Port Royal Waterfront Offered for Sale

Charleston, SC - The South Carolina State Ports Authority today offered for sale more than 50 acres of waterfront property in the Town of Port Royal near Beaufort. The property is zoned for redevelopment in commercial, residential and public uses and the sale could close as soon as June of next year.

The property offer is divided into three distinct areas: Bluff Neighborhood Tract (18.09 acres); Marina Village Tract (2.48 acres); and the Port Village Tract (30 acres). Interested bidders may offer to buy any one or more of the individual tracts and also may offer a single bid for all three parcels combined.

The Bluff Neighborhood Tract runs from Ribaut Road to just above 12th Street. The Marina Village Tract includes Dockside Restaurant and goes from 12th to 10th Streets. The Port Village Tract is the largest parcel, extending from 10th Street to the existing Port of Port Royal marine terminal.

Proposals are due to the Ports Authority by 5 p.m. on March 30. The detailed Request for Proposals (RFP) is divided into two separate parts, a Request for Qualifications and a Request for Bids. Only once proposals are deemed qualified, based on the respondents' experience, financial capabilities and other considerations, will the bids be considered.

The Ports Authority initially posted the RFP on its web site today and will soon begin a local, regional and national advertising campaign to attract potential buyers. To show the site, the Ports Authority will offer four tours to prospective buyers starting in January.

The ultimate buyer or buyers, as well as the Town of Port Royal and the Ports Authority, will benefit from a specific and guided redevelopment. The Town and the Ports Authority spent several months working through extensive planning that resulted in zoning the property as a Planned Unit Development (PUD) and the finalization of a Development Agreement. The RFP includes copies of both documents.

Release of the RFP culminates a long process that began on July 17, 2003. At a public budget meeting, Gov. Mark Sanford supported the concept of redeveloping the Port of Port Royal. This effort was codified in 2004 by the General Assembly under the leadership of Beaufort area legislators.

The Ports Authority began land assessment and initial market survey work later that year and contracted for land planning services in February 2005. Between March and November of this year, the Town and the Ports Authority worked through various issues resulting in the Development Agreement and the PUD.

MSC Adds Charleston Call to Mediterranean Service

Charleston, SC - The Port of Charleston will be added as the last outbound port in a weekly shipping service to the Mediterranean. The upgraded service, by Mediterranean Shipping Company (MSC), commences tomorrow with the call of the MSC LUGANO at North Charleston Terminal.

Charleston's position as the last outbound port should attract export cargo destined for the Mediterranean and beyond with transit time of 10 days to Valencia, Spain. The service also offers direct calls at the Italian ports of Naples and La Spezia and a call in Sines, Portugal.

"The potential is quite good in Charleston," said Allen Clifford, executive vice president of MSC (USA). "Charleston is one of our larger ports to the Mediterranean."

MSC will operate five ships in the service with an average capacity of 3,000 twenty-foot equivalent units (TEUs). With this addition, MSC will have a total of five ship calls, including ships of post-Panamax size, each week at the Port of Charleston.

Port Expansion to Help Preserve Morris Island

Charleston, SC -- Port expansion at the former Charleston Navy Base will include funds to help preserve Morris Island and carry out a host of other environmental and community mitigation activities in the local area.

The Trust for Public Land will receive funds to protect Morris Island as part of a multi-million dollar plan aimed at mitigating environmental and community impacts of port expansion at the former Charleston Navy Base.

When the long-anticipated Final Environmental Impact Statement for port expansion is released tomorrow, it will be accompanied by what is perhaps the largest single environmental mitigation plan in the state's history.

The Ports Authority has been proactive in the mitigation process, working with environmental and community groups. In addition to operational and construction measures that will avoid and minimize negative impacts, the plan includes more than $10 million in mitigation activities.

A keystone component in the mitigation plan are funds to protect the 126-acre Morris Island site as a public space for future generations, an effort that has generated tremendous public, corporate and political support.

"This contribution by the State Ports Authority takes us much closer to our goal of raising the $5 million we need to secure Morris Island for public ownership and initiate the process by which it can be responsibly managed," said Slade Gleaton, The Trust for Public Land's South Carolina director. "As the Charleston area grows, these special places will become more and more important," says Gleaton. "This is our last chance to ensure that Morris Island will belong not to one company or individual, but to the entire community."

The more than 70-page mitigation program summarizes the environmental consequences of port expansion and provides solutions to reduce, rectify and compensate for direct and indirect impacts. The plan also includes mitigation for the dedicated Port Access Road that will connect the terminal to I-26.

"The Ports Authority is committed to responsible development," said Bernard S. Groseclose Jr., the Ports Authority's president and CEO. "We're addressing the impacts of port development in a fair and very thorough way."

When compared to similar large-scale projects, the Ports Authority's mitigation effort is certainly aggressive. Mitigation activity for the recently permitted APM terminal in Portsmouth, Virginia, which impacted about three times as much acreage, totaled $6.7 million. The Vought mitigation activity for 40 acres of impact in North Charleston was $4.75 million. Port expansion at the former Navy Base will impact about 10 acres of tidal marsh, 2 acres of freshwater wetlands and 57 acres of sub-tidal bottom fill.

To offset indirect environmental impacts and serve the public interest, the Ports Authority's mitigation plan includes support for large-scale land preservation efforts. With advice from The Trust for Public Land and The Nature Conservancy, the plan includes $1 million for the Morris Island protection effort and $1 million toward protecting land through the Cooper River Initiative, a broad-based consortium of environmental agencies and groups.

To deal with direct impacts to aquatic resources and wetlands, the Ports Authority will recreate 22 acres of tidal marsh at a site in the lower harbor, restore more than five miles of oyster reefs in and around Charleston Harbor and purchase mitigation bank credits. These projects are expected to total another $2.5 million.

In addition to the traditional environmental mitigation, the Ports Authority, the City of North Charleston and surrounding neighborhoods worked for months on initiatives to ensure the most positive impact from the terminal. This culminated in May with an agreement for $4 million in community programming to fund education and job training programs, establish an affordable housing trust and other projects.

For the first time in any port-related mitigation plan, the Ports Authority has included activities specifically to address any impacts on the surrounding community.

"The City and the Ports Authority have collectively raised the bar in terms of public involvement throughout this process," wrote Michael A. Brown, president of the Lowcountry Alliance for Model Communities, in a letter supporting the mitigation plan. LAMC is a group that represents seven neighborhoods around the terminal site and dealt with port expansion issues.

The Ports Authority will also make available a three-acre site for the benefit of the recently announced Clemson Restoration Institute on the former Navy Base.

The U.S. Army Corps of Engineers plans to release its Final Environmental Impact Statement on Friday. A record of decision is expected in April 2007.

South Carolina Offers Port Tax Credit

Charleston, SC - A new South Carolina tax incentive geared toward increasing business through the state's port system is now available.

Through the International Trade Incentive Program (ITIP), companies in the state that are involved in manufacturing, warehousing or distribution may apply for state income tax credits from an available pool of $8 million. The tax credits are aimed at bringing new investment to South Carolina, as well as rewarding existing companies for expanding their port business in the state.

"This incentive works to make our state more competitive in attracting distribution centers and foreign investment," said Bernard S. Groseclose, Jr., president and CEO of the S.C. State Ports Authority. "At the same time, it encourages companies already here to increase shipments."

South Carolina has the nation's highest percentage of employment by foreign-based companies.

Companies that increased their port cargo volume by at least 5% from 2005 to 2006 and meet base cargo volume requirements are eligible to apply. The Coodinating Council for Economic Development will allocate the tax credits.

Information and applications are now available online at www.scspa.com/business/ITIP.asp. The application deadline is March 1, 2007.

State of the Port Address 2006

Looking around at the product display and the centerpieces tonight, we're reminded of the role the Port of Charleston plays in our state's economy. Our customers are near and far. They're right next door, or across the state - in fact, they're in every county of our state.

And our customers are obviously pleased with the job we're doing. Last month, World Trade magazine reported that in a poll of more than 5,000 readers, supply chain executives ranked the Port of Charleston number one in customer satisfaction.  Number one.  And our competitors weren't even close.

That's a testament to each and every business in this room.  And to every man and woman who works each day on this waterfront to make our port the best in the world.  You all deserve a round of applause...

Our productivity remains world-class. In fact, earlier this year in Copenhagen, the world's largest ocean carrier said Charleston was their most productive port in the world for the prior year.

We've continued to build on that reputation. Crane productivity has reached new highs, surpassing 41 moves per hour per crane in the first quarter. Importantly, this productivity is not coming at the expense of safety. In fact, the stevedores and longshoremen are working hard to ensure a safe environment, and a joint safety team that includes the Ports Authority continues to meet regularly.

To handle the increasing rush of world trade, the Ports Authority has responded with new equipment and other improvements. I told you last year the Ports Authority would order 16 new container stacking cranes, or RTGs, for about $24 million. Well, the first of those are already operating and the rest will be in service by the end of the year. That means new capacity.

The four new super-post panamax container cranes ordered last year are in the final assembly phase in China and are due to be shipped on December 30th and to arrive in Charleston by March 1st. Those four cranes, and the related improvements, come with a $38-million price tag. That means new capacity.

Our board, lead by Chairman Bill Stern, has shown a commitment to investing in and improving this port.

Beyond physical improvements, the Charleston waterfront and our customers have endured some pretty big operational changes. For several years I have been challenging us as a port community to improve the way we have traditionally done business in order to improve the efficiency and utilization of our assets. It's no exaggeration to say that over the past decade, the Port of Charleston has been reborn. While these changes have not always been welcomed with open arms, they have been necessary.

First, we moved from a wheeled operation where each slot on the terminal held one container to a grounded operation where containers are stacked up to seven high. Then we extended operating hours at our gates. Then we implemented a new computerized container yard system. And last year, the Authority implemented new rules and fees to ensure containers don't stay on terminal for extended periods of time.

With seven days of free time on imports and the seven-day rule for exports, we've seen some tremendous results. Dwell time, or how long a container sits on our terminals, has been slashed by 40-80%. That creates immediate space and it translates into higher productivity for the ocean carrier and for the trucker. It hasn't been easy, but looking at the numbers, it's hard to argue with the effectiveness. That means new capacity.

Recently, new rules went into effect covering unusable equipment that's stored on terminal. Overnight, bad equipment inventory was cut by more than two-thirds. Over the coming year, we'll implement a new South Atlantic Consolidated Chassis Pool to more effectively manage equipment inventories in the port. We joined with Georgia and the ocean carriers association, OCEMA, to ensure maximum participation and impact. This should benefit truckers, the ocean carriers and the importers and exporters. That means new capacity.

These terminal improvements and process changes are vital to serving the economic development projects landed by our state Department of Commerce and local development agencies. Beyond the industrial successes, like the expansion of BMW and Michelin, and the DaimlerChrysler announcement to make the Sprinter vans in South Carolina, we're encouraged by several new distribution center announcements, such as QVC in Florence, Foodhandler here in the Tri-county area and other major development deals, some of which have yet to be announced.

Showing confidence in the growth of international trade and South Carolina's ability to handle it, we've attracted additional ship calls to the port. Since last year's state-of-the-port, there have been five new ocean carrier services announced for Charleston, covering South America, Asia, India and Europe. That means new capacity.

So, although our attempts to build a new terminal in Charleston have been stymied, we have been creative and resourceful in expanding and meeting the needs of our customers in a rapidly growing global marketplace.

To help fund our current needs, and the needs that lie ahead, the Ports Authority is taking a hard look at all our assets. That's why we're disposing of excess property such as the degaussing station which we are selling for $5.25 million. Hopefully, the sale and redevelopment of the Port Royal and Daniel Island properties will also contribute positively to our cash position, because port expansion is not cheap.

As most of you know, our Ports Authority, unlike those in other states, is not subsidized by the state on either a capital or operating basis. While the State of South Carolina has funded a portion of harbor deepening to facilitate the ships calling both public and private terminals, the Ports Authority hasn't received any capital or operating support in decades. That makes our financial position extremely important.

Fortunately, I'm pleased to report that your Ports Authority is doing very well. Revenues, volumes and, more importantly, earnings hit all-time records last year. Therefore, we are positioned to handle port expansion needs without any tax dollars for the terminal construction.

We've had plenty of good news. Our customers have confidence in our abilities. However, our competitors are catching up. Other states are expanding their ports and building new terminals. They're looking to steal our state's lucrative international business.

While we have created capacity for the near-term, South Carolina must expand its port system. If we don't, we will lose the edge on one of our state's most important tools for business attraction and economic development. In order to fulfill our legislative mandate the Ports Authority is committed to expanding both in Charleston and on the Savannah River in Jasper County. And, we are moving forward concurrently on each of these projects.

As soon as we get the permit - which we now expect in April -- we're ready to roll at the Navy Base. I have to tell you, from the information we have from the Corps of Engineers, I am as optimistic as I have ever been that we are on the verge of actually getting a permit. And, as you know, I've had my share of bad permitting experiences in the last ten years. The final environmental impact statement will be released by the Corps in the next 30 days. So, we've hired an engineering firm to do preliminary site planning work. That way, when we receive the necessary permits, we'll be ready to let the first major contract for construction. This won't be a small project. The initial work will total $180 to 200 million -- about a third of the first phase cost.

To get us here, we've finalized a community mitigation agreement with our future neighbors in North Charleston and successfully addressed concerns about the possible extinction of the right whale. With regard to the former, I'd like to recognize the presidents of the seven North Charleston neighborhoods who worked so closely and in good faith with us to reach a positive resolution. So many folks today are anti-everything. Anti-growth. Anti-development. Anti-this. Anti-that. But these community leaders saw an opportunity to capitalize on the inevitable growth and expansion to ensure the most positive impact on them and their community.

While we've addressed air quality, water quality, whales, and community issues, our road infrastructure is the only major issue standing between South Carolina and port expansion. The state, as it committed in 2002, must fund the new Port Access Road linking the proposed terminal to I-26 and it must provide whatever improvements are necessary on the interstate. Holding port expansion hostage is not an option. In fact, port expansion will bring tremendous economic benefits and increased tax revenues, helping to fund these and other needs of South Carolinians.

Late last month, the people of a country in Central America nearly identical in size to South Carolina approved a five billion infrastructure project. Of course, I'm referring to Panama and its almost 100-year old canal. Just like Panama, we have our own infrastructure needs here in South Carolina. Just like Panama, our economy and job creation is based largely on trade. And just like Panama, we need to invest in our infrastructure. The people of that country saw the need, acted and will be rewarded for it. The Port of Charleston is well positioned to reap the rewards of increased trade flow through the expanded Panama Canal - IF we are ready with our expansion.

A few months ago I heard an economist speak on the keys to international competitiveness. He identified three elements. First, we must open all the doors to trade. Second, we must focus on productivity. And, third, we must expand our ports and our inland infrastructure.

Here in South Carolina, we've focused on international investment and trade. We've been branded as a world-class port, focused on productivity. We've deepened our harbor. We've built a new bridge and removed the old. We've invested tens of millions of dollars in new port equipment and technology. Now, we're ready to expand the port.

But we must have the road infrastructure to support this development.

I'd like to thank everyone in this port community who has been a part of our past success.

I'd also like to thank each and every one of the elected officials here tonight for joining us. We have challenges before us as a port, and you have a challenge before you. But together we have the business skills and the political muscle to keep us competitive on an international level.

Help us by funding the port access road and other necessary infrastructure improvements.

Help us leverage this fabulous asset that our state is so fortunate to have.

Help us make port expansion possible, and thereby galvanize our future economic success.

Thanks, and good night

Supply Chain Execs Rank Charleston Port #1 in North America

Charleston, SC - The Port of Charleston ranks first in customer satisfaction across North America, according to the readers of World Trade magazine.

In a survey reported in the publication's October edition, Charleston had the highest percentage of respondents saying that they were "very satisfied" with the port.

The magazine for supply chain decision makers asked over 5,000 subscribers how ports figure into their transportation strategies.

Of the respondents using the Port of Charleston, an impressive 46% gave the port the highest mark possible. In the "very satisfied" category, Charleston edged out Montreal by eight points, Seattle by 11, and Norfolk by 13.

"It's an honor, a privilege and a huge responsibility to be recognized as the one of the world's leading ports," said Bernard S. Groseclose Jr., president & CEO of the South Carolina State Ports Authority. "This ranking shows the confidence our customers have in us. Everyday, the Charleston waterfront works hard to earn it - the truckers, stevedores, labor, the brokers and forwarders, everyone."

The World Trade "Reader-to-Reader Report" also found that importers and exporters are becoming more selective, with more than 60% changing ports either last year or this year. Nearly 70% cited the primary reason was to avoid port congestion.

"Charleston has improved utilization and productivity in the face of growing volume," said Groseclose. "To reach new productivity highs in the face of record volume is no easy task, but Charleston has the team for the job." Charleston's vessel productivity in the first quarter topped 41 moves per crane per hour.

Charleston's antidote for congestion has been constant productivity improvement through new equipment, technology and effective management.

Charleston Port Hails Panama Canal Vote

Charleston, SC - The South Carolina State Ports Authority (SCSPA) is pleased by the results of Panama's vote on Sunday to support a $5.25-billion improvement plan for the Panama Canal.

Upon completion, the new eight-year construction project will allow the Panama Canal to handle larger ships and more vessel transits.

The SCSPA watched Sunday's referendum on improvements to the Panama Canal with great interest. Charleston is home to a number of investments that allow it to handle post-Panamax ships, including a new $635-million bridge over the main channel, harbor deepening to -45' at mean low water and new super post-Panamax container cranes.

Today, Charleston is only able to handle post-Panamax ships in the trans-Atlantic and trans-Suez services. "With an improved canal, the options expand - both for us and for our customers," said Bernard S. Groseclose Jr., president and CEO of the SCSPA.

"The Port of Charleston sees the Panama Canal expansion proposal as a very aggressive plan and a very positive plan," said Groseclose.

Charleston's business through the Panama Canal consists predominantly of ships calling from Asia in all-water services across the Pacific, as well as ships in the West Coast of South America trade.

SCSPA Approves Contracts, Sale of Degaussing Station

Charleston, SC - The Board of the South Carolina State Ports Authority (SCSPA) today approved several terminal improvement contracts.

About 50 acres of existing container yard in the Maersk area at the Wando Welch Terminal will be modified to allow a grounded operation (Charles Blanchard Construction Corp., $723,727). These changes will help serve six of 16 new RTGs that were purchased from Konecranes and are currently being assembled on-terminal. The first two units were delivered last month.

The SCSPA will also hire a company to provide design and construction support services for the development of a new 25-acre refrigerated container yard at the Wando Welch Terminal (O'Neal, Inc., $274,600). Subsequent construction of the project will allow the two existing reefer areas on terminal to be consolidated and will boost utilization of the container yard.

In other action the Board approved new lighting on piers Mike and Zulu at Veterans Terminal (Wolff & Son Electric, Inc., $244,960), construction of a new rail switch at the Port of Georgetown (Bullock Construction Co., $450,000) and installation of a new HVAC chiller at the Main Office (Smith & Associates, $233,700).

The SCSPA Board also approved a resolution authorizing the sale of the former U.S. Navy Degaussing Station in downtown Charleston for $5,250,000. The property is near the tip of historic downtown Charleston and is between two of the city's signature public spaces - the Battery and Waterfront Park.

Ten bids were submitted on the property, which sits on Charleston Harbor and includes a 4,065-square foot building and 0.6 acres of land. Current zoning considers up to two residential units for the property. Request for proposals were requested in July and were due by October 5. Consistent with state law, details of the proposed sale will be made available after the deed is executed.

South Carolina Ports Receives $8.7 Million in Security Grants

Charleston, SC - The South Carolina State Ports Authority (SCSPA) will receive $8.7 million from the latest round of port security grants, the U.S. Department of Homeland Security announced on Monday.

This is the largest single award received by the SCSPA in six rounds of Port Security Grants. In the previous five rounds of grants, the Ports Authority received $11.3 million, bringing total security grant funding announced to just over $20 million.

"To say we're pleased is an understatement," said Bernard S. Groseclose Jr., president and chief executive officer of the SCSPA. "South Carolina's congressional delegation has been united behind port security. This latest award will put us further along the track to completing necessary security projects."

"Charleston is known for an aggressive security posture, while facilitating the free flow of commerce," said Groseclose. "That balance requires adequate funding and the right approach."

The funding will be used for physical security enhancements, such as access control infrastructure, scanning equipment, surveillance systems and fencing.

In the current round, more than $168 million in federal grants were awarded to 51 port areas nationwide. The total federal funding requested topped $569 million by 268 applicants. In its application, the SCSPA requested $19.6 million in federal funds for port security projects to combine with a match of $6.5 million.

"There's certainly more to do, so we greatly appreciate the increased port security funding that's currently under consideration in Washington," said Groseclose.

The complete DHS press release and listing of awards is available online at www.dhs.gov.

New Maersk Brazil Service

Maersk said the move is designed to improve coverage for the Brazilian market, where the Port of Charleston has a strong market share. Charleston handles 25% of all container trade between the South American east coast and U.S. ports from Virginia to Miami.

Maersk, the Port of Charleston's biggest customer, is ending its NASA2 joint service with French-based CMA-CGM that covers the east coast of South America trade and will streamline its NASA1 service on the same north-south route.

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