Charleston Expansion Permits Expected in April, Jasper Soils Work Awarded

Charleston, SC - The U.S. Army Corps of Engineers reported today that a permit decision for a new 280-acre container terminal in Charleston is expected by next April.

The Corps said the Final Environmental Impact Statement will be released in December, once lingering issues concerning the access road, state permits and concerns over the right whale are addressed. Construction of the facility, which includes 3,510 feet of berthing space, is expected to take five to six years. The first major project for site preparation and stabilization is expected to be advertised early next year. To prepare, next month the Board will consider engineering services to design this part of the project.

In other action, the South Carolina State Ports Authority Board today awarded a contract for soils analysis work that will lead to a new terminal on the Savannah River in Jasper County. The contract includes both field work and engineering recommendations. Field work includes site evaluations, such as surveys and borings, while the engineering component will deal with how to cure the site and prepare it for construction.

The project site includes a 1,059-acre proposed terminal site, a 158-acre transportation corridor along existing containment dikes between Highway 17-A and the site, and a 646-acre potential borrow area. The area includes active dredge material disposal areas as well as tidal marshes and high ground. The areas to be developed must be stabilized, raised in elevation and prepared for construction of a wharf, container yard, buildings, utilities and roads.

S&ME of Charleston will be responsible for investigating the subsurface conditions, evaluating the results, and advising the Authority of the appropriate construction methods and procedures. Also included is the evaluation of the Jones Island area as a potential borrow source and future dredge disposal area. The work will be concluded over the next few months.

The motion to approve the $330,000 contract was made by Colden Battey of Beaufort.

South Carolina Ports Post Record Fiscal Year

Charleston, SC - The South Carolina State Ports Authority (SCSPA) has closed its most successful fiscal year ever, posting record container volume, breakbulk tonnage, revenues and earnings.

The Port of Charleston set a new container volume mark in the fiscal year ended June 30 by handling 1,978,806 20-foot equivalent units (TEUs), up just slightly from last year's total of 1,970,875 TEUs. Total SCSPA breakbulk and bulk tonnage for Charleston, Georgetown and Port Royal also increased, rising to two million tons.

Operating revenues totaled $154 million, up 11.6% from last year, while operating earnings rose to $53.3 million. The SCSPA is not subsidized, so this financial strength is vital to realizing the necessary investment in port facilities.

"The Port of Charleston and South Carolina's ports have never been busier," said Bernard S. Groseclose Jr., president and CEO of the SCSPA. "Looking ahead, we're encouraged by the arrival of new equipment, new services and our June results. We're ready for 8% growth this year and for larger ships."

June container volume was exceptionally strong, rising 9% from the same month last year and pointing to increased volume in the months ahead. Three new ocean carrier services have located in Charleston over the past month.

To handle the growth, Charleston has more than $60 million in new container handling equipment and improvements en route. The first of 16 new rubber-tired gantry cranes (RTGs) are being assembled at the Wando Welch Terminal and will be delivered later this month. All 16 will be operational by the end of the year, boosting container capacity and productivity.

In another highlight, this spring the former bridges spanning the main shipping channel were removed. With the longest cable-stayed bridge in North America, this opens Charleston Harbor to larger vessels under any tidal condition. It provides 186 feet of vertical clearance at mean high water as well as wider clearance between the towers and 45 feet of water in the channel all the way to the docks.

CSAV South American Service Moves to Charleston

Compania Sudamericana de Vapores (CSAV) of Chile's Usatlan - Sling 1 service connects the U.S. East Coast with the South American Atlantic Coast.

"CSAV is one of the world's oldest and finest shipping companies, so we're honored that this service is returning to Charleston," said Bernard S. Groseclose Jr., president and CEO of the South Carolina State Ports Authority. "It complements their existing business here and translates into more options for Charleston's cargo customers in this north-south trade."

Vessels will call Charleston last port outbound before sailing south to Puerto Cabello (Venezuela) and Brazilian ports. Other ocean carriers providing vessels or riding on the service are Libra, Montemar, Hamburg Sud, Alianca and CP Ships.

The companion weekly service, Usatlan - Sling 2, already serves South America's Atlantic Coast from Charleston, providing advantages to consolidating both slings in Charleston. Forest products are expected to be a key commodity, as well as other U.S. export cargoes due to the quick transit time from Charleston.

Using five vessels, the service will make weekly calls at Charleston's Wando Welch Terminal. The first vessel, the CSAV RIO PUELO, is scheduled to arrive next Tuesday, August 1. Other ships in the service include the CSAV NEW YORK, LIBRA SALVADOR, LIBRA NITEROI and LIBRA CORCOVADO.

CSAV was founded in 1872 and is a publicly traded company. It currently offers service between South American and the rest of the world for general cargo, fresh and frozen product, bulk cargo and vehicles.

New Asia Service for Charleston

Charleston, SC - The Port of Charleston has added a new container service between the U.S. and Asia.

The CKYH Alliance (COSCO, K Line, Yang Ming Line and Hanjin Shipping) has added Charleston to its AWE-5 service between Asia and the East Coast of the United States. The lines plan to deploy eight vessels of 3,000-4,000 TEU capacity on the service.

The first Charleston call is expected in early August at Columbus Street Terminal.

"The new AWE5 service through Charleston gives our customers across the Southeast another excellent service option with fast transit times," said Fred Stribling, vice president of marketing and sales for the S.C. State Ports Authority. "We're thrilled to see that CKYH is bullish on serving the Southeast through the Port of Charleston."

Port calls in Asia are Hong Kong, Yantian, Shanghai and Ningbo. The first vessel, the BARCELONA BRIDGE, was deployed into the service in Hong Kong on July 5.

"This is great for Charleston and great for our company," said Jo Douglas, controller of Quoizel Lighting, which employs 170 people at its Goose Creek facility and imports lighting products. "This is a very desirable service for us because it is so direct from China."

S.C. Ports Budget Calls for Record Volume, $154 Million in Capital Improvements

Charleston, SC -- The South Carolina State Ports Authority's (SCSPA) business position has never been stronger, according to next year's budget that was approved today.

The SCSPA board signed off on the fiscal year 2007 financial plan, which predicts record container volume, revenues, earnings and capital improvements.

The plan projects 8.5% growth in container volume in the year that starts July 1. To handle the growing demand for shipping services, the SCSPA estimates capital expenditures will top $150 million over the next two years. In addition to facility improvements and new equipment, included in the plan are funds for port expansion at the former Charleston Navy Base and $1.6 million related to port development on the Savannah River in Jasper County.

All of these funding needs will be handled through internal sources, such as cash, earnings and independent borrowing, and not through tax dollars or public debt. The SCSPA has not received public subsidies for its capital or operating expenses since the late 1970s.

"Our state's public port system has a reputation for standing on its own two feet," said Bill H. Stern of Columbia, chairman of the board. "The state's taxpayers have all the benefits, without the costs," he said, referring to the SCSPA's self-supporting philosophy.

An additional 16 jobs will be added, most in operations and maintenance, bringing total employment to 619 people.

The plan also calls for $165 million in operating revenues, up nearly 10% from projections for the current year that ends on June 30. Meanwhile, total operating expense growth will be held to 7.2%, resulting in a 15% growth in operating earnings.

The largest items in the two-year, $154-million capital spending plan are container cranes and lifting equipment, all of which are owned and operated by the SCSPA in the Port of Charleston.

Major capital spending projects over the next two years include:

  • Container Cranes: $35.8 million
  • Container Handling Equipment: $27.6 million
  • Container Yard Improvements: $28.0 million
  • Wharf Improvements: $9.8 million
  • Security Enhancements: $6.2 million
  • New Terminal Development: $5.3 million

New Service Boosts Charleston's India Trade

Charleston, SC - A new weekly shipping service launching later this month will further boost Charleston's role as the Southeast's dominant port of entry for cargo from the Indian Subcontinent.

Israeli-owned Zim, along with Shipping Corporation of India, Emirates Shipping Line and MacAndrews will deploy eight vessels of 2,500-TEU (twenty-foot equivalent unit) capacity in the service, known as Indus Express. The first vessel, ZIM MUMBAI, departs Colombo, Sri Lanka on May 24. The full port rotation is Colombo, Tuticorin, Nhava Sheva, Mundra, Barcelona, New York, Norfolk, Charleston and Barcelona.

Charleston already handles more than half of all trade with India among South Atlantic ports. Charleston's trade with the Indian Subcontinent has grown fivefold since 1999 and increased 20% in 2005.

SPA Asks Court to Enforce Ruling

Charleston, SC - The South Carolina State Ports Authority (SCSPA) today asked the State Supreme Court to enforce its ruling on the Jasper port issue and to direct the County to stand down.

Recent events led the SCSPA to ask the Court step in. Despite the Court's clear ruling on the SCSPA's superior eminent domain powers, Jasper County has declared in multiple press accounts its intention to move ahead with a competing, yet subordinate, condemnation. This hinders the SCSPA's actions and is inconsistent with the Supreme Court's decision.

"The County is seeking to interfere with the Court's opinion, as well as the State's efforts to acquire the site," said Bill H. Stern, chairman of the SCSPA. "Their words and actions have proven that it's necessary for the Ports Authority to request relief from the Court."

In its April 3 opinion, the South Carolina Supreme Court ruled that the SCSPA's condemnation powers were superior to those of Jasper County. However, the Court did not address the SCSPA's request for injunctive relief.

Consistent with the Supreme Court's decision, the SCSPA has moved forward with condemnation proceedings to acquire the site from the property owner, Georgia DOT. It submitted an offer letter, and on April 10, the SCSPA filed for condemnation and deposited $9.317 million with the Clerk of Court. Georgia has since rejected the payment and is expected to file a challenge to the SCSPA's action.

In a letter last week, the SCSPA requested that Jasper County stop its attempts to condemn the site.

Instead, even after the SCSPA moved ahead with its condemnation, the County has stated it will take actions that get in the way of and obstruct the SCSPA's steps to acquire the site and its negotiations with Georgia. In comments reported in The Post and Courier, The State and The Beaufort Gazette, County officials and attorneys said they will continue their condemnation efforts.

In addition, the County's attorneys sent a letter to the SCSPA yesterday stating an intention to seek to intervene in the SCSPA's condemnation proceeding against GDOT.

"Without an injunction, both the SCSPA and the County will continue with rival, although not equivalent, condemnations of the same site," said Stern. "The current situation presents a need for relief, and we hope the Court will consider our request."

State Ports Authority Making Strides to Acquire Jasper Port Site

Charleston, SC - Approximately one week after receiving the South Carolina Supreme Court's decision, the State Ports Authority (SPA) has taken several steps to acquire more than 1,800 acres of property on the South Carolina side of the Savannah River in Jasper County to develop a new marine terminal.

Immediately following the decision last Monday, the SPA advised the property owner, Georgia Department of Transportation (GDOT), of its intention to acquire the property by way of negotiated sale or, if necessary, by condemnation.

The SPA provided a copy of its appraisal to GDOT and offered to pay $9.317 million for the property. GDOT has declined the SPA's offer, and the SPA has filed a notice of condemnation and deposited the $9.317 million with the Jasper County Clerk of Court's office.

The SPA and its representatives have remained in contact with Georgia over the past week to deal professionally and expeditiously. As a result, steps that could have taken more than a month have been accomplished in a week.

In keeping with S.C. statutes and the Court's decision, the SPA is following a parallel path - taking the necessary steps toward condemnation, while continuing discussions with Georgia to amicably resolve the issue. However, the SPA is obviously committed to the necessary legal actions to acquire the site.

With the decision in hand, the SPA is now moving ahead with the steps required to make a marine terminal in Jasper County a reality and hopes to avoid any unnecessary delays.

New Europe Service for Charleston

Charleston, SC - The arrival of the CMA-CGM JEFFERSON in the Port of Charleston today marks the beginning of a new weekly North Europe service and translates into new business for the port.

French carrier CMA-CGM and China Shipping Container Lines launched the new service in mid-March from Le Havre, France.

The new service is estimated to bring 17,000 additional container lifts and 52 ship calls annually to the port. It will call the North Charleston Terminal.

"This is great new business for the Charleston waterfront," said Bernard S. Groseclose Jr., president and CEO of the South Carolina State Ports Authority. "We certainly look forward to expanding our relationship with CMA-CGM and China Shipping."

The lines have deployed four vessels of 2,600-TEU (twenty-foot equivalent unit) capacity on a rotation of Le Havre, Antwerp, Rotterdam, Bremerhaven, Liverpool, New York, Baltimore, Norfolk and Charleston.

The service will also allows connections with other CMA-CGM services throughout the Baltic States, Russia, Poland and Scandinavia.

More than 40 ocean carriers currently operate services between Northern Europe and Charleston, and the market comprises 33% of the port's total volume. Among all ports from Miami to Virginia, Charleston holds a 47% market share in the trade.

Supreme Court Sides with State on Jasper Port Site

Charleston, SC - The Supreme Court today affirmed the South Carolina State Ports Authority's superior eminent domain powers and affirmed the Authority's supervisory responsibilities over port facilities in the state.

"We appreciate the Court's consideration," said Bill H. Stern, chairman of the Authority. "With their decision in hand, we're moving forward with steps to acquire the site."

The Court's opinion acknowledges Jasper has the ability to build a terminal, but only if the Authority does not pursue the site.

"The Supreme Court made it clear that the Authority gets the first shot at the land," said Stern.

Chairman Stern sent a letter to the property owner, the Georgia Department of Transportation, this afternoon.

We're ratcheting up the discussions," Stern said. "Without a site, there's no terminal. The Authority's superior condemnation powers will ensure we have a site."

Citing its statewide economic development mission, the Authority Board voted unanimously to acquire the property in January 2005.

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