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

Charleston Adds Three South American Services

Charleston, SC - Three new South American shipping services have begun calling the Port of Charleston, solidifying the port's preeminence in the expanding South American trade lane and increasing business for local port-related companies and transportation service providers. The new services will bring 140 vessel calls to the port.

Charleston currently ranks third in the nation in containerized trade with South America. "There is opportunity for rapid growth in these markets and Charleston is in a stronger position to capitalize on the rebound," said Bernard S. Groseclose Jr., South Carolina State Ports Authority President & CEO.

In mid-February, Chilean ocean carrier CSAV (Compania Sud Americana de Vapores), the largest carrier in Latin America, began a new direct service between northern Europe, Charleston and the west coast of South America. Charleston is the service's only U.S. call. The ships have an average capacity of 1,650 20-foot equivalent units (TEUs) and will call Charleston every 10 days. The service, called the EuroAndes service, offers direct calls at Rotterdam, Bremerhaven, Tilbury, United Kingdom and Charleston, and several calls on the west coast of South America including Rio Grande, San Vicente, San Antonio, Buenaventura, Callao, Paita, Cartagena, Caucedo, Kingston, San Thomas and Puerto Cortez.

London-based P&O Nedlloyd and French carrier CMA CGM have added a joint service connecting the east coast of the United States with the east coast of South America. This service, which begins in April, will call Charleston on a weekly, fixed-day basis with ship capacity averaging 2,500 TEUs. Charleston is the first port inbound from Brazil, providing a shorter transit time to customers trading with this market. This service, called the Americas Bridge Express or Abex, will call the South American ports of Paranagua, So Francisco do Sul, Santos, Sepetiba and Suape.

The third South American service, offered by Maersk Sealand, began March 7. This weekly, fixed-day service will connect the U.S. to Brazil, Argentina, Uruguay and Paraguay.

Most of the South American economies have been plagued with instability in recent years but are poised for recovery. In 15 years, Charleston's South American business has grown eight-fold.

In 1991, Charleston handled just over 18,000 loaded TEUs of South American cargo, or 4% of the port's total volume for that year. In 2004, the volume South American cargo through Charleston ports had increased to more than 150,000 loaded TEUs, or 12% of Charleston's total volume. Ten percent of the nation's containerized trade with South America now moves through Charleston.

Twenty-One Companies Interested in S.C. Port Expansion

Charleston, SC - Twenty-one of the world's leading ocean carriers and marine terminal operators have expressed interest in the South Carolina State Ports Authority's (SCSPA) port expansion projects in Charleston and Jasper County.

The SCSPA is currently pursuing permits for a new 280-acre, three-berth container terminal on the former Charleston Naval Base. Also, the SCSPA Board in January unanimously voted to pursue a state-owned marine terminal on the South Carolina side of the Savannah River in Jasper County.

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.

"We're very pleased with the response," said Bernard S. Groseclose Jr., president and chief executive officer of the SCSPA. "There's a strong demand for port capacity in the Southeastern U.S., and these two projects represent a tremendous opportunity."

In June, the SPA will host three half-day, group informational meetings with the firms to outline the projects and next steps.

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 responding favorably to the RFEI include: APL, APM Terminals, Ceres Terminals, CMA-CGM America, COSCO North America, CSAV, Evergreen America, Hanjin Shipping, Hutchison Port Holdings, Hyundai Merchant Marine (America), K-Line America, Maersk Inc., MTC (Marine Terminals Corp.), Mistui O.S.K. Line, NYK Line (North America), OOCL (USA), P&O Nedlloyd, P&O Ports North America, SSA Marine and Yang Ming (America) and Zim-American Integrated Shipping Company.

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.

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SCSPA Invites Private Participation in Port Expansion Projects

Charleston, SC - The South Carolina State Ports Authority (SPA) today reaches out to private firms across the globe, soliciting their involvement in port expansion projects in Charleston and Jasper County.

The SPA is currently pursuing permits for a new 280-acre, three-berth container terminal on the former Charleston Naval Base. In addition, the SPA Board in January unanimously voted to pursue a state-owned marine terminal on the Savannah River in Jasper County.

In a letter from SPA President & CEO Bernard S. Groseclose Jr., nearly three dozen ocean carriers and marine terminal operators are invited to express their interest in both, or either, of the projects. Discussions with the firms will follow.

"To finance port development in Charleston and Jasper County, we're opening the doors to the world's leading ocean carriers and marine terminal operators," said Groseclose. "An open, competitive process can only benefit our state's public seaport system and fair trade in South Carolina."

Several of these companies have already expressed interest in the projects and most have a long history of doing business with the SPA. Currently, every one of the world's 20 largest ocean carriers moves cargo through the SPA's terminals in Charleston, which ranks as the nation's fourth largest container port.

"While we envision private sector partners, under the SPA's leadership the new Charleston and Jasper County facilities will be public terminals operated for the public good," said Groseclose. "They will be dedicated to improving the economic vitality of all of South Carolina."

The Corps of Engineers expects a decision on permits for the Charleston expansion project in 18 months. 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 SPA intends to move both projects ahead on parallel courses.

"Now's the time to begin these important negotiations about the future of port expansion in South Carolina," said Groseclose. "Trade is growing exponentially and we have a tremendous opportunity on the sites in North Charleston and Jasper County."

Port of Charleston Volume Up 36% in December, Nearly 1M TEU in Last Half of '04

Charleston, SC - The Port of Charleston's container volume in December was 36% higher than the same month in 2003, pushing volume for the first six months of the fiscal year to all-time record levels.

In the first half of fiscal 2005, total container shipments through Charleston increased 16.7% from the same period last year, approaching one million TEU (20-foot equivalent container units).

In the July to December period, loaded outbound and inbound shipments both jumped 17%, reaching 975,554 TEU when compared to 836,224 TEU in the last half of 2003.

The growth was spread among ocean carriers and trade routes, with Asia, the Indian subcontinent and South America representing the largest share of the increase.

Improvements to existing terminals and new technology are allowing Charleston to handle the growth while also enhancing productivity, according to Bernard S. Groseclose Jr., president and CEO of the South Carolina State Ports Authority (SCSPA).

"In the face of rapidly increasing volume, Charleston's crane productivity continues to rise and truck turn times continue to drop," said Groseclose. "Charleston's waterfront community is capable of handling huge surges of cargo while also offering better service to ocean carriers, truckers and shippers."

The SCSPA has launched its new Yard Management System (YMS) to track and expedite truckers through its "common user," or port-operated, gates.

After YMS was launched at Charleston's second-largest terminal, volume nearly doubled yet trucker turn times were slashed and labor costs remained constant. Last week, the system was rolled out with similar results at Charleston's largest facility, the Wando Welch Terminal.

Charleston and its customers also recently began enjoying the benefits of a new 45-foot channel and millions of dollars in new container stacking equipment. The nation's largest cable-stayed bridge will open in Charleston in April of this year at a cost of more than $600 million, providing enhanced vessel access for the largest container ships afloat.

SCSPA Votes to Acquire Jasper Site, Approves Navy Base Studies

Charleston, SC - Citing a compelling market demand for new port capacity, the South Carolina State Ports Authority (SCSPA) Board voted to begin the process of acquiring property in Jasper County on the Savannah River for development of a public seaport.

In other action, the Board also approved the completion of $4.9 million in environmental studies related to expansion at the former Charleston Navy Base. Based on a new schedule, a permitting decision on the Navy Base project is expected by August 2006.

The resolution to acquire the Jasper site authorized the initiation of condemnation proceedings, if necessary. The Georgia Department of Transportation owns the large tract on the South Carolina side of the Savannah River.

"This is a tremendous opportunity for Jasper County, the people of South Carolina and companies doing international business in our state," said SCSPA Board Chairman Harry J. Butler Jr. of Georgetown.

Board member Tom Davis of Beaufort, who introduced the motion, noted that a recent SCSPA study shows international trade through the South Atlantic will rise 4.9% a year over the next two decades, more than the U.S. and North Atlantic averages. That means trade is poised to double in 20 years.

"Port capacity is a serious concern for our industry, our nation and our state. Fortunately, we have a solution," Davis said in his remarks before the Board. "The Jasper County site is one of the few remaining large tracts of waterfront property suitable for port development," Davis said. "It presents significant potential. But it also presents significant responsibility."

The S.C. Code of Laws specifically empowers the SCSPA to develop marine terminals on the Savannah River. While the SCSPA has met with Georgia officials about acquiring the site, those discussions have not yet resulted in an agreement. The Authority remains open to a negotiated resolution and is optimistic it can reach agreement that will be beneficial to both states.

Davis praised Jasper County's recent efforts to launch a port at the site, and Butler stressed that the SCSPA would begin moving on project immediately.

"To the people of Jasper County who have fought for this project, I would say, help is on the way," Butler said. "We intend to bring the full faith and resources of the State of South Carolina to bear on this project."

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Charleston Harbor Deepening in Governor's Budget

Charleston, SC - Gov. Mark Sanford today released his fiscal year 2005-2006 executive budget proposal, which includes $2.4 million to help fund the Charleston Harbor Deepening & Widening Project.

Channel work on the deepening project was completed earlier this year, taking the inner harbor to -45 feet at mean low water and the entrance to -47 feet. Charleston now has 45 feet of water throughout the harbor to all major marine terminals.

The deepening work is cost shared by the U.S. and State governments, with South Carolina picking up 35% of project costs. The $2.4 million in recurring funds would go toward the remaining State share of $15.3 million. The Ports Authority, business and legislative leaders have suggested using recurring funds over the coming years to complete financing of the work.

State funding for the harbor deepening has been a legislative priority for business groups and the Charleston waterfront since it was authorized by the U.S. Congress in 1996. Actual channel work on the $148-million project began in 1999 and was completed in May 2004.

More information on the governor's spending plan can be found at http://www.scgovernor.com.

Charleston Port Forms Safety Council

Charleston, SC - The South Carolina State Ports Authority, stevedores and longshoremen in the Port of Charleston today announced the formation of a new Port Safety Council.

Although the South Carolina State Ports Authority owns and operates all container lifting equipment in the Port of Charleston, stevedoring firms employ and supervise members of labor union locals to perform many essential tasks.

The new Port Safety Council will include senior representatives from stevedoring firms, local dockworkers and the Ports Authority. While the Ports Authority and the stevedores have maintained, and will continue to maintain, their own safety programs, the new Port Safety Council is a formalized version of joint safety meetings.

"Port safety, just like productivity, is a team effort," said David Hogan, president of ILA Local 1771. "The Port Safety Council will allow us to work closer."

The Port Safety Council will be tasked with reviewing and addressing any issues raised by regular meetings of a new Port Safety Working Group. The Working Group will consist of stevedores, longshoremen and Ports Authority employees involved in port operations on a daily basis.

There is no indication that such a group could have prevented any of the recent accidents at the Port of Charleston.

However, Bill McLean, the Ports Authority's vice president, operations said, "The waterfront looked around after the recent accidents and asked, 'What can we do?' This is something concrete that we can do to help bolster safety and awareness."

The new group will focus on best practices, ways to boost safety and communication between the various groups.

"You have to be vigilant when it comes to safety," said Larry Young, president of the South Carolina Stevedores Association. "This new initiative will provide a channel for issues to be communicated and addressed."

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SPA PORT POLICE RAISES RECORD FUNDS FOR THANKSGIVING AID DRIVE

Charleston, SC - Fifty local families in need will enjoy a Thanksgiving feast this year with help from the S.C. State Ports Authority Port Police's Caring and Sharing aid drive. The Port Police raised over $5,000 and distributed approximately 500 bags of groceries to struggling families in the community.

Each year, the Port Police's Good Cheer Committee contacts area school guidance counselors and asks them to nominate families that would benefit most from the Thanksgiving project. Money and non-perishable food items are donated by port employees, customers, tenants and transportation providers.

Port Police officers and staff delivered the collections to the families' homes Monday and Tuesday. Each family received gift certificates and about 10 bags of groceries including a turkey and ham and enough food to last at least a week.

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.

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