Category: Harbor Deepening

Charleston, S.C. - Today, Congress finalized the Water Resources Reform and Development Act (WRRDA), solidifying critical provisions for SCPA initiatives, including the Post-45 Harbor Deepening Project.

"We applaud Congress for their demonstrated commitment to our nation's competitiveness through the passage of WRRDA," said Jim Newsome, SCPA president and CEO. "This bill is critical to modernizing port and port-related infrastructure projects across the country, and we are extremely appreciative that key SCPA priorities, including our harbor deepening project, are included."

Through WRRDA, the first water resources bill to pass in seven years, Congress provides a path forward for harbor deepening projects ready to begin construction in the absence of congressional authorization. This language is essential to continuing the timely progress of Charleston's deepening project, which is expected to be ready for construction in late 2015 following the issuance of the U.S. Army Corps of Engineers Chief's Report next September.

The bill increases the threshold for federal harbor maintenance funding from 45 to 50 feet in order to meet the depth needs of export-laden ports like Charleston, which receives an average of seven post-Panamax vessel calls each week. It also outlines eligibility requirements and the process through which non-federal entities can seek federal reimbursement for construction and O&M costs if Congress does not pass a water bill during a congressional term.

WRRDA also addresses the needs of smaller, emerging ports around the country to compete for federal funding, which could provide opportunities for the Port of Georgetown to seek maintenance funding to restore its harbor depth.

"Members of our delegation worked tirelessly to ensure WRRDA addressed the needs of our harbor deepening project," said SCPA Board Chairman Bill Stern. "Their support speaks to the merit of our project, and the passage of this bill is incredibly important for South Carolina and the nation."

Other key provisions include an increased allocation of Harbor Maintenance Trust Fund dollars to ports. Currently, only half of the $1.8 billion collected into the fund is being used for maintenance dredging. WRRDA sets target expenditures that increase each year so that by 2025, 100 percent of the trust fund is spent toward intended operations and maintenance.

The entire South Carolina delegation voted for the bill, which passed 412-4 in the House and 91-7 in the Senate. It now moves to the President's desk for signature.

Following the passage of the WRRDA conference report out of the U.S. House this afternoon, South Carolina Ports Authority President and CEO Jim Newsome released the following statement:

"We applaud the passage of the Water Resources Reform and Development Act through the U.S. House today and the resolute support of South Carolina's entire House delegation. This bill includes language that addresses our priorities, specifically, a seamless transition into construction for the Charleston Harbor deepening project and the possibility to secure channel maintenance funding for the Port of Georgetown. With the House's passage, we look forward to the U.S. Senate voting on the bill and the President's signature in the coming days."

Charleston, SC - The President included more than $15 million in critical funding for SC Ports Authority projects, including the Post-45 harbor deepening project, in his fiscal year 2015 budget.

"The Administration has included funding for the SCPA's deepening project in its budget for three consecutive years," said Bill Stern, SCPA Board Chairman. "We're deeply appreciative that the Administration recognizes our harbor deepening as a critical infrastructure project. The support from President Obama and Vice President Biden - along with members of Congress, the South Carolina delegation, South Carolina Legislature, Gov. Haley and Mayor Riley - cannot be overstated in its impact on the SCPA's future competitiveness and our role in the region and nation's prosperity."

The Administration allocated the requested $695,000 to continue the U.S. Army Corps of Engineers feasibility study of the Charleston Harbor deepening. The project's Draft Environmental Impact Statement is scheduled to be released later this year and the Chief's Report in September of 2015, which will recommend to Congress a depth to dredge the harbor. President Barack Obama's allocations ensure that all aspects of the project remain on time and within budget.

Charleston Harbor is designated to receive $1.57 million in construction funding and $13.15 million in operations and maintenance funding.

"Being included in the executive budget again this year is incredibly important for our project," said SCPA President and CEO Jim Newsome. "Our team is on track to ensure Charleston remains the most capable harbor in the Southeast, and we are grateful for the productive relationship we have with the U.S. Army Corps of Engineers."

All levels of government have supported deepening Charleston Harbor. Vice President Joe Biden visited the Port of Charleston last year and emphasized the importance of deepening to 50 feet to accommodate post-Panamax ships that will access the East Coast after the Panama Canal expansion. The Administration has named the Charleston Harbor Post-45 Project in its "We Can't Wait" initiative, which seeks to expedite the most critical infrastructure projects in the country.

Congress has demonstrated support for SC Ports initiatives with authorization and appropriations efforts through the Water Resources and Reform Development Act (WRRDA) and passage of the Omnibus bill. And in 2012, the South Carolina General Assembly set aside $300 million to cover the full estimated cost of construction for 50-foot or deeper harbor, ensuring that funding issues would not create delays in the project's progress.

Harbor funding recommendations will now be considered by the full Congress.

With 45 feet of depth at mean low water, Charleston currently has the deepest harbor in the region and can handle ships drafting up to 48 feet on high tide. Deepening Charleston Harbor to 50 feet or more will open the port to larger post-Panamax container ships 24 hours a day. Currently, Charleston receives seven post-Panamax ship calls weekly.

About the South Carolina 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.

Charleston, S.C. - Today, the SC Ports Authority (SCPA) announced volume increases across all business segments in 2013, a year marked by the successful opening of the Inland Port and significant progress of both the construction of the Navy Base container terminal and the Post-45 harbor deepening project.

In calendar year-end results presented at the authority's regular Board meeting, container volumes measured in 20-foot equivalent units were up 5.7 percent from 2012 to 2013, with over 1.6 million TEUs handled during the year. Breakbulk cargo also grew during the period, increasing 3.3 percent over 2012 volumes.

Midway through the SCPA's fiscal year that began July 1, the port has seen a 5.4 percent increase in TEUs over the same period last year, and container volume remains slightly over plan. SC Ports handled 124,103 TEUs in December.

Cargo at Georgetown is up 20 percent fiscal year to date, with 302,242 total pier tons moved so far. Business at the Port of Georgetown is currently up 8.7 percent over plan for the fiscal year.

"We typically see a modest first quarter of the calendar year followed by a stronger second quarter, and we expect 2014 to follow a similar trend," said Jim Newsome, SC Ports president and CEO. "Much of our growth from April to June will be impacted by developments in export business and the implementation of the mega-alliance deployments by ocean carriers, if and when approved."

In addition to cargo volume growth in 2013, containerized rail shipments at SC Ports grew 18 percent last year, a 50 percent increase since 2011. Those shipments now represent about 16 percent of overall port volume, driven largely by a successful implementation the port's RapidRail drayage program that includes participation by all major carriers.

Maintenance Projects - The Board heard updates on two proposed projects for the North Charleston terminal, including replacement of the current refrigerated cargo (reefer) overhead electrical network with an underground service and surface upgrades to the RTG container storage area to increase storage capacity. In addition, a maintenance repair project for the Columbus Street Terminal substructure was reviewed. Final bids on all three projects will be presented to the Board for approval at the February meeting.

State Supreme Court Case Ruling The Board also discussed the South Carolina Supreme Court dismissal of the lawsuit filed in the June 2011 alleging the operations of Carnival Cruise Lines in Charleston are unlawful or a nuisance to citizens. Newsome praised the Court for hearing the case in its original jurisdiction and reiterated that the cruise industry is an important part of the port's business diversification.

Congressman Mulvaney's Remark - Before the meeting convened, Congressman Mick Mulvaney joined the SCPA Board to discuss harbor deepening efforts, particularly the Water Resources Reform and Development Act (WRRDA) passed by the U.S. House of Representatives in October of 2013.

"As we move into a global economy, the importance of being able to ship goods into and out of South Carolina is absolutely critical," Mulvaney said. "The WRRDA will allow harbor dredging to begin five to seven years earlier than it would have otherwise, and it's important for our delegation to continue working together. Everyone in South Carolina recognizes the economic development value of the port."

Bill Stern, SCPA Board Chairman, thanked Mulvaney for his consistent support and vision on port issues.

"There has never been a more critical time that we pull together to foster job creation and economic development, expansion of existing industry and foreign investments in our state," Stern said. "Today we give much-deserved appreciation to our state leaders who support the port. We look forward to many opportunities to work together to solidify South Carolina's standing as a top port on the East Coast, the country and the world."

About the South Carolina 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.

Charleston, S.C. - This afternoon the U.S. House of Representatives passed the Omnibus appropriations bill, which includes critical funding to move forward the Port of Charleston's deepening project and opportunities for maintenance funding for the Port of Georgetown.

The bill passed 359-67 with support from S.C. Congressmen Joe Wilson, Trey Gowdy, Mick Mulvaney, Jim Clyburn, and Tom Rice.

"The South Carolina Ports Authority is extremely proud of the leadership demonstrated today by members of our delegation," said Bill Stern, SCPA Board Chairman. "Their support of this critical piece of legislation allows our harbor deepening project to continue to move forward, and South Carolina benefits from their commitment to the Port and its role in our state's prosperity and economic development."

The bill includes funding for the U.S. Army Corps of Engineers to continue its Feasibility Study of the Post-45 Harbor Deepening project, which expects to receive its Chief's Report in September 2015.

The bill also provides construction funds for Charleston that could enable the deepening project to move forward without delay upon receipt of the Chief's Report.

Additionally, it contains language pertaining to emerging harbors that could provide opportunities for the Port of Georgetown to compete for maintenance funding to restore its harbor depth.

The bill will move to the Senate for a vote before being passed to the President's desk for signature.

About the South Carolina 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.

Charleston, SC - The President's Budget once again includes funds to continue Charleston's Post-45 Harbor Deepening, a project designated last year by the Administration as one of its priority infrastructure projects. Released today, the fiscal year 2014 budget includes a $1.165-million allocation to continue the considerable progress on the project's feasibility study, now at its midpoint.

"We are grateful to the Administration for including Charleston's project in the budget for a second year in a row, as well as their commitment of resources to expeditiously advance our project," said Bill Stern, chairman of the South Carolina Ports Authority (SCPA) Board of Directors. "This funding means that Charleston's study can proceed to completion with absolutely zero funding restraints, as both the federal and the port's contributions have been fully committed at this point."

The feasibility study is cost-shared 50/50 between the federal government and the SCPA, which committed to accelerate its half of the study funds as needed to continue advancing the project. A national measure to modernize U.S. Army Corps of Engineers' Civil Works projects targets completion of the feasibility study and necessary reviews by September 2015 at a cost of $13 million or less. The Draft Environmental Impact Statement is scheduled to be released next year.

"Leaders at all levels of government have recognized the Port of Charleston's importance to the state's, the region's and the nation's economy, and we are thankful for the efforts of our Congressional Delegation, led by Senator Graham and Congressman Clyburn, the South Carolina Legislature and Mayor Riley." Stern said.

Last session, the South Carolina General Assembly set aside $300 million to cover the estimated cost of construction for a 50-foot deepening project in Charleston. The funds would cover both the state's 60 percent share of the project's cost as well as the federal government's 40 percent share, if needed, thereby removing any funding constraint.

The President's Budget also included $14.825 million for maintenance dredging in Charleston Harbor.

Overall allocations to Civil Works for the fiscal year that begins October 1 are $4.7 billion, a 5.5 percent decrease from the 2012 enacted level. The President's Budget focuses on the "highest priority work within the agency's three main missions, which includes commercial navigation, and emphasizes investments in construction projects with high economic and environmental returns," according to the document. The Corps' investigations budget includes funding for studies related to the deepening of eight U.S. ports, including four East Coast ports, two Gulf ports and two West Coast ports.

Importantly, the Budget summary notes that the Administration's Task Force on Ports is developing a nationwide strategy to guide investments related to port infrastructure, creating a network "that is more efficient, safe, secure, resilient and environmentally sustainable." The Budget document also notes that the Administration is working with the Corps to establish a national Infrastructure Bank to help finance port deepening projects and other major water resource activities.

The Corps stated in its Reconnaissance Study in 2010 that Charleston is likely "the cheapest South Atlantic harbor to deepen to 50 feet." Last July, the Administration named the Charleston Harbor Post-45 Project as one of seven projects in five ports for We Can't Wait, a new initiative targeted to expedite the most critical infrastructure projects in the country.

With 45 feet of depth at mean low water, Charleston currently has the deepest channels in the region and can handle ships drafting up to 48 feet on high tide. Deepening Charleston Harbor to 50 feet will open the port to handling larger post-Panamax container ships 24 hours a day.

Nearly 20 percent of the port's ship calls so far in 2013 were vessels drafting greater than 39.5 feet, the current maximum depth at the Panama Canal. Ocean carriers are beginning to shift services in the Asia-U.S. East Coast trade to utilizing the Suez Canal in order to deploy larger vessels and take advantage of economies of scale.

Already this year, 21 ships with actual docking or sailing drafts 43 feet or greater have called Charleston, which is the only port in the region today able to handle these vessels.

Charleston, SC - The President of the United States has named Charleston's Post 45 Harbor Deepening Project one of the nation's seven priority infrastructure projects, committing that the project's study and necessary reviews will be completed by September 2015.

The initial list of projects, which is part of the Administration's We Can"t Wait initiative, is targeted to expedite the most critical infrastructure projects in the country. Charleston's harbor deepening is one of seven projects in five ports included in the initiative, which was announced by The White House Wednesday evening.

The news builds upon last week's update from the U.S. Army Corps of Engineers" Charleston District announcing a reduced timeline and cost estimate for Charleston's feasibility study. Under the new Administration program, the study and federal reviews now will be further expedited and will be completed up to one year earlier.

"This announcement represents more good news for our deepening project, and demonstrates that the highest levels of our government understand the critical need to advance this project," said Jim Newsome, president and CEO of the South Carolina Ports Authority (SCPA). "In just two years, we have gone from not being included in the President's Budget to now being a top priority. We are grateful for the Administration's commitment."

We Can't Wait is a direct result of a Presidential Executive Order issued in March, which called for a government-wide effort to streamline the permitting and review process for vital infrastructure projects in communities across the nation.

The SCPA, along with U.S. Sen. Lindsey Graham, Congressman Jim Clyburn and Charleston Mayor Joe Riley, in April sent letters to the Administration and members of the steering committee charged with this initiative, asking that they include Charleston's Post 45 Project in their priority infrastructure list. The steering committee, comprised of leadership of the U.S. Army as well as the federal departments of Transportation, Commerce and Agriculture, participated in the selection process.

"This priority infrastructure program is a natural extension of the Obama Administration's export initiative," Newsome said. "There is clearly a recognition that in order to double the nation's exports - which are primarily sourced from the Southeast region - a port in this region must be deepened to at least 50 feet to accommodate the largest ships expected to call our coast without tidal restriction. We anticipate a favorable cost-to-benefit ratio in the Chief's Report allowing for a true post-Panamax harbor allowing for two-way vessel traffic."

A report to Congress released last month by the Corps of Engineers' Institute for Water Resources indicated that modernizing Southeast and Gulf ports was most critical to serving the nation's export needs over the coming years.

In February, the Obama Administration included $3.5 million toward the project's feasibility study in the President's Budget for fiscal year 2013. The deepening of Charleston Harbor to 50 feet is predicted to provide significant economic benefit to the Southeast region and the entire nation, with $106 million in net benefit to the nation estimated on an annual basis.

Last month, the South Carolina Legislature committed $300 million in the state budget to fund the construction of a post-45-foot harbor project for the Port of Charleston. This allocation could cover the entire estimated cost to deepen the harbor to 50 feet or greater, once the project receives authorization from Congress.

With 45 feet of water at mean low tide, Charleston Harbor is currently the deepest port in the region, serving ships drawing up to 48 feet of water on the tides. Deepening Charleston Harbor would open the port to the biggest vessels 24 hours a day, under any tidal condition. The Corps stated in its Reconnaissance Study in 2010 that Charleston is likely "the cheapest South Atlantic harbor to deepen to 50 feet."

About the South Carolina State Ports Authority
The South Carolina State Ports Authority, established by the state's General Assembly in 1942, owns and operates public seaport facilities in Charleston and Georgetown, handling international commerce valued at more than $58 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.