Category: Announcements

Before I begin with my prepared remarks I'd like to take this opportunity to recognize Mayor Summey's hard work and dedication during our recent negotiations.

As you know, about three weeks ago the Ports Authority and the City of North Charleston announced that we had reached an agreement on how to divide the former Navy Base.

This followed several months of negotiations between Mayor Summey and his team, together with members of the Ports Authority's board and staff.

These negotiations were sometimes heated, but nearly always productive. And never once did we have to bring in the armored personnel carrier.

I can tell you first hand that Mayor Summey is a straight shooter. He approached every issue, no matter how contentious, in an open and earnest way.

I think it's safe to say that the Ports Authority never once had to question or second guess his position. It was understood.

It was also never in doubt how sincerely he feels about the future of his city. He worked hard to get the very best deal for his constituents.

But with that said, he also took the time to understand and appreciate the maritime industry's future needs and the needs of economic development across South Carolina.

As a result, we reached an agreement to share the Base that's truly a win-win for the City of North Charleston and for the Port. Please join me in thanking Mayor Summey for doing the right thing for his city and also, for the State of South Carolina.

Congressman Brown, members of the General Assembly, Authority Board members, Mayor Summey, community leaders, colleagues on the Charleston waterfront and other distinguished guests, it is my pleasure and honor to be with you here tonight.

As I thought about how to present this year's State-of-the-Port Address, I couldn't help but reflect on how much has changed in the transportation industry over the past 14 months.

The tragedy of Sept. 11th, the West Coast lock-out and other events have thrust our industry into the limelight. You can't turn on the TV or read a newspaper or magazine without some mention of the transportation industry.

Our business, which is usually performed out of sight and on the periphery of the economy, has probably never had as much attention. It is understandable that recent events made me want to focus on the future rather than the past.

A couple of months ago in PortCharleston magazine I used my space in the Viewpoint column for a piece titled "Moving Forward With A Positive Attitude." That is what I want to focus on tonight in this state of the port address.

Our challenge as a port, as a business community, and as a state, is to realize our position in the global economy and to capitalize on the tremendous opportunities that we have.

Tonight is not only a time to reflect on the challenges we face?it is also a time to commit to a direction and move forward with a positive attitude. So, allow me to review several fronts on which we are focusing our attention now: security, harbor deepening, bridge replacement, business attraction & retention, and port expansion. I will touch on all of these briefly.

Clearly one of the biggest issues facing our nation today is security. Last year's state-of-the-port came on the heels of one of the most tragic days in U.S. history. At that time, there was considerable uncertainty over what lay ahead.

Since then, we have taken a comprehensive approach to port security. We took decisive steps to bolster our position. While many ports have been faced with playing catch-up since 9/11, I am proud to say that Charleston is rather well positioned when it comes to port security.

We're not resting on our laurels by any means. But it is definitely reassuring to know that we have for years invested in an independent, well-trained port police force and in physical security, such as lighting, fencing and surveillance.

Earlier this year, the federal government announced that our Port would be receiving almost $2 million in funding for some specific new port security measures. We already spend more than that every year on port security, and there's certainly more that can and should be done.

Our mission as an industry is to protect our people, our economy and our transportation network while making sure that cargo flows smoothly. This requires the teamwork and patience of many, and is no easy task.

There will, no doubt, be permanent changes to the way cargo is handled. But, with the leadership of our key federal agencies here in Charleston, I am confident that we will succeed in implementing this change properly.

We have the best in the business here in Charleston - people like Julian Miller and Rod Wallace and the other dedicated men and women at U.S. Customs, as well as Commanders Merrick and DeNicola of the Coast Guard and their Coasties. We're lucky to have all of them in our port.

The private sector must also continue to take a leadership role in transportation security. After all, you are the front line, and I applaud your efforts to lead the charge in securing our transportation network.

As a matter of fact, while I'm complimenting members of our local maritime community, let me take the opportunity to call particular attention to Evergreen's recent actions. After an accident caused serious damage to one of their vessels that resulted in an oil spill here, they quickly jumped forward to undertake the necessary clean-up before it had even been confirmed they had any responsibility. I admire their forthrightness and their determination to correct any problems. Their actions were admirable and make a good public impression for our industry.

As we turn from investments in security to investments in facilities, I believe the picture is equally strong.

I'm sure you've all heard about the expansion and investment plans at other ports. There's one port that has more than a billion dollars in infrastructure work underway right now. And that port is? Charleston.

With harbor deepening, the Ports Authority's three-year capital plan, the new Ravenel Bridge and potential port expansion at the Navy Base, we have well over a billion dollars being invested in our state's future. This investment is both warranted, and greatly needed.

As we gather here tonight, the Charleston harbor deepening project is rapidly nearing its completion in 2004. The last major contract to deepen the upper Cooper River has been awarded and this work is ongoing. In a little over a year, Charleston will offer some of the deepest shipping channels on the East and Gulf Coasts at 45 feet to all major marine terminals.

The Ports Authority also continues to seek ways to do more with existing terminals. Over the next three years alone we plan to invest more than $150 million of our own funds into improving our public facilities at Columbus Street, North Charleston, Wando Welch, Union Pier, Georgetown and Port Royal.

Also, as you know, construction of the new Ravenel Bridge is underway and the Ports Authority is making significant contributions to this project.

During the past year the Authority Board voted to contribute $45 million in cash from the Ports Authority's own revenues. We are providing significant non-cash support to the project as well, providing a staging area on the Columbus Street Terminal, easements across Drum Island and dredge disposal capacity on Daniel Island.

When completed, this bridge will be the largest cable-stayed bridge in the nation - a fitting structure for our world-class port. It was designed with future navigational requirements in mind and will not hinder our competitiveness with other ports in the region.

As we look to future business volume, international commerce through the Port of Charleston continues to rebound.

August was an all-time record month for the Port of Charleston. Never before in its 330-year history has Charleston handled so much waterborne trade.

Through the first four months of this fiscal year, container volume totaled nearly 550,000 TEUs, or 20-foot equivalent container units. This is an 8.2% increase from the same period last year.

While exports continue to decline or remain stagnant, imports are leading the way. As long as consumer spending and manufacturing keep pace, Charleston could potentially reach 1.6 million TEUs again this year, fortifying our well-earned position as the fourth busiest container port in the nation.

I'm sure this is a welcome prediction for business through our Port. And it's certainly better than last year, when the Port of Charleston's container volume declined for the first time in nine years.

Everyone wants to know why Charleston's port business declined last year. Afterall, the Port of Charleston led the nation in growth for the better part of the past decade.

We obviously saw the impact of a sluggish economy even before 9/11, as well as the effects of a strong dollar that made U.S. products more expensive overseas.

But, if it were solely these factors, other ports in our region should have seen similar decreases in volume. In fact, nearly all of the neighboring states competing with South Carolina saw a recovery in volume long before we did.

Obviously, there was something else at work. I believe, as I think many of you do, that the delay over port expansion cost our port and our state a number of economic opportunities.

Fortunately, that stalemate was broken. Senator Ritchie introduced a bill in the last legislative session that got the port expansion issue on the table. Then in June, a compromise brokered by Sen. McConnell passed the General Assembly with a nearly unanimous vote.

Since then, the Ports Authority has worked hard over recent months to meet the requirements of this legislation.

It is vital that when the General Assembly returns in January, South Carolina moves forward decisively on the issue of port expansion.

Another lost opportunity will do incredible damage to our port's reputation, and indeed our state's reputation, as a positive place for business.

Shippers and ocean carriers trust those of us in the broader maritime community to move their goods to and from markets. They want to know that we are capable of meeting their long-term needs. Let's send them the right message? South Carolina is proud of its port and intends to be a major player for decades to come.

That leads to the last major infrastructure project facing our state - port expansion on the southern end of the former Navy Base.

Early next year when our members of the General Assembly return to Columbia, the Ports Authority will present a new plan for the future of our port.

I believe this plan will enjoy the support of the local maritime industry, the statewide business community, the local Charleston community, our elected officials and the permitting agencies.

Our agreement with the City of North Charleston identifies over 600 acres for potential long-term port development. The southern end of the Navy Base is a feasible location for port expansion. And it deserves the immediate attention of our state. It is imperative that we act quickly because thousands of high-paying jobs across South Carolina are at stake.

If we are successful, South Carolina can continue to leverage its most successful asset - the Port of Charleston - and can attract better, higher-paying jobs to our state.

We hope to receive the General Assembly's consent in the upcoming session that the southern end of the Navy Base is the right place to expand.

We also hope that the state will commit the funding required to complete the necessary studies and environmental work at the site. The remaining harbor deepening work also requires state matching funds.

Of course, after discussing it for over a decade, we cannot ignore Daniel Island. Everyone asks what we will do with our land there.

Let me make it clear? the Ports Authority has absolutely no plans to develop a terminal on Daniel Island. Development of a sizeable terminal on the west bank of the Cooper River precludes the need for a terminal on Daniel Island and limits that property's use to a valuable upland dredge disposal site to support berth and channel maintenance. This is what was suggested in the legislation passed in June; it is how the property was used for 50 years, and it provides a more economical and environmentally sensitive alternative to ocean disposal.

While the property may have to be sold in part or in whole in the future, I believe it would be premature to do so in haste without fully analyzing its alternative values and uses.

Since the Ports Authority was established in 1942, we have learned many lessons about our port that continue to serve us today.

We have seen that the port's future success and the state's economic opportunities depend on wise leadership and swift action by our elected officials.

When we acted on facts and with good business judgment, our port and our economy prospered. When we failed to act, our port and our economy foundered. Let's do the right thing as a state and ensure a brighter economic future.

In conclusion, as the Ports Authority celebrates its 60th anniversary, we remain focused on the future with a new direction and a positive outlook.

I am confident that with your support, Charleston will reclaim its role as the undisputed leader of ports - not just here, but around the world.

I thank you for your support of these initiatives and of the Port, and?greatly appreciate the opportunity to be with you tonight.

According to the understanding, the Ports Authority's footprint at the Base will include approximately 12,000 feet of waterfront along the deep-draft Cooper River (authorized to -45 feet mean
low water), along with about 600 acres of high ground. The detailed scope of any future terminal at the Base, including numbers of berths and acreage, would be defined in an environmental permitting process.

Approximately 90 tenants, including private businesses and government agencies, currently occupy portions of the property under lease arrangements. The Ports Authority intends to minimize impacts on their business.

"Deciding on a boundary line is the first and most important step toward finalizing a memorandum of understanding and agreement, which legislation recently passed by the South Carolina General Assembly requires," said Ports Authority chairman Whitemarsh S. Smith III.

While defining a boundary line is an important step, a number of details, such as inland infrastructure and zoning issues, have to be resolved before an agreement can be signed. The Authority is committed to working cooperatively with the City as other portions of the agreement are finalized.

Hopefully, a final version of the agreement will be ready for approval by North Charleston City Council and the Ports Authority's Board in the next month or so. At the same time, the Ports Authority continues to evaluate other sites on the west bank of the Cooper River, as required by other legislation. Members of the Charleston County legislative delegation were obviously instrumental in crafting both the legislation and the boundary line.

"Expansion of the Port of Charleston is a vital issue for economic development in South Carolina and thousands of jobs depend on it," said Bernard S. Groseclose Jr., president and CEO of the Ports Authority. "This sends a positive signal to the Port's customers that we will be able to meet their demands for the future," he said.

At the same time, the community's concerns are real and important. The Ports Authority is committed to adequate highway and rail infrastructure, alleviating traffic impacts on the surrounding
community. The Ports Authority also supports adequate buffering between industrial and residential or commercial uses.

Charleston, SC - On Tuesday, the Supreme Court issued its decision in the case of Federal Maritime Commission v. South Carolina State Ports Authority et al. The Court ruled in favor of the Ports Authority, affirming its win before the Fourth Circuit Court of Appeals.

"This was a tremendous victory not only for the Ports Authority and for South Carolina, but for states across the nation," said Bernard S. Groseclose Jr., president and chief executive officer of the South Carolina State Ports Authority.

The issue in the case was whether the Ports Authority, an arm of the State, was entitled to assert the State's sovereign immunity in a suit filed by a private party before the Federal Maritime Commission, a federal administrative agency.

The private party, South Carolina Maritime Services, sought berthing space for its vessel, the M/V Tropic Sea, at the Port of Charleston for the purpose of offering gambling cruises to nowhere and to the Bahamas. The Ports Authority denied berthing space to the M/V Tropic Sea because the Ports Authority has an established policy of denying berths to a vessel whose primary purpose is gambling.

Maritime Services filed a complaint against the Ports Authority with the Commission seeking injunctive relief and reparations against the state agency for alleged violations of the Shipping Act. The Ports Authority moved to dismiss the complaint, asserting in part that the State's sovereign immunity precluded the Commission from adjudicating a private complaint against the State.

On appeal from the Commission, the Fourth Circuit agreed with the Ports Authority and dismissed the case. Last fall, the Supreme Court granted the Commission's petition for certiorari, agreeing to review the case. The Court's decision today, authored by Justice Thomas, holds that the State's sovereign immunity bars the Commission from adjudicating a private party's complaint against a state-run port under the Shipping Act.

Finding that the Commission's administrative proceedings "bear a remarkably strong resemblance to civil litigation in federal courts," the Court held that sovereign immunity is not limited to Article III proceedings, but applies with equal force to the Article I administrative proceedings before the Commission.

The Court reasoned: "Simply put, if the [Constitutional] Framers thought it an impermissible affront to a State's dignity to be required to answer the complaints of private parties in federal courts, we cannot imagine that they would have found it acceptable to compel a State to do exactly the same thing before the administrative tribunal of an agency, such as the [Commission]."

Because the State is not immune from suits brought by the United States, the private party is not left remediless. As the court recognized, the private party is free to bring its complaint to
the attention of the Commission, and the Commission may bring an action against a state-run port if it determines in the exercise of its official discretion that an action is warranted.

The Court's decision is a victory for the States and reaffirms states' rights. The Court concluded: "By guarding against encroachments by the Federal Government on fundamental aspects of state
sovereignty, such as sovereign immunity, we strive to maintain the balance of power embodied in our Constitution and thus to reduce the risk of tyranny and abuse from either front."

Charleston, SC - The South Carolina State Ports Authority has issued a response to the Legislative Audit Council's (LAC) report entitled, Issues Involved in the State Ports Authority's Expansion Plans.

In their report, the LAC makes 11 recommendations, nine of which are being addressed or can only be dealt with by moving forward with port expansion on the Cooper River side of Daniel Island.

"There's certainly no smoking gun," said Whitemarsh S. Smith III, chairman of the South Carolina State Ports Authority's Board. "Most of the LAC's recommendations have to be addressed in the permitting process and in the feasibility studies. That's why it's so important that we get legislative approval and move ahead."

The LAC minimizes the port's positive benefits and says that it is difficult to quantify, despite that fact that the port's economic impact study was based on a nationally recognized and verified model.

"The positive impact of trade through the Ports Authority's terminals is well known and quantifiable," said Bernard S. Groseclose Jr., president and chief executive officer of the Ports Authority. "USC economists have verified our approach in the past. They said we understate the impacts of the port, not inflate it - 83,000 jobs is a conservative number."

The LAC report cites the Ports Authority's renowned productivity and notes the 32% gains in land use since 1997, yet calls for more improvements. "It is encouraging that the LAC recognizes the Port of Charleston's efficiency," Groseclose said, "but there is a limit to what we can do with our existing terminals."

The LAC also called for expansion of the Wando Welch Terminal. "We could not agree more with the need for additional space in the Port of Charleston, both now and into the future," said Groseclose.

The report also deals extensively with the Global Gateway project, despite the fact that applications for this project were withdrawn more than a year ago.

Finally, the LAC concludes that a Jasper County site offers a realistic alternative to port expansion on Daniel Island without conducting any studies or analysis. "Jasper is not a substitute for port expansion in Charleston," said Chairman Smith. "They're two separate projects. The possibility of private developers doing something in Jasper County does not fill the need for port expansion in Charleston. They're in different waterways, catering to different customers, with different services."

Now is the time to act on the port expansion compromise, Groseclose noted. "South Carolina's port system is at a crossroads. It is time to send a clear message to the business community, both here and around the world, that we support a strong and competitive Port of Charleston."

For a complete copy of the response, please visit the Ports Authority's
website at https://scspa.com/community/press_room/lac/lacresponsefinal3-15-02.pdf

The compromise proposal, which was developed in response to community concerns and recommendations of the Charleston County Legislative Delegation's Ad Hoc Port Subcommittee, contains the following key elements:

*Focus on increasing capacity at existing terminals. Current requirements call for approximately $300 million to improve current facilities through FY2008.

*Restrict the ultimate dimension of the terminal to the Cooper River side of the island only. The first phase is anticipated to include 3,000 feet of berth space and 200 acres of container yard.

*No docks on the Wando River side of Daniel Island. The Wando and Middle Cells on the east side of Daniel Island would return to use as dredge disposal areas. As part of mitigation in the construction permit, the Authority would permanently restrict future development along the Wando River side.

*Public space conveyed to City of Charleston. The Authority would convey to the City a 55-acre parcel at the north end of its property for use as open space, park or recreational facilities, upon completion of the first phase.

*Develop a comprehensive intermodal plan. In coordination with the Authority, the SCDOT and SC Public Railways will lead in developing road and rail infrastructure to serve port expansion, meet customer requirements and recognize community traffic concerns. This will include construction of a dedicated access road, improvement to existing truck routes, access to mainline railyards and development of alternate truck and rail routes.

*Continue discussions with private sector maritime companies that have expressed interest in Daniel Island to determine viability and develop a scope of work for the project.

*Obtain approval from the S.C. General Assembly by June 2002. Then initiate a new permitting process with Federal and State resource agencies once the new scope of work has been developed.

"It is imperative that the solution for port expansion deals with all issues - environmental concerns, traffic flow considerations and other community impacts," said Capt. Whitemarsh S. Smith III, who was elected chairman of the Ports Authority Board at the meeting. "This Board is committed to doing that. And its actions show that the Authority is responsive."

"We are ever-mindful of our customers' needs and are preparing to meet their requirements," said Bernard S. Groseclose Jr., president and CEO of the South Carolina State Ports Authority. "We have our eyes and ears on their needs, and we plan to be ready."

Smith, who is president of the Charleston Branch Pilots Association and has served on the Authority Board since April 1999, was elected chairman of the Authority Board today. He served the past two years as vice chairman. Smith replaces Edgar A. Buck, who has served on the Authority board since 1994, including the two years as vice chairman and the past two years as chairman.

Smith presented a resolution during the meeting, recognizing Buck for his devotion to "seeking a solution to the many challenges facing port expansion and development with an unwavering spirit of compromise and fairness."

"I assure you that I will do my best to build on what Eddie has worked on," said Smith, "moving us toward a prosperous and unified community with a strong and successful port."

William B. Timmerman, who is chairman, president and chief executive officer of SCANA Corp., an energy-based holding company based in Columbia, was elected vice chairman of the Authority Board. James A. Bennett of Columbia and Jack M. Scoville Jr. of Georgetown were re-elected treasurer and secretary, respectively.

Charleston, SC - Container and booking status for the South Carolina State Ports Authority's common user operations in the Port of Charleston, as well as Maersk-Sealand's and SSA's gates at the Wando Welch Terminal, is now available on the Internet through eModal (http://www.emodal.com).

Ocean carriers using the South Carolina State Ports Authority's gate systems in the Port of Charleston, Maersk-Sealand's Universal Maritime Service gate at Wando Welch and the SSA gate system at Wando Welch have proactively come together in the eModal Port Community System.

"This should be a valuable tool for motor carriers serving the Port of Charleston," said Bernard S. Groseclose Jr., president and CEO of the South Carolina State Ports Authority.

"This is a natural extension of our on-going efforts to improve customer service for truckers," Groseclose said. "We have invested heavily in new equipment, extended operating hours and taken
numerous other steps because we believe that a productive and profitable trucking community is absolutely vital to any successful container port."

"Ports and terminals in the Southeast have taken strong leadership roles by working together through eModal to provide enhanced services to not only the trucking community, but also for brokers, freight forwarders, importers, exporters, and others," said John Cushing, president of eModal.

Charleston, SC -- Dec. 3, 2001 - The United States Congress recently appropriated $500,000 to study the deepening of Charleston harbor beyond 45 feet (13.7 meters).

"This evaluation is critical to determining Charleston's channel requirements," said Bernard S. Groseclose Jr., president and CEO of the South Carolina State Ports Authority.

The announcement comes as the 45-foot Charleston Harbor Deepening & Widening Project that was approved in 1996 approaches completion.

The U.S. Army Corps of Engineers is more than two-thirds complete with the work to deepen Charleston's inner harbor to -45 feet (13.7 meters) at mean low water and the entrance channel to -47 feet (14.3 meters) MLW. The inner harbor was -40 feet (12.2 meters) and the entrance channel -42 feet (12.8 meters).

Channels to the Wando Welch and Columbus Street Terminals are complete. The upper reaches of the Cooper River to the North Charleston Terminal will be awarded next year and completed in 2004.

The upcoming study will look at the feasibility and benefit-cost ratio of deepening certain shipping channels beyond 45 feet.

The Port of Charleston handled 1.6 million TEUs last year, making it the largest container port in the Southeast U.S. and one of the nation's busiest seaports.

Charleston, SC - The American Association of Port Authorities (AAPA) recently announced that Bernard S. Groseclose Jr., president and chief executive officer of the South Carolina State Ports Authority, has been selected to serve on the organization?s U.S. Legislative Policy Council and its ten-member Executive Committee.

AAPA was founded in 1912 and today represents more than 150 public port authorities in the United States, Canada, Latin America and the Caribbean. In addition, AAPA represents over 300 sustaining and associate members, firms and individuals with an interest in the seaports of the Western Hemisphere.

Groseclose is also a member of the Executive Committee of the International Association of Ports and Harbours and represents U.S. deep-draft ports on the USDOT's Marine Transportation System National Advisory Council. He has also served on the Committee on Ports & Channels for the National Academy of Science's Transportation Research Board and is a past president of the South Atlantic & Caribbean Ports Association.

The South Carolina State Ports Authority operates public seaport terminals in Charleston, Georgetown and Port Royal, which handled international waterborne cargo valued at $33 billion in 2000. Charleston is the nation's fourth busiest container port and ranks sixth in dollar value of goods shipped.

Thanks for that kind introduction Charlie. And thanks for the leadership you have provided at the SC Department of Commerce. It has been tremendous, and goes hand in hand with what we have tried to do at the Port. Your department's accomplishments will undoubtedly yield positive benefits in every region of South Carolina for years to come.

Well, this is my fifth State of the Port address. And, I again feel privileged to be before you tonight. During these last five years we have been blessed with strong economic times, continued port growth and, I personally have enjoyed the support of so many of you in this room tonight.

I don't guess anyone has made a speech in the last month without referring to the horrible events of September 11th. I think it is particularly appropriate for me to thank and praise the entire maritime community for its understanding and cooperation during the Port's heightened alert status since that unforgettable date. U.S. Customs, the Coast Guard, Immigration and the Department of Agriculture have all been forced to stretch their manpower and funding resources to increase their scrutiny of port activities. Our Port Police have also tightened security and stepped up coordination with outside police and fire departments, DHEC and HAZMAT teams to ensure good communications and readiness. There will be more challenges ahead in this area, but we can certainly be proud of the efforts made by so many thus far. So, I thank you for your cooperation.

I would like to compliment the Propeller Club on the theme for this evening's event, "Seizing Global Opportunities." That is certainly what trade is all about, and why we are all here.

I'm going to take a different approach in this State of the Port address. I'm not going to dwell on the successful year we just completed, or the productivity improvements we've made, or the capital investments we continue to make in our facilities. Instead, I want to talk about "Seizing Global Opportunities" and what that means for South Carolina.

We hear all the time how advances in communications and transportation have made the world smaller. While it's true that ideas, news, information and products flow quicker than ever before, these same advances show us just how much opportunity still remains untapped.

The Propeller Club has also done a great transformation of the Passenger Terminal. Tonight during the reception and at our tables we see a sampling of products from a wide variety of companies. These are businesses that are capitalizing on global opportunities. And they ship their goods through our Ports.

International trade is truly a part of everyday life, though most people tend to take it for granted. Let me share an example with you. One recent Saturday morning Jane in Mount Pleasant started her day with a cup of Colombian coffee. She drank it out of a mug made in Brazil that she retrieved from a handcrafted cabinet from Indonesia. Her feet were comfortable in her slippers made in Malaysia as she walked across her Italian tile floor.

After reading the newspaper, which was printed using a machine made in Japan, she put on a sweater made of wool from Australia to do some shopping. At Wal-Mart and Home Depot, she bought several items, including flower bulbs from Holland and a rake from China.

At the same time, but thousands of miles away in Western Europe, John was settling in for the night. He spent his day working in the yard with Frigidaire lawn equipment made in Orangeburg and was now preparing to relax with a cup of American Classic Tea, harvested just outside of Charleston.

John was looking forward to watching the afternoon's soccer match that he had recorded earlier on a Fuji videotape made in Greenwood. Before that, he had driven his BMW X5, made in South Carolina of course (on Michelin tires) to the store to buy some South Carolina-bred poultry to cook on his Ducane grill? also from South Carolina.

After enjoying his meal, and his team's victory in the soccer game, he retired to his finely manicured lawn and relaxed in his outdoor wood furniture from Cox in Orangeburg. Later he took a shower and went to bed using towels and sheets made by Springs.

Neither Jane nor John thought too much about the products they used that day?? Nor do you and I. They simply were enjoying everyday life and a higher standard of living based on their choices and decisions as consumers. But behind those decisions are a massive economic chain and a very fluid transportation system. Few countries attempt to be self-sufficient anymore. We are economically interdependent and enjoy the many daily choices that free trade provides.

The numbers on international trade in South Carolina are staggering - our seaports move $33 billion in goods annually. There are 700 importers and exporters from every county in South Carolina. Everyday more than 83,000 people go to work across the state in jobs related to trade through the port.

But beyond the statistics is what our successful, competitive port system really means to South Carolina - global market access. Today, manufacturers ship by ocean from Charleston to more than 150 nations around the world. The value of proximity to so many markets is especially important in today's environment when almost every business is global in nature.

From Argentina to Zimbabwe, if a company has a customer or supplier there, they can reach them directly from South Carolina's coast. Only a short drive or train trip separates any site in South Carolina from the rest of the world. Once here, you have a collection of more than 300 private businesses that do nothing but work to keep our port humming.

Brokers and forwarders, who represent the importers and exporters, expedite goods to their final destination. Ocean carriers provide the ships that bring the goods into our harbor. Pilots guide those ships to safe harbor. Tugboat companies assist the vessels in docking. Line handlers secure the vessels at our berths. Longshoremen toil on the docks and support areas of the terminals. Warehousers speed distribution. Trucking companies get cargo to where it needs to be. And the list continues - railroads, ship agents and chandlers, maintenance companies, etc.

As many of you know, I have been active in several national and international port organizations. After traveling and speaking to colleagues at ports around the world, I can say without hesitation that Charleston has the finest maritime and transportation community around. That is our reputation.

And we have a lot to be excited about. In fiscal year 2001, volume through the Port of Charleston hit a record high for the 8th consecutive year. In the last ten years, our business has doubled.

But, while the State of our port is strong, it is somewhat clouded by uncertainty in the near term. Both the current global economic condition and the spin-off effects of September 11th could have negative impacts on business levels for this fiscal year.

As we look to the future though, this short-term weakness in activity is only a blip on the radar screen. We confidently expect the demand for port services in Charleston to double in the next 20 years. This is based solely on growth by existing importers and exporters, and not on some hypothetical new business development. Therefore, we must be prepared to capitalize on the opportunity when it arises.

The Ports Authority's mission is to help companies take advantage of the many business prospects that exist across the oceans. Without a company to ship a product, there would be no Port. And, without a Port, South Carolina would not attract many of the companies Secretary Way and his commerce team approach. We exist as a tool and a facilitator. We own no containers, no cargo and no ships.

Therefore, the message I bring you tonight is not my message or the Ports Authority's message. It is the message of businesses and working men and women from across our state.

Urban chambers of commerce from South Carolina population centers are today joining voices with statewide organizations such as the Manufacturers Alliance, the South Carolina Chamber of Commerce and the Economic Developers Association. Their message is clear. South Carolina's primary port in Charleston must be expanded? and the Cooper River side of Daniel Island is the best option.

To be sure, there are local concerns that must be addressed. But the issue of port expansion is much bigger than just Charleston. The Ports Authority's legislated mandate is statewide in nature and importance. What happens to South Carolina's premier port in Charleston impacts every region of the entire state.

The challenge before us is very clear. We must meet the business and economic needs of our state while addressing local quality of life concerns. To achieve this, a compromise has emerged for a much smaller port expansion project on the Cooper River side of Daniel Island.

To help expedite the project, private sector involvement was invited earlier this year. Not one, but nine, ocean carrier, stevedoring and terminal operating companies expressed strong interest in the project. Clearly there is a business demand and need for this development.

Before we move forward with construction, the General Assembly will be requested to give its concurrence. Additionally, a rigorous permitting process will satisfy the concerns of various state and federal agencies. Considering the fact that only moderate growth will saturate port capacity by 2006 to 2008, time is certainly of the essence. We will move forward with this when the Legislature returns to session.

In the interim, the Ports Authority continues to seek new and better ways of using its existing facilities. In the next 12 months, capital improvements to our terminals and equipment will total more than $45 million. Considering Charleston is already three times as productive as the average U.S. East Coast port when it comes to land utilization, the intensity of space use is approaching the maximum sustainable levels.

Also important to all of us is the Charleston Harbor Deepening Project. It is ahead of schedule and under budget, but another $26 million in state funding is required for its completion over the next two years. Although the State is experiencing budget shortfalls, we cannot overlook the importance of this project.

Finally, and perhaps most importantly because of public concerns, we must work diligently on solutions to local transportation problems. The biggest concern about port expansion in Charleston has been related to transportation infrastructure. While traffic will continue to increase even without port expansion, the Port does indeed generate additional transportation needs. And while the Charleston community benefits from the high-paying jobs our port provides, it also bears the largest share of the traffic burden.

As a community, we need to identify specific concerns with port expansion and then develop solutions to address the problems. There is statewide recognition, and indeed a national recognition, that additional road and rail infrastructure will be required to solve these problems. But these solutions will not come so long as the vocal opponents of port expansion refuse to compromise.

The idea of developing an inland port has been tossed around lately. The goal of any such intermodal facility should be to speed the movement of cargo while relieving traffic congestion. In our free market economy, goods will continue to flow through the fastest and least expensive route.

It is important that we understand the role of the inland port as the Department of Commerce undertakes its analysis of the need and possible locations. Any successful inland port or intermodal facility must serve the growth of the Port of Charleston, but it cannot replace port expansion. If our port does not expand, then there is no need for such a facility.

We must continue to look for new ways of approaching our area's infrastructure challenges, including the development or expansion of new road and highway routes and rail facilities. Six months ago we committed to pursuing alternatives to relieve traffic pressures on our community's infrastructure, and we are doing that.

In closing, I believe all of us here understand that international trade and manufacturing are embedded in the fabric of our economy and are vital parts of our everyday life.

We must diligently protect the foundations of our economy. The very purpose of the World Trade Center was to serve as a monument to global peace and progress through international commerce. While terrorists may have destroyed the buildings, the World Trade Center's cause remains valid.

We cannot allow threats or acts of violence to cause us to retreat from our beliefs. The U.S. is the world's largest trading nation, and in turn the world's leading power - a position that has benefited our community and our state. It is clearly this economic strength that the terrorists seek to impact.

The fact is that our world offers endless prospects for individuals to make their own way? and to build better lives for themselves and for their families. I hope that each of you, like me, entered the room tonight and will exit the room tonight excited about helping South Carolina accomplish these goals. It's what this port community has been doing for decades.

We look forward to the challenges of the future not with negativity or angst? rather we eagerly look forward to expanding South Carolina's international presence with great hope and anticipation.

Let's capitalize on our assets - this beautiful, deep harbor so close to the sea, a tremendous, energetic and effective workforce, a dedicated economic development effort, and a host of companies that have made a home in South Carolina and depend on international trade.

South Carolina's future depends on our ability to Seize Global Opportunities.

 

Thank you.

To handle increasing southern Africa exports to North America, Safmarine will introduce larger ships to their service, which calls Charleston, at the end of October.

Two smaller ships should be replaced with larger vessels by the end of the year. The weekly container service for general and reefer cargo calls direct at Durban, Port Elizabeth, Cape Town, New York, Baltimore, Newport News, Charleston and Freeport.