Dredging Projects Advance

Marinex Construction, Inc. will be hired to perform maintenance dredging at Union Pier and Columbus Street terminals at a cost of $651,800. The work will be performed with a hydraulic dredge and the material will be deposited, by pipeline, in the Morris Island and Drum Island dredge disposal sites. The contractor will mobilize to the site during July and perform the dredging in August.

Berths 1, 2, and 3 at Columbus Street Terminal will be dredged to a depth of -52 feet MLW in coordination with the harbor project depth of -45 feet MLW. The amount of material to be dredged at Columbus Street is estimated to be 100,000 cubic yards. All berths at Union Pier Terminal will be dredged to a depth of -45 feet MLW. The amount of material to be dredged at Union Pier is
estimated to be 125,000 cubic yards.

Port Installing New System to Minimize Dredging

Charleston, SC - Dredging in many ports is a never-ending battle. But that could soon change in one area of the Port of Charleston, thanks to a new system that eliminates routine dredging alongside marine terminals.

The Ports Authority Board today approved the purchase of equipment for a new sediment suspension system for the Columbus Street Terminal in downtown Charleston.

"This project will save millions of dollars," said Bernard S. Groseclose Jr., president and CEO of the South Carolina State Ports Authority, "so we certainly appreciate the support we have received in moving forward with this proven technology." Groseclose noted that S.C. Rep. Wallace Scarborough (R-James Island) was especially supportive.

It has happened for thousands of years -- fine silts and clays originating from tributaries to the Cooper River make their way downstream to Charleston Harbor. During times of slack water between the tides, heavier silts and clays fall out of the water column and settle to the bottom.

A lot of this material comes to rest in front of berths 1 and 2 at the Columbus Street Terminal, just north of the South Carolina Aquarium. The fluid mud is currently settling at a rate of one to two feet per month.

To maintain adequate depth and ensure that ships can safely dock, the Ports Authority must hire dredging contractors every four to five months to suck up and dispose of the material. The cost of maintaining the depth has averaged $750,000 annually.

With state and federal permits now in hand, the Ports Authority is preparing to install the new sediment suspension system to eliminate routine maintenance dredging at a portion of Columbus Street Terminal. The system consists of ten water jets, three-feet wide and equally spaced along the front of the berth.

During each day's four slack tides, the system will route water from the upper portion of the water column, down through pipes and out of oscillating jets at the desired depth. This prevents the heavier material from settling, while not actually impacting the bottom.

To operate effectively, the system is managed by a desktop computer that automatically monitors a series of sensors and uses a NOAA-developed tide-predicting algorithm.

The system will cost about $1.9 million to install and another $50,000 a year to operate. But the Ports Authority estimates it will save $7.5 million in dredging costs, a net savings of approximately $5 million over the 10-year project life.

While new to Charleston, the concept was first developed by the Navy two decades ago. Marine terminals in other states, including Georgia and North Carolina, have since installed versions of the system.

In addition, environmental impacts of sediment suspension systems are negligible. While agitation dredging removes sediments that have already accumulated, the new system has less flow and never allows the material to deposit on the bottom. A monitoring plan will evaluate effectiveness and any impacts.

The system will also have safeguards to minimize the chance or impacts of an accidental release of hydraulic fluid. The computer controller will constantly monitor the system and fluid levels, triggering a shutdown if there are any problems with leaks or seals. The system also will use a bio-degradable, vegetable-based hydraulic fluid that is non-toxic.

The Ports Authority applied for permits for the new system in March 2003. The South Carolina Department of Health and Environmental Control issued its permit in March of this year, and the U.S. Army Corps of Engineers offered its approval in May.

Installation is expected in about two years, following modifications to the dock, construction and installation of equipment. In the meantime, maintenance dredging will continue.

Stribling Promoted to Vice President

Charleston, SC - The South Carolina State Ports Authority (SCSPA) has promoted Fred N. Stribling to the position of vice president, marketing and sales.

Stribling will be responsible for all of the SCSPA's carrier and cargo sales, pricing and marketing functions. He oversees a staff of 14 and reports to the president and chief executive officer, Bernard S. Groseclose Jr. He replaces the retiring George W. Young, who spent nearly 18 years with the SCSPA in its northeast and Charleston offices.

Stribling joined the SCSPA in 2001 as director, marketing & sales. He previously worked for 15 years with Sea-Land Service where he held management positions in both operations and sales.

Stribling is an honor graduate from the University of Tampa and was an active duty and reserve officer with the U.S. Army for more than 20 years. He attained the rank of lieutenant colonel in the U.S. Army Reserve prior to his retirement.

Stribling was awarded the Ancient Order of Saint Christopher in recognition of his significant contributions to the U.S. Army Transportation Corps. He is an active member of the Propeller Club and is interim president of the National Defense Transportation Association's Charleston Chapter.

Ports Authority Adds Another $1 Million to Bridge

Charleston, SC - The S.C. State Ports Authority today wired $1 million to the S.C. Office of State Treasurer for construction of the new Cooper River Bridge, bringing the Port?s total contribution to $22 million.

This completes about half of the funding promised by the Ports Authority, as construction on the bridge nears next summer's anticipated completion.

The Ports Authority agreed to contribute $45 million to the bridge -- $20 million upfront and $1 million a year for 25 years. An $8 million payment last July satisfied the upfront portion. Today's payment marks the second $1 million annual contribution. These will continue every June until 2027.

In June 2002, the Ports Authority Board confirmed that the contribution to the bridge, which spans the main channel and will provide increased access for larger vessels, was necessary or useful in connection with the operation of the Port of Charleston.

The new Ravenel Bridge spanning Charleston Harbor will be the nation's largest cable-stayed bridge.

More info at http://www.cooperriverbridge.org/.

FY02 $5,000,000
FY03 (06/26/03) $8,000,000
FY04 (07/15/03) $8,000,000
FY04 (06/30/03) $1,000,000
TO-DATE $22,000,000

FY05-FY27 $23,000,000

TOTAL $45,000,000

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Plan Calls for 6% Growth, Expense Reduction, $50 Million in Capital Projects

Charleston, SC - The Board of the South Carolina State Ports Authority has approved the fiscal year 2005 financial plan, which calls for a 6% increase in business and a number of cost cutting measures.

Under the plan for fiscal year 2005, the Authority's operating revenues are expected to increase by $7.5 million to $122 million. Direct operating expense will remain flat and administrative expense will decline 8%. The decline in administrative expense reflects voluntary reductions in staff due to early retirement, as well as general expense reductions and cost control.

"We are scrutinizing every process and every cost at every level," said Bernard S. Groseclose Jr., president and CEO of the South Carolina State Ports Authority. "The Ports Authority's employees are the best at what they do, and I'm confident that we can make this aggressive plan happen."

Over the past two years, demand for the Ports Authority's services has increased. Business has jumped 14% in two years, and since 1994 the Authority has doubled container volume. But as the Ports Authority handled more cargo through the same space, expenses increased.

"In developing the fiscal 2005 financial plan, the Board challenged management," said Board Chairman Harry J. Butler of Georgetown. "We challenged management to streamline and pare all aspects of capital, operational and administrative expenses, while maintaining the excellent levels of service that our customers have come to expect."

These efforts resulted in a financial plan that increases cash flow by about 16% when compared to the current year's projected results and increases operating earnings by 31%.

"As we look to the future, the Authority must optimize current facilities while building for the long-term," said Butler. "In doing so, we'll have to provide the necessary cash flow. That means we have to stay as lean as we can. The Authority's fiscal 2005 budget is a step in the right direction."

The fiscal year 2005 capital plan calls for nearly $50 million in projects necessary to support the growing volume. Included are $13.6 million for two new container cranes and $11 million in dock and storage yard improvements. Container stacking cranes add another $4.9 million, and other capital projects and equipment total $19.5 million.

"The Ports Authority is the state's most powerful economic development engine," Butler said. "We must grow the port and satisfy our customers in a cost-effective manner. The ultimate goal is to make careful use of the people's money for the good of the State of South Carolina."

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CHARLESTON PORT VOLUME SHATTERS RECORDS IN MAY

Charleston, SC - Double-digit increases in both exports and imports propelled the Port of Charleston to a new record month in May.

Charleston?s container volume totaled 162,527 TEU (20-foot equivalent units), up 17% from May 2003. This shattered the previous one-month record set in March 2003 by 6,000 TEU.

Loaded export container volume rose 15% from the same month last year to 56,500 TEU (20-foot equivalent units). Loaded import container volume jumped 18% from the same month last year to 72,149 TEU, a new one month record for Charleston.

For the first time ever, Charleston expects to top 1.7 million TEU when the current fiscal year ends June 30. The FY05 financial plan calls for another 6% increase in business.

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New Stacking Cranes, Improvements Total $7 million

Konecranes of Finland will again supply Charleston's rubber tired gantry (RTG) cranes, which allow the port to increase land utilization, boost vessel productivity, and minimize trucker turn times. Charleston already has 21 Kone RTGs in operation.

Management recommended Konecranes for a number of reasons, including a larger inside clear span, a faster pace of operation, greater operator control of anti-sway and established spare parts inventory.

The 16-wheel RTGs have a 50-ton lifting capacity, a 59-foot lifting height and a 75-foot span. This allows operators to move a container over a stack of containers five-high and six-wide, plus the truck lane.

In other action at the Ports Authority's monthly Board meeting, Transworld, Inc. was awarded a project in the amount of $543,601 for radio frequency infrastructure improvements at the Wando Welch Terminal.

Additionally, a project to improve stormwater drainage at the Columubs Street Terminal was approved for Truluck Construction Company in the amount of $406,392.

Finally, the Board authorized the Development Committee to begin discussions related to sale of the Port Royal Railroad right-of-way. The right-of-way property includes all land owned by the Authority between Yemassee and Ribaut Road in Port Royal. The Development Committee will bring the results of their efforts to the Board for further action.

DiPaolo Named International Carries Sales Manager

Charleston, SC - The South Carolina State Ports Authority has named Victor J. DiPaolo international carrier sales manager, working out of the Port of Charleston's Northeast office in South Plainfield, NJ.

The South Carolina State Ports Authority operates the nation's fourth busiest container port in Charleston, handling cargo valued at $33 billion annually.

A native of Brooklyn, DiPaolo has more than 30 years experience in sales, pricing and marketing with major ocean carriers. He spent more than 17 years with Zim and most recently led northeast regional sales for Hyundai's trans-Atlantic and trans-Pacific trade lanes.

DiPaolo is a board member of the Foreign Commerce Club of New York/New Jersey and is a member of the International Commerce Club of New Jersey and WestConn International Trade Association. He received a business administration degree from Kingsborough and attended the World Trade Institute in New York.

DiPaolo replaces Mike Calandra, who recently retired, and reports to Fred Stribling (Stribling was named vice president, marketing and sales in July 2004).

Port Earns Security Certification - C-TPAT Means Stronger Port Security

Charleston, SC - The South Carolina State Ports Authority is now a certified member of the world's first global transportation security program, helping to protect our nation against terrorist threats.

As a certified member of the Customs-Trade Partnership Against Terrorism, or C-TPAT, the Ports Authority must continue to enhance and improve port security by taking specific steps.

The Department of Homeland Security approved the Port's application and security profile after an exhaustive four-month review.

"Participating in C-TPAT brings a higher level of security to our community, our state and our nation," said Bernard S. Groseclose Jr., president and CEO of the South Carolina State Ports Authority. "Effective port security is vital to protecting our nation and ensuring the smooth flow of cargo."

The goal of C-TPAT is to enhance anti-terrorism efforts by strengthening security measures not only at the border, but throughout the entire supply chain. Importers and transportation service providers that participate in C-TPAT become the front lines of the nation's anti-terrorism efforts. Benefits of participation include not only higher security, but potentially a reduced number of inspections.

"The Port Authority's willingness to enter into this important partnership with Customs & Border Protection (CBP) demonstrates its understanding of, and commitment to, the goal of securing the port while at the same time facilitating the movement of legitimate cargo," said Pam Zaresk, port director for CBP. "CBP is extremely pleased that the SCSPA has joined the C-TPAT program."

By agreeing to participate in the voluntary program, the Ports Authority has taken, and will continue to take, a number of steps to enhance and improve security. As a member, the Ports Authority must:

  • Maintain a detailed security plan
  • Develop a self-policing program to review security procedures
  • Continue current security efforts and complete a yearly assessment
  • Maintain a high-level of compliance with requirements
  • Encourage other companies to participate in C-TPAT

C-TPAT is one of several new programs developed by U.S. Customs & Border Protection since 9/11. For more information on C-TPAT, see the CBP website:
http://www.customs.gov/xp/cgov/import/commercial_enforcement/ctpat/

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Stroble Named Terminal Superintendent

Brad Stroble has joined the South Carolina State Ports Authority as terminal superintendent for Veterans Terminal.

A native of St. George, Stroble previously worked for nearly five years with a private stevedoring firm.

Stroble will oversee day-to-day operations and report to David Schronce.

Veterans Terminal is the Ports Authority's dedicated breakbulk and bulk terminal at the former Charleston Naval Complex.

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