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Charleston, SC - At its regular monthly Board meeting today, the South Carolina State Ports Authority Board elected Harry J. Butler Jr. of Georgetown to be its next Chairman.

Butler follows Whitemarsh S. Smith III of Charleston, who recently completed his two-year tenure as Chairman. Smith remains on the Board and will serve as Board Secretary. Smith wished Butler well in his new position and thanked staff for their support.

Butler was appointed in April 2003 by Gov. Mark Sanford to fill the seat vacated by Georgetown attorney Jack M. Scoville. During his real estate development career, Butler was president or managing partner of 52 companies and partnerships, including Wild Dunes Real Estate and Wild Dunes Development Company. He attended the University of Georgia and graduated from Berry College in Rome, Georgia.

Other officers elected by the Board were William H. Stern, Vice Chairman (Stern & Stern Associates, Columbia); Carroll A. Campbell III, Treasurer (Southern Property Management, Columbia); and Whitemarsh S. Smith III, Secretary (Charleston Branch Pilots Association, Charleston).

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Charleston, SC - Port security in Charleston will get a big boost thanks to $2.8 million in grants to the South Carolina State Ports Authority announced today by the Department of Homeland Security (DHS).

Projects covered by the grants include video surveillance upgrades at the Port?s three container terminals in Charleston, lighting enhancements and access control at the Wando Welch Terminal, the state's busiest marine terminal.

"The Ports Authority is dedicated to securing our state's Port system while ensuring the smooth flow of commerce," said Bernard S. Groseclose Jr., president & CEO of the South Carolina State Ports Authority. These grants are a big help.

Charleston's grants are part of $179 million in grants announced today by Secretary Tom Ridge of DHS. In its application, the Ports Authority requested $6.5 million for port security projects, leaving $3.7 million in project unfunded. "Port security will get stronger with these projects, but there are certainly other needs," said Groseclose. "We're not resting. The men and women working to protect our nation are committed to doing what it takes to secure our ports."

In two previous rounds of Port Security Grants, the Ports Authority received a total of $4.48 million for projects such as a new high-tech patrol boat, fencing, access control systems, video surveillance and a central monitoring system.

The complete DHS press release and listing of grants will be posted on the TSA website: https://www.portsecuritygrants.dottsa.net.

Earlier this year, the Ports Authority pledged to participate in the Customs-Trade Partnership Against Terrorism, or C-TPAT, a public-private global supply chain security initiative. Charleston is also the pilot location for Project Seahawk, a task force of all local, state and federal law enforcement bodies that are co-located to share intelligence and thwart terrorist activities.

Charleston, SC - Today, the Port of Charleston took a major step toward developing a new marine terminal at the former Charleston Navy Base -- at its monthly Board meeting, the South Carolina State Ports Authority awarded an environmental consulting contract to begin permitting for the new terminal.

Applied Technology & Management (ATM -- http://www.appliedtm.com) was selected to initiate the environmental study required to permit a new three-berth, 250-acre container terminal at the Base. Permit applications were filed earlier this year.

Eleven firms responded to the initial request for qualifications. From a short-list of five firms, the U.S. Army Corps of Engineers District Engineer selected ATM, which has offices in South Carolina, Georgia, Florida and Rhode Island.

ATM will be under contract to the Ports Authority, but will work under the direction of the Corps in developing the documents. The various permitting? agencies will rely on information produced by ATM to issue a Record of Decision on the permit application.

ATM will work with the Corps on the scoping process over the next six months. It is expected that all of the studies and public involvement needed to acquire permits will take about two years and cost $1.8 million.

Fortunately, the new terminal at the Navy Base enjoys broad public and political support. Letters of support have been filed by S.C. Governor Mark Sanford, City of North Charleston Mayor Keith Summey and members of the state's U.S. Congressional Delegation. Earlier this year, the S.C. General Assembly passed a resolution encouraging an expedited permitting process.

Charleston, SC - Two new container cranes arrived in the Port of Charleston on Sunday afternoon, representing the crown jewels in a $47-million, six-year terminal improvement project at the Columbus Street Terminal.

The new cranes cost $6 million apiece and weigh more than 1,200 tons each.? When boomed up, they rise 360 feet in the air and will reach out 197 feet from the edge of the dock.

Over the coming months, the cranes will be tested and placed into service on a new container berth at Columbus Street, Charleston's smallest container terminal.? The 1,000-foot berth was created by demolishing an old warehouse and improving the wharf area.? Other work in recent years at Columbus Street included improving storage, new container stacking cranes in the yard, dredging and?revamped terminal infrastructure.? Columbus Street is the Port's closest terminal to the open ocean, featuring unobstructed navigational access and 45-foot channels.

The new cranes are designed to lift containers to and from ships that are too wide for the Panama Canal, featuring an outreach of 22 containers across the deck of ships.? Currently, the largest ships in the world have 17 containers abreast.

The Ports Authority ordered the cranes from Paceco Corp. 17 months ago.? They were built in South Korea by Hyundai Heavy Industries and left the Port of Ulsan on August 22, sailing around the tip of South Africa.? The ship is carrying two other cranes for the Port of Philadelphia.

The new cranes will run on electric power, as opposed to older generation diesel-electric cranes that generate additional air pollution.? And Charleston's new cranes are the first container cranes in the United States to feature 100% AC power systems, which is designed to minimize maintenance and operating costs.? The Ports Authority specified this requirement.

The two new container cranes are the Port's largest and fastest to date.? While similar in size to the four newest cranes delivered to the Wando Welch Terminal in 2000, the new cranes have a much larger lifting capacity, hoisting up to 65 tons of cargo?under the spreader bar, as opposed to 40 tons.

Key customers at Columbus Street are COSCO, K-Line, Yang-Ming and Hanjin.? In addition, Atlanticargo recently moved from the North Charleston Terminal to Columbus Street.

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Charleston, SC - Today, the S.C. State Ports Authority Board approved several major Port improvement projects totaling $4.2 million, part of a two-year, $128-million program to increase utilization of existing terminals:

Columbus Street Terminal

Two Paceco Espana container cranes will be modified at a cost of $1.5 million. East Coast Cranes and Electrical of the Isle of Palms, SC will modify the cranes so they can move along a curved crane rail on the dock to a new container berth that is nearing completion. East Coast will also strengthen the main structure.

Republic Contracting of Columbia, SC will strengthen and improve a small section of crane beam to support routine operation of container cranes. Construction will take two months at a cost of $376,226.

Norfolk Dredging of Chesapeake, VA will dredge Berths 1, 2 and 3 to 52 feet mean low water (MLW), consistent with the project depth of 45 feet MLW. The maintenance work will be done in September at a cost of $820,950.

Other Work

Approximately 11 acres of container storage will be repaired and improved at the North Charleston Terminal. Sanders Brothers of North Charleston will perform the work for $451,881 in about three and one half months.

To improve upland dredge disposal capacity in close proximity to the lower harbor terminals, J-Mac Construction of Calabash, NC will raise the containment dikes in the Daniel Island west cell. Construction will require four months at a cost of $732,700.

Marinex Construction Company of Charleston will perform maintenance dredging to 35 feet MLW on berths alongside the most active piers at the existing Navy Base Terminal. The piers had not been dredged by the previous tenant since April 2001. This facility is now operated by the Ports Authority for breakbulk and bulk cargo. The cost of the work is $337,800.

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Charleston, SC - The South Carolina State Ports Authority announced today that it will play an active role in the war on terrorism by signing up for the world's first global supply chain security initiative.

At a ceremony this morning in the U.S. Custom House in Charleston, Ports Authority President and CEO Bernard S. Groseclose Jr. signed an agreement pledging South Carolina?s ports to the Customs-Trade Partnership Against Terrorism, or C-TPAT.

Groseclose was joined by Customs & Border Protection's interim Charleston port director, Pam Zaresk, and Robert Gomez, C&BP's interim director of field operations in Atlanta. "We are committed to this program and to securing the supply chain," said Groseclose.

By agreeing to participate in the voluntary program, the Ports Authority will take a number of steps to enhance and improve security:

• Re-assess the current condition of port security
• Complete a port security profile
• Develop and implement new security measures
• Encourage other companies to participate in C-TPAT

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. It's a daunting task, considering more than a dozen private companies and public agencies can touch each shipment on its way from overseas origin to final destination in the U.S.

Importers and transportation service providers that participate in the program 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 and a greater focus on self-compliance with guidelines.

Companies are encouraged to involve their suppliers and transportation partners in C-TPAT creating a web of security that will eventually extend overseas. Some of the world?s largest companies are already involved, including Wal-Mart and several ocean carriers serving the Port of Charleston.

"To the Ports Authority, C-TPAT means teamwork," said Bernard S. Groseclose Jr., president and CEO of the South Carolina State Ports Authority. "By working closer with others in the supply chain, our community, our state and our nation will enjoy a higher level of security."

C-TPAT is one of several new programs developed by U.S. Customs & Border Protection over the 21 months since 9/11. For more information on C-TPAT, see the Customs & Border Protection website:

http://www.customs.gov/xp/cgov/import/commercial_enforcement/ctpat/

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Charleston, SC - The Port of Charleston today presented a two-year capital improvement program to boost capacity at existing facilities, while making progress toward new port capacity.

At a teleconference Board meeting, the South Carolina State Ports Authority approved the fiscal year 2004 financial plan and presented a two-year, $128-million capital investment plan to increase utilization of existing port facilities.

"These investments will allow us to efficiently handle our customers? growth over the near-term and get ready for the future," said Bernard S. Groseclose Jr., president and CEO of the Ports Authority.

The FY04 plan calls for the Port of Charleston's container business to grow 5%. Container volume is up 12% through the first 11 months of the current fiscal year, which ends June 30. Operating revenues are projected to increase over 4% to $114 million in FY04.

In the $128 million capital plan, approximately $92 million is scheduled for major capital projects, such as terminal improvements projects and container cranes. Another $36 million is slated for cargo handling equipment purchases and other projects.

To prepare for new port development on the former Charleston Navy Base, $3.4 million is planned for environmental, geotechnical and access studies.

Summary of Capital Planning FY04 & 05

• Container Cranes - $31.1 million
• Wharf Improvement - $25.6 million
• Container Yard Improvements - $20.6 million
• Container Yard Cranes (RTGs) - $13.5 million
• Other Capital Projects & Equipment - $37.8 million
• Cooper River Bridge Replacement - $10 million

Charleston, SC - Two new Asian shipping services will begin calling the Port of Charleston this summer, bringing 78 new vessel calls a year and improving the port's connections to the exploding China trade.

"This is great news for our port," said Bernard S. Groseclose Jr., president and CEO of the South Carolina State Ports Authority.? "For our waterfront, it means new business," said Groseclose.? "And for companies trading with Asia, it means more options, more competition and quicker transit times," said Groseclose.

In response to booming Asia-U.S. trade and in the wake of labor disruption on the West Coast, ocean shipping companies have begun introducing new services direct to the U.S. East Coast.? Companies are sending more cargo through East Coast ports, instead of the typical West Coast distribution.

For example, this spring, the Ports Authority secured significant new business when it signed an agreement with a company to distribute thousands of containers of product for Wal-Mart.? A number of other distributors, both large and small, have also begun using Charleston.

Consequently, loaded container imports through the Port of Charleston are up 15% through the first 11 months of the current fiscal year, which ends this month.? Over the past two years, China has become the port's second-largest trading partner, behind only Germany.

In 2002, the Port of Charleston handled 120,000 TEUs (20-foot equivalent container units) in the trade with China.

Existing customers of the port are starting the two new services.? Maersk-Sealand, the port's largest ocean carrier customer and the world's largest shipping company, has added Charleston to its port rotation for an existing Asia-to-U.S. East Coast service.

The weekly Maersk-Sealand service, known as TP7 means 52 new ship calls a year for the port.? It also gives Charleston excellent inbound transit times from mainland China, Korea, Hong Kong and Japan, as short as 22 days.

In addition, another group of port customers known as the Grand Alliance will begin an entirely new service between Asia and the U.S. East Coast in early July.

The new service by the Grand Alliance, which includes OOCL of Hong Kong, Japan's NYK Line and German-based Hapag-Lloyd, will initially call every 14 days.? But port executives hope it will quickly evolve into a weekly frequency.? It will mean increased access to mainland China, through the ports of Shanghai and Yantian, as well as Hong Kong.

The two new services bring the total of Asia services in Charleston to seven.? Both of the new services cross the Pacific Ocean and transit the Panama Canal.? So it's natural that the Ports Authority would consider partnering with the Panama Canal Authority.

Port officials met with a delegation from the Panama Canal earlier this summer.? Canal authorities plan to sign memoranda of understanding with six other ports to improve services and increase trade.

SIDEBAR - CHARLESTON'S ASIA SERVICES

Weekly service added Charleston with the call of the SEALAND EAGLE on June 14, providing excellent inbound transit times from Japan, Hong Kong, mainland China and Korea.

New fortnightly service begins with the initial call of the OOCL HARMONY on July 7 from the Chinese ports of Yantian, Shanghai and Hong Kong.

Weekly service from China with a 21-day transit time port-to-port from Hong Kong, rivals landbridge transit times and is very popular with the importers.? Charleston first East Coast port of discharge from Qingdao, Yantian & Hong Kong

Eliminated calls on the U.S. West Coast to provide faster direct service to the US South Atlantic. The deployment serves Japan, Mainland China, Hong Kong & Taiwan.

Features a twice weekly call at Charleston, one eastbound the other westbound, covering Taiwan, Korea and four ports in Japan.

Weekly service with coverage of Chiwan, China, as well as Hong Kong, Taiwan and three ports in Japan. Also have a slot arrangement with Evergreen to serve Pusan, Korea and other Asian countries.

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Charleston, SC - Container volume through the Port of Charleston totaled 132,000 TEUs in January, a 30% increase from the same month last year. Total container exports were up 31% from January 2002, while imports rose 29%.

Through the first seven months of fiscal year 2003 (Jul02-Jan03), Charleston container volume totaled 959,000 TEUs, up 13% from the same period last year. This puts Charleston on pace to top 1.6 million TEUs for the year.

Most of the year-to-date growth came from the North Charleston Terminal, where Evergreen and Mediterranean Shipping Company are the primary customers. But the Wando Welch and Columbus Street Terminals saw increased volume as well.

Despite the increasing business, productivity and safety measures remain high. Vessel productivity in December, Charleston's third busiest month ever, topped 36.5 moves per crane per hour. And the South Carolina State Ports Authority's employee accident rate has been reduced, declining nearly 53% since 2000 to one accident for every 29,885 man-hours worked in 2002.

Meanwhile, through the first seven months, the Ports Authority's operating earnings increased 40% from the same period last year to $9 million on operating revenues of $61.3 million. Ports Authority operations generated $15.9 million in cash flow for reinvestment in existing facilities and debt payments. **

The USNS Capella, a U.S. Navy Military Sealift Command Fast Sealift Ship, arrived this morning at the South Carolina State Ports Authority's North Charleston Terminal to load military cargo in support of Operation Enduring Freedom and future contingencies.

The ship is being loaded with rolling stock and containerized cargo by the Army Military Traffic Management Command's 841^st Transportation Terminal Brigade, in close cooperation and partnership with the private waterfront community and the Ports Authority.

The U.S. Coast Guard Captain of the Port has issued a moving, 500-yard naval vessel protection security zone in and around Charleston Harbor, which will be enforced by Coast Guard patrols.

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