PB Selected for Charleston Terminal Construction Management

To advance development of the new 280-acre marine terminal, which received federal permits in April, PB Americas has been selected to provide construction management services related to site stabilization and preparation.

The work covers contract administration, full-time inspection, quality assurance and other services related to preparing and consolidating the Port of Charleston's new terminal site. Additional construction management services will be required in the future for actual construction of the first phase of the terminal.

The SCSPA Board also approved its fiscal year 2008 financial plan, which calls for 4.5% growth in container business.

For the SCSPA's fiscal year which starts July 1, operating revenues are budgeted to increase 8.6% to $164 million, while total operating expenses will be held to a 6% increase, or $110.7 million. This is projected to drive operating earnings up 14.4% to $53.4 million.

Integral to this revenue and earnings growth is a 4.5% increase in container business, which is projected to top 1.117 million pier containers in the coming year.

The SCSPA Board also adopted a capital funding plan totaling $128.7 million in FY08 for capacity enhancements and terminal improvements. Major elements of this plan include $93 million for the new container terminal at the former Navy Base, as well as $25.4 million for container yard expansions, improvements and repairs.

Charleston Nets Four-Year Contract, Suez Service with New World Alliance

Charleston, SC - The South Carolina State Ports Authority (SCSPA) has signed a new four-year agreement with the New World Alliance (NWA), securing current business and adding a weekly, all-water service through the Suez Canal that connects Charleston to Southeast Asia and the Indian subcontinent.

The NWA includes major global carriers American President Lines (APL), Hyundai Merchant Marine Co., and Mitsui OSK Lines.

"We are proud to announce this new multi-year agreement with the New World Alliance," said Bernard S. Groseclose Jr., president and CEO of the SCSPA. "The NWA carriers have been strong partners in the Port of Charleston's success, and they are set to grow rapidly with the new Suez Express Service. This is a significant addition of cargo and vessels to our port."

George Hearn, vice president of APL's Southern region said, "This is a great market opportunity for APL and the Port of Charleston because Charleston offers a solid base of cargo. We hope to tap that demand."

"Charleston is a highly productive port," said Hearn. "The terminal is close to the ocean. The channels are deep, so we don't have any tidal restrictions. Overall, APL ships can get in and out very quickly. Time is money to a ship operator."

Currently, the NWA has one service with two weekly calls in Charleston. The Atlantic Pacific Express (APX) service is a pendulum connecting Charleston with Asia and North Europe and brings an annual throughput of more than 175,000 TEU to the port.

The Suez Express (SZX) service will deploy eight vessels capable of carrying between 4,000 and 4,500 20-foot equivalent units (TEU).

The SZX service, which begins in July, will include calls in Colombo, Sri Lanka; Jebel Ali, United Arab Emirates; Kelang, Malaysia; and Singapore.

"This service touches two critical cargo hubs for customers of the Port of Charleston," said Fred Stribling, vice president of marketing and sales for the SCSPA. "Singapore is a tremendous transshipment hub for Indonesia and all of Southeast Asia, and Colombo draws cargo from the Indian subcontinent. Access to those ports, and the regions they serve, is important, and this service offers very fast transit times that our cargo customers will appreciate."

The SZX service offers inbound transit times of 27 days from Kelang, 24 days from Singapore and 21 days from Colombo. Outbound transit times from Charleston are 14 days to Jebel Ali, 29 days to Kelang, 30 days to Singapore and 35 days to Colombo. The service will call the Wando Welch Terminal.

DHS Awards $3.7 Million in Security Grants to SCSPA

Charleston, SC - The South Carolina State Ports Authority (SCSPA) was selected to receive $3.7 million in the latest round of Port Security Grants (PSG), the U.S. Department of Homeland Security announced Thursday.

In the previous six grant rounds, the SCSPA received more than $20 million, bringing total announced security grant funding to $23.8 million. The SCSPA has used previous PSG funding for physical security measures such as CCTV surveillance, perimeter security and access control systems.

"Port security is a top priority for the South Carolina State Ports Authority, so we're naturally very pleased with this latest announcement," said Bernard S. Groseclose Jr., president and chief executive officer of the SCSPA. "We're also thankful for the South Carolina Congressional delegation's steadfast support for appropriate security measures and additional funding," said Groseclose.

The Charleston port area has been the leading grant recipient in Tier II since inception of the PSG program, with grant awards totaling more than $33 million. Nationally, only four port areas (Los Angeles/Long Beach, New York/New Jersey, Houston and Seattle) have received more PSG funding than the Charleston port area.

In this latest round, more than $202 million in federal Port Security Grants were awarded to 183 public and private entities nationwide. Charleston was classified as a Tier II port area and received approximately 10 percent of the total announced for Tier II ports. In its latest application, the SCSPA requested $12.6 million in federal funds for port security projects to combine with a match of $3.15 million.

The complete DHS press release and listing of awards is available online at www.dhs.gov.

Corps Issues Permits for New Charleston Container Terminal

"It's a great day for South Carolina and for the Port of Charleston," said Bernard S. Groseclose Jr., president and CEO of the South Carolina State Ports Authority (SCSPA). "This terminal will handle our customers' needs, set new environmental standards, foster economic development in the community and create good jobs."

"The Ports Authority greatly appreciates all the support we've received from business, community and political leaders throughout the permitting process," said Bill H. Stern, SCSPA Board chairman.

The Corps' Charleston District studied the SCSPA's proposed terminal project on the former Charleston Navy Base for four years, reviewing the site location and potential environmental impacts.

The Corps worked closely with numerous regulatory and resource agencies charged with protecting and preserving the South Carolina coastal environment and received their concurrence with the decision.

"This project has been in the works for a long time, so we're delighted to sign the permit and move forward," said Groseclose. The SCSPA submitted the permit application in January 2003 after the S.C. General Assembly directed port expansion to the former Navy Base in 2002.

Agencies involved in the thorough permitting process include the Federal Highway Administration (FHWA), Environmental Protection Agency (EPA), the U.S. Fish and Wildlife Service (USFWS), the National Marine Fisheries Service (NMFS), the S.C. Department of Health and Environmental Control's (DHEC) Office of Ocean and Coastal Resource Management (OCRM) and Bureau of Environmental Quality Control (EQC), the S.C. Department of Natural Resources (DNR) and the State Historic Preservation Office (SHPO).

These agencies were also involved in the review and approval of a landmark mitigation program and agree that the plan provides appropriate compensation for unavoidable impacts to aquatic resources.

Announced in December 2006, the SCSPA's terminal mitigation plan includes more than $10 million in environmental and community mitigation activities.

To offset indirect environmental impacts and serve the public interest, the plan includes $1 million to the Trust for Public Land for the Morris Island protection effort and $1 million toward protecting land through the Cooper River Initiative, a broad-based consortium of environmental agencies and groups.

To deal with direct impacts to aquatic resources and wetlands, the SCSPA will spend $2.5 million to recreate 22 acres of tidal marsh on Drum Island, restore more than five miles of oyster reefs and purchase mitigation bank credits.

Beyond traditional environmental mitigation, the SCSPA, the City of North Charleston and surrounding neighborhoods worked for months on initiatives to ensure the most positive impact from the terminal. This culminated in May 2006 with a signed agreement for $4 million in community programming to fund education and job training programs, establish an affordable housing trust and other projects.

In addition, the SCSPA and DHEC signed a memorandum of agreement in late March to further reduce air impacts from new and existing marine terminals. Under the agreement, the SCSPA commits to fund a particulate matter monitoring station, purchase cleaner equipment for the Navy Base and buy cleaner engines when replacing equipment, among other steps. The SCSPA will also include contractor guidelines in all construction bid documents for the new terminal to minimize air impacts.

Last week, the SCSPA Board approved a contract to begin an air emissions inventory.

The SCSPA has already brought on engineers to start planning the demolition and site preparation work, and design work is well underway. The first phase of the terminal is scheduled to open in five years and, at build out, the facility will add 1.4 million twenty-foot equivalent units (TEU) in new capacity.

For a copy of the Corps' announcement, please visit http://www.sac.usace.army.mil/.

Ports Authority Partners with DHEC to Cut Air Emissions

Charleston, SC - In a voluntary effort to proactively reduce port-related air emissions, the South Carolina State Ports Authority (SPA) today announced a formal agreement and partnership with the South Carolina Department of Health and Environmental Control (DHEC).

The Memorandum of Agreement jointly signed on Tuesday formalizes the relationship between the SPA and DHEC. The two will evaluate and implement means to cut emissions at the port's existing and future facilities, improving air quality in the Charleston region.

"A cleaner environment and economic development are mutually compatible goals," said Bernard S. Groseclose Jr., president and CEO of the SPA. "This agreement provides dual benefits to the Charleston community. It preserves quality of life by studying and enacting ways to cut port-related air emissions. At the same time, it generates more high-paying jobs as business expands at the Port of Charleston."

The agreement calls for DHEC to designate an individual to coordinate air quality consultation for new and existing port facilities. DHEC will also develop and conduct training for SPA personnel on an annual basis.

"The Ports Authority has stepped up to address not only impacts from the new terminal, but existing terminals as well," said DHEC commissioner C. Earl Hunter. "DHEC appreciates this commitment to improve air quality in the Charleston region and we look forward to working with the Ports Authority," Hunter said.

The SPA will take a number of specific steps at new and existing facilities, including:

Also, the agreement recognizes productivity as a key means to reduce air emissions. The SPA is recognized as a leader in both crane productivity and trucker turn times. These strides in efficiency mean ships stay in port for shorter lengths of time, reducing ship emissions, and truckers spend less time idling at SPA facilities.

 

Four Super Post-Panamax Cranes Arrive in Charleston

Charleston, SC - A ship carrying four massive new container cranes arrived in Charleston Harbor yesterday afternoon. The South Carolina State Ports Authority (SCSPA) paid the more than $35 million price tag for the cranes and associated electrical and engineering services from internal funds and did not use any taxpayer dollars.

ZPMC of China constructed the cranes. The ship, ZHEN HUA 19, departed Shanghai in January for a 15,000-mile voyage to Charleston around the tip of Africa.

The new cranes operate solely off of electric power, replacing four older, diesel-electric models. They use power when lifting, but generate back into the system when lowering. Of the 21 cranes in the port's fleet, 20 are all-electric, which have eliminated emissions and provided an environmental benefit.

The cranes were purchased in September of 2005, when the Board of Directors of the South Carolina State Ports Authority approved the largest single equipment purchase in the agency's history. Also included in the $64 million investment were 16 rubber tire gantry cranes (RTGs) already installed and in operation at the SCSPA's Wando Welch Terminal.

Two cranes will be installed at the Wando Welch Terminal, and two are going to North Charleston Terminal. Once the cranes are moved onto the terminals, engineers will raise their booms, finalize construction and run tests on the equipment. The cranes should be fully operational within 90 days.

South Carolina Port Partners with Savi Networks

The installation of SaviTrak's standards-based Radio Frequency Identification (RFID) infrastructure at the fourth busiest container port on the East and Gulf coasts will automate visibility of RFID-sealed containers and their contents, providing the port and its customers with real-time location and status information, automated alerts, and analytics. SaviTrak will link South Carolina's Wando Welch, North Charleston and Columbus Street terminals, which account for 2 million container shipments a year, with a global network of trade lanes at partner terminals in Asia, North and South America, and Europe.

"In an era of constant terrorist threats and growing trade, it's vital that we balance commerce with security," said Sen. Jim DeMint (R-SC). "Projects that bolster the Port of Charleston's aggressive port security posture while facilitating cargo flow are exceptionally important."

"With some of the most productive container terminals in the nation, we view SaviTrak as a best-of-breed technology solution that enhances supply chain visibility and security for shippers using the Port of Charleston," said Bernard S. Groseclose, Jr., president and chief executive officer of the SCSPA. "Linking the information about location, environmental and security status to the physical flow of cargo provides improved supply chain visibility to shippers using our port, while enhancing maritime security."

"South Carolina's port terminals are strategically critical transportation hubs, and we're delighted that the State Ports Authority is joining our global partnership of port and terminal operators," said Steve Sewell, senior vice president of Network Development and Government Affairs for Savi Networks. "All users of our global information service benefit as we add new partners, and we're pleased that Charleston's terminals will become a significant new link in the global supply chain network."

Savi Networks has partnerships with major port and terminal operators to build infrastructure at more than 80 terminals worldwide. The SaviTrak information service is built upon open technologies that process real-time data feeds from RFID devices such as electronic seals (E-Seals) that are based on ISO 18000-7 standards. The SAFE Port Act of 2006 calls for the U.S. Department of Homeland Security to define the voluntary use of container security devices in accordance with international standards, specifically referencing ISO.

SaviTrak also receives and processes information from other Automatic Identification and Data Collection (AIDC) technologies, such as barcodes, EPC-compliant passive RFID and Global Positioning Systems (GPS) used to track ships and trucks transporting ocean containers. SaviTrak provides customers with real-time status about scheduling and financial impacts on their in-transit inventory.

The South Carolina State Ports Authority, established in 1942, owns and operates public seaport facilities in Charleston and Georgetown, handling international commerce valued at $53 billion annually. For more information, visit: www.scspa.com.

Savi Networks, the operator of a global network providing real-time information services on in-transit inventory, is a joint venture between Savi Technology, Inc., a Lockheed Martin company [NYSE: LMT], and Hutchison Port Holdings. To learn more about Savi Networks, visit: www.savinetworks.com.

New N. Europe Service for Charleston

Charleston, SC - A new weekly shipping service beginning today further boosts Charleston's already dominant position in the Northern Europe trade lane.

Zim Integrated Shipping Services Ltd. and Evergreen subsidiary Italia Marittima SpA announced earlier this month that they were adding Charleston and Rotterdam, Netherlands to the North Europe Express service.

The lines will operate four vessels carrying an average 2,350 TEUs. The first ship on the service, MARSEILLE STAR, arrives tonight at North Charleston Terminal.

Other European ports in the service include Antwerp, Hamburg and Liverpool.

Northern Europe comprises 33% of Charleston's total volume. Charleston holds 45% market share of Northern Europe among all ports from Miami to Virginia.

Port Royal Waterfront Offered for Sale

Charleston, SC - The South Carolina State Ports Authority today offered for sale more than 50 acres of waterfront property in the Town of Port Royal near Beaufort. The property is zoned for redevelopment in commercial, residential and public uses and the sale could close as soon as June of next year.

The property offer is divided into three distinct areas: Bluff Neighborhood Tract (18.09 acres); Marina Village Tract (2.48 acres); and the Port Village Tract (30 acres). Interested bidders may offer to buy any one or more of the individual tracts and also may offer a single bid for all three parcels combined.

The Bluff Neighborhood Tract runs from Ribaut Road to just above 12th Street. The Marina Village Tract includes Dockside Restaurant and goes from 12th to 10th Streets. The Port Village Tract is the largest parcel, extending from 10th Street to the existing Port of Port Royal marine terminal.

Proposals are due to the Ports Authority by 5 p.m. on March 30. The detailed Request for Proposals (RFP) is divided into two separate parts, a Request for Qualifications and a Request for Bids. Only once proposals are deemed qualified, based on the respondents' experience, financial capabilities and other considerations, will the bids be considered.

The Ports Authority initially posted the RFP on its web site today and will soon begin a local, regional and national advertising campaign to attract potential buyers. To show the site, the Ports Authority will offer four tours to prospective buyers starting in January.

The ultimate buyer or buyers, as well as the Town of Port Royal and the Ports Authority, will benefit from a specific and guided redevelopment. The Town and the Ports Authority spent several months working through extensive planning that resulted in zoning the property as a Planned Unit Development (PUD) and the finalization of a Development Agreement. The RFP includes copies of both documents.

Release of the RFP culminates a long process that began on July 17, 2003. At a public budget meeting, Gov. Mark Sanford supported the concept of redeveloping the Port of Port Royal. This effort was codified in 2004 by the General Assembly under the leadership of Beaufort area legislators.

The Ports Authority began land assessment and initial market survey work later that year and contracted for land planning services in February 2005. Between March and November of this year, the Town and the Ports Authority worked through various issues resulting in the Development Agreement and the PUD.

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