Charleston's Union Pier Terminal Bustling with Breakbulk

Charleston, SC - The Port of Charleston's Union Pier Terminal is bustling with breakbulk cargo. Driven primarily by steel shipments, activity on the dock and in the facility's two largest warehouses has grown substantially in recent months.  

In the fourth quarter of the last fiscal year (April-June), the terminal handled 50,079 tons of non-containerized freight, predominantly steel wire rod and coils, much of which is utilized in tire production, and steel billets. This was an 85 percent jump from the preceding nine months of the fiscal year combined, during which the terminal handled 27,109 tons of cargo.  

Paul McClintock, senior vice president and chief commercial officer for the South Carolina Ports Authority (SCPA), credits the agency's focus on recruiting non-container accounts as well as a new, monthly breakbulk service that was announced in the spring. 

"We've been aggressive in recruiting breakbulk in an ongoing effort to diversify the port's business," McClintock said. "We're exporting a large amount of steel used in construction. On the import side, we are seeing steel wire rod and coils used to manufacture tires, which is a large and growing segment in the state." 

South Carolina ranks first in the nation for tire exporting. With Michelin, Bridgestone and Continental Tire all locating to or expanding in South Carolina, tire manufacturing is one of the largest industrial sector employers in South Carolina. These three companies employ more than 12,000 in the state.  

"At Union Pier, we have more than 290,000 square feet of warehouse storage space to handle weather-sensitive cargo, like steel wire rod and coils and paper, as well as large lay-down areas suitable for traditional breakbulk," McClintock said. 

Since repositioning the port's major ro-ro accounts to Columbus Street Terminal in March 2011, Union Pier offers additional space for non-containerized accounts. The SCPA invested nearly $25 million to convert Columbus Street Terminal from a container facility to a premier, vehicle-handling and multi-use facility. 

Earlier this year, Grieg Star Shipping selected Charleston for its monthly service, which calls Union Pier Terminal. Since March, the terminal has handled a total of 14 cargo vessels.

Charleston's non-container facilities handled 1.12 million tons of bulk and breakbulk cargo in fiscal year 2013, a 30 percent jump from the previous year. The SCPA projects an approximately 10 percent increase in breakbulk and non-containerized cargo at the Port of Charleston during the next 12 months.

SC Ports Named to Environmental Best List

Charleston, SC - The South Carolina Ports Authority (SCPA) has been named to an industry best list of organizations “pushing the sustainability envelope” within the transportation sector.

Inbound Logistics selected global companies and organizations making measurable progress and “leading by example” for its 75 Green Supply Chain Partners list. Only six ports in the nation, including just two port authorities on the East Coast, were selected for the honor.

“Our efforts to reduce emissions through new and upgraded equipment, better fuels and replacing the oldest trucks that serve our port are leading among ports in the region,” said Jim Newsome, president and CEO of the SCPA. “We know that green efforts not only make good business sense, but they are also key to being a productive and responsible part of the local community.”

Starting with a pool of more than 200 transportation and logistics companies, the publication’s selection process took into account an organization’s involvement in three areas: public-private partnerships, corporate sustainability initiatives and collaborative customer-driven projects.

The publication cited the SCPA’s commitment to reducing air emissions, including electrification and repowering of on-terminal equipment and its first-in-the region truck replacement program, which aims to eliminate the oldest, dirtiest trucks from the local private-sector truck fleet.

Earlier this year, the SCPA released the results of its latest air emissions inventory, which analyzed emissions of six criteria pollutants from trucks, trains, cargo-handling equipment, ships and tugs and spanned an approximately 2,500-square-mile area. In a five-year period, emissions related to the SCPA’s cargo-handling equipment demonstrated double-digit reductions for all criteria pollutants, including a 60 percent reduction in Nox, a 57 percent reduction in particulate matter (PM) and a 99 percent reduction in sulfur dioxide (SO2). The report also found that emissions from trucks calling the SCPA’s facilities similarly have made major air-quality strides, with reductions in all six criteria pollutants.

Several other companies that do business in and around the SCPA’s terminals, including ocean carriers, trucking companies, third-party logistics providers and others, were also named to the list in the magazine’s June issue.

Inbound Logistics is the leading trade magazine targeted toward business logistics and supply chain managers. The magazine's editorial mission is to help companies of all sizes better manage corporate resources by speeding and reducing inventory and supporting infrastructure, and better matching demand signals to supply lines.

The magazine’s G75 special section is available online.

Charleston Containers Up 9% in Fiscal Year 2013

Charleston, SC - In results announced at today’s regular Board meeting, South Carolina’s public seaport system continued above-market growth during fiscal year 2013.

Container business at the Port of Charleston was up nine percent in the fiscal year that ended June 30, with 1.56 million 20-foot equivalent units (TEUs) handled during the past 12 months.

“The shipping industry trend toward mega-consortia will ultimately be an advantage for deepwater harbors, like Charleston,” said Jim Newsome, president and CEO of the South Carolina Ports Authority (SCPA), referring to the rise of new carrier consortia such as the G6 and, more recently, the P3. “While just under the aggressive target we set for the past fiscal year, Charleston’s growth remains at more than double the average market growth for the nation’s ports,” he said.
June container figures were up four percent from the same month last year, reflecting the start of new or upsized container services in the port this summer. Charleston’s two container facilities handled 125,257 TEUs last month.

Charleston’s non-container facilities - Columbus Street, Union Pier and Veterans terminals - handled 1.12 million tons of bulk and breakbulk cargo in FY13, a 30 percent jump from the previous year. While breakbulk volumes grew around one percent, the biggest gains in these combined segments were associated with a large-scale, local paving project that has since concluded.

In the Port of Georgetown, business at the dock was off 10 percent, with 494,645 pier tons handled from July 1, 2012 to June 30, 2013.

Additional highlights from FY13 included:

In other action, the SCPA Board approved a contract for nearly $2 million related to dike raising at Drum Island, a 200-acre upland disposal site for material from berth maintenance dredging at Columbus Street and Union Pier terminals. L&L Contractors, Inc. of Andrews, South Carolina was awarded a $1.99-million construction contract to raise the dikes by six feet, which will create an additional 1.5 million cubic yards of dredge capacity at the site.

SC Ports Finalizes $1-Million Land Preservation Program

Charleston, SC - Nearly 1,000 acres of environmentally and historically significant properties in the Cooper River watershed are being permanently protected, under a $1-million land preservation program by the South Carolina Ports Authority (SCPA). The effort is part of the SCPA’s $12-million environmental and community mitigation package related to the new container terminal under construction at the former Navy Base in North Charleston.

“As the port grows and thrives, it is vital that we continue to be a productive component of the local community,” said Jim Newsome, president and CEO of the SCPA. “That is accomplished both through the jobs and opportunities afforded to our neighbors through the maritime community, and also through efforts like this that enhance the Charleston region overall.”

In all, three properties totaling more than 967 acres are being preserved through the SCPA plan. Protection of the largest tract, the 824-acre Buck Hall Plantation property, was finalized last week.

Buck Hall is located on the west branch of the Cooper River adjacent to Mepkin Abbey. The property includes 375 acres of wetlands that will be preserved, free of further development, in perpetuity.

Additional properties now under conservation easements through the SCPA funds include 22 acres at the St. James Chapel of Ease in Goose Creek and 122 acres at Brickyard Plantation, which is located on the east branch of the Cooper River at the upper stream of Quimby Creek.

The SCPA partnered with the Lord Berkeley Conservation Trust to identify and acquire the properties. The property owners each have signed agreements with the U.S. Army Corps of Engineers and the South Carolina Department of Health and Environmental Control, placing their properties under conservation easements.

Additional components in the SCPA’s $12-million mitigation plan included a $1 million contribution to protect the 126-acre Morris Island site as a public space for future generations, a five-year collaboration with EcoHealth Alliance on aerial surveys of right whale migrations and a $1-million partnership with the South Carolina Department of Natural Resources SCORE (South Carolina Oyster Restoration and Enhancement) program to restore approximately five miles of oyster reefs in the area. Elsewhere in the harbor, the SCPA will be recreating a 22-acre tract of tidal marsh on the southern end of Drum Island.

In addition to the traditional environmental mitigation activities, the SCPA, in coordination with the City of North Charleston and neighborhoods surrounding the new terminal, is funding $4 million toward education and job training programs, an affordable housing trust and other community initiatives.

The new terminal at the former Navy Base is currently the only permitted, new container terminal under construction on the U.S. East and Gulf coasts. The facility, at build out, will boost the Port of Charleston’s container capacity by 50 percent.

SC Ports Projects $123 Million in Capital Spending, 6% Container Growth

Charleston, SC - With volumes continuing to climb, the South Carolina Ports Authority (SCPA) Board of Directors today approved its fiscal year 2014 financial plan, which includes volume increases across business segments and $123 million in capital spending on a number of strategic projects.

During its regular monthly meeting, the Board approved the SCPA's fiscal plan for the coming 12 months. From July 1 to June 30, capital spending of $123 million will fund major infrastructure investments such as the new container terminal at the former Navy Base, new equipment to handle the increased size of ships in the port as well as other upgrades to existing facilities.

The largest single area of spending is for the South Carolina Inland Port in Greer, SC, with $29.1 million planned to cover the remaining SCPA share of the project. The new facility is slated for a September 2013 opening.

"Our public seaport system is an economic engine, spurring opportunity all across South Carolina," said Bill Stern, chairman of the SCPA Board. "The inland port will further expand the port?s connection to the Upstate and will drive job creation and investment to that region."

While the SCPA is a public agency, it does not utilize taxpayer dollars to fund its ongoing capital or operating needs. The SCPA's capital spending plan is funded internally and by the SCPA's ability to borrow long term in the marketplace.

The financial plan also projects a nearly six percent increase in container volume on the strength of new, weekly services commencing this summer and increased volume from existing services.

"Above-market growth is essential to carrying out our aggressive investment plans over the coming years," said Jim Newsome, president and CEO of the SCPA. "As post-Panamax ships continue to be deployed in the Port of Charleston, our deep shipping channels and dockside infrastructure become even more critical. Our plan reflects investments that will keep our ports competitive as our customers decide where to place service strings and route cargo."

In addition to container growth, also included in the FY2014 plan is a nearly 10 percent increase in breakbulk and non-containerized cargo at the Port of Charleston, due in part to a new, weekly service from Grieg Star Shipping announced earlier this year. The service calls at Union Pier Terminal.

At the Port of Georgetown, the SCPA projects a more than 13 percent boost in volume at the facility, which primarily handles bulk cement and petroleum coke products.

Furthermore, the fiscal plan calls for an increase in personnel, including the addition of 12 jobs at the South Carolina Inland Port.

In other business, the SCPA Board approved $24.9 million in spending for two new, super post-Panamax dockside cranes for North Charleston Terminal. The new, larger cranes replace two cranes built in 1989 and will have the outreach and lift capacity necessary to efficiently handle bigger ships in the port. Shanghai-based ZPMC, which previously delivered four super post-Panamax cranes to Charleston in 2007, will construct and deliver the cranes. The new equipment is expected to be delivered to the port during the summer of 2015.

Also during the meeting, the SCPA shared volume results for the month of May, which saw volume increases in both containerized and non-containerized cargo.

Container volume last month reached 139,143 20-foot equivalent units (TEUs), a five percent gain over the same month last year and the strongest month since October 2008. Charleston?s non-containerized tonnage shot up nearly 56 percent in May, with 93,495 pier tons handled, while volume at the Port of Georgetown climbed 2.5 percent, or 43,139 pier tons for the month.

In the 2013 fiscal year to date (from July 2012 to May 2013), TEU volume in the Port of Charleston was up 9.4 percent from the previous year while pier tons of non-containerized cargo in Charleston and Georgetown climbed 18.4 percent.

April Container Volume Up 9% in Charleston

Charleston, SC - Continuing its growth trajectory, container volume in the Port of Charleston was up nine percent in April compared to the same month last year, with 134,718 20-foot equivalent units (TEUs) handled at the port’s two container terminals. April 2013 represented a more than 17 percent increase from the same month two years ago.

“Our volume continues to grow above the market, and we must continue our aggressive sales efforts as we heavily invest in our port’s infrastructure,” said Jim Newsome, president and CEO of the SCPA. The SCPA is building an inland port in Greer, SC to enhance freight movement to and from a key area for the port’s customers in the region. Additionally, the SCPA is constructing a new container terminal on the former Charleston Navy Base in North Charleston to boost container capacity by 50 percent at full build out.

In the fiscal year to date (July through April), container volume was 10 percent ahead of the same period last year and represents the highest fiscal year to date in five years. The Port of Charleston moved 1,295,717 TEUs during the past 10 months, compared to 1,178,843 TEUs in fiscal year 2012.

“With new service deployments beginning in June, and additional large vessels calling our port this month, we expect a solid finish to the fiscal year,” Newsome said.

Non-containerized cargo tonnage spiked in April, in part from increased breakbulk activity at Union Pier Terminal as well as bulk project cargo related to a large-scale, local paving project. The SCPA’s non-containerized facilities in Charleston and Georgetown handled 155,842 tons of cargo in April, a 42 percent increase from the same month last year. Pier tons at the two ports totaled 1,361,036 tons of bulk and breakbulk cargo from July to April, a 17 percent gain from the same period in fiscal year 2012.

The month of April also saw the first Maersk ship of more than 8,000-TEU capacity to call the Port of Charleston, with the 1,155-foot-long Axel Maersk call on April 1. On April 30, the U.S. Army Corps of Engineers, Charleston District, along with the SCPA, hosted a meeting updating the public about progress of Charleston’s Post 45 Harbor Deepening Project. LTC Ed Chamberlayne and Corps staff members shared information about the environmental, economic, and engineering aspects the deepening study, which is ahead of the originally projected schedule and under initial budget estimates. A “We Can’t Wait” project as designated by the President, Charleston’s feasibility study and necessary reviews are to be completed by September 2015.

For more information:
Allison Skipper, APR
Manager, Public Relations
South Carolina Ports Authority
843-577-8121
www.scspa.com

SC Ports' Newsome Provides Testimony to Congress on Freight Transportation

Charleston, SC - To support export growth and economic investment associated with international trade, the nation must develop a prioritization system, a merit-based budget process and predictable means of authorization for needed port infrastructure, the head of the South Carolina Ports Authority (SCPA) told members of a Congressional committee today.

This morning, the U.S. House Committee on Transportation and Infrastructure’s Panel on 21st Century Freight Transportation heard testimony about the state of the nation’s freight transportation system from five industry executives representing different areas of the supply chain.

At the hearing, SCPA President and CEO Jim Newsome gave an overview of the changes seen in the maritime industry as a result of globalization, noting that U.S. manufacturing and export activity has been on the rise in recent years and, simultaneously, the global fleet is upsizing.

“The global shipping industry, especially the container carriers, has responded with significant investment in new vessels,” Newsome stated. “Two-thousand thirteen will see the largest injection of new container capacity into the global container fleet in the history of containerization.”

Newsome highlighted the approximately $2 billion in investments in port-related infrastructure by the SCPA and the State of South Carolina to support the growth of the Southeast region as both a consumption market and exporting hub. These investments include significant additional container capacity as well as $300 million set aside by the S.C. General Assembly to cover the entire cost of Charleston’s harbor deepening project to take the port’s shipping channel to 50 feet.

“The federal harbor system has not kept pace with the dramatic increase in size of ships,” Newsome said. “Going forward, it is vital that a viable strategy and process is established at the federal level to bring port capability in line with the handling requirements of such large ships.

“As with other major transportation projects, harbor deepening, maintenance and infrastructure improvements should be treated as high-priority projects subject to streamlined approval and with a steady and reliable stream of funding,” he said.

Newsome recognized the strides made by the U.S. Army Corps of Engineers, though its SMART Planning directive, to accelerate the study of port infrastructure projects.

“But sustainable improvement will only be realized when a ‘private sector’ type capital budgeting approach is taken to such port improvement projects,” Newsome said.

Such an approach might include these components:

Additional witnesses at the hearing included Fred Smith of FedEx Corp., Charles Moorman of Norfolk Southern Corp., Derek Leathers of Werner Enterprises and Edward Wytkind of AFL-CIO.

Earlier this month, the U.S. Senate Committee on Commerce, Science and Transportation held a hearing on the Panama Canal expansion’s impact on the nation’s freight movements and infrastructure needs. At the hearing, local trucking executive Phil Byrd, president and CEO of Bulldog Hiway Express and first vice chairman of the American Trucking Association, outlined how inland modes of transportation must keep pace with improvements made on the water side. U.S. Sen. Tim Scott (R-SC), a member of this committee, highlighted during the hearing the importance of the Port of Charleston to serve the nation’s economy.

Newsome’s testimony to the Panel on 21st Century Freight Transportation is available in its entirety by clicking here.

Charleston Fiscal Year Container Volume Highest in Five Years

Charleston, SC - The Port of Charleston is having its strongest fiscal year for container volume in five years, according to results announced today at the regular meeting of the South Carolina Ports Authority (SCPA) Board of Directors.

During the first nine months of the fiscal year which began July 1, the SCPA’s box volume was up 10 percent over the same period last year, with 1,160,999 20-foot equivalent units (TEUs) handled at the SCPA’s two container terminals in Charleston through March 2013.

“We are pleased that our actions to increase volume are bearing fruit,” said Jim Newsome, president and CEO of the SCPA. Newsome noted that the upcoming fourth quarter of the fiscal year traditionally has been a period of strong numbers. “There are a number of deployments of large vessels which should further influence volume, especially on the export side.”

The Port of Charleston handled 136,877 TEUs in March, a 1.5 percent increase over the same month last year and a 13.8 percent increase over March 2011.

Bulk and breakbulk tonnage similarly posted positive year-over-year results during the first nine months of the fiscal year. The SCPA’s non-containerized facilities in Charleston and Georgetown handled 1,205,194 pier tons of cargo from July to March, a 14.5 percent gain from the same period in fiscal year 2012.

In other action, the SCPA Board approved $12.9 million in additional funding toward the South Carolina Inland Port (SCIP) in Greer, SC, currently under construction. The project’s design is now more than 90 percent complete with a projected opening in September 2013.

Located 212 miles from the Port of Charleston, the SCIP will serve as the extension of the SCPA’s coastal facilities in the middle of the largest concentration of in-state port customers in the Upstate region of South Carolina. Importantly, the facility immediately will convert 25,000 existing truck trips on I-26 to rail transportation. The SCIP will have an expected capacity of 40,000 containers at start up and, with the newly approved funding, will grow its capability to around 80,000 lifts a year.

The Board also approved the transfer of 2.24-acres of property to Clemson University for the wind turbine testing center under construction in North Charleston on the former Navy Base. The property will be used to house an electrical power station for the Clemson University Restoration Institute wind turbine project.

Charleston Harbor Deepening Funds in President's Budget

Charleston, SC - The President's Budget once again includes funds to continue Charleston's Post-45 Harbor Deepening, a project designated last year by the Administration as one of its priority infrastructure projects. Released today, the fiscal year 2014 budget includes a $1.165-million allocation to continue the considerable progress on the project's feasibility study, now at its midpoint.

"We are grateful to the Administration for including Charleston's project in the budget for a second year in a row, as well as their commitment of resources to expeditiously advance our project," said Bill Stern, chairman of the South Carolina Ports Authority (SCPA) Board of Directors. "This funding means that Charleston's study can proceed to completion with absolutely zero funding restraints, as both the federal and the port's contributions have been fully committed at this point."

The feasibility study is cost-shared 50/50 between the federal government and the SCPA, which committed to accelerate its half of the study funds as needed to continue advancing the project. A national measure to modernize U.S. Army Corps of Engineers' Civil Works projects targets completion of the feasibility study and necessary reviews by September 2015 at a cost of $13 million or less. The Draft Environmental Impact Statement is scheduled to be released next year.

"Leaders at all levels of government have recognized the Port of Charleston's importance to the state's, the region's and the nation's economy, and we are thankful for the efforts of our Congressional Delegation, led by Senator Graham and Congressman Clyburn, the South Carolina Legislature and Mayor Riley." Stern said.

Last session, the South Carolina General Assembly set aside $300 million to cover the estimated cost of construction for a 50-foot deepening project in Charleston. The funds would cover both the state's 60 percent share of the project's cost as well as the federal government's 40 percent share, if needed, thereby removing any funding constraint.

The President's Budget also included $14.825 million for maintenance dredging in Charleston Harbor.

Overall allocations to Civil Works for the fiscal year that begins October 1 are $4.7 billion, a 5.5 percent decrease from the 2012 enacted level. The President's Budget focuses on the "highest priority work within the agency's three main missions, which includes commercial navigation, and emphasizes investments in construction projects with high economic and environmental returns," according to the document. The Corps' investigations budget includes funding for studies related to the deepening of eight U.S. ports, including four East Coast ports, two Gulf ports and two West Coast ports.

Importantly, the Budget summary notes that the Administration's Task Force on Ports is developing a nationwide strategy to guide investments related to port infrastructure, creating a network "that is more efficient, safe, secure, resilient and environmentally sustainable." The Budget document also notes that the Administration is working with the Corps to establish a national Infrastructure Bank to help finance port deepening projects and other major water resource activities.

The Corps stated in its Reconnaissance Study in 2010 that Charleston is likely "the cheapest South Atlantic harbor to deepen to 50 feet." Last July, the Administration named the Charleston Harbor Post-45 Project as one of seven projects in five ports for We Can't Wait, a new initiative targeted to expedite the most critical infrastructure projects in the country.

With 45 feet of depth at mean low water, Charleston currently has the deepest channels in the region and can handle ships drafting up to 48 feet on high tide. Deepening Charleston Harbor to 50 feet will open the port to handling larger post-Panamax container ships 24 hours a day.

Nearly 20 percent of the port's ship calls so far in 2013 were vessels drafting greater than 39.5 feet, the current maximum depth at the Panama Canal. Ocean carriers are beginning to shift services in the Asia-U.S. East Coast trade to utilizing the Suez Canal in order to deploy larger vessels and take advantage of economies of scale.

Already this year, 21 ships with actual docking or sailing drafts 43 feet or greater have called Charleston, which is the only port in the region today able to handle these vessels.

Port of Charleston Welcomes Bob Greulich as Hong Kong Sales Rep

Charleston, SC - Robert (Bob) Greulich has joined the South Carolina Ports Authority (SCPA) as its Hong Kong-based sales representative. A more than 40-year veteran of the maritime industry, Greulich is responsible for marketing the Port of Charleston’s public marine terminals to both shippers and ocean carriers throughout Hong Kong and Singapore.

A native of Lansdale, Pennsylvania, Greulich spent the majority of his career at K-Line, a top 20 global carrier based in Japan. At K-Line, Greulich lived in both Japan and Hong Kong, working in various roles in sales and marketing and retiring after 27 years as director of K-Line Hong Kong. Most recently, he served as vice president of international sales for Wan Hai Lines, a Taiwan-based container shipping company.

“I can’t think of a better sales professional to represent us in Hong Kong,” said John Wheeler, vice president of carrier sales for the SCPA. “Singapore and Hong Kong represent a critically important region for the Port of Charleston’s long-range strategic growth, and Bob’s expertise and contacts throughout the region will be a tremendous asset.”

The SCPA has been actively growing its presence in the Asia trade lane. Last year, the Port of Charleston added two weekly container services in the trade, bringing its total to eight weekly services connecting South Carolina to ports across Asia.

Greulich earned a bachelor’s degree in business logistics from Penn State University in 1967. He joins the SCPA’s existing team of foreign sales representatives based in Shanghai, China; Seoul, South Korea; and Mumbai, India.

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