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Port’s proposed expansion a step closer to reality
By Shelia Watson
Contributing Writer
The S.C. State Ports Authority is one step closer to an effective plan to sustain growth with the release of a comprehensive Draft Environmental Impact Statement by the U.S. Army Corps of Engineers.
The 780-page impact statement evaluates the environmental impacts of the SPA’s proposed plans, along with related actions and foreseeable future conditions, for development of a marine container terminal at the Charleston Naval Complex.
The proposed project would include three berths totaling 3,510 feet, along with 203.4 acres of container storage and 40 acres for buildings, gates and other structures.
Other components of the project include:
• Development of 13.6 acres of wharf structure on the west side of the Cooper River, with a berth area 50 feet deep and 150 feet wide.
• Improvement to Tidewater Road and creation of a new road that will provide access to the Cooper River Marina.
• Development of 25 acres of stormwater management facilities at the project.
• Construction of a turning basin of at least 1,500 feet by 1,500 feet to a depth of –50 feet at mean low water.
The SPA estimates the new terminal, projected for completion in 2012, would be able to accommodate 1.4 million TEUs (20-foot equivalent unit cargo containers) annually. Last year the SPA processed a record 1.97 million TEUs.
In addition to the proposed project of building on the Charleston Naval Complex, the alternatives considered in the DEIS were: 1) taking no action, 2) building on Daniel Island and 3) building on Clouter Island.
Each alternative received comprehensive review, although the proposed project was considered the most viable. Additional information gathered during the impact statement eliminated alternatives for expansion at the North Charleston Terminal, Charleston Naval Complex North and Drum Island.
Port capabilities and needs
The SPA’s Statement of Needs, included in an appendix of the statement, concluded that, “the South Carolina State Ports Authority has an attainable capacity of approximately 2.6 million TEU annual throughput. Based on the projected container growth rate, this capacity will be needed on line by 2014.”
The new facility is expected to provide about 200 acres of container area producing approximately 11,300 slots, which would provide throughput capacity of 791,000 containers or 1.4 million TEU. This would meet the projected port needs for new terminal capacity until 2025.
The SPA’s current facilities in Charleston include:
• Union Pier, used for breakbulk and roll-on/roll-off shipments, as well as a cruise terminal.
• Columbus Street Terminal, a combination terminal with six cranes, two of which are Super post-Panamax, two container berths and four breakbulk berths.
• North Charleston, a container facility with six cranes, three able to process post-Panamax vessels.
• Wando-Welch Terminal, a container facility with 10 cranes on four berths, of which four are Super post-Panamax, four are post-Panamax and two are Panamax.
• Veterans Terminal, dedicated to bulk, breakbulk and project cargo.
By far the fastest growing area of the industry is containerization. The impact statement showed projected volumes of containerized cargo from 2004 to 2025 using SPA projections at a compounded annual growth rate of 4.28%, along with two corps of engineer projections considering an 8% and 9% market share. Projected annual TEU volume for containerized cargo in Charleston is estimated to reach 4 million by SPA calculations, and 4.4 million or 5 million at 8% and 9% market shares, respectively.
During the past 20 years, the Port of Charleston has undergone significant growth. During that time, the port established itself as the major container port in the Southeast and second on the East Coast behind the port of New York/New Jersey. In addition, the SPA’s productivity records place it second in the world after Hong Kong.
The SPA is well positioned to undertake expansion, having closed its most successful fiscal year in June by posting record container volume and revenues.
The Port of Charleston handled 1.97 million TEUs in fiscal year 2005, an increase of 14% from the previous year. Total breakbulk tonnage also rose 14% to nearly 2 million tons.
Operating revenues totaled $138 million, up 18% from fiscal year 2004. All net earnings are reinvested in the SPA’s port facilities.
Other growth indicators from the past year include:
• Approval of a two-year, $159-million capital plan for new container stacking equipment, container cranes and other capacity enhancements to handle near-term growth and improve use of existing Charleston terminals.
• Completion of the Arthur J. Ravenel Jr. Bridge, the largest cable-stayed bridge in North America, which offers higher and wider clearance for shipping.
• Board approval to acquire property for a state port in Jasper County on the Savannah River.
• Deployment of the Yard Management System to all Charleston terminals, an IT initiative that will boost productivity and cut turn times for truckers.
• Renewal of a 10-year contract with BMW, which expects to increase its import/export volume to 150,000 vehicles over the next 10 years.
• Several new shipping services calling on Charleston, including the first direct Charleston-to-Central America service, as well as additional services to South America and the Middle East.
Mitigation
The environmental impact statement noted that the unavoidable adverse impacts resulting from the proposed terminal would be mitigated. While plans and means may be modified during the impact statement process, the proposed mitigation includes:
• Restoration of 44 acres of filled tidal marsh.
• Installation of a sediment suspension system.
• Contribution of $4 million to support the Cooper River land preservation initiative.
• Creation of public parks.
• Establishment and support of public programming and education.
• Donation of 17 acres to support establishment of a research campus and restorative sciences program.
• Contribution of $500,000 to the International Center for Birds of Prey to support establishment and operation of an Oil Spill Recovery Center.
Statewide benefits
The corps determined that the proposed port expansion would help reduce unemployment and poverty and would not affect nearby neighborhoods adversely.
“This positive impact would likely be spread through the region and not concentrated in the immediate project vicinity,” the study said.
The most recent economic analysis done for the SPA by the Center for Economic Forecasting at Charleston Southern University measured the impact of the port on the state’s economy.
The study found that the SPA creates 281,660 jobs, $9.4 billion in annual personal income, $2.5 billion in annual tax revenues and $23 billion in annual total economic impact.
The port is served by two major rail lines and highway access via I-26 to I-95, I-77 and I-85.
“We expect a record of decision (concerning the permit for the Charleston Naval Complex project) in August 2006,” said SPA spokesman Byron Miller.
“After that we can begin construction, which is targeted for completion in 2012.”
The impact statement begins a two-month period of public comment and community meetings. The first public hearing will be held in November.
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