SPA has pick for CEO post

Hapag Lloyd division chief called clear front-runner

By Allyson Bird
The Post and Courier
Friday, June 5, 2009



After a nearly five-month search, the State Ports Authority has zeroed in on a choice for its new chief executive: Jim Newsome, president of German-based container carrier Hapag Lloyd's America division.

Though SPA officials would not release any details of the potential hire, sources close to the process said the agency narrowed its list to five candidates, with Newsome as the clear front-runner. If he accepts the position, Newsome's tenure will begin amidst port restructuring discussion at the Statehouse and ongoing negotiations with the SPA's top customer, Denmark-based Maersk Line, which announced plans to depart the Port of Charleston in December. A month later, then-chief executive Bernard S. Groseclose Jr., who earned a $264,000 salary, resigned abruptly during a performance evaluation. Port board member John Hassell assumed the position of interim chief executive.

Before Groseclose landed the job in 1996, The Post and Courier filed a lawsuit against the SPA when the agency refused to release the names of six finalists. The agency disclosed the names the day before a scheduled hearing in the case.

Hassell, then chairman of the Maritime Association and a vocal opponent of the SPA's perceived secrecy during the 1996 search, told The Post and Courier in January, "I'll never forget it. It's going to be different."

Reached Thursday afternoon, he deferred to search committee chairman and SPA board member Bill Stern, a Columbia businessman who oversaw the 13-member committee.

Stern said the SPA has not drawn up a contract with a new chief executive and that the board hasn't approved the new hiring. But, he said, they will at this month's board meeting. He said the committee, which paid executive search firm Boyden $97,500, launched an international search and considered more than 100 applicants. The group narrowed the list to seven people, interviewed five and zeroed in on one person, according to Stern.

He declined to name that person or the other top candidates and said an attorney would consider a Freedom of Information Act request. Stern said the committee members signed confidentiality agreements.

"I want to be as open and transparent as possible, but I also want to get the best individual for the State of South Carolina," Stern said. "The individual that we have now is going to take us to heights we haven't seen."

Bill Rogers, executive director of the S.C. Press Association, said the search committee should make public the documents concerning all applicants under final consideration.

"When these searches are done in secret, it hurts the credibility of the Ports Authority," he said.

Robert New, owner of Charleston Port Services, raised concerns similar to Hassell's during Groseclose's 1996 hiring. This time he worries that the search committee includes only one person who works on the docks and is moving toward a decision without public input.

"I understand the concerns of the Ports Authority, but the flipside of it is should the maritime community know who the finalists are, they might be able to provide feedback helpful to the final process," New said.

Responding to a phone call and e-mail, Newsome declined to comment. A Savannah native, he in January became the first non-German to head Hapag Lloyd's North American operations based in New Jersey just outside of New York City. He previously served 11 years as the company's senior vice president of its Southeast operations based in Atlanta.

Newsome worked as an executive of the former Nedlloyd Lines from 1987 to 1997 and, prior to that, spent a decade with Strachan Shipping Co.

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Rocks66 (anonymous) says...

In an economy such as this one, they had to spend $100K to find an acceptable candidate? Are you kidding me? No wonder this agency is having fiscal problems.

June 5, 2009 at 1:45 a.m. ( | suggest removal )

TRODI (anonymous) says...

It wasnt the ceo that ruined them look at the last board members sanford appointed.they are the ones.not all of the board just the few .demanding 30+ % percent profit.

June 5, 2009 at 5:40 a.m. ( | suggest removal )

railadvocate (anonymous) says...

Do the research...

How many shipping line executives have gone on to be port directors?

Answer is 1

Larry Keller, former Director of the Port of LA, lasted one year at the post.

Once again, the SCA Board cannot see past its nose.

Hire someone with real operational experience. You are a port not a shipping line.

June 5, 2009 at 7:29 a.m. ( | suggest removal )

Grinder (anonymous) says...

Hope the P&C does the next right journalistic thing and vets this guy in print. His attitudes, opinions, characteristics, etc. are likely indicators of how he'll deal with the various aspects of his position. More than ever, with this economy, how he willl ead the port is important.

June 5, 2009 at 7:44 a.m. ( | suggest removal )

portster (anonymous) says...

railadvocate.....you are wrong and incredible.....there are many...starting with mr. bridges at virginia....think twice before you try to criticize this man.

June 5, 2009 at 9:19 a.m. ( | suggest removal )

dontpullupthedrawbridge (anonymous) says...

NC's port director is also from the shipping line industry, portster

June 5, 2009 at 11:28 a.m. ( | suggest removal )

timjisland (anonymous) says...

this is not responsible reporting by the P&C. how would anyone else feel about being "outed" for considering another position before having an opportunity to discuss the matter with his current employer?

June 5, 2009 at 11:57 a.m. ( | suggest removal )

commonsence (anonymous) says...

tim, how do you know he hasn't discussed this with his current employer...if he hasn't, he's a fool.

June 5, 2009 at 1:07 p.m. ( | suggest removal )

burton (anonymous) says...

Is there no one internally that can take this position? Who was Groseclose grooming over the past 12 years? FedEx is a company that is great at hiring from within.

I agree that the $100K could have been saved and the committee could have done this work themselves. All it took was a little rolling up of the sleeves and hard work. Paying a consultant is the easy way out!!

June 5, 2009 at 1:59 p.m. ( | suggest removal )

railadvocate (anonymous) says...

portster, Jerry Bridges worked for Sea Land's terminals ops division and Roadway as a sales manager, prior to being appointed director at the port of oakland...get your facts straight.

Mr. Eagar worked for Crowley and Sealand, and has real operating experience at APL. I stand corrected.

Both of those individuals have proven track records and do not merit comparison with Mr. Newsome.

My point is Charleston needs a leader with real operational experience and a record of generating business. Clean house at the SPA and bring in fresh thinking to replace the good ol' boy network.

June 5, 2009 at 2:02 p.m. ( | suggest removal )

zoomru (anonymous) says...

"...Stern said the committee members signed confidentiality agreements....."

Hmm.......well if you do NOT stand up when something is wrong then your just a lackey..!

Maybe that is why Anne Petersen Hutto does not STAND UP to BOBBY HARRELL, ....or GLENN McConnell..???

Maybe that is why ROBERT FORD does not STAND UP to JAMES CLYBURN, ....or GLENN McConnell..???

Maybe that is why Mike ROSE does not STAND UP to Jim Merril, ....or Mike FAIR..???

Maybe that is why Charleston COUNTY Council does not STAND UP to BOB Peeler, ....or Waste Management..???

Maybe that is why Santee Cooper workers do not STAND UP to CEO Lonnie Carter, ....or CSX and Norfolk Southern..???

Hmm.....do we now know who will replace MAERSK.......Hapag-Lloyd..??

Will P&C report about the boats leaving out of the St. Mary's river and who were talking and fishing ....how many YEARS ago..??

LOL....!!!

June 5, 2009 at 4:36 p.m. ( | suggest removal )

TRODI (anonymous) says...

No hapag wont. msc could.they have offerd a lot of volume if they can get the space which is more than mearsk is taking up.mearsk still isnt gone yet.all of their booking numbers after jan dont show chas.but they are easy to change.they are not totally happy with Savannah right now.the other day they had to back a ship all the way down river couldnt turn around it was too large.hapag is part of the grand alliance with oocl.they call north charleston.they are not filling that up. much less the wando.i think mearsk will keep a presence in charleston.

June 5, 2009 at 5:35 p.m. ( | suggest removal )

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