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.

SC Ports, Trucking Community Launch Partnership to Reduce Emissions

Charleston, SC - Trucks serving the Port of Charleston are getting cleaner and greener through a new program that reduces truck emissions while saving companies big bucks on their fuel bill.

Under the public-private project, funded in part by an Environmental Protection Agency (EPA) grant received by the South Carolina State Ports Authority (SCSPA), truck owners that serve the Port of Charleston are receiving rebates to help cover part of the cost for technologies such as auxiliary power units that reduce truck idling or other equipment that cuts fuel use.

The SCSPA announced the rebate program as part of its 'Pledge for Growth' initiative in February. By the application deadline a month later, truck owners from across the state had applied to upgrade hundreds of trucks with the new technology.

"This is a win-win for the environment and for trucks operating out of the Port of Charleston," said Stan Nutt of G&P Trucking and president of the Charleston Motor Carriers Association (CMCA). "The project's success shows that the trucking industry is very interested in solutions that have both environmental and financial benefits."

The SCSPA's project partners include the Charleston Motor Carriers Association, South Carolina Trucking Association, Charleston Metro Chamber of Commerce, S.C. Department of Health and Environmental Control and the American Lung Association. A committee comprised of project partners evaluated the applications and selected the rebate recipients.

Receiving the rebates are Bulldog Hiway Express, Superior Transportation, B.W. Mitchum, Rich Mountain Transport, Osprey Leasing Corp., T&M Transfer, The Maine Team, McKenzie Trucking as well as nine owner-operators. Work on the rigs will be completed by this fall.

"This positive collaboration between the public and private sectors has made it much more affordable and accessible for truckers to upgrade their equipment," said John F. Hassell III, interim president & CEO of the South Carolina State Ports Authority. "The program shows that what's good for business can also be good for the environment."

The rebate program covers upgrades in two areas: idle-reduction projects and retrofit projects.

Idle-reduction projects incorporate auxiliary power units (APUs) and other similar devices such as battery air conditioning systems, thermal storage systems and fuel-operated heaters. According to EPA estimations, an average truck with an APU or similar device uses 8 percent less fuel each year. Truck owners will receive a rebate to recoup half of the cost to upgrade this equipment.

Truck owners are also receiving rebates to retrofit their trucks with EPA Smart Way approved technologies, such as single-wide tires and aerodynamic kits. Single-wide tires generate an estimated 4 percent fuel savings and aerodynamic kits provide a 5 percent reduction. These projects are eligible for a 75 percent cost rebate to the truck owner.

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 $62 billion annually and 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 Tug Boats Switch to Cleaner Fuel

Charleston, SC - Continuing the Charleston maritime community's 'Pledge for Growth' environmental commitment, a local tug boat operator is switching half its fleet to cleaner-burning fuels. The fuel switch was made possible through grant funding awarded by the South Carolina Department of Health and Environmental Control (DHEC) and the U.S. Environmental Protection Agency.

Last week, DHEC, through the federal Diesel Emissions Reduction Act (DERA) program, awarded grants to nine organizations across the state in both the public and private sector.

Moran Charleston will upgrade one tug to ultra-low sulfur diesel (ULSD) three years ahead of federal mandate and another tug to a biodiesel blend. The funding covers the additional cost of buying the cleaner fuel, which ranges from 10 to 22 cents more per gallon than regular diesel. Moran will receive 75 percent of the cost difference in DERA grant funding and will cover the remaining 25 percent.

Moran provides ship docking and harbor towing services to vessels using the Port of Charleston. It is the successor company to White Stack Maritime, which had served the Port of Charleston since 1882.

To learn more about the port community's pledge to the environment, visit www.pledgeforgrowth.com.

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