CONNOR PROMOTED AT STATE PORTS AUTHORITY

Charleston, SC - Stephen E. Connor has been appointed director of security, risk management and human resources at the South Carolina State Ports Authority. Since joining the Authority in 1981, he has worked in operations and finance and was previously manager of risk and claims.

Connor earned a bachelor's degree in business administration from the College of Charleston in 1980. He currently serves as president of the Palmetto Chapter of the Risk and Insurance Management Society and is an active member of the Propeller Club of the Port of Charleston. Connor also serves on emergency planning and response committees at the federal, state and local levels.

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.

PROPELLER CLUB NAMES LEHMAN MEMBER OF THE YEAR

Charleston, SC - The Propeller Club of the Port of Charleston has named Peter O. Lehman, director of planning and business development at the South Carolina State Ports Authority, its 2003-2004 Member of the Year.

This distinction was given to recognize Lehman's significant contributions to the club while serving two terms as its president. Through his leadership, the club expanded membership to record levels, successfully hosted an international convention and recruited national leaders of industry to lead professional development programs.

Prior to joining the Authority in 1997, Lehman served as executive director of the South Carolina World Trade Center in Charleston and was senior foreign-trade representative for the State of New Jersey's Department of Commerce. Lehman has also served as chairman of the American Association of Port Authorities' Planning and Research Committee.

The Propeller Club of the United States is a non-profit organization dedicated to enhancing all interests of the maritime community on a national and international basis and promoting the importance and necessity of all waterborne commerce.

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.

Discovery Channel to Feature Charleston's New Bridge

Charleston, SC -- Tonight at 9 p.m. ET, The Discovery Channel will air a special on the massive, new bridge spanning the Port of Charleston's main shipping channel.

According to The Discovery Channel's web site, "Charleston, South Carolina, is the construction site of the longest cable-stay bridge in America. Its signature 500-foot, diamond-shaped towers and ribbon-thin, eight-lane road surface will ensure its place among the world's most stunning structures."

The new Ravenel Bridge will replace two older bridges, enhancing vessel access with higher and wider clearance. It will provide for 186 feet of vertical clearance and a wider channel.

The project is under budget and ahead of schedule, with completion expected by summer 2005. The Ports Authority is providing $45 million for construction and demolition of the existing structures.

The $635-million bridge project, combined with recently completed harbor deepening to -45 feet at mean low water, prepare Charleston for the larger container ships serving world trade.

More info on the program, including other air dates, can be found at http://dsc.discovery.com/schedule/episode.jsp?episode=6&cpi=24572&gid=0&channel=DSC.

Charleston Box Volume Up 17% in July

Charleston, SC -- The Port of Charleston's container volume rose 17% in July, led by double-digit growth in both imports and exports.

Charleston's total container volume in July was 161,700 TEU (20-foot equivalent units), up from 138,800 TEU in July 2003 and just shy of the all-time monthly record set in May.

Loaded exports and imports each rose 20% from July 2003. Loaded imports also hit another one-month record, reaching 78,800 TEU. This surpassed the previous loaded import record that was set in May.

Through the first seven months of 2004, Charleston's total container volume is up 6% to 1.05 million TEU.

Charleston Port Volume Reaches New High in FY04

Charleston, SC - Volume through the Port of Charleston reached all-time record levels in fiscal year 2004 on the strength of rising productivity, growing imports and an improving export environment.

The Port of Charleston's total container volume topped 1.72 million TEUs (20-foot equivalent units) in the fiscal year that ended June 30, an increase of 3% from the previous year.

Loaded imports led the growth, rising 7% from fiscal 2003, driven by inbound shipments from Asia and the Indian subcontinent. Loaded container exports also rose, managing a slight 1% increase for the year while expanding 3% in the last six months of the year alone.

Ship and barge traffic at Charleston's public terminals also grew in FY04, rising 5% to 1,830 vessels. Channel work for the Charleston Harbor Deepening & Widening Project was completed earlier this year, providing -45 feet at mean low water in the inner channels and -47 feet in the entrance channel.

Charleston's breakbulk volume was even with the previous year at nearly 614,000 tons. Increases in BMW automobiles, construction equipment and farm machinery offset declining military shipments.

In addition, Charleston dedicated a new breakbulk facility late in the year. Veterans Terminal has four piers and approximately 100 acres of storage on the former Charleston Naval Complex. A contract with a global engineering firm will translate into additional business over the coming 12 to 18 months.

Due to closure of the Georgetown Steel mill, breakbulk volume in the Port of Georgetown declined 35% to 989,000 tons. But a new owner has purchased the mill and has already resumed production, a sign of rebounding port volume in Georgetown.

Meanwhile, breakbulk business in the Port of Port Royal increased 50% to nearly 196,000 tons. The Ports Authority is moving forward with the eventual closure and redevelopment of port property in Port Royal.

Greater efficiencies are providing for much of the growth. Charleston's port-wide crane production, which includes every vessel in every service for the entire year, rose slightly to 37.9 moves per crane per hour in fiscal 2004. By comparison, three of the world's largest port operators recently announced crane production figures between 27 and 32 moves per crane per hour.

In the common user gates and marshalling areas, the new Yard Management System (YMS) has yielded quicker turn times for motor carriers and improved land utilization. For example, monthly volume at North Charleston Terminal has increased more than 67% since YMS was deployed, yet turn times have been slashed nearly in half to less than 24 minutes, all with no increase in gate labor.

Charleston Takes on Port Projects Valued at US$1.5 Billion

Nearly $1.5 billion in infrastructure and seaport projects are underway in the Port of Charleston to improve the flow of commerce at the Southeast's leading container facility:

(1) Harbor Deepening to -45' Complete
The Charleston Harbor Deepening & Widening Project is essentially complete. Channels leading to all container terminals are now -45 feet at mean low water, while the entrance channel has been deepened to -47 feet. The $150-million project will allow Charleston to handle the largest containerships calling the East Coast under any tidal condition. Currently, half of all containerships calling Charleston have design drafts greater than 40 feet.

(2) Two-Year, $128m Capital Plan
To improve utilization of existing terminals, Charleston has a two-year, $128-million capital plan. In April 2004, Charleston announced a $6 million purchase of four new Konecranes rubber-tired gantry cranes for stacking containers in the yard. This will bring the port's total number of Konecranes RTGs to 25. In addition, the port's new Yard Management System has been deployed to the North Charleston and Columbus Street terminals. YMS has allowed the port to handle a larger volume of cargo with the same staff, all while cutting turn times.

(3) Nation's Largest Cable-Stayed Bridge
Charleston is also home to construction of what will be the largest cable-stayed bridge in the America's. The $635-million bridge will cross the main shipping channel, replacing two older bridges and enhancing vessel access with higher and wider clearance. The project is under budget and ahead of schedule with completion expected in summer 2005. The Ports Authority is funding $45 million for construction and demolition of the existing structures.

(4) Port Expansion at Former Navy Base
By the end of 2005, Charleston expects to have permits for a new three-berth, 280-acre container terminal on the former Charleston Navy Complex. The project is supported by S.C. State Law and will boost port capacity by at least 30%. Following a previously contentious expansion effort, elected officials are now fully supporting the project on the former Navy Base.

U.S.-China Trade Expands

Today, only Germany has more trade through Charleston than China. Of the 154 nations and territories with service through Charleston, China trade represents 10% of total volume and more than 126,000 TEUs (20-foot equivalent units) annually.

The China trade through Charleston is predominantly inbound, with Chinese exports representing 72% of total volume. Twenty ocean carriers offer seven weekly sailings/arrivals between Charleston and China.

A number of distribution centers and retail customers are diversifying their port mix, even among East Coast ports. Charleston continues to see big-box retailers moving more cargo through its port, as opposed to traditional Asian cargo gateways where the pains of growth and congestion are a reality.

As the nation's 4th largest container port, Charleston is a proven product when it comes to handling large and growing volumes of cargo.

Backgrounder on U.S.-China Trade via Charleston

Vessel Services - 7 Weekly Sailings/Arrivals by 20 Ocean Carriers

YMS Headed to Wando

Installation of the South Carolina State Ports Authority?s new Yard Management System (YMS) at the Wando Welch Terminal took another step forward in July when the Board approved the purchase of computer equipment valued at $748,000.

YMS is the Ports Authority?s new container tracking and inventorying system. It has revolutionized how work is done on the terminals and is speeding cargo through the Port. Mobile computers at the gates and in yard equipment are connected by radio-frequency, which relays data in a real-time environment and eliminates the need for re-keying.

After years of development and testing, common user gates at the Columbus Street and North Charleston terminals are currently using the system. Volume at North Charleston Terminal?s common user gates has increased more than 30% since YMS was deployed, yet check in times have been slashed by 40% with no increase in labor and a reduction in overtime. Other benefits include the elimination of missed/inaccurate billing events and real-time reporting.

The latest project includes eight wi-fi switch panels to provide radio frequency connections, four kiosks to be installed at exit lanes, 100 ruggedized handheld computers and docking stations and 25 ruggedized printers for mission tickets. YMS is scheduled to go live at the Wando Welch Terminal this November.

Dredging Projects Advance

Marinex Construction, Inc. will be hired to perform maintenance dredging at Union Pier and Columbus Street terminals at a cost of $651,800. The work will be performed with a hydraulic dredge and the material will be deposited, by pipeline, in the Morris Island and Drum Island dredge disposal sites. The contractor will mobilize to the site during July and perform the dredging in August.

Berths 1, 2, and 3 at Columbus Street Terminal will be dredged to a depth of -52 feet MLW in coordination with the harbor project depth of -45 feet MLW. The amount of material to be dredged at Columbus Street is estimated to be 100,000 cubic yards. All berths at Union Pier Terminal will be dredged to a depth of -45 feet MLW. The amount of material to be dredged at Union Pier is
estimated to be 125,000 cubic yards.

Port Installing New System to Minimize Dredging

Charleston, SC - Dredging in many ports is a never-ending battle. But that could soon change in one area of the Port of Charleston, thanks to a new system that eliminates routine dredging alongside marine terminals.

The Ports Authority Board today approved the purchase of equipment for a new sediment suspension system for the Columbus Street Terminal in downtown Charleston.

"This project will save millions of dollars," said Bernard S. Groseclose Jr., president and CEO of the South Carolina State Ports Authority, "so we certainly appreciate the support we have received in moving forward with this proven technology." Groseclose noted that S.C. Rep. Wallace Scarborough (R-James Island) was especially supportive.

It has happened for thousands of years -- fine silts and clays originating from tributaries to the Cooper River make their way downstream to Charleston Harbor. During times of slack water between the tides, heavier silts and clays fall out of the water column and settle to the bottom.

A lot of this material comes to rest in front of berths 1 and 2 at the Columbus Street Terminal, just north of the South Carolina Aquarium. The fluid mud is currently settling at a rate of one to two feet per month.

To maintain adequate depth and ensure that ships can safely dock, the Ports Authority must hire dredging contractors every four to five months to suck up and dispose of the material. The cost of maintaining the depth has averaged $750,000 annually.

With state and federal permits now in hand, the Ports Authority is preparing to install the new sediment suspension system to eliminate routine maintenance dredging at a portion of Columbus Street Terminal. The system consists of ten water jets, three-feet wide and equally spaced along the front of the berth.

During each day's four slack tides, the system will route water from the upper portion of the water column, down through pipes and out of oscillating jets at the desired depth. This prevents the heavier material from settling, while not actually impacting the bottom.

To operate effectively, the system is managed by a desktop computer that automatically monitors a series of sensors and uses a NOAA-developed tide-predicting algorithm.

The system will cost about $1.9 million to install and another $50,000 a year to operate. But the Ports Authority estimates it will save $7.5 million in dredging costs, a net savings of approximately $5 million over the 10-year project life.

While new to Charleston, the concept was first developed by the Navy two decades ago. Marine terminals in other states, including Georgia and North Carolina, have since installed versions of the system.

In addition, environmental impacts of sediment suspension systems are negligible. While agitation dredging removes sediments that have already accumulated, the new system has less flow and never allows the material to deposit on the bottom. A monitoring plan will evaluate effectiveness and any impacts.

The system will also have safeguards to minimize the chance or impacts of an accidental release of hydraulic fluid. The computer controller will constantly monitor the system and fluid levels, triggering a shutdown if there are any problems with leaks or seals. The system also will use a bio-degradable, vegetable-based hydraulic fluid that is non-toxic.

The Ports Authority applied for permits for the new system in March 2003. The South Carolina Department of Health and Environmental Control issued its permit in March of this year, and the U.S. Army Corps of Engineers offered its approval in May.

Installation is expected in about two years, following modifications to the dock, construction and installation of equipment. In the meantime, maintenance dredging will continue.

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