Harbor Deepening Archives - Page 2 of 6

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.

Charleston Harbor Deepening Project Progresses with House Water Resources Development Act Passage

CHARLESTON, SC - September 28, 2016 - Today's passage of H.5303, the Water Resources Development Act (WRDA) of 2016 by the U.S. House of Representatives, moves the Charleston Harbor Deepening Project closer to securing the authorization necessary to begin construction.

"We applaud the House of Representatives for making this critical legislation a priority before the lame duck session," said Jim Newsome, SCPA President and CEO. "The entire South Carolina Delegation has worked diligently to ensure the bill moves forward in order to enable the project to begin construction next year. Thanks to their support, we are well-positioned to be the deepest harbor on the East Coast by the end of the decade."

H.5303 passed with a vote of 399-25. A conference committee will now be formed to work through the differences between the House and Senate versions during the Congressional recess.

"Passage of this bill by the House represents another hurdle cleared for Charleston Harbor Deepening," said SCPA Board Chairman Pat McKinney. "We are deeply appreciative of our entire delegation's efforts. This milestone is the result of years of hard work and ensures our Port's world-class deepening project remains on track."

The Charleston Harbor Deepening Project was formally recommended for Congressional authorization in January with the issuance of the Record of Decision by the Assistant Secretary of the Army (Civil Works). The project has moved expeditiously through the U.S. Army Corps of Engineers SMART Planning process and received strong support by all levels of government. In 2012 the S.C. General Assembly set aside $300 million for the state share of the project, and it was expedited by the Administration as a "We Can't Wait" initiative.

"Today's action in the House is tremendous news, and I congratulate our delegation for their tireless efforts on behalf of the Port and the entire state," said Senator Larry Grooms, SC Review and Oversight Commission on the SCPA Chairman.

Upon completion, the project will deepen the Charleston Harbor to 54 feet at the entrance channel and 52 feet in the harbor.

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.

Charleston Harbor Deepening Project Progresses with House Water Resources Development Act Passage

H.5303 passed with a vote of 399-25. A conference committee will now be formed to work through the differences between the House and Senate versions during the Congressional recess.

Upon completion, the project will deepen the Charleston Harbor to 54 feet at the entrance channel and 52 feet in the harbor.

U.S. Senate WRDA Passage Moves Charleston Harbor Deepening Project Closer to Construction

CHARLESTON, SC - September 15, 2016 - Today the U.S. Senate passed the Water Resources Development Act (WRDA) of 2016, a significant milestone that moves the 52-foot Charleston Harbor Deepening Project to the U.S. House of Representatives for final authorization to begin construction.

"WRDA is critical legislation for port and port-related infrastructure modernization projects across the country, and we are grateful to Senators Graham and Scott for their unwavering support of its passage," said Jim Newsome, SCPA president and CEO. "We are extremely pleased that the Charleston Harbor Deepening Project will now move forward to the House for final authorization. Congressional approval will allow project construction to begin, ensuring the Port remains on track to deliver all of the capabilities needed of a modern harbor by the end of the decade."

The Senate passed the bill 95-3 with nearly unanimous bipartisan support. From a national perspective, the legislation includes critical authorizations necessary for the U.S. to compete in the global marketplace as well as strengthens floodwater protections of coastal and inland communities.

"Our entire delegation recognizes the importance of this bill as the final hurdle for Charleston Harbor Deepening," said SCPA Board Chairman Pat McKinney. "We applaud their continued dedication and focus on economic growth in South Carolina by helping our port system remain competitive."

The House bill is expected to receive strong support from a South Carolina delegation united in their support of the project.

"We are encouraged by the Senate's passage of the Water Resources Development Act of 2016, which includes authorization of the Charleston Harbor Deepening Project to 52 feet. The South Carolina Ports Authority's ability to handle New Panamax vessels is critical to businesses large and small across our state and region and vital to the nation's economy. We look forward to working with House Leadership, Chairman Shuster, and Ranking Member DeFazio in order to optimize debate time on the floor and look forward to the passage of a WRDA bill this Congress," said South Carolina Congressmen Mark Sanford (SC-1), Joe Wilson (SC-2), Jeff Duncan (SC-3), Trey Gowdy (SC-4), Mick Mulvaney (SC-5), Jim Clyburn (SC-6) and Tom Rice (SC-7) in a joint statement.

Efforts to deepen the Charleston Harbor began in 2012, and the project progressed quickly as the first feasibility study completed entirely through the U.S. Army Corps of Engineers SMART Planning process. The USACE's original estimate of seven years and $20 million dollars for the study and associated environmental reviews and permits was nearly cut in half to four years and $11 million as a result of the new program, as well as collaboration with state and federal partner agencies. It received its Chief's Report in just four years. Most recently, the project received its Record of Decision by the Assistant Secretary of the Army (Civil Works) in January and has since awaited authorization through WRDA.

"This is good news for our state and another step towards final authorization of the Charleston Harbor Deepening Project," said Gov. Nikki Haley. "We will continue working with our federal delegation, state leaders and members of the General Assembly to deepen Charleston's port, as the success of this project is vital to South Carolina building on the record-breaking economic development momentum we've seen over the last five years. I urge Speaker Ryan and House Leadership to continue this momentum and work towards adopting a WRDA bill before their next recess period."

"The Senate's action today is incredibly positive news for the Port and the entire state," said Senator Larry Grooms, SC Review and Oversight Commission on the SCPA Chairman. "This world-class deepening project will ensure our Port remains well-positioned for future growth. I congratulate Senators Graham and Scott for their efforts, and encourage the U.S. House to bring this critical infrastructure bill across the finish line."

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 https://scspa.com/

SC Ports Authority Handles Largest Container Ship

CHARLESTON, SC - August 30, 2016 - Yesterday evening the South Carolina Ports Authority welcomed the APL Yangshan, the largest container ship ever to call the Port of Charleston.

"The deployment of New Panamax vessels to the East Coast trade marks a new era," said Jim Newsome, SCPA president and CEO. "Today 16 of Charleston's 26 weekly calls are handled by vessels 5,000 TEUs or larger, and we expect to handle our first 14,000 TEU vessel call later this year. As the deepest harbor in the Southeast, Charleston is well-prepared to provide the depth as well as the capacity and infrastructure necessary for efficiently handling big ships."

The Yangshan, which measures 1,140 feet long and 148 feet wide, can transport up to 10,700 twenty-foot equivalent units (TEU). It is deployed on the China East Coast "CEC" weekly vessel service via the Suez Canal.

The Yangshan's milestone visit comes on the heels of the arrival of two new cranes last month, boosting big-ship handling capabilities at SCPA's Wando Welch Terminal. The cranes, which offer 155 feet of lift height from the dock, are expected to be operational by December 2016. By December of next year, two additional cranes of this height will be delivered to the Wando Terminal in conjunction with the completion of a $44 million project to modernize and strengthen the terminal wharf.

The Yangshan departed Charleston for a call in Norfolk before it transits to Jeddah, Saudi Arabia. Charleston will receive the next vessel of this size, the APL Barcelona, in early September.

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.

SC Ports Authority Welcomes 8,500 TEU Vessel Via Newly-Expanded Panama Canal

Charleston, SC - July 14, 2016 - Today South Carolina Ports Authority (SCPA) welcomed the Hannover Bridge, first post-Panamax size vessel to call Charleston after transiting the newly-opened Panama Canal expansion.

"SCPA is already benefiting from the upsizing of vessels in response to the expansion, with 16 of the 26 weekly container vessel calls in Charleston now being served by large ships formerly known as post-Panamax," said SCPA president and CEO Jim Newsome. "The arrival of the first 8,500-class vessel to pass through the newly-expanded Panama Canal locks bound for Charleston is a milestone for our port and maritime industry. We look forward to seeing this larger class of vessels more frequently in our harbor, which offers the depth and capacity required to serve the biggest ships deployed to the Southeast."

The Hannover Bridge, an 8,200 twenty-foot equivalent unit (TEU) "K" Line vessel, calls Charleston as part of the CKYHE Alliance's weekly All Water East Coast Loop 3 Service (AWE3) that connects the Southeast with China, Hong Kong, Taiwan and Korea.

On the heels of larger vessel deployment and the opening of the Panama Canal expansion, SCPA expects to handle its first 14,000 TEU vessel call later this year. Charleston is currently the deepest harbor in the Southeast, routinely handling ships over 1,100 feet long and 150 feet wide with drafts up to 48 feet.

When the Charleston Harbor Deepening Project to 52 feet is completed, Charleston will offer 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.

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

Charleston Harbor Deepening Project Recommended for Congressional Authorization

CHARLESTON, SC - JANUARY 13, 2016 - The 52-foot Charleston Harbor Deepening Project was recommended to Congress for authorization this week, continuing the project's historic momentum through the U.S. Army Corps of Engineers (USACE) planning process.

Known as the Record of Decision, the recommendation signed by Assistant Secretary of the Army (Civil Works) Jo-Ellen Darcy is the official notification to Congress that the project requirements have been fulfilled and that it awaits authorization.

Charleston Harbor Deepening has progressed quickly as the first study completed entirely through the U.S. Army Corps of Engineers SMART Planning process. The USACE's original estimate of seven years and $20 million dollars for the study and associated environmental reviews and permits was nearly cut in half to four years and $11 million as a result of the new program, as well as collaboration with state and federal partner agencies.

It received its Chief's Report in September 2015, just four years after the project began. In December the project reached another milestone with the signing of the PreConstruction Engineering and Design (PED) Agreement.

The PED phase of the project is underway, marking the final major phase of the deepening process before construction begins. This phase of work activities by the U.S. Army Corps of Engineers, Charleston District include ship simulation studies, refinement of cost estimates, coastal monitoring and analysis of beneficial use of dredged material. PED work is expected to be substantially completed by the end of 2016.

"As another significant milestone achieved for harbor deepening, the issuance of the Record of Decision is tremendous news for SCPA," said Jim Newsome, SCPA president and CEO. "By the end of the decade, we will achieve 52 feet of depth and Charleston will be the deepest harbor on the East Coast. This advantage will provide our customers with 24-hour access to deepwater, a requirement for significant long-term volume growth in today's big-ship environment. We are deeply appreciative to the USACE for their leadership on this project."

The project has received strong support from all levels of government. In 2012, the S.C. General Assembly set aside $300 million to begin construction of the project upon completion of the design, and it was expedited by the Administration as a "We Can't Wait" initiative.

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 SCPA, please visit www.scspa.com.

Charleston Harbor Deepening Project Reaches Significant Milestones

CHARLESTON, SC - DECEMBER 18, 2015 - This week's signing of the Preconstruction Engineering and Design Agreement and passage of the omnibus appropriations bill with construction funding for Charleston marked significant milestones for the 52-foot Charleston Harbor Deepening Project.

Wednesday evening South Carolina Ports Authority (SCPA) and U.S. Army Corps of Engineers, Charleston District (USACE) signed the Design Agreement, an important step marking the official beginning of the Project's Preconstruction Engineering and Design Phase (PED).

PED is the final major phase of the deepening process before construction begins, with work activities to include ship simulation studies, refinement of cost estimates, coastal monitoring and analysis of beneficial use of dredged material. Utilizing initial federal funding appropriated in July, PED work is already underway and is expected to be substantially completed by the end of next year.

"The container shipping industry's deployment of big ships is evident, and the Southeast needs a harbor deeper than 50 feet to accommodate fully-loaded post-Panamax container ships," said SCPA president and CEO Jim Newsome. "At 52 feet, SCPA will be able to handle vessels of this size without tidal restriction and continue volume growth above the national average. We thank the USACE for their tireless efforts and look forward to the timely completion of PED followed by significant progress on construction by the end of the decade."

The Deepening Project also received positive news today with Congress's passage of the omnibus appropriations bill. The bill includes necessary funding for construction of harbor deepening, as well as operations and maintenance dollars, that allow the Project to continue moving forward without delay.

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 SCPA, please visit https://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.

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