SCSPA Invites Private Participation in Port Expansion Projects

Charleston, SC - The South Carolina State Ports Authority (SPA) today reaches out to private firms across the globe, soliciting their involvement in port expansion projects in Charleston and Jasper County.

The SPA is currently pursuing permits for a new 280-acre, three-berth container terminal on the former Charleston Naval Base. In addition, the SPA Board in January unanimously voted to pursue a state-owned marine terminal on the Savannah River in Jasper County.

In a letter from SPA President & CEO Bernard S. Groseclose Jr., nearly three dozen ocean carriers and marine terminal operators are invited to express their interest in both, or either, of the projects. Discussions with the firms will follow.

"To finance port development in Charleston and Jasper County, we're opening the doors to the world's leading ocean carriers and marine terminal operators," said Groseclose. "An open, competitive process can only benefit our state's public seaport system and fair trade in South Carolina."

Several of these companies have already expressed interest in the projects and most have a long history of doing business with the SPA. Currently, every one of the world's 20 largest ocean carriers moves cargo through the SPA's terminals in Charleston, which ranks as the nation's fourth largest container port.

"While we envision private sector partners, under the SPA's leadership the new Charleston and Jasper County facilities will be public terminals operated for the public good," said Groseclose. "They will be dedicated to improving the economic vitality of all of South Carolina."

The Corps of Engineers expects a decision on permits for the Charleston expansion project in 18 months. In January, the SPA Board approved a nearly $5 million environmental study to obtain the necessary approvals. While the Charleston expansion is somewhat ahead of the Jasper project, the SPA intends to move both projects ahead on parallel courses.

"Now's the time to begin these important negotiations about the future of port expansion in South Carolina," said Groseclose. "Trade is growing exponentially and we have a tremendous opportunity on the sites in North Charleston and Jasper County."

Port of Charleston Volume Up 36% in December, Nearly 1M TEU in Last Half of '04

Charleston, SC - The Port of Charleston's container volume in December was 36% higher than the same month in 2003, pushing volume for the first six months of the fiscal year to all-time record levels.

In the first half of fiscal 2005, total container shipments through Charleston increased 16.7% from the same period last year, approaching one million TEU (20-foot equivalent container units).

In the July to December period, loaded outbound and inbound shipments both jumped 17%, reaching 975,554 TEU when compared to 836,224 TEU in the last half of 2003.

The growth was spread among ocean carriers and trade routes, with Asia, the Indian subcontinent and South America representing the largest share of the increase.

Improvements to existing terminals and new technology are allowing Charleston to handle the growth while also enhancing productivity, according to Bernard S. Groseclose Jr., president and CEO of the South Carolina State Ports Authority (SCSPA).

"In the face of rapidly increasing volume, Charleston's crane productivity continues to rise and truck turn times continue to drop," said Groseclose. "Charleston's waterfront community is capable of handling huge surges of cargo while also offering better service to ocean carriers, truckers and shippers."

The SCSPA has launched its new Yard Management System (YMS) to track and expedite truckers through its "common user," or port-operated, gates.

After YMS was launched at Charleston's second-largest terminal, volume nearly doubled yet trucker turn times were slashed and labor costs remained constant. Last week, the system was rolled out with similar results at Charleston's largest facility, the Wando Welch Terminal.

Charleston and its customers also recently began enjoying the benefits of a new 45-foot channel and millions of dollars in new container stacking equipment. The nation's largest cable-stayed bridge will open in Charleston in April of this year at a cost of more than $600 million, providing enhanced vessel access for the largest container ships afloat.

SCSPA Votes to Acquire Jasper Site, Approves Navy Base Studies

Charleston, SC - Citing a compelling market demand for new port capacity, the South Carolina State Ports Authority (SCSPA) Board voted to begin the process of acquiring property in Jasper County on the Savannah River for development of a public seaport.

In other action, the Board also approved the completion of $4.9 million in environmental studies related to expansion at the former Charleston Navy Base. Based on a new schedule, a permitting decision on the Navy Base project is expected by August 2006.

The resolution to acquire the Jasper site authorized the initiation of condemnation proceedings, if necessary. The Georgia Department of Transportation owns the large tract on the South Carolina side of the Savannah River.

"This is a tremendous opportunity for Jasper County, the people of South Carolina and companies doing international business in our state," said SCSPA Board Chairman Harry J. Butler Jr. of Georgetown.

Board member Tom Davis of Beaufort, who introduced the motion, noted that a recent SCSPA study shows international trade through the South Atlantic will rise 4.9% a year over the next two decades, more than the U.S. and North Atlantic averages. That means trade is poised to double in 20 years.

"Port capacity is a serious concern for our industry, our nation and our state. Fortunately, we have a solution," Davis said in his remarks before the Board. "The Jasper County site is one of the few remaining large tracts of waterfront property suitable for port development," Davis said. "It presents significant potential. But it also presents significant responsibility."

The S.C. Code of Laws specifically empowers the SCSPA to develop marine terminals on the Savannah River. While the SCSPA has met with Georgia officials about acquiring the site, those discussions have not yet resulted in an agreement. The Authority remains open to a negotiated resolution and is optimistic it can reach agreement that will be beneficial to both states.

Davis praised Jasper County's recent efforts to launch a port at the site, and Butler stressed that the SCSPA would begin moving on project immediately.

"To the people of Jasper County who have fought for this project, I would say, help is on the way," Butler said. "We intend to bring the full faith and resources of the State of South Carolina to bear on this project."

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Charleston Harbor Deepening in Governor's Budget

Charleston, SC - Gov. Mark Sanford today released his fiscal year 2005-2006 executive budget proposal, which includes $2.4 million to help fund the Charleston Harbor Deepening & Widening Project.

Channel work on the deepening project was completed earlier this year, taking the inner harbor to -45 feet at mean low water and the entrance to -47 feet. Charleston now has 45 feet of water throughout the harbor to all major marine terminals.

The deepening work is cost shared by the U.S. and State governments, with South Carolina picking up 35% of project costs. The $2.4 million in recurring funds would go toward the remaining State share of $15.3 million. The Ports Authority, business and legislative leaders have suggested using recurring funds over the coming years to complete financing of the work.

State funding for the harbor deepening has been a legislative priority for business groups and the Charleston waterfront since it was authorized by the U.S. Congress in 1996. Actual channel work on the $148-million project began in 1999 and was completed in May 2004.

More information on the governor's spending plan can be found at http://www.scgovernor.com.

Charleston Port Forms Safety Council

Charleston, SC - The South Carolina State Ports Authority, stevedores and longshoremen in the Port of Charleston today announced the formation of a new Port Safety Council.

Although the South Carolina State Ports Authority owns and operates all container lifting equipment in the Port of Charleston, stevedoring firms employ and supervise members of labor union locals to perform many essential tasks.

The new Port Safety Council will include senior representatives from stevedoring firms, local dockworkers and the Ports Authority. While the Ports Authority and the stevedores have maintained, and will continue to maintain, their own safety programs, the new Port Safety Council is a formalized version of joint safety meetings.

"Port safety, just like productivity, is a team effort," said David Hogan, president of ILA Local 1771. "The Port Safety Council will allow us to work closer."

The Port Safety Council will be tasked with reviewing and addressing any issues raised by regular meetings of a new Port Safety Working Group. The Working Group will consist of stevedores, longshoremen and Ports Authority employees involved in port operations on a daily basis.

There is no indication that such a group could have prevented any of the recent accidents at the Port of Charleston.

However, Bill McLean, the Ports Authority's vice president, operations said, "The waterfront looked around after the recent accidents and asked, 'What can we do?' This is something concrete that we can do to help bolster safety and awareness."

The new group will focus on best practices, ways to boost safety and communication between the various groups.

"You have to be vigilant when it comes to safety," said Larry Young, president of the South Carolina Stevedores Association. "This new initiative will provide a channel for issues to be communicated and addressed."

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SPA PORT POLICE RAISES RECORD FUNDS FOR THANKSGIVING AID DRIVE

Charleston, SC - Fifty local families in need will enjoy a Thanksgiving feast this year with help from the S.C. State Ports Authority Port Police's Caring and Sharing aid drive. The Port Police raised over $5,000 and distributed approximately 500 bags of groceries to struggling families in the community.

Each year, the Port Police's Good Cheer Committee contacts area school guidance counselors and asks them to nominate families that would benefit most from the Thanksgiving project. Money and non-perishable food items are donated by port employees, customers, tenants and transportation providers.

Port Police officers and staff delivered the collections to the families' homes Monday and Tuesday. Each family received gift certificates and about 10 bags of groceries including a turkey and ham and enough food to last at least a week.

The South Carolina State Ports Authority, established in 1942, owns and operates public seaport facilities in Charleston, Georgetown and Port Royal, handling international commerce valued at $39 billion annually.

PORTCHARLESTON MAGAZINE NAMED BEST PORT PUBLICATION

Charleston, SC - PortCharleston magazine, the S.C. State Ports Authority's bimonthly publication, was recently named the top port periodical in the Western Hemisphere.

The magazine received the American Association of Port Authorities' Award of Excellence, which was announced at the 93rd annual AAPA convention in Long Beach, Calif. in September.

PortCharleston received an average score of 46.3 out of 50. One judge said it sets the standard for other ports. PortCharleston is produced by the South Carolina State Ports Authority's sales and marketing department. It has an international circulation covering 7,000 copies port customers and transportation service providers.

The Ports Authority also won an AAPA Award of Merit for its ad campaign, "We've Got You Covered."

The South Carolina State Ports Authority, established in 1942, owns and operates public seaport facilities in Charleston, Georgetown and Port Royal, handling international commerce valued at $39 billion annually.

BMW Increases Shipping through Port of Charleston

Charleston, SC - Based on a new service agreement between the Port of Charleston and BMW Manufacturing Co., shipping of BMWs through the port will increase, officials for BMW and the S.C. State Ports Authority announced today.

"BMW has been a tremendous force for economic development across South Carolina, " said Bernard S. Groseclose Jr., president and CEO of the S.C. State Ports Authority. "They and their suppliers impact every community in the state in a very positive way. BMW is a highly respected customer that the Port of Charleston is proud to serve. We look forward to many years of growth and success. "

Based on the success of the past 10-year relationship between BMW and the Port of Charleston, the decision was made to renegotiate another 10-year service agreement based on BMW's vehicle imports and exports.

BMW entered into the original agreement in 1995 as the company was establishing a presence with its manufacturing facility in upstate South Carolina. In 1995, the Port of Charleston imported only 65 units for BMW Manufacturing Co. in Spartanburg.

According to Carl Flesher, BMW Manufacturing's vice president of associate and corporate communications, environmental services, "Over the past 10 years, the Port of Charleston has continuously maintained professional service as our imports and exports have increased significantly to over 115,000 imported and exported vehicles in 2003. We expect to increase our annual import and export totals to more than 150,000 vehicles during the next 10 years. "

"BMW does business in more than 120 countries, and the Port of Charleston continues to be one of the most efficient and effective ports in the world. Based on our past relationship, we feel certain the Port of Charleston will be able to expand to support BMW as our market share grows," Flesher added.

During the last decade, BMW has exported Z3, Z4 and X5 vehicles produced in Spartanburg to overseas markets, as well as imported finished vehicles through the Port of Charleston to meet the growing market demand in its 11-state southern sales region. Imports will increase in the future as BMW Manufacturing Co. expands its support of U.S. sales by now importing vehicles destined for dealerships in 22 states.

In addition to the import and export of finished vehicles, BMW also imports parts, such as engines from BMW plants in Germany and Austria and transmissions produced in Central Europe, which are used in the Spartanburg manufacturing plant. Over the last 10 years, BMW's parts imports have increased over 100 percent, from approximately 70 containers per week in the late 1990s to more than 7,500 a year in 2003.

"The Port of Charleston's established presence and the state-of-the-art infrastructure played a major role in attracting BMW to South Carolina, and this new agreement reconfirms the importance of the port to BMW's success and growth, " Flesher said.

BMW Manufacturing Co. is a subsidiary of the BMW Group based in Munich, Germany. Its website address is www.bmwusfactory.com. In addition to the South Carolina manufacturing facility, BMW's North American subsidiaries include sales, marketing and financial services operations in the United States, Canada and throughout Latin America, and a design firm in California.

The South Carolina State Ports Authority operates public seaport facilities in Charleston, Georgetown and Port Royal, handling international commerce valued at $39 billion annually. The Port of Charleston is the nation's fourth largest container port. It is served by 40 ocean carriers that provide direct service between Charleston and 140 nations around the world.

Bunny S. Richardson
BMW Manufacturing Co.
864-989-5523
864-989-5527 (fax)
bunny.richardson@bmwmc.com

Byron Miller
S.C. State Ports Authority
843-577-8197
843-577-8127 (fax)
bmiller@scspa.com

LAWRENCE, SKIPPER JOIN STATE PORTS AUTHORITY

Charleston, SC - Philip L. Lawrence and Allison Skipper have joined the South Carolina State Ports Authority.

Lawrence serves as legal counsel, bringing over 20 years of experience in admiralty and maritime law. He earned a bachelor's degree in history from The Citadel and a law degree from the University of South Carolina School of Law. He previously served as special counsel with Young Clement Rivers LLP.

Skipper is public relations associate. She graduated from the University of South Carolina Honors College in May with a bachelor's degree in public relations. She previously held internship positions at Colonial Supplemental Insurance, the South Carolina Bar and the South Carolina Senate.

The South Carolina State Ports Authority, established in 1942, owns and operates public seaport facilities in Charleston, Georgetown and Port Royal, handling international commerce valued at $39 billion annually.

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