Planner Selected for Charleston Passenger Terminal

Charleston, SC - The South Carolina State Ports Authority (SCSPA) has selected an urban design firm to update the Master Plan for nine acres in downtown Charleston, including the Port of Charleston Passenger Terminal.

At its monthly meeting today in Charleston, the SCSPA Board approved a recommendation to engage Cooper, Robertson & Partners.

Cooper Robertson will help guide the update of a portion of the 1996 Union Pier Conceptual Master Plan. This update will serve as a basis for the redevelopment of the Passenger Terminal and surrounding area.

Key elements and considerations of the planning effort will include a public involvement process, zoning recommendations, permitting issues, land uses, traffic management, construction costs, market analysis and financial viability.

The SCSPA and the City of Charleston are working collaboratively on the plan to upgrade the Passenger Terminal to more effectively meet new security requirements, as well as to better serve the market needs of its cruise customers.

A joint selection group made up of representatives from the SCSPA and the City of Charleston evaluated proposals and recommended Cooper Robertson, a nationally recognized firm with experience working in the local community.

The work to update the plan is scheduled to be complete by early 2010 and is not to exceed $700,000. With the updated plan in hand, the SCSPA will seek development partners interested in portions or all of the nine acres.

The existing Passenger Terminal was built in 1971 and has served Charleston's cruise business well over the years. However, post-9/11 federal security requirements have introduced new facility requirements, while ship sizes have increased and passengers have greater expectations for cruise facilities.

Importantly, the project supports the SCSPA's core mission of developing new maritime business and provides jobs in the local community.

South Carolina Ports Top 1.37 Million TEU, Add New Business

Charleston, SC - Despite a widespread decline in global shipping, in fiscal year 2009 the South Carolina State Ports Authority (SCSPA) handled 1.37 million 20-foot equivalent container units, secured several new major business accounts and is primed to take advantage of the deepest harbor in the U.S. Southeast.

"The global economic situation has been incredibly tough on port communities across the world, including ours," said David J. Posek, chairman of the SCSPA. "We should be proud that the people of South Carolina's ports have banded together to better serve our existing customers, while at the same time attracting new business."

Ocean carriers have idled 10% of the world's shipping fleet amid the recession, but the shuffling and juggling of container services today should play to Charleston's advantages, said the SCSPA's interim president & CEO, John F. Hassell III.

"Fewer, larger ships will handle world trade in the years to come," said Hassell. "With the deepest shipping channels in the region, Charleston is well positioned for this development, as well as for the expanded Panama Canal in 2014. South Carolina is the place to do business now, and in the future."

In addition, Hassell noted several accomplishments over the past fiscal year, such as:

Also during the past year, the search for a new president and chief executive officer concluded with the hiring of James I. (Jim) Newsome III as the fifth leader in the SCSPA's history. Mr. Newsome begins on September 1 after a more than 30-year shipping industry career, most recently as president of Hapag-Lloyd (America), Inc., part of the world's fifth-largest ocean shipping company.

In the fiscal year that ended June 30, the SCSPA handled 1.37 million 20-foot equivalent units (TEU) at its three container terminals in the Port of Charleston, down 19 percent from 1.69 million TEU in FY2008.

Breakbulk volume in Charleston was down 17 percent, with 549,008 pier tons handled in FY2009 versus 660,096 pier tons in the previous year.

The Port of Georgetown's volume was up 3 percent over last year to 286,254 tons of cargo. In addition to the new renewable energy project in Georgetown, several additional contracts could bring several million tons of new cargo through the port.

The SCSPA continued to post strong financial results, with an operating margin approaching 19 percent. Operating revenues were off 18 percent to $136.2 million, while operating expenses were flat at $111 million, and earnings decreased by 53 percent to $25.7 million.

New Charleston Passenger Terminal Advances

The South Carolina State Ports Authority (SCSPA) is seeking to upgrade the Passenger Terminal to more effectively meet new security requirements, as well as to better serve the market needs of its cruise customers. To this end, the SCSPA and the City of Charleston have launched a collaborative effort and are working closely on the project.

On June 16, the SCSPA requested proposals from recognized planning and urban design firms that are familiar with and have worked within the City of Charleston. Seven firms were asked to bid on updating a portion of the 1996 master plan that covers about nine acres in downtown Charleston around the Passenger Terminal.

The six firms that submitted plans by the Thursday deadline were:

The existing Passenger Terminal was built in 1971 and has served Charleston's cruise business well over the years. However, post-9/11 federal security requirements have introduced new facility requirements, while ship sizes have increased and passengers have greater expectations for cruise facilities.

Importantly, the project supports the SCSPA's core mission of developing new maritime business.

Port of Georgetown Nets New 20-Year Contract

Georgetown, SC - The Port of Georgetown will soon welcome the first ship call as part of a new, 20-year contract that will bring business to the port while supporting local manufacturing and maritime jobs.

Carolina-Pacific, a South Carolina-based producer of wood briquettes used as a renewable energy source, will begin manufacturing and exporting product from the Port of Georgetown in October. The first vessel is expected to handle 6,000 metric tons of product onto a ship for export to Europe.

Carolina-Pacific plans to move approximately 66,000 metric tons in its first year of operation at the port. Carolina-Pacific has signed a 20-year contract with the SCSPA with two, 5-year renewal options.

Local officials and business leaders joined company representatives, the maritime community and the South Carolina State Ports Authority (SCSPA) today at the port to announce the new business.

In addition to the business across the pier, Carolina-Pacific will initially occupy more than 100,000 square feet of warehouse space at the port to support manufacturing and exporting the wood briquettes, which are used in power generation as an eco-friendly substitute or supplement to coal.

Wood pellets and briquettes are quickly becoming a high-demand commodity overseas due to requirements that member countries of the European Union generate 20 percent of their electricity from renewable sources by 2020.

"We are excited to welcome Carolina-Pacific and this new business to the Port of Georgetown," said L. David Schronce, the SCSPA's director of the Port of Georgetown and Veterans Terminal. "Each ship entering the port supports tugs, pilots, longshoreman and others within the local maritime community, which means more dollars in the local economy."

"Georgetown is a vital part of the state port system, and the Ports Authority is dedicated to keeping it a viable port facility for this community," said David J. Posek, chairman of the SCSPA. "Today's announcement demonstrates the Ports Authority's commitment to aggressively pursue and grow business through Georgetown. Especially in this tough economic climate, we must focus on our core mission of serving as an economic engine for the State of South Carolina."

"We appreciate and commend the Ports Authority's flexibility and ingenuity in helping us launch this business," said John B. Kern, chairman and CEO of Carolina-Pacific. "South Carolina is now staged to enter the renewable energy industry on a global scale."

Kern noted that the operation has a direct connection to the state's forestry and agricultural industries by utilizing South Carolina-sourced Southern Yellow Pine in the on-site production of the briquettes and in the transport of switchgrass grown in the I-95 corridor.

"I welcome today's announcement and applaud Carolina-Pacific's faith in the positive business climate of coastal South Carolina," said Congressman Henry E. Brown. "This is also an important step forward for the Port of Georgetown, a significant economic development resource that I have long supported in Congress. The key to addressing the Port's maintenance needs is to increase the tonnage coming across the dock, and the aggressive work by the community and the Ports Authority should be commended," said Congressman Brown.

"This announcement is another indication that Commerce's close partnership with the state Ports Authority is a winning combination. Having Commerce project manager John Scarborough stationed at the port provides further evidence that strong leadership at the Ports Authority working hand-in-hand with an economic development professional is a team that is producing dividends for South Carolina," said Joe Taylor, Secretary of Commerce.

"Our state's ports system continues to be an incredible asset for South Carolina and Carolina-Pacific's commitment to the Port of Georgetown is another example of how export activity and the strength of our state's ports are integral in attracting new jobs and growing our economy. Thanks to the team efforts of state and local leaders, Georgetown County will benefit from this announcement now and in the years ahead," Secretary Taylor said.

Attention is being focused on maintenance dredging for Georgetown's 27-foot authorized channel. Thanks to the action of Congressman Brown, the Energy & Water Appropriations bill approved by the U.S. House earlier this month included another $1 million toward needed maintenance dredging in Georgetown. With Sen. Lindsey Graham's support, the Senate Appropriations committee adopted the same provision in its version of the bill.

Charleston Deepening Project Advances

The Port of Charleston is currently 47 feet deep at mean low water in the entrance channel and 45 feet inside the harbor. Charleston's channels have the opportunity to go even deeper thanks to funding for the resumption of a reconnaissance study on future deepening.

"With a 45-foot draft at low water, Charleston already has the region's deepest channels and can accommodate post-Panamax ships today," said David J. Posek, chairman of the South Carolina State Ports Authority. "The new project would take Charleston beyond 45 feet, opening the port to all classes of the world's most modern vessels. We are ready for the Panama Canal expansion and beyond."

After final approval by the U.S. House and Senate, and passage of the Energy & Water appropriations bill, Charleston Harbor will also receive $1,798,000 for dredged material disposal facilities and an additional $10.7 million for maintenance dredging work.

"The Ports of Charleston and Georgetown will be even more competitive," said Posek, "thanks to the action of Congressman Henry Brown, as well as the support of our allies and our Congressional delegation."

Another $1 million will go to needed maintenance dredging in Georgetown's 27-foot authorized channel.

"There are several new cargo accounts eyeing Georgetown, and adequate draft will help close those deals and bring these new projects, jobs and investment to our state," said Posek. "We are committed to enhancing Georgetown's position and are aggressively pursuing new business for the port."

The action on the projects came in the House Energy & Water Appropriations subcommittee.

Shipping Executive Newsome Picked to Lead South Carolina Ports

Charleston, SC - The South Carolina State Ports Authority (SCSPA) Board of Directors today voted unanimously to hire James I. (Jim) Newsome III as president and chief executive officer, effective September 1.

Newsome, 53, brings more than 30 years of global shipping experience to the ports of Charleston and Georgetown and is only the fifth leader of the SCSPA in its 67-year history.

Newsome said he will explore new ways to engage customers and other stakeholders. "Relationships are critical to a port's success, and they will be a top priority."

An accomplished shipping executive, Newsome previously served as president of Hapag-Lloyd (America), Inc., which is part of the world's fifth-largest ocean shipping company.

The hire caps an intense five-month executive search led by a 13-member search committee of business leaders and port stakeholders from across the state.

"Jim was the unanimous pick of both the board and the search committee," said Bill Stern, SCSPA vice chairman and chairman of the search committee. "The stars have aligned."

Members of the search committee praised the board's action.

"Jim is just the kind of leader that the search committee set out to find," said Ambassador Bob Royall, former S.C. Secretary of Commerce and former SCSPA board chairman. "He has the skills, qualities and experience to do great work for our ports and our state."

"Jim stood out in a field of highly qualified applicants," said search committee member Ambassador David Wilkins. "He was the clear first pick."

"Jim possesses both the operational and sales knowledge needed to move the South Carolina State Ports Authority forward," said Joe Taylor, S.C. Secretary of Commerce. "His contacts in both the shipping industry and the international business community will open many doors for the state, and I believe that he is the right person at the right time to reinvigorate our state's most important economic driver and take its potential to the next level."

Newsome earned his bachelors and masters degrees in transportation and logistics from the University of Tennessee, Knoxville. Prior to joining Hapag-Lloyd in 1997, he spent 10 years with Nedlloyd Lines, serving as executive vice president of the Americas, president of Nedlloyd Lines (USA) and other senior management positions.

Before his time with Nedlloyd, Newsome spent 10 years with Strachan Shipping Company, where he was president of their Hoegh Lines Agencies subsidiary in Jersey City, NJ and held other positions in Houston and New York.

SC Ports, SCDNR Partner to Restore Area Oyster Habitat

Charleston, SC - Oyster roast season in the Lowcountry may be over, but the thousands of bushels of oyster shells collected from these parties are making a positive environmental impact along our local waterways.

Thousands of bushels of shells collected during oyster season are recycled throughout Charleston's tideline, thanks to the efforts of the South Carolina Department of Natural Resources (SCDNR) in partnership with the South Carolina State Ports Authority (SCSPA).

According to SCDNR, community volunteers have planted a little over a half-acre this season, with approximately 2.4 acres left to plant before fall. Prior to planting, oysters are stockpiled at the SCSPA's Veterans Terminal on the former Navy Base and loaded onto barges to be transported to the selected planting sites.

During the permitting process for the new, 280-acre container terminal at the former Navy Base, the SCSPA pledged more than $12-million for various environmental and community projects in the Charleston metro region. Through coordination with SCDNR and the South Carolina Oyster Restoration and Enhancement Program (SCORE), the SCSPA is funding a five-year, $1-million oyster reef restoration project. The project to plant eight acres throughout Charleston Harbor is now in its second year.

During last year's SCSPA-funded planting season, which ran from June through September, community volunteers planted 22,714 bushels of shell over more than two acres of intertidal area.

Caribbean Sailings Start Next February

Charleston, SC - Celebrity Cruises, one of the world's premiere cruise lines, has announced new sailings to the Caribbean from the Port of Charleston, providing an endorsement of Charleston's broad tourism appeal.

This fall, the cruise line marks its return to Charleston, kicking off a series of port calls that will continue through early next year and resume next fall.

Starting in February 2010, Celebrity Cruises is offering a series of six 10-night and 11-night embarkations from Charleston to the Caribbean aboard the 1,898-guest Celebrity Mercury.

Then, in March 2011, Celebrity Cruises will offer five additional 10-night and 11-night sailings from Charleston to the Western and Eastern Caribbean on the Celebrity Mercury.

"We are pleased to welcome Celebrity back to the Port of Charleston," said John F. Hassell III, interim president & CEO of the South Carolina State Ports Authority (SCSPA). "The quality cruise experience that Celebrity provides its guests is a natural fit for the Charleston visitor market."

Travel media and cruise guests, including the readers of Conde Nast Traveler, consistently rank Celebrity as one of the world's finest cruise lines.

"Our travel agent partners and guests have repeatedly said they want more options to sail with Celebrity from the eastern seaboard, where our brand was founded and where we still have a very large and loyal base of cruisers," said Celebrity's President & CEO Dan Hanrahan. "So, we're pleased to present some very attractive new cruise vacations from Charleston."

Charleston's Passenger Terminal is located in the heart of the city's historic district, with shopping, restaurants, historic buildings and museums just steps from the ship. In addition, the intimate size of the Port of Charleston's cruise operation allows it to offer customized, special services to enhance a guest's cruise experience.

The cruise business is a relatively small, but important component of the local hospitality and tourism industry.

"Many cruise vacationers plan a pre- or post-cruise stay in Charleston, and this has been very helpful in attracting first-time visitors to the Charleston area," said Helen Hill, executive director of the Charleston Area Convention & Visitors Bureau. "These cruises have also been well supported by local residents who appreciate being able to take a cruise from their own hometown."

At the same time, the SCSPA and the City of Charleston are working together to enhance and improve Charleston's cruise infrastructure. The two are working on an update to the master plan that covers redevelopment of about nine acres including and surrounding the Passenger Terminal.

With the updated plan in hand, the SCSPA will seek development partners to improve and upgrade the facility consistent with federal security standards, while also enhancing the functionality of the terminal and surrounding property for passengers, ships and other commercial uses.

S.C. State Ports Authority - Byron Miller
843-577-8197 or bmiller@scspa.com

Charleston Area Convention & Visitors Bureau - Katie Chapman
843-805-3074 or kchapman@charlestoncvb.com

S.C. Ports Awarded Additional Funds to Reduce Air Emissions

The $3.5-million project involves installing cleaner engines in container-lifting equipment, two tugs, a dredge and over-the-road trucks. It will be jointly funded by the U.S. Environmental Protection Agency (EPA), the SCSPA and private companies.

"We are pleased to partner with private companies in the Port of Charleston on voluntary projects that reduce the environmental impacts of port operations while also improving a company's bottom line," said John F. Hassell III, interim president and CEO and Board secretary of the SCSPA.

Overall, the project will eliminate 2,000 tons of air emissions, including:

A baseline air emissions inventory released last September indicates that the majority of port-related air emissions are from mobile sources. To help reduce emissions from mobile sources, the SCSPA partnered with several companies in the private sector, including a tug and barge company, a dredge contractor and a drayage trucking firm.

Under the grant project, two Charleston-based tug boats owned by Stevens Towing Co., Inc. of Yonges Island will be repowered. Existing Tier 0 engines will be replaced with 2009-certified Tier 2 engines, which will reduce fuel usage by almost 30 percent and provide significant reductions in emissions.

Also in the harbor, a dredge operated by Marinex Construction Inc. will be repowered with a cleaner diesel engine years before it is required to be replaced. The repower will reduce NOx by more than 37 percent and CO by almost 20 percent.

To decrease emissions on local roads, Evans Delivery Service will install diesel multi-stage filters (DMFs) in 40 local drayage trucks. Evans is already a partner in EPA's SmartWay Transport Program. The technology decreases PM emissions by about 60 percent.

To implement these efforts, the SCSPA requested almost $2 million in federal funds to match the $1.5 million in matching funds set aside by the partners. All projects will be completed by October 2010.

The project is part of the SCSPA's voluntary partnership with South Carolina Department of Health and Environmental Control to further reduce port-related air emissions. Other voluntary projects completed or underway include electrifying container cranes, truck retrofits, cleaner engines in port equipment and cleaner fuels used in tugs, pilot boats, rail engines and other port equipment.

In addition to DHEC and the private companies, other project partners include the Charleston Metro Chamber of Commerce and the American Lung Association.

MSC Commits to Charleston through 2017

Charleston, SC - The South Carolina State Ports Authority (SCSPA) and Mediterranean Shipping Company (MSC), the world's second-largest container carrier, have signed a new agreement for business in the Port of Charleston through 2017.

The extended agreement solidifies MSC's place as one of the port's largest customers and supports hundreds of high-paying jobs across the Charleston maritime community.

"The South Carolina State Ports Authority is focused on bringing new business and jobs to the state," said David Posek, chairman of the SCSPA. "This agreement does both."

Late last week, MSC and the SCSPA signed a new five-year extension to the carrier's contract, lengthening its commitment in Charleston to 2017.

"This signals MSC's confidence in Charleston's ability to handle their needs now and well into the future," said Fred Stribling, the SCSPA's vice president of marketing and sales. "We enjoy a strong, productive relationship with MSC, and we anticipate a growing MSC presence in the Port of Charleston."

Charleston, with the deepest water on the South Atlantic coast, routinely handles MSC vessels with design drafts of up to 47 feet and capacity for 6,700 20-foot equivalent units (TEUs). The first phase of a new, 280-acre container terminal is slated to open in 2014.

Stribling highlighted the port's navigational and operational advantages in light of the extended agreement and expansion of the Panama Canal that is underway. "The Port of Charleston offers a world-class maritime community, deep water, unrivaled productivity and excellent inland access to a growing cargo base. That translates to cost-effective, high-value service for Charleston's customers."

Over the past decade, MSC has exploded onto the Charleston shipping scene. The company's existing presence in the port includes services to the west Mediterranean, South America, Caribbean, Africa and Europe. MSC's Charleston business totals well over 200 vessel calls annually, which support hundreds of local jobs for those working on the waterfront, including truckers, brokers, longshoremen and others.

In March, MSC dedicated its new, 45,000-square-foot South Atlantic headquarters in Mount Pleasant, South Carolina. The company directly employs about 225 professionals in Charleston, with the potential to grow that figure in the future.

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