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Charleston, SC -- South Carolina's seaports handled goods valued at nearly $33 billion in 2000, marking an all-time record and an increase of 10% over the previous year, according to recently
released federal trade data. This translates into $89 million in cargo everyday.

The Charleston Custom District ranked 6th nationwide in the value of waterborne commerce, the U.S. Census Bureau's Trade Data Branch report FT920 noted. Port districts ahead of Charleston
were Los Angeles/Long Beach, New York/New Jersey, Houston/Galveston, Seattle/Tacoma and New Orleans.

Export growth outpaced imports last year for the Charleston district, increasing 11%. Nationwide, the value of waterborne trade increased 17% in 2000.

Since 1994, the value of goods moving by sea through the Charleston district has nearly doubled, increasing 91% from $17 billion to $33 billion. This is the fastest rate of growth among the
nation's top 10 ports and more than double the national growth rate.

The Ports Authority's Board requested the study after concerns? over traffic were raised during the permitting process for terminal construction on Daniel Island. "We heard loud and clear the community's concerns about traffic," said Edgar A. Buck, SCSPA Board Chairman. "So we looked closely at long-range traffic projections for both the community and for the port."

The study evaluated 15 sections of the Charleston area's two primary arteries, interstates 26 and 526. First, it presented expectations of the community's long-term traffic growth without port expansion. The local CHATS model provided this view, called "Background Traffic." New port traffic from a terminal on Daniel Island was manually applied on top of these traffic counts.

The study shows that growth in other areas of the community, including residential, recreational and commercial traffic, would drive most of the road requirements over the next two decades. While Port expansion on Daniel Island would advance the need for improvements to a 5-mile segment of I-526, the growth in Port traffic is not out of line with the overall growth expected for other areas of our community.

Virtually all of the port's impact on traffic would be centered on a section of Interstate 526 between the proposed terminal site and I-26. "Because the impact is rather limited, our attention can be focused and targeted on this area," said Bernard S. Groseclose Jr., President & CEO of the SCSPA.

"Although port traffic would only be a small piece of the infrastructure challenges facing our community, it is vital that we address them," said Groseclose. "Congestion is as much of a concern to the Port as it is to the community. It is important that commerce and the motoring public continue to move freely, keeping our economy healthy and our quality of life high."

The SCSPA said Wednesday that it will take a leadership role in an infrastructure planning effort to seek Federal funds.

"Because of the role the Port plays in the state and national economy, we can be very helpful in these efforts," said? Groseclose. "In hosting one of the nation's busiest commercial seaports, Charleston certainly deserves, and can win, preferential consideration. The Federal government recognizes a port's role, and therefore affords favorable treatment to intermodal connections
in major seaports."

Non-port traffic will drive a number of road improvements even before port expansion would come on line. Ten of the 15 road segments need improvement in advance of opening a new terminal;
one will even require two improvements.

Port expansion on Daniel Island will not create any new road construction needs, but will advance the need for improvements to one segment of I-526. The 5-mile section between Clements Ferry Road and I-26 would have to be improved three years sooner with port expansion than without.

"Although today is the last day of the Global Gateway Terminal proposal, it is day one for the compromise proposal," said Edgar A. Buck, SCSPA Board chairman. "We have heard the concerns of the community and have shown our willingness to seek common ground. The Ports Authority will aggressively pursue this new plan that addresses community concerns while allowing our port to grow."

The SCSPA Board unanimously approved a resolution saying the Cooper River side of Daniel Island is the best location for future port expansion. The resolution also said that the existing permit application for the Global Gateway Terminal will be withdrawn, and a new plan will be developed based on response from the private sector.

Chairman Buck said that concerns over the size and scope of the original proposal would be addressed by the new project, which would be roughly one-half of the initial project. The original plan encompassed 800 acres of development on the SCSPA's 1,300-acre tract, land that is made up of former dredge disposal sites on Daniel Island.

"We are reaching a critical point in the port expansion process," said Bernard S. Groseclose Jr., president and CEO of the SCSPA. "It is vitally important that we move forward decisively on this compromise to realize new terminal capacity in advance of the 2006-2008 time frame when capacity is approached."

The SCSPA also approved management's recommendation to issue a formal request for proposals to private shipping line and terminal operating companies. While the SCSPA has had informal
discussions with marine terminal operators and ocean carriers, this is the first formal request for the terminal on Daniel Island.

The Ports Authority also today released the findings of a detailed traffic study relating to port expansion on Daniel Island. For more information on this study, please contact Byron Miller
at 843-577-8197.

The Port of Charleston is one of the nation's busiest commercial seaports for trade between the U.S. and Africa.

• Charleston is the nation's second largest port for containerized trade with Africa.
• Charleston moves nearly one-fifth of all trade between the U.S. and Africa.
• Since 1991, U.S.-Africa trade through the Port of Charleston has quadrupled, growing from 7,000 20-foot equivalent units in 1991 to more than 37,000 TEUs in 2000.
• The Port of Charleston is the dominant South Atlantic port for U.S. trade with West Africa and is the clear market leader.
• Over the past year, importers and exporters shipped more than 4,400 TEUs of goods through the Port of Charleston between the U.S. and West Africa.
• From Norfolk to Miami, 36% of all U.S. trade with West Africa moves through Charleston.
• Over the past year, the Port of Charleston handled nearly two-thirds of all the frozen meat, poultry and fowl that was exported in containers to West Africa through ports from Norfolk to Miami

The S.C. Department of Transportation (SCDOT) expects to accept a bid and sign a contract in May. Construction could begin this summer and be completed within four to five years.

The new bridge will feature eight traffic lanes, bicycle/pedestrian traffic accommodations, a 1,546-foot center span and a 186-foot vertical clearance. The new bridge will replace existing structures with a 150-foot vertical clearance.

Key to the announcement is the SCSPA's participation in repayment of a $215-million, federal TIFIA loan over the next 25 years. The Ports Authority will contribute $5 million annually, contingent on state legislative approval of $55 million in bond appropriations this year and an annual appropriation of $2.5 million. Other annual funds to repay the loan will come from SCDOT ($7 million) and local governments ($3 million).

"This plan, if approved by the General Assembly, allows the Ports Authority to contribute without breaking any legal restrictions governing our bonded indebtedness," said Bernard S. Groseclose Jr., President and CEO of the Ports Authority. "We hope that this will be a positive solution for the entire local community."

"As we move forward with Port expansion in Charleston harbor, it is critical to work toward accommodating infrastructure needs," said Groseclose. "The new bridge will serve both the traffic needs of our community and the shipping needs of South Carolina and our nation."

CONTAINER YARD IMPROVEMENTS - A 34-acre container storage area at Columbus Street Terminal will undergo $5.9 million in improvements over the coming nine months. The area will be raised and paved, preparing it for a grounded container operation utilizing rubber-tired gantry cranes. Today the State Ports Authority (SPA) Board approved the contract for Sanders Brothers Construction of North Charleston to perform the work. The primary carrier customer at Columbus Street is the alliance of Cosco, "K" Line and Yang Ming.

THREE TOPLIFTERS - Gregory Poole Equipment will provide three container handlers at a cost of $600,000 for use at the Wando Welch Terminal. In addition, six new rubber-tired gantry cranes recently were added to the Wando fleet. The four new Paceco/Hyundai super post-panamax container cranes have been delivered to the Wando and are operational.

MAINTENANCE DREDGING - The SPA Board today also approved a $366,400 contract for Marinex Construction of Johns Island to perform maintenance dredging in berths one and two at Columbus Street Terminal. Approximately 100,000 cubic yards of material will be removed and deposited on Drum Island to maintain the project depth of 45 feet at mean low water.

PORT EXPANSION - The SPA Board continued its review of port expansion alternatives today with a review of environmental, traffic and social impacts of the three options. The Cooper River side of Daniel Island would have the least impact on wetlands and river bottom, while the Navy Base would have a greater near-term impact on water quality. All three sites require improvements to local roadways. In addition, the existing Draft EIS will have to be substantially modified or amended, and a new scoping process public hearing will be held.

MAERSK-SEALAND CONTRACT - The Ports Authority announced today that it has received verbal commitment to a new contract with Maersk-Sealand to continue using the Port of Charleston. Very soon the SPA expects to sign the contract, which features an initial four-year term with four five-year extensions. Maersk-Sealand is the world's largest ocean carrier, serving more than 100 countries from the Port of Charleston.

HANJIN MAKES IT 10 FOR 10 - Each of the 10 largest shipping lines in the world now offer service between Charleston and the earth's four corners. The world's fourth largest shipping line, South Korea's Hanjin Shipping, recently said it would begin offering service between Charleston and North Europe early next year. Beginning perhaps in February, Hanjin will buy space on ships in an existing service operated by Cosco, Yang Ming, and "K" Line. Charleston is the first port visited inbound from Le Havre, France and the last port ships call before returning across the Atlantic Ocean to Antwerp, Belgium.

 

Charleston, SC - November 21, 2000 - Standing proud as the nation's fourth busiest container port, the South Carolina State Ports Authority today offers an amazing contrast in both size and impact from the days of its creation. This success is the result of careful planning, hard work and effective marketing.

In 1941 the Legislature of South Carolina asked a committee to study the port needs of the state and report on whether the capability to meet that need existed in Charleston, then a city-sponsored port. The manufacturing base gave a resounding yes to the need for a port to move their goods to market.

The General Assembly formed the Ports Authority in 1942 with the major port at Charleston and sister ports at Georgetown and Port Royal. Existing terminals had to be torn down and rebuilt in concrete. An engineer observed that Charleston must indeed be the Holy City, since there was nothing supporting the docks -- worms had eaten the timbers through.

In the 1960s South Carolina business began to depend more and more on the port. In the early 1970s the State Ports Authority Board committed to containerization. Large shipping containers were a brand new mode of moving cargo that revolutionized international transportation, worldwide. Charleston had the first container facilities in the South and gradually assumed the lead container port position south of New York on the East Coast.

The ability of containers to rapidly move a high volume of cargo through relatively limited facilities poised Charleston for the rapid growth it has experienced in recent years. Everyday the Port of Charleston moves cargo valued at $79 million. In addition to containers, the port handles a growing amount of roll-on roll-off cargo such as cars and heavy machinery as well as the more traditional kinds of break bulk cargo including paper and forest products.

The success of the entire port system has been closely tied to the growth of industry in the state and the region. Many of the companies that have come to South Carolina, such as Michelin, BMW, Bosch and Fuji, have credited the efficient port at Charleston as one of the major attractions. The smaller but viable ports of Georgetown and Port Royal have also been a major advantage to the industries developing around them.

Every county in South Carolina has business that uses the State's ports and the Ports of South Carolina are working for every one of the state's citizens.

Charleston, SC - November , 2000 - Alternatives to serve the Port of Charleston's expansion needs were evaluated at a Ports Authority Board meeting today, and updated forecasts show that a new terminal is required within six to eight years.

The initial proposal to meet shipping demand by consumers and industry was the Global Gateway Terminal on Daniel Island in Charleston harbor. During a very open process, vocal opposition to the initial proposal by local neighborhoods and environmental activists focused primarily on quality of life issues, such as traffic, lights and noise, and the ultimate size of port development.

Acknowledging the local opposition, while also recognizing the dire need to move forward on port expansion, the Ports Authority Board stepped away from the initial proposal and requested an analysis of three options.

"We have been listening to the public and we have heard their concerns," said Board chairman Eddie Buck of Charleston. "This is reflected in the alternatives we reviewed today."

All three alternatives are less than half the size of the initial proposal. The sites to be considered are a portion of the Ports Authority's property on the Cooper River side of Daniel Island, a site
in Jasper County on the Savannah River, and a portion of the former Charleston Naval Base. Today the Ports Authority Board heard a detailed report of the technical, engineering, infrastructure and environmental issues relating to each site, along with timing and cost considerations. "Every site has its pluses and minuses," said Chairman Buck, "it's just a matter of determining a sound business alternative that best serves the port's needs, while minimizing impacts on the community. It is this solution that best serves South Carolina."

An updated analysis of world trade shows that new port capacity could be required as soon as 2006. Although the Ports Authority has surpassed growth expectations every year since the last time its forecasts were updated, vastly increased productivity and the updated forecast allows the six to eight year window to remain constant.

The forecast rate of growth shows increased competition from developing economies, such as Southeast Asia and Latin America, a comparatively stronger U.S. dollar and a continuing decline in the manufacturing sector's share of the overall U.S. economy.

"To satisfy the demand projected in this forecast, preparations must begin immediately for new terminal development. It's understood that we must move forward with plans to expand our state's primary port in Charleston. It is no longer a question of 'if' or even 'when,' but where'" said Buck.

Charleston, SC - November 10, 2000 - The Ports Authority is once again fairly evaluating all reasonable options for future port expansion to serve the needs of businesses in the Upstate and across South Carolina. The resulting analysis will be absolutely vital for South Carolinians as we determine the future course of our port system, the state's avenue to world markets.

It is now understood by reasonable people in Charleston and throughout the state that to meet the international shipping needs of South Carolina industry, we must move forward with plans to expand our state's primary port in Charleston. It is no longer a question of "if," but "where"

Assuming only modest 5.8% annual trade growth, in the very near future the port will experience a shortage of capacity, which will influence our ability to serve manufacturers. This is significant because the port has consistently exceeded its projections for future port growth. In fiscal 2000, volume increased 16%. Through the first quarter of this fiscal year, volume is 11% higher than the same period last year. Considering the lead-time required to construct new port facilities, preparations must begin immediately.

The initial proposal to meet this demand was the Global Gateway Terminal on Daniel Island in Charleston harbor. After an exhaustive site evaluation process that began in the late 1980s, the Ports Authority purchased 1,300 acres of former dredge disposal sites, which neighbored several thousand additional acres of undeveloped property.

In a very public debate, the City of Charleston approved the appropriate zoning and land use plan. Development agreements were reached between the city, the Ports Authority and the developer for light and noise standards, traffic separation, access corridors, berms and buffers - all before the first home or office was constructed on the island. Clearly, the port was a part of Daniel Island development from the very beginning in 1992 and comes as no surprise to local residents.

After Base Closure was announced in 1993, the Ports Authority suspended work on Daniel Island at the request of the community to focus on the potential for port development on the former Navy Base. The initial proposal for redevelopment of the Base included a port, but progress was impossible due to local political and public opposition to a container port facility. By 1995, zoning laws precluded a container terminal on the Base and the Ports Authority Board resolved that efforts should return to Daniel Island.

In 1997, the Ports Authority began what is without question the most open and visible public permitting process in South Carolina's history. We even asked the U.S. Army Corps of Engineers to go beyond the established realm of recognized public meetings and create a series of new opportunities for public involvement. Although the Ports Authority has been barraged by dozens of nuisance FOIA requests, we have responded to every single request.

During this open process, vocal opposition to the initial proposal by local neighborhoods and environmental activists has focused primarily on quality of life issues, such as traffic, lights and noise, and the ultimate size of port development.

Acknowledging the local opposition, while also recognizing the dire need to move forward on port expansion, the Ports Authority Board stepped away from the initial proposal and requested an analysis of three options. We have been listening to the public and we have heard their concerns. This is reflected in the alternatives to be further reviewed.

The sites to be considered are about half of the Ports Authority's property on Daniel Island, a site in Jasper County on the Savannah River, and portions of the former Charleston Naval Base. On November 15, we will present a report of the technical, engineering, infrastructure and environmental issues relating to each site, along with timing and cost considerations.

Despite unfounded charges by local opponents of port expansion, the Ports Authority will prepare the most comprehensive and reasonable analysis possible. We will continue to present all of the considerations in the same professional manner that we manage the nation's most productive port.

It is my personal commitment to provide our Board and the people of South Carolina all of the facts on these sites - facts on which the most educated decision can be made. This decision should reflect the concerns of the community, as well as commercial needs of the port and South Carolina industry.

Charleston, SC - October 30, 2000 - The most pressing issues facing the Port of Charleston reflect the key issues for the entire international transportation community. Exponential growth, new applications of information technology and public awareness present serious challenges to our industry.

Despite the presumption that excess port capacity plagues the U.S. East Coast, it is obvious that our industry will face a shortage of space in the near future. When you combine dwindling available waterfront land with booming population, the result strains both terminal and landside access.

As a result of these trends, ports and terminal operators must better manage their land resources and optimize their use. The Port of Charleston is proud to be leading the charge in this regard. Demand-driven port expansion, combined with improved utilization, is a prudent course of investment that will serve demands into the coming decades.

Although ports are just one link, they also must help plan and guide intermodal development beyond their gates, pressing for improvements to the rail and road infrastructure.

Applying information technology in productive ways can also yield benefits for ports and their customers. There exist many opportunities for ports, particularly operating ports, to improve performance through IT initiatives. These can boost utilization and profitability, and even the most fierce ocean carrier negotiators should appreciate the financial health of their port suppliers.

Improving the general awareness of transportation should also be a priority in the coming years. This is necessary if we hope to gain the public and political support required to make the needed improvements to our nation's transportation infrastructure.

Until there is a problem, our industry goes unnoticed. When compared to other industries, we maintain a relatively low profile. This must change and our issues must be appreciated before the negative impacts of poor planning impact our economy.