SPA sets budget expectations

The State Ports Authority expects a container comeback in the financial year that starts next month.

The agency's board on Tuesday approved its budget for fiscal year 2011, which starts July 1. One of its key elements: an expected 7 percent increase in container volume.

Chief commercial officer, Paul McClintock, told the group that this year should mark a return to 2009 levels -- since which time the port has lost 10 shipping services.

"We've got a lot to recover," McClintock said.

But business shows improvement. May container traffic increased 22 percent year over year and held steady with April, according to port officials. Given four previous months of growth, the Port of Charleston appears poised to meet its container volume budget for the current year, which ends June 30.

The 2011 budget includes more than $77 million in spending on capital projects, including terminal upgrades and progress in developing a new container terminal at the former Navy base.

The plan shows more revenue, fewer expenses and greater cash flow. In the wake of cargo declines, the SPA has trimmed its workforce by 71 employees.

It anticipates operating revenues to climb about $6 million and expenses to fall about $1.7 million in 2011. The plan also calls for a nearly 147 percent increase in cargo at Georgetown and Veterans terminals.

McClintock called Georgetown "the No. 1 objective" and mentioned three big breakbulk, or non-containerized cargo, projects in the works. He said he expects answers from those potential customers in a month or so.

McClintock also said refrigerated cargo, known as "reefers," grew 100 percent over last year and that the port's rail-served warehouse program, which kicked off last month, shows early success.