Capital Investments Archives - Page 2 of 3

Two Percent Container Volume Increase at SC Ports

CHARLESTON, SC - November 10, 2016 - Today South Carolina Ports Authority reported nearly two percent growth of twenty-foot equivalent unit (TEU) volume since its fiscal year began in July.

SCPA handled 169,477 TEUs in October, an increase from 164,734 TEUs moved during the same month last year. Fiscal year to date, SCPA's container volume reached 689,753 TEUs, a year-over-year increase of 1.73 percent.

As measured in pier containers, or total boxes moved across SCPA's docks, fiscal year-to-date volume is up by 6,227 containers. SCPA handled 95,608 pier containers in October, bringing total volume to 388,883 boxes since the fiscal year began.

"Our incremental container volume increase in October is reflective of a worldwide slowing in container trade, but we are optimistic that growth will resume in both imports and exports as the Southeast economy grows," said SCPA president and CEO Jim Newsome. "We also expect major emerging market economies to restore growth in demand based upon strength of a growing middle class."

In non-containerized cargo volume, Charleston handled 76,029 tons in October. Charleston breakbulk volume is 10.2 percent ahead of fiscal year-to-date plans, with 293,780 tons handled since July.

Inland Port Greer handled 9,211 rail moves last month. The facility's rail volume is up 25.5 percent since the fiscal year began, with 35,427 rail moves handled between July and October.

"Amid the shifting structure of the container industry, including consolidations of major carriers and an extremely difficult financial picture, SCPA is well-prepared to meet the demands that will be required of top 10 U.S. ports going forward. Bigger ships will be deployed across fewer services, and our port is making the necessary investments in cranes, terminal infrastructure and capacity, and harbor deepening to meet these requirements," Newsome said.

Board Action
In action items, the Board approved funding for the conclusion of the Advanced Gate System installation at the Wando Welch Terminal as well as total implementation the North Charleston Terminal in February 2017. The Board also approved contracts related to construction and security services for the Leatherman Terminal, installation of bracing on three ship-to-shore cranes and the purchase of an aerial lift for rubber-tired gantry crane repairs.

Crane Commissioning
Yesterday evening SCPA celebrated its two new super post-Panamax cranes with a lighting show and fireworks display on the dock of the Wando Welch Terminal. The cranes, which offer 155 feet of lift height above the dock, were produced by Shanghai Zhenhua Heavy Industry Co., Ltd.in China and delivered to SCPA in August.

SCPA has ordered two additional ZPMC cranes of this size for delivery by the end of 2017 and plans to raise four of its existing cranes to the same height.

"We are planning for two shipping services with 14,000 TEU vessels to call Charleston by mid-2017, which will be a game-changer for the East Coast ports," Newsome said. "By the end of next year, SCPA's $44 million wharf strengthening project to handle larger ships will be complete, and we will have eight cranes with 155 feet of lift height capable of handling two 14,000 TEU ships simultaneously."

SCPA also expects construction to begin on the first phase of its 52-foot harbor deepening project to begin by the end of next year, making Charleston the deepest harbor on the East Coast by 2020.

Above: SCPA held a celebration of its two new post-Panamax cranes with a lighting and fireworks show on the dock of its Wando Welch Terminal.

About South Carolina Ports Authority
South Carolina Ports Authority (SCPA), established by the state's General Assembly in 1942, owns and operates public seaport facilities in Charleston, Georgetown and Greer. In 2015 SCPA handled international commerce valued at more than $74 billion while receiving no direct taxpayer subsidy. An economic development engine for the state, Port operations facilitate 187,200 statewide jobs and generate nearly $53 billion annual economic activity. Home to the Southeast's deepest port, SCPA is the industry leader in delivering speed-to-market, seamless processes and flexibility to ensure reliable operations, big ship handling, efficient market reach and environmental responsibility. For more information on SCPA, please visit www.scspa.com.

Newsome's State of the Port: Growth, Modernization and Abundant Opportunity Ahead for SC Ports

CHARLESTON, SC -- SEPTEMBER 12, 2016 -- Today South Carolina Ports Authority president and CEO Jim Newsome's State of the Port focused on growth, modernization and the abundant opportunities ahead for South Carolina's public port system.

In his eighth address at the annual event hosted by the Propeller Club of Charleston, Newsome reviewed the Port's financial and volume gains in recent years and the investments required for SCPA to meet the changing needs of the shipping industry.

SCPA posted increases in both containerized and breakbulk cargo at its Charleston facilities in fiscal year 2016 amid challenges in the world economy. The Port's container volume grew 1.4 percent fiscal year over year, and non-containerized cargo handled in Charleston exceeded planned tonnage by 33 percent. Continued growth of intermodal rail drove record-setting volumes at Inland Port Greer, which handled 91,698 rail moves in FY2016.

"The Port achieved growth of volumes and operating earnings in spite of an overall slowing of world trade," Newsome said. "We also accomplished significant progress on numerous critical projects -- modernization of the Wando Welch Terminal wharf, and implementation of an advanced gate system that enables us to efficiently handle that facility's growing cargo volumes; continued fill activity and other construction work on the Hugh K. Leatherman Terminal; and enhancements to refrigerated cargo handling capabilities at both container terminals."

In the year ahead, Newsome expects the Southeastern port market to continue to enjoy strong volume growth relative to the overall U.S. port market, supported by foreign-direct investment in manufacturing as well as a steadily increasing consumer market.

For SCPA, the automotive industry will remain a bright spot both in the coming fiscal year and long-term, with the opening of the Volvo North America plant. Establishment of retail distribution centers, such as the Dollar Tree facility in Cowpens, will also be a driver of growth enabled by the Port's inland facilities. SCPA will build upon the success of Inland Port Greer with the construction a second inland facility in Dillon, South Carolina, that will open by the end of 2017.

Despite financial uncertainty in the container shipping industry and further consolidation of major carriers, Newsome said big ships remain the catalyst for port investment and will drive the focus of SCPA's short and long-term projects.

"Today 16 of 26 weekly container services calling the Port of Charleston utilize New Panamax vessels, and we expect to see others upsized in the future," Newsome said. "Top 10 ports must make significant investments to prepare facilities to serve these bigger ships, including taller cranes and stronger terminal infrastructure, as well as harbor deepening projects. We have worked diligently to ensure that the Charleston Harbor Deepening Project to 52 feet remains on track to deliver all of the capabilities needed of a modern harbor by the end of the decade."

Looking ahead, Newsome said SCPA's major priorities are investment, terminal optimization and cargo base expansion. He predicted another fiscal year of record capital investments in the Port, and together SCPA and the state of South Carolina will invest $2.2 billion over ten years to deliver projects critical to the Port's competitiveness.

As the Port prepares to commission two new ship-to-shore cranes this fall, two additional cranes have been ordered and plans are underway to raise four more cranes at the Wando Terminal. In addition, a new terminal operating system and improved land utilization top Newsome's plans to ensure SCPA can efficiently work two 14,000 TEU vessels simultaneously.

Vital to the Port's ability to sustain the volumes and revenue required for such investments is the expansion of its cargo base. In addition to the large cargo volumes driven by manufacturing, private sector investment in near-port facilities also plays a key role in SCPA's growth. The Port is seeing the benefits of such facilities to serve specialized markets, including cold chain and plastics.

"We must be innovative to attract new types of cargo," Newsome said. "While there are challenges ahead, we are making significant progress in all the fundamental areas that will drive our success. There is no question that global businesses will locate near global ports, bringing with them promising opportunity for our state and region. SCPA is a strong partner for business."

Newsome concluded his remarks with an inward look at SCPA's organizational approach to meeting industry needs. With the adoption of new vision and values as part of a culture change initiative, SCPA's nearly 500 employees have ownership of the Port's future.

"SCPA has a talented workforce and maritime community, and they are critical components of our success," Newsome said. "We provide a good product, and our customers can rely on us to keep their freight moving."

Click to view Jim Newsome's State of the Port presentation, or watch it on YouTube.

About South Carolina Ports Authority

South Carolina Ports Authority (SCPA), established by the state's General Assembly in 1942, owns and operates public seaport facilities in Charleston, Georgetown and Greer. In 2015 SCPA handled international commerce valued at more than $74 billion while receiving no direct taxpayer subsidy. An economic development engine for the state, Port operations facilitate 187,200 statewide jobs and generate nearly $53 billion annual economic activity. Home to the Southeast's deepest port, SCPA is the industry leader in delivering speed-to-market, seamless processes and flexibility to ensure reliable operations, big ship handling, efficient market reach and environmental responsibility. For more information on South Carolina Ports, please visit https://scspa.com/

Crane Delivery Signifies South Carolina Ports Authority's Big-Ship Readiness

CHARLESTON, SC - August 8, 2016 - The delivery of two super post-Panamax cranes at South Carolina Ports Authority (SCPA) on Friday marked a significant milestone in the Port's big ship readiness, to be followed in the coming years by the completion of the Wando Welch wharf project and harbor deepening to 52 feet.

The cranes, produced by Shanghai Zhenhua Heavy Industry Co., Ltd. (ZPMC) in China, provide 155 feet of lift height from the dock to enable SCPA to work larger container cargo ships. The cranes will be located at the Wando Welch Terminal, which is undergoing a $44 million project to strengthen and upgrade the wharf and infrastructure required for handling bigger vessels and cranes. Last month the SCPA Board of Directors approved the purchase of two additional cranes of this size for delivery at the end of 2017, coinciding with the completion of the wharf project.

"The delivery of the new cranes is a milestone for our Port," said Jim Newsome, SCPA president and CEO. "They are integral to our future and represent a big step forward in our strategy to remain competitive in today's big-ship environment. Along with the Wando wharf strengthening project, the cranes will allow us to handle the upsizing of ships following the opening of the Panama Canal expansion in order to continue to meet the needs of our customers and enhance the crane productivity we are known for in the U.S. port industry."

SCPA is already seeing the upsizing of vessels in response to the Panama Canal expansion, and expects to handle its first 14,000 TEU vessel call later this year. Charleston offers the deepest harbor in the Southeast, and upon completion of its deepening project to 52 feet, Charleston will be the deepest harbor on the East Coast.

Beyond harbor deepening, SCPA has a 10-year, $1.3 billion capital expenditure plan that includes the construction of a new container terminal, the Leatherman Terminal, and the modernization of existing facilities and technology. SCPA's extensive investments ensure the Port will be competitive in the future, continuing to provide $53 billion in annual statewide economic impact and securing region's role in economic development and global trade.

About South Carolina Ports Authority

SC Ports Authority Posts 2016 Fiscal Year Volume Increase

Charleston, SC - July 20, 2016 - Today South Carolina Ports Authority (SCPA) reported growth of container volume and breakbulk tonnage at its Charleston facilities and significant increases in rail volume at Inland Port Greer during the 2016 fiscal year that ended June 30.

SCPA handled 1.9 million twenty-foot equivalent units (TEUs) during FY2016, an increase of 1.4 percent over the previous year. As measured in pier containers, or box volume, nearly 1.1 million boxes moved across the docks of the Port's container terminals in FY2016.

"Container volumes this fiscal year were quite moderate compared to last year, reflective of uncertainty and a general slowing of the world economy," said SCPA president and CEO Jim Newsome. "However, import loaded volumes were five percent ahead of last year, marking a bright spot in volume development, and export loaded volumes were flat despite challenging markets. Our non-containerized cargo segments performed well, and we saw record-setting growth at Inland Port Greer. Looking ahead, the Port expects container volumes to increase as a result of the upsizing of ships with the Panama Canal expansion. Today, 16 of our 26 weekly container ship services now employ vessels larger than could pass through the Panama Canal prior to expansion."

In the non-containerized cargo segment, Charleston breakbulk tonnage exceeded planned volumes by 33 percent with 901,974 pier tons handled during the fiscal year. Roll-on/roll-off cargo within the breakbulk sector grew significantly, and SCPA achieved the highest finished vehicle volume ever handled at the Columbus Street Terminal. In FY2016, 274,426 vehicles moved across SCPA docks, an increase of 8 percent over the previous year.

Inland Port Greer achieved a record year of volumes, with 91,698 rail moves handled during FY2016. The facility's customer base continues to grow, with 57 percent higher volume this fiscal year compared to last year.

"Our port has made significant progress on key projects this fiscal year, including harbor deepening, Leatherman Terminal construction and the Wando Terminal wharf project," said Pat McKinney, SCPA Board Chairman. "We are well-positioned to meet the changing needs of our industry and remain focused on increasing growth while completing the necessary improvements to our facilities and infrastructure to be competitive into the future."

Board Action
The Board authorized a $23.6 million purchase for two new ship-to-shore cranes for the Wando Terminal in order to serve the growing size of vessels calling Charleston. The cranes are scheduled to be commissioned at the end of 2017 in conjunction with the completion of the Wando wharf strengthening project. Next month, the Terminal will receive the first delivery of larger cranes to be commissioned for use this fall.

The Board also approved the purchase of 12 rubber-tired gantry cranes for the Wando Terminal and 12 empty container handlers for Wando, North Charleston Terminal and Inland Port Greer.

Media Contact:
Erin Dhand
Manager, Corporate Communications and Community Affairs
SC Ports Authority
843-577-8121
edhand@scspa.com

Six Percent Container Growth, $248 Million in Capital Expenditures Projected for SC Ports

CHARLESTON, SC - June 14, 2016 - Today the South Carolina Ports Authority (SCPA) Board of Directors adopted a financial plan for the 2017 fiscal year that includes six percent pier container growth, $226.1 million operating revenues, $40.8 million operating earnings, and capital expenditures of $248 million.

The plan projects pier containers, or box volume, of 1.175 million during FY2017, a six percent increase from the 1.105 million boxes SCPA is expected to handle during its current fiscal year. Strong growth at Inland Port Greer is also planned, with rail moves expected to increase 23 percent over FY2016 projected totals.

Planned operating revenues of $226.1 million for FY2017 reflect a 7 percent increase above the current fiscal year, which are expected to reach $211.8 million when the period ends June 30.

"The FY2017 plan reflects continued success of our state port system," said SCPA Board Chairman Pat McKinney. "The year ahead is an exciting time for our port and state, with construction on our harbor deepening project to 52 feet to begin, as well as significant progress on the Leatherman Terminal and other improvements to existing terminals expected. We are well-positioned to meet the evolving landscape of the U.S. port industry."

The Board approved the highest capital plan in the SCPA's history, with expenditures projected $82.4 million higher than FY2016. SCPA will invest $93.7 million in site development and related expenses for construction of the Hugh K. Leatherman Terminal, expected to open in late 2019. Other primary capital expenditures planned include $78.9 million in upgrades to the Wando Welch Terminal, $16 million in surface improvements to the Columbus Street Terminal and $5.1 million for the development of a second inland port in Dillon, South Carolina.

"Our volumes this fiscal year have flattened when compared to FY2015, and although we expect growth to continue to keep pace above the U.S. port market average, the plan for FY2017 reflects modest increases in pier container volumes," said SCPA president and CEO Jim Newsome. "We currently handle 11 weekly post-Panamax vessel calls and expect FY2017 to be marked by an increased frequency of big ship calls once the Panama Canal expansion opens and multiple services upgrade the size of vessels deployed to Charleston."

May Volume Results
SCPA reported a 2.3 percent increase in twenty foot-equivalent unit (TEU) volume fiscal year to date, handling 1.79 million TEUs between July and May. SCPA moved 177,865 TEUs last month.

As measured in pier containers, or total box volume, SCPA handled 100,774 containers in May. Since the fiscal year began in July, SCPA has moved over one million containers across the docks of its Wando Welch and North Charleston container terminals.

Non-containerized cargo volume at the Port of Charleston was strong in May, with 85,413 pier tons handled. Charleston's breakbulk volume is nearly 34 percent ahead of planned levels, with 831,872 tons moved fiscal year to date.

May rail volume was strong at Inland Port Greer, where 8,620 rail moves were handled last month. Fiscal year-to-date rail moves are 62.3 percent above planned levels, with 83,834 lifts since July.

Community Giving Grant Program
The application period for the Port's non-profit grant program, Community Giving, opened this month with opportunities for charitable organizations to apply for $5,000, $2,500 and $1,000 grants. Grants are available in four outreach areas: maritime commerce, economic development, environmental awareness and community outreach.

Community Giving was created in 2013 to support programs and initiatives that better the communities where the port operates. Applications are available on the port's website, www.scspa.com, and are due August 1.

About South Carolina Ports Authority

SC Ports Authority Posts 10 Percent Container Growth in 2015

CHARLESTON, SC - January 20, 2016 - South Carolina Ports Authority (SCPA) posted 10 percent container growth in 2015, a year highlighted by strong volumes and significant progress on the harbor deepening project.

SCPA handled 144,718 twenty-foot equivalent units (TEUs) in December, pushing total container volume to 1.97 million in 2015.

As measured in pier containers, or total boxes handled, SCPA's two container terminals moved 1.12 million boxes in 2015, an increase of 9.54 percent over 1.02 million containers handled last year.

"Our 10 percent TEU volume growth for the 2015 calendar year is outstanding," said Jim Newsome, SCPA president and CEO. "Successful recruitment of discretionary cargo has been an important driver of volumes, as well as continued strength of the automotive sector. However, looking ahead to the second half of our 2016 fiscal year, we expect flat to very modest growth due largely to weakness in overseas markets. Because of the Panama Canal expansion delay, we will not see new ship deployments of significance until FY2017."

Non-containerized cargo business volume was strong in 2015, with 1.34 million pier tons handled during the year. Finished vehicle volume grew 13 percent year over year, with 268,964 vehicles crossing SCPA docks in 2015. The Inland Port handled 7,824 rail moves in December, more than double the facility's December volume last year. The facility's rail volumes grew 76.5 percent during its second full calendar year of operation, with 75,111 total rail moves completed in 2015.

In addition to strong volume growth during the year, Newsome also highlighted the successful progress of the Charleston Harbor Deepening Project. With the issuance of the Chief's Report in September and signing of the PreConstruction Engineering and Design Agreement in December, the project continued to move forward with historic momentum through the U.S. Army Corps of Engineers SMART planning process. Last week the project cleared another milestone, with the Record of Decision, the formal recommendation of the project to Congress for authorization.

New Multi-Purpose Carrier Service

SCPA recently added a new regular shipping service, Atlantic Ro-Ro Carriers (ARRC), to its vessel calls at Columbus Street Terminal. The first ARRC vessel arrived on January 8, handling approximately 6,000 tons of import cargo.

ARRC specializes in handling freight for multiple business segments, including container, breakbulk, rolling stock and project cargo. Charleston is an addition to ARRC's Balt-Atlantic service, which utilizes multiple vessels to connect St. Petersburg, Russia and other North Europe ports with the U.S. East Coast.

"ARRC's multi-purpose capabilities are an exciting addition to SCPA's breakbulk opportunities that further enhance our connection with North Europe," said Paul McClintock, SCPA Senior Vice President of Sales and Marketing. "We're pleased to welcome their regular calls."

Board Action

The Board approved two contracts related to the development of the Hugh K. Leatherman Terminal, including consultancy services for the concept design phase and a change order for additional construction activities pertaining to the containment wall. The facility will increase SCPA's current container capacity by 50 percent, with the first phase expected to open for operations by 2020.

To accommodate rapid growth within SCPA's refrigerated cargo market, the Board also approved a construction contract for the installation of additional refrigerated container infrastructure at the Wando Welch Terminal.

Main Office Sale

The Board authorized SCPA to sell the Main Office at 176 Concord Street in Charleston and directed the Real Estate Development Committee to finalize the offering and process by February 1.

"The need for our administrative and corporate office to be closer to our port operations is the primary driver of our decision to sell our current office," Newsome said.

Resolution Honoring Former Charleston Mayor

The Board also adopted a resolution honoring the former Charleston Mayor Joseph P. Riley, Jr. and declaring January 20, 2016, as Joseph P. Riley, Jr. Day at the Port of Charleston.

"Mayor Riley's father served on the SCPA Board from 1969 to 1977, and he continued that legacy as a tireless supporter of the growth and development of our Port," said SCPA Board Chair Pat McKinney. "Especially with regard to the harbor deepening project, Mayor Riley has worked in partnership with our Board and staff to ensure the economic wellbeing of the Port, and in turn the entire City of Charleston."

Riley utilized his relationships with the Obama Administration to elevate the importance of harbor deepening and to garner support and timely forward progress of the project on the federal level. He has also supported SCPA's cruise business and plans for the non-maritime redevelopment of Union Pier for the benefit of the Port and the City.

About South Carolina Ports Authority

South Carolina Ports Authority (SCPA), established by the state's General Assembly in 1942, owns and operates public seaport facilities in Charleston, Georgetown and Greer, handling international commerce valued at more than $63 billion annually while receiving no direct taxpayer subsidy. An economic development engine for the state, Port operations facilitate 187,200 statewide jobs and generate nearly $53 billion annual economic activity. Home to the Southeast's deepest port, SCPA is the industry leader in delivering speed-to-market, seamless processes and flexibility to ensure reliable operations, big ship handling, efficient market reach and environmental responsibility. For more information on SCPA, please visit www.scspa.com.

Newsome's State of the Port Predicts Decisive Five Years Ahead for SCPA

CHARLESTON, SC - SEPTEMBER 14, 2015 - Sustaining above-market container volume growth, achieving the deepest harbor on the East Coast, investing in infrastructure and expanding its cargo base topped the list of South Carolina Ports Authority (SCPA) five-year initiatives highlighted today at the State of the Port.

In his seventh address at the annual Propeller Club of Charleston event, president and CEO Jim Newsome reflected on the volume and revenue gains that well-position SCPA to face the challenges ahead for South Carolina's public port system.

"Within the state, we are an economic driver and strategic asset that should be a source of pride for our shareholders, the people of South Carolina," Newsome said. "From a competitive standpoint, we offer the best product at the lowest cost in the U.S. port industry. Our above-market growth is an achievement that has positioned the Port as a strong and visible global brand and will continue to pay dividends to the state and region?s economies."

SCPA reported a nearly 15 percent fiscal year-over-year increase in container volume in 2015, handling 1.9 million twenty-foot equivalent units (TEUs). Charleston breakbulk grew 7 percent over planned volumes, with 900,000 pier tons handled during FY2015. A record-breaking 253,338 vehicles moved across SCPA docks, up 15 percent from the previous record of 219,900 vehicles in FY2008.

Newsome highlighted SCPA?s significant financial growth over the last five fiscal years, including a 75 percent increase in revenue from $112 million in FY2010 to $196 million in FY2015. During that time, operating earnings jumped from $8.4 million to $30 million, and pier container volumes, or boxes handled, increased from 741,000 to 1.095 million.

Newsome said SCPA?s ability to build upon this success over the next five years will be decisive for the Port. Strong fundamentals within the Southeast region will support the Port?s aggressive goals, providing a growing consumer population base that creates demand for imports as well as an expanding manufacturing industry that requires deepwater for heavy export cargo. Included in SCPA?s long-range goals is the climb from top-ten to top-five U.S. container port volume ranking by the end of the decade.

Planned volume gains are also linked to Charleston?s compelling opportunity to serve big ships calling the East Coast. With alliances among the major shipping lines firmly in place and 90 percent of new ocean vessels to be built for 7,500 TEUs or greater, shippers will become increasingly dependent on ports to offer deep and wide harbors for reliable access. The expansion of the Panama Canal and raising of the Bayonne Bridge in New Jersey, both slated for completion next year, will also bring post-Panamax vessels to the Southeast in greater frequency.

SCPA's efforts to deepen the Charleston Harbor to 52 feet are on schedule, with a firm focus on expediting the Preconstruction Engineering and Design Phase of the project. Construction is expected to be completed by 2020, enabling Charleston Harbor to offer shippers 24-hour access to 48 feet of draft.

In addition to the completion of harbor deepening, SCPA will also focus on investments to terminal capacity and infrastructure, including construction progress on the Navy Base Terminal and Wando Welch Terminal wharf strengthening project. Newsome cited the State of South Carolina as a committed partner in the Port's long-term success, with planned investments in port-related infrastructure including harbor deepening, the Navy Base Terminal access road, and Intermodal Container Transfer Facility.

"Significant investment is required to be a major U.S. container port, and earning adequate return on capital will be a challenge for us in the years ahead," Newsome said. "In addition to maintaining above-market growth and delivering high value for the reliability and cost of service we offer, there are a number of actions required to realize these investments: an improved contractual structure and revenue model from port clients; firm prioritization of capital expenditures; and an inward focus on organizational streamlining, effectiveness and productivity."

Newsome cited a successful trucking community and support of both Class One rail carriers serving the Port as critical to SCPA's long-term ability to handle growing container volumes. SCPA extended gate hours in February and maintains low truck turn times to support productivity of the trucking industry, a key asset of freight movement. SCPA's efforts to grow rail volumes have been successful, with 22 percent of SCPA's container volume handled by intermodal rail in FY2015. Newsome pointed to improvement in intermodal infrastructure as essential to the Port's ability to attract cargo, as inland transportation costs play a key role in global supply chain decisions.

Expansion of the Port's cargo base will drive planned volume increases, Newsome said. In addition to the cargo that naturally flows through South Carolina's port facilities, SCPA will continue to pursue discretionary cargo, including Midwestern agriculture products and plastics from the Gulf. Private sector investment in port-related infrastructure is critical to serve these growing markets.

"In order to expand our cargo base, the Port must continue intensive efforts to connect the dots between major economic development opportunities, our capable harbor, and the necessary infrastructure to serve growing markets," Newsome said. "Our Inland Port in Greer is a great example of this. The facility saw tremendous success in its first full fiscal year of operation and will likely be expanded in FY2017, and I envision opportunities to consider additional inland port locations in the future."

Other long-term investments for the SCPA include progress on the Jasper Ocean Terminal (JOT), which represents the next major increment of Southeast container port capacity. Newsome pointed to the significant capital requirements necessary for the terminal to be realized, including deepening the Savannah River to at least 52 feet and providing adequate road and rail infrastructure with access for both Class One railroads. The JOT Joint Project Office is expected to begin the permitting process for the terminal later this fiscal year.

"The next five years bring great opportunity for our port," Newsome said. "By 2020 we will complete the harbor deepening project to 52 feet, open Phase One of the Navy Base Terminal and enjoy an operational dual-served intermodal container transfer facility. Delivering on our priorities and aggressive action will be required to meet these goals. The Port has a highly talented and skilled workforce, and with the commitment of our entire maritime community, I am confident that SCPA's best years are ahead."

View the State of the Port presentation here.

About South Carolina Ports Authority
South Carolina Ports Authority (SPCA), established by the state's General Assembly in 1942, owns and operates public seaport facilities in Charleston, Georgetown and Greer, handling international commerce valued at more than $63 billion annually while receiving no direct taxpayer subsidy. An economic development engine for the state, port operations facilitate 187,200 statewide jobs and generate nearly $53 billion annual economic activity. Home to the Southeast's deepest port, SCPA is the industry leader in delivering speed-to-market, seamless processes and flexibility to ensure reliable operations, big ship handling, efficient market reach and environmental responsibility. For more information on South Carolina Ports, please visit www.scspa.com.

SC Ports Projects 7% Container Growth, $165.5 Million in Capital Expenditures

CHARLESTON, SC - Following a record-setting month of container volumes achieved in May, the SC Ports Authority Board of Directors looked ahead to a favorable 2016 fiscal year today with the adoption of a financial plan that includes continued cargo growth, increased operating revenues and significant capital investments.

The plan projects pier container volume of 1.15 million boxes during FY2016, a 7.2 percent increase over projected totals for the current fiscal year. Strong growth at the Inland Port is also planned, with rail moves expected to increase 6.9 percent over FY2015 projected totals.

Operating revenues in the new fiscal year are planned to increase 9.2 percent, or $17.7 million higher than FY2015 projected revenues.

"This plan builds upon year-over-year success of our port system," said SCPA Board Chairman Bill Stern. "The 2016 fiscal year will be a significant time for our port and state, marked by the receipt of the Chief's Report this September for our 52-foot harbor deepening project as well as the continued progress of Navy Base Terminal construction and other significant improvements to our existing terminals. We are well-positioned for the future."

The Board approved capital expenditures of $165.6 million for the fiscal year. The SCPA will invest $73.3 million over the next 12 months in the ongoing construction of the new container terminal on the former Navy Base, which will open in late 2019. Other primary capital expenditures include existing terminal infrastructure improvements, new equipment as well as two new super post-Panamax cranes, and a wharf strengthening project and upgrades for refrigerated cargo at the Wando Welch Terminal.

"I expect SCPA will continue to see strong growth of revenues and handle volumes significantly above the US port market average over the next fiscal year, making this aggressive financial plan achievable," said SCPA president and CEO Jim Newsome. "We currently receive 11 post-Panamax vessel calls weekly, and the improvements to our dockside infrastructure coupled with our harbor deepening project ensure our port offers first-class facilities designed to receive and deliver containers quickly and handle ships fully-loaded with export cargo headed to foreign ports."

Volume Results and Board Action

The SCPA handled 104,003 boxes in May alone, setting an all-time high for the number of containers handled during one month and pushing fiscal year to date box volume past FY2014 totals.

"Our May volumes are a testament to the quality of service offered by SC Ports - we handle record-setting volume while maintaining reliability for our customers," Newsome said.

As measured in twenty-foot equivalent units, or TEUs, SCPA has handled 1.7 million TEUs fiscal year to date for a 13.7 percent gain over the same period last year. The port handled 181,809 TEUs last month, an increase of 12.5 percent over May 2014 volumes.

The Inland Port achieved record volumes in May, with 5,845 rail moves completed during the month. The facility has handled 51,671 rail moves fiscal year to date, already surpassing initial volume projections for five years of terminal operations.

Breakbulk volumes in Charleston and Georgetown are 4.3 percent ahead of fiscal year plans, with 1.3 million pier tons handled to date. Charleston moved 82,277 tons last month, and Georgetown handled 40,345 tons in May.

In Board action, a resolution to accept an offer from Palmetto Alliance Property Group, LLC for the Port of Port Royal for $15.42 million was approved. The transaction will be presented to the SC Department of Administration prior to closing in November.

The Board also approved a contract for routine berth dredging at Columbus Street and Union Pier terminals.

Community Giving Grant Program

The application period for the Port's non-profit grant program, Community Giving, opened this month with opportunities for charitable organizations to apply for $5,000, $2,500 and $1,000 grants. Grants are available in four outreach areas: maritime commerce, economic development, environmental awareness and community outreach.

Community Giving was created in 2013 to support programs and initiatives that better the communities where the port operates. Applications are available on the Port's website, www.scspa.com, and are due August 3.

About SC Ports Authority

The South Carolina Ports Authority, established by the state's General Assembly in 1942, owns and operates public seaport facilities in Charleston, Georgetown and Greer, handling international commerce valued at more than $63 billion annually while receiving no direct taxpayer subsidy. An economic development engine for the state, port operations facilitate 260,800 jobs across South Carolina and nearly $45 billion in economic activity each year. For more information, visit www.scspa.com.

SC Ports Announce Eight Percent Fiscal Year Growth

Charleston, SC - Today SC Ports Authority reported a strong finish for the 2014 fiscal year with 8 percent container growth, an increase of 2 percent over projected plans.

"Our above-market fiscal year growth again this year is testament to strong performance in our major business segments," said SCPA president and CEO Jim Newsome. "The implementation of our strategic plan is paying off, and the large capital investments committed to port infrastructure by the state of South Carolina and Ports Authority are yielding great dividends. Significant capital investment by major port users has also positively impacted volumes."

In June the SCPA handled 149,183 twenty foot equivalent units (TEUs), up 19 percent from 125,257 TEUs handled the same period last year. For the total fiscal year period, July through June, the SCPA moved 1,684,907 TEUs.

On the non-containerized cargo side, the SCPA handled 83,399 pier tons in June for a total of 763,230 pier tons during the fiscal year in Charleston, an increase of 3.6 percent over plan.

Despite depth challenges at the Port of Georgetown, the terminal exceeded projected plans with 553,039 pier tons handled during the fiscal year, an increase of 11.8 percent year over year.

"I'm extremely proud of our strong fiscal year performance," said Bill Stern, SCPA Board Chairman. "We have a strong Board, talented and visionary CEO and senior staff, and support from a productive maritime community."

Capital projects planned for fiscal year 2015 will support continued growth. Wando Welch Terminal will receive upgrades to accommodate increases in Post-Panamax vessel calls. Construction at the Navy Base Terminal and harbor deepening remain key strategic priorities for the SCPA over the next several years, as well as the opening of the SC Department of Commerce's intermodal container transfer facility. The Inland Port in Greer is meeting volume and performance objectives, and will continue to be a vital component of SCPA growth.

"I congratulate the SCPA on their above-plan performance," said Larry Grooms, SC Senate Transportation Committee Chairman and SC Ports Authority Review and Oversight Committee Chairman. "The SCPA has aggressively captured significant market growth in the Southeast recently, and its success in outpacing competitors is incredibly positive news for South Carolina."

About the South Carolina Ports Authority

SC Ports Adopts FY2015 Financial Plan

Plans for the new fiscal year beginning July 1 include 975,000 pier container moves, representing a 3.4 percent increase in pier container volume over estimated FY2014 totals. Pier container volumes have experienced strong growth in recent months with May as the busiest month since March 2007.

In non-containerized cargo business segments, the plan includes breakbulk tonnage increases of 9.8 percent in Charleston and 0.5 percent in Georgetown, driven largely by strong performance of state manufacturers.

"I'm confident our volumes will continue to grow above the market average," said Jim Newsome, SCPA president and CEO. "Revenues will also increase thanks to strength across all cargo segments and success at the Inland Port."

Operating revenues are expected to reach $172.8 million in FY2015, up $13.2 million from projected FY2014 totals.

The Board approved capital investments of $113.5 million for the fiscal year. Projects over the next twelve months include improvements and enhancements to existing terminal systems and infrastructure as well as approximately $20 million in Navy Base Terminal construction costs.

The 2014 fiscal year drawing to a close on June 30 is marked by strong progress of all SCPA strategic projects. The Post-45 Harbor Deepening project continues timely progress forward, with the Draft Environmental Impact Statement on track to be released this summer and the Chief's Report in September of 2015. Fill activities continue at the Navy Base Terminal, with construction on-track to coincide with completion of harbor deepening. The Inland Port, which opened in October, is seeing increased traffic each month and has exceeded planned volumes.

The SCPA saw strong export growth throughout FY2014, with a 6.54 percent fiscal year to date increase in export twenty-foot equivalent units (TEUs) handled year over year. In total fiscal year to date TEU volume, the SCPA reported an increase of 7.03 percent over the same period last year, with 1,535,724 TEUs handled.

A recent ratings report completed by Standard and Poor's Rating Services affirmed the long-term A+ credit rating and stable outlook of SCPA revenue bonds. A balanced import-export cargo base as well as diverse cargo and customer profiles were cited as key credit strengths, as well as the port's solid position in the Southeastern maritime commerce industry.

The Board approved a $1.082 million contract to prepare Inland Port gate facilities infrastructure for the implementation of an upgraded terminal operating system. Construction is scheduled to begin in July and will be completed later this fall.

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