Container drop expected to be 20%
Board hears dire projections, but also gets word on possible new business in Georgetown
By Allyson Bird
Even State Ports Authority board members looked shocked when staff shared the agency's expected container volume decline this year: nearly 20 percent.
FILE/STAFF
Cargo containers at a Port of Charleston terminal.
The SPA's fiscal year ends July 30, and the board learned the dour projections at a meeting Tuesday. And South Carolina is hardly alone, as many ports around the world, wracked by the recession and the crimp in demand for consumer goods, are seeing steep volume declines.
"The downturn is spread across every single trade lane in every port," said Fred Stribling, vice president of marketing and sales.
The rest of the agency's agenda focused on moving forward, covering everything from developments in new terminal construction to luring cruise business and additional customers at the underused Port of Georgetown.
Paul McClintock, the newly hired senior vice president and chief commercial officer told the board that the SPA secured five potential customers for Georgetown, an increasingly stagnant maritime facility.
The new business, in bulk and breakbulk cargo, could generate $5.4 million in revenue and 300 new jobs, McClintock said.
Previous story
Port's container volume down 16%; Fall in traffic across docks leads to revenue decline, published 05/20/09
But in order to close the deal, the SPA must show that plans exist to deepen the waterway. At 21 feet in some places, the port must be dredged another six feet to secure the contracts, according to McClintock.
"There is a lot of business riding on this, and I'd hate to see it go away," he said. He added that the federal government might never invest in dredging if Georgetown loses potential customers in the meantime.
McClintock said the SPA plans to make a presentation soon to the Army Corps of Engineers, which handles harbor maintenance.
Another underused facility, the Port of Charleston cruise terminal, is moving closer to redevelopment as the SPA wraps up its bidding process for the Union Pier master plan.
Peter Lehman, director of planning and business development, said officials with the SPA, the city of Charleston and U.S. Customs and Border Protection recently toured the terminal and surrounding property with seven companies bidding on the contract.
Lehman also described meetings with two cruise lines in a recent trip to Miami. While Celebrity Cruises already plans to return to Charleston this fall, Carnival Cruise Lines "is looking to expand operations at the port," Lehman said.
State Transportation Department Secretary Buck Limehouse, a non-voting board member, said at Tuesday's meeting that his agency continues to make progress on a port access road for a new terminal planned for the former Navy base in North Charleston, despite recent controversy.
The Coastal Conservation League and the Southern Environmental Law Center on Monday requested an injunction to halt construction on the terminal until the Federal Highway Administration evaluates proposed traffic patterns to it, including the access road.
Project manager David Kinard said the transportation department plans to get highway administration approval on an interchange modification report within the coming weeks and to move forward with acquiring 70 properties along the route of the proposed road.
None of those properties is a private home.
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Comments
pirate42 (anonymous) says...
bring in gambling ships like florida has 4 hour out tours was a great job producer as well as tourisim attraction but sc got there head where sun does not shine
July 22, 2009 at 5:30 a.m. ( permalink | suggest removal )
MP (anonymous) says...
And we want to build more?
July 22, 2009 at 7:52 a.m. ( permalink | suggest removal )
mqc (anonymous) says...
MP, I have been thinking the same thing for a long time. It makes no sense to me.
July 22, 2009 at 8:04 a.m. ( permalink | suggest removal )
HERE_AND_THERE (anonymous) says...
OK...let me get this right. We are going to have a 20% drop in containers and the Union is yapping about money and non-union workers? Sounds to me like the Union is going to need to get off the high-horse and secure as much of that as possible!
July 22, 2009 at 8:24 a.m. ( permalink | suggest removal )
MP (anonymous) says...
Everyone needs to ask WHY we are losing business. Some is due to the economy. Some is due to the cost to the shipping companies who use our terminals. They can move elsewhere and pay less. Why? ILA. The Union refuses to see that their neck is in the guillotine and the blade is dropping.
July 22, 2009 at 9:06 a.m. ( permalink | suggest removal )
moonpie (anonymous) says...
Your right MP.
I import. It's cheaper for me to bring product into Savannah Vs bringing in into the port of Charleston?
July 22, 2009 at 9:33 a.m. ( permalink | suggest removal )
SCHoser (anonymous) says...
There are lots of factors contributing. I think we need to keep up the work to expand out ports and get ready for the upswing in east coast shipping-it is going to happen and will be dramatic. They are making and using much larger vessels and we need to accommodate that. The ILA needs to make some concessions along with various other industries to make this happen. It is still 4-5 years out, but once the Panama Canal expansion is complete, shipping to the east coast is going have a huge upswing and we need to be ready then, not planning to get ready-it takes years to develop the kind of ports we will need. Look to the future and plan for it. We need to decide if we want business and jobs or small town feel and poverty.
July 22, 2009 at 11:07 a.m. ( permalink | suggest removal )
don0427 (anonymous) says...
Yup Savannah has prostituted themselves and governor "can't keep it in his pants" is helping with the Jasper county port project to make Charleston the next Baltimore-style container back-water. Mix in the short sighted ILA, a little Joe Riley killing the Global Gateway and Keith Summey sqwalling about a bedroom community on the navy base and Charleston is circling the drain.
July 22, 2009 at 11:07 a.m. ( permalink | suggest removal )
marsh_patrol (anonymous) says...
Don- you hit it right on the head.
July 22, 2009 at 11:48 a.m. ( permalink | suggest removal )
TRODI (anonymous) says...
Posted by moonpie on July 22, 2009 at 9:33 a.m. (Suggest removal)
Your right MP.
I import. It's cheaper for me to bring product into Savannah Vs bringing in into the port of Charleston?
Savannah and the gpa the local chamber of commerce have supported their port for years.the state of georgia totally subsidizes the gpa.they give incentives and tax breaks to industries and businesses to bring the work.what does charleston and south carolina do piss and moan belittle their ports for years hamper most of their efforts to compete with the competition.then our elected officials play stupid and pretend they did not know what was going on.then try to do to little to late.the local chamber of commerce needs to do a better job of enticing businesses here.instead of leaning on the low paying tourist industry.the port is supposed to be a economic engine for this state.not just for charleston and its about time our local officials took their head of the sand and relies this.
July 22, 2009 at 2:20 p.m. ( permalink | suggest removal )
truthseeker (anonymous) says...
Can the SPA board members tell the public why they are building yet another container terminal? Is there any guaranteed business or are we spending money on a speculative endeavor dreamed up by Bernie Groseclose ?
No businessman in their right mind would expand their business with their existing 3 terminals mainly sitting around idle and no guarantees of any future business.
We need new leadership - not more expensive truck only empty container terminals.
July 22, 2009 at 3:07 p.m. ( permalink | suggest removal )
TRODI (anonymous) says...
A s we have had this conversation before you cannot wait to build if you do you have waited to long.see our schools. see our roads. our port mostly operates of its own profits.compared to Savannah it cost sc a hell of a lot less than georgia pays to operate the gpa.it takes years to build a terminal.as a advantage it has great access to rail lines.this has nothing to do with bg.anyone in the business of operating and running ports knows this.when they widen the canal.even with the new terminal it may not be enough room to facilitate needs.
July 22, 2009 at 3:33 p.m. ( permalink | suggest removal )
SCHoser (anonymous) says...
Good businessmen plan for the future. Knowing your business is number 1 in forecasting. There is no guarantee of success, but there is a guarantee of failure, especially if you don't prepare. Shipping will increase dramatically in the next 4 years or so, and now is the time to expand. We need to be aggressive to get the business, and sitting and hoping ain't gonna cut it.
July 22, 2009 at 3:50 p.m. ( permalink | suggest removal )
st33lz (anonymous) says...
SCHoser, I agree
I also think Charleston should very much consider bringing in both Carninal and Celebrity cruise lines.
Charleston should be a port to depart from and there and it should also be a stop.
The only part of departing from downtown means two things:
1) Usually longer cruises or shorter stays at destinations, etc because it'll take longer to get to the Carribean and so on.
2) Due to the above, limited destinations compared to FL. Although, SC has a significant advantage for cruises to Bermuda.
I liked the idea of the stop being at Patriots Point and then shuttling people (via ferries and possibly buses) to downtown. It would be tremendous for the Charleston and state economy. Anyone that disagrees is just being ignorant in that respect.
July 22, 2009 at 6:35 p.m. ( permalink | suggest removal )
MP (anonymous) says...
Charleston cannot handle cruise ships from downtown. There is no capacity. Cruise ships need a large land footprint around the terminals for support and passenger parking. If Charleston wants the business, they need to find a decent location. To be honest, the old Navy Base would be perfect It has the docks, it has the land, the water is deep enough but Riley and Summey would have to duke it out over this. I guess I'd have to put my money on Summey.
July 22, 2009 at 6:47 p.m. ( permalink | suggest removal )
st33lz (anonymous) says...
MP - There was talk about INCOMING cruise ships docking at Patriots Point.
They can "find a way". And if theres money involved, they will...whether that means more dredging or whatever.
Buses and ferries can very easily handle the dispersement of people from a cruise ship. It's done ALL the time.
PP would be a great location as far as a destination spot but probably no ideal for departing. If they want to depart from that same location they have no other choice then probably a large parking garage which wouldn't be a bad idea. That way the passenger's vehicles are easily secured during their travel
July 22, 2009 at 7:16 p.m. ( permalink | suggest removal )
TRODI (anonymous) says...
They had proposed another parking garage to be built for cruise ships.joe was all for it until he learned he could not use it for other purposes as he saw fit.Riley has out lived his usefulness as a mayor.
July 22, 2009 at 9:25 p.m. ( permalink | suggest removal )
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