Authority board changes proposed
Members should have expertise, Grooms says
By Allyson Bird
For the second time in as many months, Lowcountry lawmakers are contemplating a measure that would redesign the State Ports Authority's board of directors.
A proposal being considered by Sens. Larry Grooms and Glenn McConnell comes in response to upheaval on the waterfront, with slumping volume and plans by Maersk Line, the world's largest container carrier and the Port of Charleston's biggest customer, to take its business elsewhere.
The Post and Courier
State lawmakers are floating ideas for changing the way the State Ports Authority operates.
But while state Rep. Jim Merrill, R-Daniel Island, wants to eliminate the board and put the power in the hands of a governor-appointed executive director, Grooms and McConnell hope instead to give the governor less control over a board that would have more maritime- related expertise.
Grooms, R-Bonneau, said he wants to require more intensive qualifications to ensure directors have experience in shipping, finance and legal issues. He also wants to guarantee that members, who are appointed by the governor, serve their entire seven-year terms.
His idea expands upon a bill prefiled by Sen. Robert Ford, D-Charleston, that would not allow the state's chief executive to remove a ports board member at will.
"When we plan for port development, it takes more than a few years," Grooms said. "We're planning 25 years in advance and, in that span, you might have six different governors with the ability to remove and put in board members."
Gov. Mark Sanford has removed one board member during his six years in office.
Previous story
Port bonuses under fire, publihsed 12/31/08
When a governor nominates someone to the SPA board, the Senate Transportation Committee, which Grooms chairs, then screens that nominee. Grooms said the process entails little more than a criminal background check and a resume verification.
McConnell, R-Charleston, who said he plans to collaborate with Grooms, envisions a new process that would include "merit screenings."
"We need to make sure for every governor, they've got to appoint based on familiarity and experience, rather than friendliness or political support," McConnell said.
SPA board Chairman David Posek said he was open to learning more about what the lawmakers are proposing.
"Anything we can do, as a state, that strengthens this asset, this port, to further the economic development of this state is worth looking at," Posek said.
Sanford press secretary Joel Sawyer said the governor favors Merrill's bill, which was prefiled Dec. 15, over what Grooms is proposing.
Sawyer said the Senate did not allow two past gubernatorial nominees to serve on the board and said Grooms, as Senate Transportation Committee chairman, could make the approval process more rigorous without any new legislation.
Sawyer also blamed McConnell's urge to shift power from the executive office to the Senate as an impetus for the bill.
"If you take away a governor's ability to remove board members, there's no accountability to the people," Sawyer said. "In the case of Senator McConnell, it could very well be a case of the Maersk situation being fodder to take away some of the governor's appointing powers."
McConnell instead considers this bill part of "transparency legislation" he aimed to file after learning that ports authority executives earned bonuses for the agency's last fiscal year. Those incentives, triggered when the SPA met a profit goal, amounted to more than $200,000 for a dozen top staff members.
Those bonuses, which the SPA has awarded in some fashion for two decades, are factored into financial planning at the start of a fiscal year. They require the board chairman's signature to be activated at year's end.
"If the board is making those decisions, I think they need to be publicly debated," McConnell said.
Posek, the SPA chairman, said he plans as early as the February a board meeting to discuss ways to restructure the incentive program so that it is based on strategic direction and volume, as well as profits.
"We've got to balance it in a way so it's not just profitability," Posek said.
Separately, the SPA board is set to hold a special meeting today in Columbia to discuss the situation with Maersk Line, but those talks are expected to be held behind closed doors because they involve contract issues.
Reach Allyson Bird at 937-5594 or abird@postandcourier.com.
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truthseeker (anonymous) says...
So do our elected "Republican " leaders really think that our state agency can plan how to successfully run a shipping business 25 years into the future that competes against companies like Maersk in Norfolk? Who would you rather invest your limited resources with - the SPA or an international conglomerate like Maersk?
The answer is to let private companies run, lease or buy the existing terminals and let them invest their own money in the business and give our state a fee for each container they handle.
Why is this such a difficult concept to grasp? Sell or lease Maersk the Wando terminal and let them run it any way they choose.
That assures us of a much needed revenue stream which we desperately need . It also turns the port into a true "asset" - i.e. money coming into our state's depleted treasury.
Now our SPA chairman is proposing to give bonuses to port management on handling more containers regardless of whether our port terminals make money or not?
Maybe Putin can send us his bonus structure for his state run businesses in Russia.
January 7, 2009 at 8:32 a.m. ( permalink | suggest removal )
JohnGalt (anonymous) says...
"Sell or lease Maersk the Wando terminal and let them run it any way they choose."
Maersk is running their own part of the Wando with some union labor. The problem is they want to go to the port run yard which uses spa employess.
January 7, 2009 at 9:01 a.m. ( permalink | suggest removal )
CHRISJIII (anonymous) says...
The less involvement that the governor's office has in deciding who sits on the board the better. However something really needs to be done about who gets to sit on that board and much more transparancy in it's dealings need to begin.
January 7, 2009 at 9:17 a.m. ( permalink | suggest removal )
whome (anonymous) says...
Does anyone get the feeling that our leaders have no idea what they're doing?
January 7, 2009 at 9:20 a.m. ( permalink | suggest removal )
bohicasc (anonymous) says...
It's funny. Remember who stopped the port from expanding? When the opportunity was lost to expand on Daniel Island, we gave away business to other ports.
Please thank Sen. McConnell for that personally. I beg all voters, citizens, to blast this incompetent "leader" with phone calls, emails, whatever it takes!!!
January 7, 2009 at 10:10 a.m. ( permalink | suggest removal )
CaptKick (anonymous) says...
Grooms, McConnell and Ford are finally getting on the right track!! Thanks Gentlemen!!
January 7, 2009 at 10:11 a.m. ( permalink | suggest removal )
MyView (anonymous) says...
I'm not an expert on how our ports should be run, and I don't think that those in charge are either. Why not look at somewhere that is successful, like where all of our port business is going and learn a lesson on what works. Get government OUT of the ports. Regulate the traffic and let free enterprise AKA capitalism work like it is supposed to.
I've said it before and I'll say it again. Charleston was born because of the port and it can also die because of it. How are those real estate values looking on Daniel Island and surrounding areas now? Depressed economy and getting worse here, because the port business is drying up.
Get over the bonuses. They earned it based on the criteria that has been in place for 25 years. Shut up, if you earn it you get it. If you want it, go earn it. NO ONE IS ENTITLED BECAUSE THEY BREATHE.
January 7, 2009 at 10:54 a.m. ( permalink | suggest removal )
pileofalms (anonymous) says...
just a couple of words for PRSISBEST: Seig Heil!
January 7, 2009 at 11:52 a.m. ( permalink | suggest removal )
JF (anonymous) says...
If you want to port growth make the new North Charleston terminal a non union terminal.
January 7, 2009 at 2:25 p.m. ( permalink | suggest removal )
dockworker (anonymous) says...
Hey Prsibest, you sound like a typical jack ass that does not have a clue to what is actually going on around the waterfront. The SPA is a government agency that pays no taxes, rents or revenues back to our state. The ILA union members are 99.5% local born residents, private sector, tax paying citizens with families that date back to SC's first settlers. You call us 'Socialists' I call you a candy ass that probably can't muster a single red blood cell and with out a ounce of courage to stand and fight for something that you believe in. Charleston ILA members hold the #1 or #2 position in the world for speed and production. We have been on the waterfront for more than 50 years and will still be there when your sad little self is spewing jealously and anger over some other topic that you don't apparently understand.
January 7, 2009 at 3:42 p.m. ( permalink | suggest removal )
dockworker (anonymous) says...
Hey Prsibest, anyone reading this that actually works on the waterfront can tell that you don't have a clue to the truth. Yea it looks like you are working hard posting at 7:06 am, 8:39am, 9:28am, 11:05am, 3:15pm and now 4:30pm. Hey if you work on the dock let's meet man to man, face to face and talk about these issues, tomorrow any time any place will work for me, I will take the day off just so that I can see the weasel behind these idiotic posts that you write. I'm confident that you don't have the courage to put up or shut up. I will take any common sense, honor driven man over a spineless sissy as yourself. We can invite some of the $225,000 SPA crane operator's to meet you if we can find one.
January 7, 2009 at 4:55 p.m. ( permalink | suggest removal )
goodkarmasc (anonymous) says...
Sounds like we have some government fat cats wanting to try and cut themselves a piece of an assumed cash cow in the Port of Charleston.
The port has been productive, safe, and an asset to the community as a whole. A few stumbling blocks along the way has set them back from expanding and offering the same things that other ports can offer. It's not about government, board of directors, or anything else other than room, space, and access.
The port poured millions into the Ravenel Bridge while the employees took pay/hiring freezes to get it done. The port now has access because of it. Unfortunately, those that blocked Daniel Island development and slowed the North Charleston development has hurt the port and the Charleston economy at the same time because there's no room to handle the potential business.
The port is a good neighbor, it's just too bad a vocal minority, tunnel visioned politicians, and a bad economy have slowed and continue to threaten it's growth.
January 7, 2009 at 5:09 p.m. ( permalink | suggest removal )
dockworker (anonymous) says...
Prsibest, man to man, face to face so that we can talk about these issues, that's not a threat, that's an invite. Hey we can have an IQ test, compare bank accounts, assets or what ever else you wish to have. Again if you are such an educated man what are you doing on the waterfront everyday? What a yellow bellied coward you must be, educated man you are. Ha Ha now others can see your crying, jealously and anger.
January 7, 2009 at 5:27 p.m. ( permalink | suggest removal )
truthseeker (anonymous) says...
Here are some ideas for the port leadership and the state legislators and the Governor to consider.
First of all , why are we currently spending millions of dollars continuing to build a spec terminal in Charleston at the navy base with the global economy in a tailspin and our biggest customer taking his business to Norfolk?
Our existing 3 terminals are running at less than 50 per cent capacity . Your business model is clearly not working so why in the world would we want to build another terminal.
Tell the SPA management that until you fill up your existing 3 terminals with profitable long term business we are taking back the $165 million dollars we gave you for the port access road.We need that money in other places .
Can you imagine a real estate developer going to a bank and trying to get a loan to build another apartment complex when the 3 he already has are less than 50% occupied? The bankers would laugh you out of their office.
Tell the public the cost difference between using union labor and using SPA labor at the Wando terminal on a per ship basis and also tell the public the labor cost comparisons of other competing ports like Savannah and Norfolk.
If we are trying to run the port like a business, let's run it like a business and see all the numbers. If we do not want to run it like a business , let's let the professionals run it for us.
January 7, 2009 at 6:10 p.m. ( permalink | suggest removal )
dockworker (anonymous) says...
Hey PRSIBEST, you little sap sucking jealous weasel I wish I knew who you were so that I could laugh in your face at what a coward you really are. OHH I'm so scared of you!! cry, cry. Hey the ILA men and women work all ports across America, it's called contracts between Management and labor as if you don't understand. Come on little coward let' meet and talk about these issues. You like to slander others but can't take the heat when someone calls your bluff. Must be a miserable life to be such a spineless worm. What do you do make a living out of suing people, that's really honorable.
January 7, 2009 at 7:09 p.m. ( permalink | suggest removal )
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