First, chart SPA course change

The State Ports Authority is getting ready to undertake a global search for a new port director to replace Bernard S. Groseclose, who resigned as president and CEO of the SPA this week. State leaders first should decide what kind of operational model they want for the SPA.

The resignation of Mr. Groseclose followed the apparent loss of the port's major carrier, the Maersk Line, and a general decline in port business last year. As a result of the port's difficulties, state leaders are recommending a variety of changes in the way the SPA does business.

Rep. Jim Merrill, R-Daniel Island, wants the SPA to be part of the governor's Cabinet, an idea strongly supported by Gov. Mark Sanford. State Sen. Larry Grooms, R-Berkeley, wants to retain the board structure. Sen. Grooms chairs the Senate Transportation Committee, which will be responsible for considering port legislation.

Senate President Pro Tempore Glenn McConnell wants the SPA to look more favorably upon privatizing port operations. That view apparently has a growing number of adherents in the Legislature and on the waterfront.

In short, there is a broad range of possibilities that could serve as the governance model for the SPA. The governor, the Legislature, the SPA Board and the various waterfront interests should get together on the issue before the SPA Board starts deciding who will run the ports of Charleston and Georgetown.

Mr. Groseclose's recent resignation should be instructive. As Ron Brinson, a former CEO of the Port of New Orleans, observes in a column on our Commentary page, Mr. Groseclose was highly regarded within the industry for his shipshape management of port operations. During his 12 years at the helm, Mr. Groseclose had carried out the policies of the SPA, and last year was no exception. Otherwise, he wouldn't have been eligible for the big bonus he received in September.

His bonus, like those for other SPA employees, was triggered by the profit generated by the agency in the 2007-08 fiscal year. The bonus conditions were set forth in a contract approved by the SPA. The agency's profit model has long held sway because the SPA depends on its own revenues for operations and development.

But the 14 percent decline in port business and the likely departure of Maersk has state officials worried about the competitiveness of the port. That could translate into a loss of port jobs and damage the state's economic development efforts.

Interim SPA head John Hassell tells us that the agency already is shifting direction to emphasize volume of cargo over profits. The degree of legislative interest says that broader changes can be expected. That discussion ought to be carried out this year before the SPA starts taking applications for the next CEO. Indeed, if the Merrill view prevails, the governor would have the responsibility to pick the next port CEO on his own.