ships and expanding exports, the U.S. needs a Southeast harbor capable of handling fully-loaded post-Panamax ships under any tidal condition."

The U.S. Congress has already authorized Charleston deepening through the study phases, and the Reconnaissance Study approved last July concluded that Charleston is likely "the cheapest South Atlantic harbor to deepen to 50 feet."

"At a time of limited federal resources, Charleston is the nation's best buy in harbor deepening," said Stern. "Our delegation has championed this project in working with the leadership, the Administration and the Corps. They have all helped highlight how vital this project is to our country."

U.S. Senators Lindsey Graham and Jim DeMint as well as state Senator Larry Grooms spoke at the signing ceremony today in Charleston.

The next step in the project is to begin the National Environmental Policy Act (NEPA) process by planning and executing public and stakeholder meetings.

SCE2 Begins in Charleston

Charleston, SC - The first ship in a new, all-water service connecting the growing Southeast U.S. region with South Korea and Central and South China, called the Port of Charleston this week, the first in a weekly service calling North Charleston Terminal.

The South China East Coast Express 2 (SCE2) service is jointly operated by the Grand Alliance carriers of Hapag-Lloyd, OOCL and NYK Line, along with ZIM Integrated Shipping Services and Hyundai Merchant Marine.

The first ship was the NYK Rigel. International ports of call on the service are Busan, South Korea; Shanghai, Xiamen, Da Chan Bay, Hong Kong and Yantian, China; Manzanillo, Panama; and Kingston, Jamaica.

Exports from South Carolina to North Asia continue to demonstrate strong growth. The Southeast U.S. is an expanding consumer base for import goods and continues to grow in population. Over the past 10 years, population growth in the South outpaced any other U.S. region at 14.3 percent, according to 2010 Census figures.

The SCE2 adds 52 ship calls a year, boosting economic impacts and jobs across the local maritime community and expanding business opportunities for the hundreds of South Carolina companies that rely on international trade.

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 $50 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.

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