SCSPA Completes Second Step in Competitive Bid Process

The South Carolina State Ports Authority (SCSPA) today held its final informational meeting with ocean carriers and terminal operating companies to detail the two expansion projects - a three-berth, 280-acre container terminal in Charleston at the former Navy Base and a 1,800-acre site on the Savannah River in Jasper County.

By August 1, companies must respond in writing to detail the nature and level of their interest, including their concepts of operational structure, financial participation, the SCSPA's role and the benefits to South Carolina. These confidential responses will be used to develop a formal Request for Proposals (RFP) that will be issued this fall.

The Ports Authority Board on Tuesday unanimously reaffirmed its commitment to the competitive process.

"We're moving ahead with a fair bid process to get the best deal," said Bernard S. Groseclose Jr., president and chief executive officer of the SCSPA, "and the level of participation shows that the Charleston and Jasper projects are quite attractive."

In February, the SCSPA invited private participation in the projects. The formal Request for Expression of Interest (RFEI) issued in February was broad, seeking private sector interest in participating financially in terminal design and development and operation of either or both of South Carolina's major port expansion projects.

A month later, 21 of the world's leading ocean carriers and marine terminal operators responded favorably and expressed interest.

The SCSPA conducted its first informational session June 13 in Charleston. Twelve firms were briefed on the projects and next steps and offered a tour of the port site in Charleston. The remaining firms participated in today's briefing.

The Corps of Engineers expects a decision on permits for the Charleston expansion project by August 2006. In January, the SPA Board approved a nearly $5 million environmental study to obtain the necessary approvals. While the Charleston expansion is somewhat ahead of the Jasper project, the SCSPA intends to move both projects ahead on parallel courses.

Companies expressing interest and participating in the process include 15 ocean carriers and six marine terminal operators. Ocean Carriers: APL, CMA-CGM America, CSAV, COSCO North America, Evergreen America, Hanjin Shipping, Hyundai Merchant Marine (America), K-Line America, Maersk Inc., Mistui O.S.K. Line, NYK Line (North America), OOCL (USA), P&O Nedlloyd, Yang Ming (America) and Zim-American Integrated Shipping Company. Marine Terminal Operators: APM Terminals, Ceres Terminals, Hutchison-Westports, MTC (Marine Terminals Corp.), P&O Ports North America and SSA Marine.

Port of Charleston Posts Record Month, Approves FY06 Budget

Charleston - On the heels of an all-time record month, the South Carolina State Ports Authority (SCSPA) Board has approved the fiscal year (FY) 2006 financial plan and adopted a $159-million capital improvement plan to boost operational efficiencies and security.

May was an all-time record for container traffic through the Port of Charleston. Box volume for the month totaled 182,214 20-foot equivalent units (TEU), a 12% increase over the same month last year and eclipsing the previous one-month record set in October 2004. Fiscal year-to-date, volume is up 14%.

"Demand for services through the Port of Charleston is obviously solid," said Bernard S. Groseclose Jr., president and CEO of the SCSPA. "Beyond growth in China trade, there's strength in the Latin American, Indian and trans-Atlantic markets."

In the FY06 financial plan, the SCSPA's operating revenues are projected to top $145.8 million and container volume is forecast to increase 6%.

"This year's budget places the Ports Authority in a strategic position to continue handling cargo more efficiently for our customers," said Groseclose. "We're allocating significant capital to new equipment and enhancements at existing facilities."

Major projects in the two-year, $159-million capital plan include:

$42 million for improvements to container yards
$31 million for four new container cranes
$22 million in container handling equipment
$20 million in security enhancements

The SCSPA is focused on controlling expenses and disposing of under-performing assets. The FY06 plan holds the growth of operating and administrative expenses to less than 2%, adding 10 new positions in operations, Port Police and administrative areas.

"Solid financial performance is essential to both our near-term and long-range developments," said Groseclose.

The SCSPA has two major port development projects underway, including a three-berth, 280-acre container terminal in the Port of Charleston and proposed development of a new container facility on the Savannah River in Jasper County.

Twenty-one ocean carriers and terminal operators responded to a request for expressions of interest in the projects. Informational meetings are underway and preliminary responses are due by August 1. A formal request for proposals will be issued this fall.

Spencer Gifts Expands Business at Port of Charleston

Charleston, SC? -This year, about 2,000 shipping containers filled with fuzzy dice, whoopee cushions and lava lamps will make their way through the Port of Charleston.

Novelty and trend retailer Spencer Gifts has designated Charleston its number one import destination. About 50% of the company's import volume is shipped through the port.

In response to congestion at West Coast ports, the company moved the majority of its volume to all-water services through the Panama Canal. According to Ali Kaviani, director of import purchasing for Spencer, the switch has been successful in providing timely and efficient cargo handling.

Shipments through Charleston serve the company's two distribution centers in Pineville, N.C., outside of Charlotte. Combined, they house over 600,000 square-feet of merchandise for Spencer Gift stores and its sister franchise, Spirit Halloween.

Spencer Gifts LLC is a lifestyle retail brand that has been focused on delivering humor and enjoyment to consumers for over 50 years. Spencer's operates over 630 stores throughout the United States and Canada. Specializing in innovative, humorous and unique merchandise, Spencer's is the mall destination for entertainment, excitement and fun for its core Generation-Y guest.

Groseclose Elected to Global Ports Board

Charleston, SC - Bernard S. Groseclose Jr., president and chief executive officer of the South Carolina State Ports Authority (SCSPA), has been elected to serve as an officer of the leading global ports organization.

Groseclose was confirmed as 3rd vice president of the International Association of Ports and Harbors at the group's World Ports Conference in Shanghai last week. The move places Groseclose in the chain of succession to chair IAPH in 2011.

IAPH represents some 230 ports from 90 countries worldwide. Groseclose previously served on the organization's executive committee.

Groseclose joined the SCSPA in 1985 and was named president and CEO in 1996. He has served as chairman of the South Carolina World Trade Center and as president of the South Atlantic and Caribbean Ports Association. In April of this year, he was elected to serve as chairman of the American Association of Port Authorities.

More than 480 delegates from 57 countries attended this year's IAPH conference in China.

Charleston Adds First Direct Central America Service

Charleston, SC - A new shipping service beginning in mid-June is Charleston's first direct connection to markets in Central America.

Maersk Sealand's new service, dubbed the South Atlantic Express (SAE), will call the ports of Puerto Cortez, Honduras and Santo Tomas, Guatemala.

The new service will replace two weekly services that connected these gateways exclusively with Florida, and will ensure a higher integrity of delivery into the South Atlantic U.S., Maersk Sealand announced in a client advisory.

It will feature two calls a week in Charleston, minimizing inbound and outbound transit times. Ships will call Charleston northbound from Central America on Friday and return the following Tuesday to load exports, the advisory said.

Historically, Charleston's trade with Central America was handled through transshipment at Freeport or Panama.

Even with no direct service, Charleston's trade with Honduras has more than tripled and business with Guatemala has almost doubled in the last five years. The two countries' combined cargo value through Charleston was over $229 million in 2004.

The South Carolina State Ports Authority, established in 1942, owns and operates public seaport facilities in Charleston, Georgetown and Port Royal, handling international commerce valued at $46.5 billion annually.

Charleston Welcomes New Japan Sales Representative

Charleston, SC - Yukio "Yogi" Doi has joined the South Carolina State Ports Authority as its new Japan sales representative. Based in Tokyo, he is responsible for marketing the Port of Charleston to shippers and ocean carriers throughout the country of Japan.

Doi previously served as executive director of Shosen Mitsui Ferry Co., a shipping line specializing in passenger travel and roll-on/roll-off cargo. Prior to that, Doi enjoyed a 30-year career with ocean carrier Mitsui O.S.K. Lines where he served as a marketing and sales executive and as general manager.

"We are thrilled to have Mr. Doi join our international sales team," says Fred Stribling, vice president of marketing and sales for the SPA. "His presence will be a tremendous asset as the Japanese marketplace and its world-class ocean carriers position themselves for strong trade growth with the U.S. East Coast."

Doi follows veteran sales executive Ryuzo 'Bob' Nakada, who is retiring after a successful career as a transportation and logistics consultant, including 17 years of service with the Port of Charleston. Nakada was instrumental in negotiating several key arrangements for South Carolina's ports, including contracts with Fuji Photo Film in Greenwood and Honda All-Terrain Vehicles in Timmonsville.

Doi will travel to Charleston in May for a welcoming at the SPA's home office and a personal orientation of local port facilities. He will also participate in the South Carolina International Trade Conference, which takes place in Charleston May 23-25 and attracts more than 400 international logistics, transportation and trade-assistance professionals each year.

The South Carolina State Ports Authority, established in 1942, owns and operates public seaport facilities in Charleston, Georgetown and Port Royal, handling international commerce valued at $46.5 billion annually.

New Heavy Lift Crane in Charleston

Charleston, SC - The Port of Charleston is now home to the largest floating crane in the Southeast.

The Charleston Giant is a highly mobile, floating crane capable of traveling to any of the Charleston area's marine terminals and lifting cargo weighing up to 450 short tons, or 900,000 pounds. It is operated by Charleston Heavy Lift, LLC, a joint venture of local barge carrier Stevens Towing Co. and heavy-hauling and rigging company J.E. Oswalt & Sons of Batesburg.

Benjamin B. Smith, general manager of Charleston Heavy Lift, says that cargos requiring specialized heavy-lift equipment now can be handled locally rather than directed to other ports. Since becoming operational in late March, the Giant has already attracted vessels to call the Port of Charleston. It is an added value to existing customers who rely on Charleston's world-class efficiency.

"We expect that the heavy-lift capacity of the crane will continue to bring new vessels into the port as well as service existing liner vessels," says Smith.

The Charleston Giant has the highest capacity rating in the Southeast. The closest floating crane of similar capacity is in Norfolk, Va., lifting up to 350 short tons, 200,000 pounds shy of the Giant's capability.

The Charleston Giant potentially will attract manufacturers of heavy equipment and equipment components such as power turbines, generators and presses, as well as heavy construction companies transporting bridge beams and even cranes.

The Giant's first commercial lift was to transport a 348-short-ton crane (696,000 pounds) from its existing barge to a newly constructed barge. The Giant has also completed work for General Electric, handling turbines from the Greenville plant weighing up to 234 short tons.

Charleston Heavy Lift will charge for contract lifts by the ton. Lifts in excess of 250 short tons will be bid on a per-project basis. Contact Charleston Heavy Lift at 843-889-2254.

Port of Charleston Adds New Middle East Service

Charleston, SC - A new Middle East shipping service will begin calling the Port of Charleston in late May.

Wallenius Wilhelmsen, which already calls Charleston's Union Pier Terminal, will offer this monthly, direct service between the Middle East and the U.S. East and Gulf coasts. The vessels will carry roll-on/roll-off and breakbulk cargo such as automobiles, non-containerized freight and military cargo. The overseas ports will include Jeddah and Damman in Saudi Arabia, Dubai in United Arab Emirates and Kuwait.

Wallenius Wilhelmsen will initially deploy two vessels and plans to expand the service to four vessels, increasing the frequency to every 21 days.

The South Carolina State Ports Authority, established in 1942, owns and operates public seaport facilities in Charleston, Georgetown and Port Royal, handling international commerce valued at $39 billion annually.

Charleston Expansion Studies OK'd

Columbia, SC - The South Carolina State Ports Authority (SCSPA) Board today approved two contracts covering operational, engineering and mitigation studies in support of port expansion at the former Charleston Navy Base.

A permitting decision on the three-berth, 288-acre container terminal is expected by August 2006.

Moffatt & Nichol will work on a terminal development plan covering various operational and engineering studies. The work is not-to-exceed $1,385,700.

Operational studies will evaluate the various terminal operating styles, types of container handling equipment, levels of automation and container yard configurations to maximize the potential of the terminal.

Engineering work will include the determination of design criteria for all aspects of the terminal facilities, such as site stabilization, containment structures, support facilities and site utilities. Engineering studies will also evaluate the various construction techniques, construction phasing and contracting options (design-bid-build, design-build).

Newkirk Environmental of Charleston will develop a comprehensive mitigation plan that will be provided to the Corps of Engineers for inclusion in the proposed container terminal's Environmental Impact Statement.

The consultant will review impacts and meet with the community and others to further define issues and concerns, resulting in a comprehensive mitigation plan to address all social and environmental impacts identified in the EIS. The first phase approved today is $200,000.

Earlier this year, the SCSPA Board approved a $4.9 million scope of work for development of the Environmental Impact Statement.

In other action, the Board also approved a contract for Han-Padron Associates to proceed with detailed design of the initial phase of an access control plan for SCSPA terminals. The project covers server, database and software portions of the project that will serve as the foundation for the future access control system. Federal grant funding of $1 million is available for the initial phase of the access control project.

Groseclose Elected to Chair Ports Association

Charleston, SC - Bernard S. Groseclose Jr., president and chief executive officer of the South Carolina State Ports Authority, was elected chairman of the American Association of Port Authorities (AAPA), an organization that represents 150 ports in the Western Hemisphere.

Groseclose was elected by the Board of Directors this week at its Spring Conference in Washington. He will be installed as chairman of the 66-member board at the AAPA annual convention this fall in Tampa.

AAPA represents leading public port facilities in the United States, Canada, Latin America and the Caribbean. It protects and advances the common interests of its diverse members as they facilitate waterborne commerce and contribute to local, regional and national economic growth.

Groseclose joined the SCSPA in 1985 and became president and CEO of the organization in 1997. He has served as chairman of the South Carolina World Trade Center and as president of the South Atlantic and Caribbean Ports Association. He has served also on the South Carolina Chamber of Commerce Board of Directors and currently serves on the executive committee of the International Association of Ports and Harbors.

In 2000, Groseclose received the Transportation Leader of the Year Award from the National Transportation Week Committee and also received the Trident Urban League's Joseph P. Riley, Jr. Award for Excellence in Economic Development

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