Time for new SPA leader to get port out of its funk

  • Posted: Saturday, September 5, 2009 12:01 a.m.
    UPDATED: Monday, March 19, 2012 12:11 p.m.
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Time for new SPA leader to get port out of its funk

Welcome to your new job, Jim Newsome. You're the fifth chief executive of the S.C. State Ports Authority, and I say we're lucky to have you.

Much work needs to be done; there's much to work with. South Carolina is a leading international trade state. It has proven it can thrive in the dynamics of global commerce. But it needs its port and intermodal transportation system.

Sadly, our port system -- now your port system -- is in a funk, and we should all understand that yours is a compelling challenge. A decade of success at the Port of Charleston has fogged and confused the State Ports Authority mission. Does the state economy thrive because of a great port system, or is the port system merely a value-added tool for broader production in South Carolina's industrial, commercial and agricultural sectors?

It's definitely the latter, Jim, and you should insist that everybody -- including the politicians -- understand that is the key to the Ports Authority's effectiveness. The rationale of South Carolina's port-system investments over the last 65 years is not about whipping Savannah in some meaningless market-share contest. It's about accommodating the intermodal needs of South Carolina industries. Meet that objective and competition with Savannah -- win or lose -- matters little.

You're now managing a State Ports Authority playing catch-up with its distended ego. A decade ago, Charleston grew to be the second busiest containership port on the East Coast. It was a seller's market format for ports, and the SPA handled itself well. It SPA grew by steadily and creatively generating incremental capacities at existing terminals. With a strong and well-equipped local maritime industry, the Port of Charleston soared -- despite many inherent strategic defects. The biggest one: the Port of Charleston operates from three separate terminal footprints, creating port-wide efficiency challenges -- and compounding the truck traffic impacts on the greater Charleston community.

But when long-term capacity became a market-demand issue for ocean carriers, Charleston began to trip over its ambitions. The super-port plans for Daniel Island were summarily rejected by the Legislature, and port development mandated to the old Navy Base, where construction is expensive and rail and truck transportation problematic. Savannah has outstanding terminal footprint and rail assets.

Charleston's stumbles became Savannah's strides, and in 2005 Savannah became the No. 2 container-ship port on the East Coast. Last year, Savannah strengthened its second-place ranking among East Coast container-ship ports and ranked fourth nationally. Charleston has slipped from the top 10 nationally. This has been a blow to the Port of Charleston's institutional ego for sure.

Here's hoping that the authors of very high expectations for your tenure will understand progress in the port business takes time. Managing a state-owned ports authority is different to managing the U.S. division of a major international steamship line. You did that with distinction. In fact, your career is a remarkable record of professional growth and achievement.

But ports authority management is distinctly "public." Transparency is, in fact, a management mission, best earnestly sustained in daily operations rather than forced by conflict or any form of adversarial relationships.

It's a part of the hybrid nature of ports authority management -- transparency and public accountability are as important as market share, or how well the cranes are running. If the public isn't happy, nobody is happy.

But that's not as daunting a proposition as it might sound, because the public wants to support its port system.

You are a qualified, well-prepared executive taking over an important publicly owned enterprise. Your career of networking and professional relationships is now a state asset, and already there is news that even before you officially took office, you were working "certain accounts."

Folks will want to meet their new port director. Engage them, ask for their patience, their understanding and their support. The Ports Authority has some big plans and complex issues before it. Public understanding is the key to public support -- and political passage.

And remember, the Ports Authority is merely the hub of the greater Charleston maritime community. This is a remarkably capable and productive industry that forms a great resource of counsel and service. Sometimes it has seemed the SPA thinks it runs the Port of Charleston all by itself. It's time for that attitude to change.

The Port of Charleston's competitiveness is only as great as the Charleston maritime community performance, including unionized labor that enjoys a reputation for productivity.

South Carolinians and especially we Charlestonians are ready for the Ports Authority to move past its funk. Achievement may be as much about renewing the spirit of service and competitiveness to our port system as any market share gains.

It's a happy irony that you, Jim Newsome, a son of Savannah, have taken on this challenge. We South Carolinians owe you our support and determination that you will be given all the tools and the professional space you need to be successful.

Ron Brinson served as president/CEO of the American Association of Port Authorities from 1979-86 and president/CEO of the Port of New Orleans from 1986-2003. He is a former associate editor of this newspaper. He can be reached at rbrin1013@gmail.com.