SCSPA Remembers Long-Time Director Don Welch

Charleston, SC - The South Carolina State Ports Authority (SPA) honors the memory of long-time executive director W. Don Welch, who passed away earlier today at his home in Florida.

"Don Welch's many contributions to the State Ports Authority and economic development in this state are apparent now and will be felt for many years to come," said John F. Hassell III, interim president and CEO and board secretary of the SPA. "We in the port industry mourn the loss of a dedicated leader, consummate professional and friend. The entire Charleston maritime community extends our thoughts and prayers to his family during this time."

Mr. Welch, 78, served as executive director of the SPA from 1971 until 1996. During that time, the port went from a labor-intensive environment to a largely automated operation, thanks to the containerization movement. Mr. Welch predicted in 1971, 'Anything that can be containerized will be,' and he steered the Port of Charleston to successfully prepare for it.

As executive director, Mr. Welch guided the development of the Wando Terminal from the land purchase in 1972, to the terminal's opening in 1981, and its near completion in 1997. In 1994, the Wando Terminal was renamed the Wando Welch Terminal. He also led the major overhaul of the SPA's other facilities to provide open storage for containers.

A native of Jacksonville, Florida, Mr. Welch obtained his B.A. degree in economics from the University of Florida in 1951 and his M.S. in transportation from the University of Tennessee in l956. During the Korean War, he served as an artillery officer in the U.S. Army.

Mr. Welch received a number of honors including World Trade "Man of the Year" by the Propeller Club of Charleston; the "Distinguished Service Award" granted by the Southern Growth Policies Board; and, was named the University of Tennessee's "Distinguished Alumnus" for 1981. In April of 1991 Mr. Welch was presented transportation industry's most prestigious award, the Harry E. Salzberg Memorial Medallion by the School of Management at Syracuse University. Welch served as the 1981 chairman of the American Association of Port Authorities.

In 1990, the College of Charleston established the W. Don Welch Medallion to be awarded in Welch's honor for "meritorious contributions in the transportation industry."

Groseclose Resigns as Head of SCSPA

Bernard S. Groseclose Jr., president and chief executive officer of the South Carolina State Ports Authority (SCSPA), today offered his resignation.

David J. Posek, SCSPA board chairman, announced that longtime board member John F. Hassell III will serve as interim president and CEO as the board conducts a national search for a permanent replacement. Hassell will assume his duties immediately.

"The people of South Carolina owe Bernie Groseclose a debt of gratitude for his service to one of our state's most important economic development engines," said Posek. "During his tenure, the port system became one of the most effective and efficient ports authorities in the world. He has led the Authority through some very turbulent times over the years and the board wishes him the best. I am sure he will succeed in his future endeavors."

Posek said Hassell's appointment ensures a seamless transition. "John has tremendous respect in the maritime industry, as well as the business and political communities, and he knows the agency from the inside out, having served on the staff for a number of years," Posek said. "We are very fortunate that he agreed to serve the state in this interim capacity."

Hassell, president of the Maritime Association of South Carolina for 15 years, has served on the SCSPA board since 2001, and was employed at the SCSPA from 1980-1986. Effective immediately, he will take a leave of absence from the Maritime Association.

Groseclose joined the SCSPA in 1985 as manager of business analysis and later served as director of planning and development. The SCSPA board unanimously selected him as president and CEO in mid-1996.

"I am proud of what we have done collectively to create jobs and economic prosperity in South Carolina, and am grateful to the many men and women at the Ports Authority who work so hard to maintain our international reputation," Groseclose said. "It has been an honor to work with them and serve the people of South Carolina."

Posek announced that he has appointed the vice chairman of the SCSPA board, Bill H. Stern, chairman of the search committee for a permanent replacement. Stern said other committee members will be named at a later time.

"While the search committee will lead the effort, it is the board's desire to be as open and transparent as possible, and to seek input from the port's many constituencies at the local and state levels," Stern said.

Port Charleston Cuts Rates with Mid-Winter Rate Roll-Back

Charleston, SC - The South Carolina State Ports Authority (SCSPA) is instituting an across-the-board rate discount in the Port of Charleston to provide near-term relief to customers impacted by the current global economic situation.

From January 1 through March 31, the SCSPA's Mid-Winter Rate Roll-Back will reduce contract unit fees for container carrier customers by 5 percent.

"Our carrier customers are facing some very challenging market conditions," said Bernard S. Groseclose Jr., president and CEO of the SCSPA. "We heard from them and we're responding. This sends a clear signal that we are serious about their business today and in the future."

The SCSPA's action is aimed at maintaining the viability of current service levels from its carrier clients, avoiding cuts that would negatively affect the local maritime industry and jobs statewide.

"We understand the pressures our clients have, and this rate roll-back will make our Charleston operation even more affordable at a time when our customers could use a break," said Groseclose. "The entire Charleston maritime community is committed to keeping existing business while bringing in new accounts. One way to show our commitment is to provide some relief and reduce rates."

Additionally, this rate reduction will be attractive to those customers who may wish to concentrate business in Charleston.

Through the first five months of the current fiscal year (July-November), Charleston's container business was off 4 percent from the same period last year.

Ports Authority, Neighborhoods Announce Additional Funding for Community Projects

North Charleston, SC - The South Carolina State Ports Authority (SPA) today joined community leaders near the site of the new Navy Base Terminal to announce the second installment in a ground-breaking $4-million community mitigation project.

In a ceremony at Gethsemani Community Center in the Union Heights neighborhood, SPA President & CEO Bernard S. Groseclose Jr. presented a $300,000 check to North Charleston Mayor Keith Summey. Last year, the SPA presented $750,000 in first-year funding and is contributing $300,000 annually to the community through 2013.

The SPA is providing the funds in partnership with the City of North Charleston and the Lowcountry Alliance for Model Communities (LAMC), a group of seven neighborhoods near the terminal site.

LAMC worked with the SPA over several months to ensure that the new container terminal will have the greatest positive impact on the surrounding area. The resulting Community Mitigation Agreement calls for the SPA to fund $4.08 million in community, neighborhood and economic development projects such as scholarships, affordable housing and revitalization plans.

"LAMC's partnership with the Ports Authority means great things for our community," said North Charleston City Councilman Michael Brown, who serves as president of LAMC. "For example, we were able to provide educational opportunities for our residents, with thousands of dollars in scholarships awarded just last month. We will soon begin work on a comprehensive community plan that will serve as a roadmap for revitalizing and strengthening our neighborhoods."

While virtually all major port development projects include traditional 'green' mitigation for wetlands and other impacts, this is one of the first port expansion projects that included both community and environmental programming as part of the formal mitigation plan.

Specific priorities in the Community Mitigation Plan include:

The community mitigation is part of a larger $12-million mitigation program to offset direct and indirect impacts of the SPA's new container terminal at the former Navy Base. To learn more about the SPA's environmental initiative, please visit www.pledgeforgrowth.com.

TWIC Implemented in Port of Charleston

Charleston, SC - Thousands of workers in the Port of Charleston now must show a new mandatory federal identification card at the terminal gates, and so far the implementation process is going smoothly.

Starting today, federal law requires that all truck drivers, port employees, longshoremen and others working on the South Carolina State Ports Authority's (SCSPA) facilities have a Transportation Worker Identification Credential, or TWIC. Only a small percentage of workers have shown up without the new mandatory ID card.

"Cargo is flowing smoothly and there were no major issues with implementation," said Bernard Groseclose, president and CEO of the SCSPA. "The trucking community, the private maritime sector and labor all contributed to a successful launch of TWIC in Charleston."

The SCSPA worked collaboratively with U.S. Coast Guard-Sector Charleston to actively promote the new program and educate the maritime community through speaking engagements, media attention, signage at the gates and direct mail and e-mail.

According to the latest data from the U.S. Department of Homeland Security, 8,192 workers have enrolled in Charleston, and 5,373 cards have been activated. Over the past five months, enrollment among local truck drivers nearly quadrupled, from 841 in mid-July to 3,129 in mid-November.

The Charleston TWIC enrollment center opened more than a year ago. The temporary location is at the Residence Inn, 5035 International Blvd. in North Charleston.

The TWIC is required by federal law and will serve as an identification card for all personnel requiring unescorted access to secure areas of regulated marine terminals. The fingerprint-based ID card costs $132.50 and is valid for five years. To obtain a TWIC, applicants must successfully pass a security threat assessment conducted by the Transportation Security Administration (TSA).

In July, the U.S. Coast Guard announced an implementation deadline of December 1 for the Port of Charleston. Today, the Coast Guard began enforcement of the TWIC for certain port facilities in South Carolina, Georgia and Florida.

For more information on TWIC, visit http://www.tsa.gov/twic.

October Volumes Up at Port of Charleston

Charleston, SC - Container volume at the Port of Charleston increased 6% in October, despite broader economic challenges.

In October, the Port of Charleston's three container facilities handled 146,878 20-foot equivalent units (TEUs), an increase of nearly 6% from the same month last year and a gain of more than 16% from the previous month.

"Given the volume trends both here and across the country, it's somewhat of a pleasant surprise," said Bernard S. Groseclose Jr., president and CEO of the S.C. State Ports Authority (SCSPA), following Tuesday's Board meeting. "We certainly wish this were a trend, but based on what our customers are telling us, it's more likely an aberration."

Loaded import container volume was up 4% from the same month last year and up 17% from the previous month. Loaded exports declined slightly, dropping 1% from October 2007 and falling 3% from the previous month.

Breakbulk tons also rallied in October, with 114,359 tons of cargo moved at the SCSPA's facilities in Charleston and Georgetown. This represents a 47% gain over the same month in 2007.

Wildlife Trust, SC Ports Renew Partnership for Endangered Right Whale

Endangered North Atlantic right whales migrate to the Southeastern U.S. coast to give birth to their calves. This region is the only known calving ground for the species and has been designated as a critical habitat for right whales. During the project permitting process for the new container terminal in North Charleston, collaboration between the National Oceanic and Atmospheric Administration (NOAA) and the SCSPA resulted in increased efforts to protect right whales along the South Carolina coast. Through its agreement, the SCSPA pledged up to $200,000 per year for five years to Wildlife Trust.

"We are pleased to continue our partnership with Wildlife Trust as part of our overall commitment to protecting the environment," said Bernard S. Groseclose Jr., SCSPA president and CEO. "Through our Pledge for Growth, we believe that the success of the port can mean great things for both the economy and our environment," said Groseclose, referring to the more than $12 million in community and environmental projects planned or under way in conjunction with the new terminal development.

The purpose of monitoring right whales through aerial surveys is two-fold: aerial surveys provide vital information to wildlife managers on right whale calving distribution and the location of these slow-moving animals. The largest threats to the right whale population are human-related, including ship strikes and entanglement in fishing gear. Wildlife Trust works to minimize the risk to these animals by locating right whales during daily aerial surveys from November through April and reporting locations to military and commercial shipping traffic to mitigate potential ship strikes. The SCSPA-funded survey area spans from Cape Romain, SC to Fripp Island, SC.

"With fewer than 400 right whales remaining in the population every whale is vital to the survival of this critically endangered species," said Dr. Mary C. Pearl, president of Wildlife Trust.

Aerial flights are conducted three to four days a week during the best weather conditions. In the previous season funded by the SCSPA, which began in January of this year and concluded in mid-April, the survey team logged six sightings with a total of 16 whales spotted.

About Wildlife Trust

Wildlife Trust empowers local conservation scientists worldwide to protect nature and safeguard ecosystem and human health. Wildlife Trust is a conservation science innovator and leverages research expertise through strategic global alliances. Wildlife Trust pioneered the field of Conservation Medicine, a new discipline that addresses the link between ecological disruption of habitats and the effects on wildlife, livestock and human health.

Founded in 1971 by British naturalist and author Gerald Durrell, Wildlife Trust has built its reputation on 35 years of global research, education, training and experience. Work in the United States includes research, conservation, and training programs in the metropolitan New York area, Florida and along the coast of the Southeastern U.S.

Internationally, Wildlife Trust trains and supports a network of scientists around the world to save endangered species and their habitats and to protect the health of vital ecosystems. Wildlife Trust created the first egalitarian international network of science-based conservation organizations, the Wildlife Trust Alliance, and is a founding partner organization of the Consortium for Conservation Medicine, a unique collaboration between Wildlife Trust and prestigious academic institutions around the world. To learn more please go to http://www.wildlifetrust.org.

About The South Carolina State Ports Authority

The South Carolina State Ports Authority, established in 1942, owns and operates public seaport facilities in Charleston and Georgetown, handling international commerce valued at more than $60 billion annually.

CSAV boosts Charleston capacity to South America

Charleston, SC - The Port of Charleston's reach to South American trading partners will increase next year, as Chilean carrier CSAV Group brings on additional capacity on its weekly USATLAN service.

Beginning in the third quarter of 2009, CSAV will replace vessels able to accommodate 2,500 20-foot equivalent units (TEUs) with 3,500-TEU ships. The move is part of upgrades to five of CSAV's services covering the East Coast of South America.

"We wish to continue offering our customers reliable service and better options," said Felipe Olavarria, senior vice president of South American trades at CSAV's New York office. "The upgraded service coupled with Charleston's high productivity is a win-win for our customer base."

"The East Coast of South America offers a steadily growing export opportunity for South Carolina businesses," said Fred Stribling, vice president of marketing and sales for the S.C. State Ports Authority. "Last year, exports in that trade lane increased 19%."

The USATLAN service calls the Wando Welch Terminal every seven days and connects Charleston with the East Coast South American ports of Puerto Cabello in Venezuela, Rio de Janeiro, Santos, Salvador and Sao Francisco do Sul in Brazil. Other participating carriers on the service include Hanjin, Hamburg Sud, Alianca, Yang Ming, K Line and Libra.

In 2007, the South American trade lane accounted for 11% of Charleston's total container business.

SC Ports' Impact: $45 Billion

Charleston, SC - Seaport operations in Charleston and Georgetown facilitate 260,800 jobs across South Carolina and nearly $45 billion in economic activity annually, according to a new study released today by the S.C. State Ports Authority (SCSPA).

"The core of the Ports Authority's mission is to be an economic development engine for the state of South Carolina," said Bernard Groseclose, president and CEO of the SCSPA. "Port expansion is vital to continuing to grow the state's economy in the coming years."

Wilbur Smith Associates of Columbia, SC compiled the study, which measures actual economic output by port operations in Charleston and Georgetown and port users in all 46 counties during calendar year 2007.

"These findings show that the state's seaports have far-reaching impacts that extend well beyond the coast," said Wilbur Smith's Eric McClellan, senior economist and project manager for the study. "Clearly, the SCSPA is an integral component to the state's economy."

The study's key findings reveal that through direct port operations or the activities of port users, trade through the state's seaports facilitates:

Using port-industry data, surveys, and the IMPLAN econometric model, Wilbur Smith tabulated impacts for six regions in the state: Tri-County, Lowcountry, Pee Dee, Aiken, Midlands and Piedmont. SCSPA officials will be traveling across the state later this year to share the detailed impact results by region.

Currently, the SCSPA is moving forward on near- and long-term expansion projects in Charleston and along the Savannah River in Jasper County.

Next month, a new 25-acre yard will open at the Wando Welch Terminal, representing a 10% capacity increase for the terminal. The SCSPA is continuing with site preparation associated with a new, 280-acre terminal on the former Navy Base. The terminal is expected to open in 2014 and, at build out, will increase Charleston's total container capacity by 50%.

The SCSPA continues to work with the Georgia Ports Authority on the development of a bi-state facility along the Savannah River in Jasper County. Most recently, the two agencies purchased the 1,500-acre site and hired a project management firm.

The entire economic impact report is available online.

Jasper Ocean Terminal Board of Directors Retain Program Manager

Charleston, SC - The Jasper Ocean Terminal Joint Project Office Board of Directors agreed today to retain program management services to develop feasibility studies, quantify capital needs and perform overall management for the Jasper Ocean Terminal.

In August, the Joint Project Office (JPO) Board authorized the solicitations of Requests for Qualification and Expressions of Interest for Program Management Services. Six qualified firms were asked to submit bids and two bids were received. Last month the completed bids were reviewed and today the JPO Board selected Moffatt & Nichol. As Project Manager, Moffatt & Nichol will, with the involvement of several other specialty disciplines, provide preliminary terminal planning, economic analyses, market studies, and dredged material management and conceptual infrastructure planning.

"The selection of a program manager by the Joint Project Office's Board of Directors is an important step toward meeting future shipping needs for this region," said Jim Balloun, Chairman, JPO.

Last January, the Georgia Ports Authority (GPA) and the South Carolina State Port Authority (SCSPA) signed an Intergovernmental Agreement for Development of a Jasper port to contract for, jointly own, manage and plan for the development of the Jasper Ocean Terminal. The agreement further provides that the GPA and SCSPA will jointly staff, equip, and operate a Jasper Ocean Terminal Joint Project Office.

One member of the six member JPO Board of Directors is appointed by each state's governor, two members are appointed by each port's board chairman from his board of directors. Additionally, a member of each Governor's staff and the executive director of the GPA and the president of the SCPA serve as ex officio, non-voting members. Current members of the JPO Board are as follows: James (Jim) S. Balloun, Board Chair (GA); William (Bill) Bethea, Jr. Board Vice Chair (SC); Steve Green (GA); Bernard (Bernie) S. Groseclose (SC); James (Jim) R. Lientz (GA); Doug J. Marchand (GA); Alex Poitevint (GA); David (Dave) J. Posek (SC); Bill Stern (SC); E. Brandon Gaskins(SC).

"We are excited about moving forward on a project that will help build the long-term viability of international trade in our region, create jobs and promote new economic opportunities," said Balloun.

In July, the GPA and the SCSPA completed the joint acquisition of 1,518 acres of land from the Georgia Department of Transportation for the development of the Jasper Ocean Terminal on the Savannah River in Jasper County.

"The first step for the program manager will be to focus on feasibility studies to support the release and relocation of the existing Corps of Engineers' easements currently located on the parcels of the Jasper Ocean Terminal study site" said Bill Bethea, JPO Board Vice-Chairman. "We will also continue the studies to establish the feasibility and cost of building a container terminal in Jasper County and begin preliminary planning for the Terminal Site itself" said Bill Bethea.

The original term sheet signed last year by both Georgia Governor Sonny Perdue and South Carolina Governor Mark Sanford provides that the JPO will work with the U.S. Army Corps of Engineers to release existing spoil easements from the Jasper Terminal study site. As called for by Governors Perdue and Sanford last year, the JPO will concentrate on ways to use private capital in the construction of Jasper Ocean Terminal.

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