Port Presents Cruise Industry Update, Announces Next Steps for Cruise Terminal Relocation at the Northern End of Union Pier

Charleston, SC - South Carolina State Ports Authority (SCSPA) President and CEO Jim Newsome today provided an update on the cruise industry to the community and announced the next steps for the Union Pier property. According to Newsome, this fall the SCSPA will issue a request for proposals (RFP) to architects to design a new passenger terminal at the northern end of Union Pier, and the SCSPA has formed a Cruise Neighbors Advisory Council that includes residents from the neighborhoods closest to the terminal.

Joined by City of Charleston Mayor Joe Riley, Newsome presented what he called a "Report to the Community on the Cruise Ship Industry" and noted that the terminal relocation was in response to community input that was an integral part of SCSPA's planning process during the past year. "This relocation provides numerous benefits," said Newsome, "including reducing traffic, removing all cargo operations and trains from Union Pier, and - most importantly - making the southern portion of the 63-acre property available for public and other uses."

Newsome noted that Charleston has welcomed almost 1,000 cruise ships during the past 37 years. "Cruises are good for Charleston, and good for the port," he said. "Cruise ships provide jobs and more than $37 million in annual economic impact." He added that about one-third of cruise ship passengers spend at least one night in Charleston, about half visit attractions and patronize local restaurants, and almost all of them say they plan to return to Charleston. "They
recognize and appreciate Charleston's special character, and we are firmly committed to manage our cruise business in a way that protects and preserves that character," he added.

Newsome reiterated the SCSPA's commitment to a one-berth one-ship terminal capable of handling ships designed to carry up to 3,500 passengers. "We see Charleston as being able to accommodate about two ships per week," he said. "And, if we see that situation changing, we will consult the community well in advance. After all, it is in our interest to keep Charleston just the way visitors and residents like it."

According to Newsome, cruise ships are subjected to the strictest environmental standards of all the more than 2,000 ships that annually enter the Charleston harbor. "There is absolutely no objective evidence of any environmental malfeasance by a cruise ship in our harbor," he stated. Newsome said that the greatest benefit of relocating the passenger terminal will be unlocking the southern portion of Union Pier for public and other uses. Citing the SCSPA's Concept Plan for Union Pier, Newsome noted some of the potential uses include an appropriate end of Market
Street at the harbor, the re-establishment of the historic Custom House wharf, new view corridors, and significant new public access and open spaces. The SCSPA has already committed to immediate stabilization of the historic Bennett Rice Mill fa?ade within the Union Pier property.

"Quite simply, this is the most important redevelopment opportunity in the Charleston area," he said. "And it is entirely dependent upon the relocation of the passenger terminal. We cannot do one without the other."

Emphasizing that the passenger terminal relocation is the option preferred by the SCSPA as well as the community, Newsome said that upgrading the existing terminal continues to remain an option. "If, for any reason, we are unable to move expeditiously on the relocation of the terminal, we will need to revert to the much less desirable option of upgrading our existing terminal," he said. "That would mean cargo operations would continue on the property. The entire property would always be used for maritime uses. And all 63 acres of Union Pier would continue forever to be separated from the rest of the peninsula by a chain link fence. We think that would be a tragedy."

Mayor Riley stressed how the plan will serve Charleston. "The City has worked very closely with the Ports Authority throughout this collaborative process. The resulting Concept Plan is a tremendous opportunity for those that live, work and visit here in Charleston. But its benefits are contingent on moving the terminal northward. This would allow cruise to continue to serve as an exceptionally positive force for our economy, while enhancing the quality of life in our city. It's evident to me that the Ports Authority is committed to the right balance for this community, and this Concept Plan demonstrates that," he said.

"We need now to move forward, designing a new passenger terminal and beginning the process to redevelop Union Pier," Newsome said. "We are grateful for the broad-based community participation and support for this initiative, and we look forward to continuing our collaborative work with the City, the community, and our newly formed Cruise Neighbors Advisory Council.
Ongoing updates will be posted on www.UnionPierPlan.com."

Board Approves $26M in Projects

Charleston, SC - The South Carolina State Ports Authority (SCSPA) Board today approved $26 million in projects, while the Port of Charleston reported a 26 percent increase in container volume last month over the same month last year.

July was the port's strongest month since October 2008. Shipping container volume totaled 73,818 pier containers, up 26 percent from 58,603 pier containers in July 2009.

While this was the fifth month of double-digit growth, SCSPA officials reported that it is unclear if the national and global economy is truly on the rebound and can be sustained, or if recent increases are more of a reflection of inventory restocking and other short-term drivers.

The SCSPA also reported final results for the fiscal year that ended June 30. During FY2010, the SCSPA surpassed its volume budget, thanks to a strong last half of the year when container traffic increased 19 percent.?In addition, despite the toughest economy in recent history, the SCSPA posted positive operating earnings when a number of ports?endured financial losses for the year.

Also during the August meeting, the SCSPA Board awarded approximately $26 million in construction and professional service contracts.

JOINT PRESS RELEASE - Conservation League, Ports Authority Announce Settlement

Charleston, SC - The South Carolina State Ports Authority (SCSPA) and the South Carolina Coastal Conservation League (CCL) have successfully concluded several months of mediation and reached a settlement, ending a years-long battle and allowing Charleston's new container terminal and port access road to proceed.

The settlement agreement includes a number of commitments from both parties, setting a course for port expansion that continues in the most environmentally responsible manner.

Included in the agreement are specific actions to monitor and reduce air emissions from existing operations, as well as a commitment to accommodate and participate in a regional rail solution in the Charleston area. The Port is also committing to reduce emissions by launching a voluntary truck replacement program to replace 85% of pre-1994 trucks calling on the Port terminals by January 1, 2014.

The agreement resolves the CCL's substantive challenges against the state and federal agencies' permits for the new terminal and port access road. The new terminal project is the SCSPA's top strategic priority, allowing it to handle long-term growth and attract new jobs and investment.

The CCL and the SCSPA agree that this settlement is a fair and reasonable resolution of the claims asserted by the CCL, and that the agreement is no admission of fault, wrongdoing, or liability. The actions in the agreement are being undertaken voluntarily by the SCSPA to address any and all claims.

The parties believe that this agreement and the forward-looking measures it contains are in the best interest of the citizens, the economy, and the environment of South Carolina.

Charleston Containers Up 19% in First Half, Harbor Deepening Reaches Milestone

Charleston, SC - Deepening of Charleston Harbor, already the deepest in the Southeast, reached another milestone as container volumes in the Port of Charleston increased 19 percent in the first half of 2010.

The U.S. Army Corps of Engineers' Charleston District has favorably concluded the Reconnaissance Study for the post-45-foot deepening project in Charleston Harbor. The study determined a federal interest in proceeding to the next step in the process - the feasibility phase - to further define time and costs associated with deepening Charleston's channels.

At the same time, container volumes in the Port of Charleston have continued to climb. Buoyed by new shipping services and major new investments in the area, container volume increased 19 percent during the first six months of 2010.

In June, pier containers at the Port of Charleston increased almost 34 percent over the previous year - the fourth straight month of year-over-year, double-digit increases.

Despite widespread declines in global trade in 2009, the SCSPA volumes rebounded during the past six months and closed its most recent fiscal year exceeding its budgeted container volume. In the accounting period that ended June 30, Charleston handled 741,208 pier containers, off 5.2 percent from FY2009.

"Despite a very challenging economic environment, the SCSPA posted an operating profit and enjoyed strong volume increases over the past six months," said Bill Stern, chairman of the SCSPA board. "While we expect volume to moderate in the latter half of the year, we're encouraged that business has returned at such a fast pace and we're headed in the right direction."

Contributing to the recent volume gains, Charleston added three new shipping services in FY2010, including Mediterranean Shipping Company's Golden Gate Service (GGS). The GGS, which had its first local call in February, is bringing ships of more than 8,000 20-foot equivalent units to the port on a regular basis. This highlights Charleston's deep-water capabilities in the Southeast region.

"The port is handling the biggest ships on the East Coast today while working toward even deeper channels that will secure our state's future in global trade," said Jim Newsome, SCSPA president and CEO.

On the cargo development side, major global corporations are locating or expanding in the port's service area while the SCSPA has launched new targeted sales efforts:

During the current fiscal year, which began on July 1, the SCSPA is projecting a seven percent increase in container volume and a more than 50 percent increase in breakbulk and non-container cargo.

At the same time, the SCSPA plans to invest nearly $77 million this fiscal year on terminal improvements, including work on the SCSPA's new container terminal on the former Navy Base as well as a new cruise terminal in downtown Charleston.

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 nearly $45 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 $44.8 billion in economic activity each year.

Charleston Deepening Advances in U.S. House

Charleston, SC - A key U.S. House committee today approved expedited studies of harbor deepening in the Port of Charleston through the Water Resources Development Act (WRDA) of 2010.

The South Carolina State Ports Authority (SCSPA) is seeking a post-45-foot deepening project to handle ever larger ships in the Port of Charleston, and the U.S. Army Corps of Engineers is advancing the studies.

Thanking the leadership of 1st District Congressional Representative Henry Brown, SCSPA Board Chairman Bill Stern said, Congressman Brown has been a workhorse for our ports and this state for years. He keenly understands that shipping channels are national infrastructure, essential to the nation's economy and defense, as well as vital to jobs in South Carolina. We thank Congressman Brown for his efforts today to have this language in WRDA.

The language passed by the U.S. House Transportation and Infrastructure Committee directs the Secretary of the Army to expedite completion of the Reconnaissance and Feasibility studies for the next deepening project in Charleston and to proceed with preconstruction, engineering and design once the project is justified.

The Port of Charleston is currently 47 feet deep at mean low water in the entrance channel and 45 feet deep inside the harbor. Charleston's channels have the opportunity to go even deeper, accommodating larger ships serving world trade with the expansion of the Panama Canal in 2014.

"Charleston already has the region's deepest channels and accommodates post-Panamax ships today," said Jim Newsome, president & CEO of the SCSPA. The next deepening will take Charleston beyond 45 and 47 feet, opening the port to all classes of the world's most modern vessels under any tidal condition. With the support of our delegation, we are ready for the Panama Canal expansion and beyond.

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 nearly $45 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 $44.8 billion in economic activity each year. For more information, visit www.scspa.com.

Charleston Investing in Cruise Future

Historic Charleston, South Carolina - recently named to the number three spot on Travel + Leisure's Best Cities in the U.S. and Canada list - is investing heavily in its cruise facilities on the heels of launching its first year-round cruise calendar.

The South Carolina State Ports Authority (SCSPA), which owns and operates Charleston's cruise facility, approved today the purchase of a new, custom passenger loading bridge to safely transition cruise guests from the passenger terminal to the cruise ship's loading doors.

The new, state-of-the-art gangway will feature a hydraulic system to change the elevation and match up with doors on various ships. The SCSPA identified Sweden-based FMT Aircraft Gate Support Systems AB as the preferred vendor and will attempt to finalize a contract to design, construct and deliver a gangway that meets all current laws, regulations, codes and satisfies operating requirements. The gangway along with other improvements should be delivered in February at a cost not to exceed $2.75 million.

This investment comes as the Port of Charleston enters its first year-round cruise calendar and plans to build a new cruise terminal.

In May Carnival began year-round sailing and home-ported the Fantasy in the city. Carnival is operating five-, six- and seven-day voyages to The Bahamas and Key West, Florida and has announced a series of six sailings from Charleston to Bermuda in 2011.

In addition to the Carnival embarks, Charleston also features a number of port calls from others of the world's best-known cruise brands, including Holland America, Regent Seven Seas, Celebrity, Seabourn, Princess and Oceania. Charleston expects 67 embarks or port-of-calls this year and about 94 in 2011.

Charleston's location ideally serves a regional drive market including the Carolinas, Tennessee, Georgia and Virginia. Beyond the close-in resident, the city's position as one of the premier travel brands in all of North America means that its cruise market extends to a proven market of more than 33.5 million households.

In addition, the travel community got a big shot in the arm when Southwest announced it would begin service to Charleston in 2011, complimenting more than 110 existing daily flights between Charleston and 14 cities.

Charleston has a unique blend of historical and natural characteristics, as well as geographic location, that make it a natural for both embarkation and port-of-call visits, said Jim Newsome, president & CEO of the SCSPA.

Charleston is indeed an authentic American destination with European, Caribbean, and African influences. Charleston has been combining Southern charm and sophisticated grace since 1670, when the city was founded as a port town by the British.

At the same time, major efforts to revamp Charleston's cruise infrastructure are underway.

Charleston has initiated a major redevelopment of its cruise terminal and the surrounding area. The port is working to have a new world-class cruise facility operational by the 2012 cruise season, replacing its existing facility.

The SCSPA's plan, developed in conjunction with the community, is to shift its cruise operations north of the existing terminal. Charleston's new cruise terminal would remain in the heart of the historic district in a converted 151,200-square foot building with ample, adjacent surface parking.

This new terminal would remake Charleston's cruise operation, allowing both vessels and passengers to be handled much more efficiently and effectively. The Ports Authority plans to retain an architectural/design firm for the new terminal building and surrounding area shortly.

Cruising from the Port of Charleston is another reason why South Carolina is Made for Vacation.

Haiti Relief

Georgetown, SC - Almost six months following the devastating earthquake in Haiti, more than 340 temporary homes built by volunteers are being shipped through the Port of Georgetown to support the ongoing relief effort.

The MV Integrity, owned and operated by the non-profit organization Friendships, arrived at the Port of Georgetown today and will be transporting the homes to Haiti in two to three round trips at no charge. Locally, the South Carolina State Ports Authority, stevedore, labor, agent and tug operator are providing their services for free or drastically reduced rates.

Christ in Action, a nonprofit disaster relief organization based in Northern Virginia, has spearheaded the Homes for Haiti effort, and has helped mobilized volunteers from Texas all the way to the Grand Strand to build the homes at three building sites in Houston, Myrtle Beach and Manassas, Virginia.

I flew down to Haiti and determined that the best thing we could provide is housing, said Dr. Denny Nissley, director of Christ in Action. Because of the donated time and services of the many volunteers involved in the relief effort, each home costs us only $600 to construct and transport directly to Haiti.

For the past few months, volunteers in the Myrtle Beach area have logged hundreds of hours building the 8' wide by 12' long homes within a warehouse space donated by The Sun News. Private local donations and $7,000 from Christ in Action funded the cost of building materials. Their efforts resulted in the finished construction of 132 homes, each designed to sleep between eight and 12 individuals.

Trucks donated by the City of Myrtle Beach, Myrtle Beach Building Supply and Grand Strand Water and Sewer brought the homes to the Port of Georgetown, where they have been stored on the dock at no charge since late June. Homes constructed by the volunteers in Northern Virginia were transported to Georgetown on six trucks. A total of 342 homes will be shipped from the port.

Neff Rental of Myrtle Beach is providing at no charge the equipment to load the homes onto the vessel. SSA Cooper, Norton Lilly, McAllister Towing and the International Longshoremen's Association - Local 1422 have also donated their services for dock operations.

We have a very giving community that I am proud to be part of, said Ed Jackson, a real estate developer who has served as the local volunteer lead. The City of Myrtle Beach staff helped in a number of ways as did many other local organizations, including those in the port community. Thanks to all who helped, donated and most of all prayed for the people of Haiti.

The devastating earthquake hit Haiti on January 12, 2010.

For more information:

Dr. Denny Nissley
Executive Director
Christ in Action
703-217-3144

Byron Miller
Director, Marketing, Public Relations & Planning
S.C. State Ports Authority
843-577-8197

Port of Charleston Named Top Green Supply Chain Partner

Inbound Logistics magazine has named the Port of Charleston to its annual Top 50 Green Supply Chain Partners (G50) list.

The magazine's editors selected transportation service providers in several categories for demonstrated commitment to supply chain sustainability. Charleston was one of only five ports selected for the honor, which is featured in the magazine's June 2010 issue.

"The Port of Charleston is proud to be recognized as a leader in environmental practices," said Jim Newsome, president and CEO of the South Carolina State Ports Authority (SCSPA). "In working with our partners and customers on a host of voluntary programs that save money and reduce impacts, we have demonstrated that environmental sustainability can be good for the environment and the bottom line."

In a notice to the winners, Felecia Stratton, editor of Inbound Logistics, said they picked companies and organizations that are truly 'walking the walk' when it comes to commitment to supply chain sustainability.

In addition to more than $12 million in land, water and community projects, the SCSPA has partnered with the state's environmental regulatory agency and 23 private companies and associations on two federal grant projects to reduce port-related air emissions. This work, which totals more than $5 million through EPA grant funds and nearly 50 percent in local matching funds, include various projects to retrofit equipment, replace engines, use cleaner fuels and reduce emissions from port equipment, trucks, tugs and other harbor craft.

The Port of Charleston's efforts earned the EPA's national Environmental Justice Achievement Award in 2009 and were recognized by the Southeast Diesel Collaborative earlier this year. The Port's "Pledge for Growth" environmental program has won the 2009 American Association of Port Authorities' Environmental Improvement Award, the 2009 Environmental Stewardship Award from the Maritime Association of South Carolina, as well as several other awards.

The mission of Thomas Publishing's Inbound Logistics is to provide logistics managers with the information they need to speed cycle times, reduce inventories and use logistics expertise to get closer to their markets and customers.

The magazine's entire G50 article is available online.

Northern Asia Service Begins at Port of Charleston

Charleston, SC - The first ship call in a new, weekly service between Charleston and Northern Asia called the Port of Charleston today. The ANGELES reached Charleston Harbor early Thursday morning for her inaugural call and worked at the Wando Welch Terminal.

The new service means jobs at the port in a variety of sectors - and highlights the state's strong export potential to markets in Asia.

The new weekly service is bringing 52 additional ship calls annually, supporting jobs across the harbor, on the dock, and in the supply chain, while linking South Carolina-based shippers directly to markets across Northern China and South Korea. Transshipment in the Caribbean provides additional market access across Central and South America.

The service features port calls in Ningbo, Shanghai, Qingdao, Xingang, China; Busan, South Korea; Kingston, Jamaica; Caucedo, Dominican Republic and Cartagena, Colombia.

SC Ports Projects Volume Growth, $77 Million in Upgrades

Charleston, SC - The South Carolina State Ports Authority (SCSPA) Board approved its budget for the coming fiscal year, including more than $77 million in terminal upgrades and projections for a seven percent increase in container volume.

In the year starting July 1, the SCSPA plans to invest $77 million in terminal improvements, equipment upgrades and new information systems. The largest area of spending is at existing facilities, totaling $35 million. More than $16 million is slated for construction of the new 286-acre container terminal at the former Navy Base.

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, said Bill Stern, chairman of the SCSPA board.

Charleston today handles ships drawing up to 48 feet of water, including vessels of 8,000+ TEUs (20-foot equivalent container units), and in 2009 South Carolina led the Southeast in jobs recruited by bringing in 18,004 jobs, far above the regional average.

Charleston's May container volume climbed more than 22 percent year-over-year with 68,238 pier containers handled and was even with the previous month. That followed four consecutive months of year-over-year growth.

After several strong months, the Port of Charleston is now on track to meet its container volume budget in the current fiscal year, which ends June 30.

South Carolina's ports are attracting business back at an increasing pace, said Stern. While we still have some work to return the business levels of a few years ago, the meter has been moving in the right direction.

Beyond the projected seven percent increase in container volume in fiscal 2011, non-container and breakbulk cargo handled at South Carolina's public port facilities in Charleston and Georgetown are expected to climb 53 percent.

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 nearly $45 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 $44.8 billion in economic activity each year. For more information, visit www.scspa.com.

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