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Ports CEO sees bright future beyond challenges
By Dan McCue
Staff Writer
Even the best of times can be fraught with lingering challenges was the message delivered this month by the S.C. State Ports Authority’s top official about the Port of Charleston.
A lingering perception in the international shipping industry that the port can’t grow to meet its future needs has led to a drop in the amount of container traffic handled by the port, said
Bernard S. Groseclose Jr., SPA president and CEO.
He gave his annual State of the Port address in early November to 800 maritime community members.
In spite of a steady stream of positive developments over the past 12 months including approval by nine state and federal agencies of the SPA’s plan for a new cargo container terminal at the former Charleston Naval Base, Groseclose said years of stymied growth, coupled with recent uncertainties in the global economy, have resulted in a marked drop in container cargo.
Many U.S. ports are witnessing a slowdown in cargo container traffic because of ongoing weaknesses in housing and other industries coupled with retailers’ uncertainty over the impact of tight credit and rising fuel prices, he said.
But the one port in the nation that has experienced the strongest cargo gains over the past 12 months, the Port of Savannah, is also the port that was able to grow the fastest.
After a record year in 2006, the SPA handled 5% fewer 20-foot-long containers through fiscal year 2007, which ended June 30. So far, the port has handled 11% fewer containers during the first quarter of fiscal year 2008 than during the same period the year before.
By comparison, the Port of Savannah reported a 14.5% gain in fiscal year 2007 over the same period a year earlier.
While Groseclose acknowledged the economic factors contributing to the differences between the two ports in container traffic, he said much of Charleston’s decline could be attributed to “a lingering perception in the world shipping community that the Port of Charleston was out of capacity or would be unable to grow to meet its future needs.
“While there are many positives that we can and must share with our constituents, it is important to realize that the years of delay over port expansion have taken a toll on our mighty port,” he said.
“Our opponents said I was exaggerating,” he said. “Well, we’re now certainly seeing the impact of the delay in expansion.”
But Groseclose’s yearly assessment and forward-looking predictions were not all doom and gloom.
He appeared ebullient as he ticked off a host of port accomplishments, including marked increases in its break bulk, roll-on/roll-off and cruise ship activity.
The Wando Welch terminal in Mount Pleasant also is poised to add 50 acres of terminal space and to install $64 million in new equipment on its docks.
“Going forward, we’re going to focus, and we ask you to focus on three main areas,” Groseclose said. “Number one is the Navy base. This is the first new container terminal to be built in Charleston in 25 years, and it will result in a 50 percent capacity increase for the Port of Charleston.
“Demolition is already under way at the site, and we expect that you’ll see signs of significant progress in the year ahead.”
“Number two is an emphasis on bringing new business to South Carolina, and number three is seeking additional ways to reduce the port’s environmental impact,” he said.
Groseclose said recent announcements by Jafza International, Hillwood Properties, the Rockefeller Group and other entities making investments in commerce parks in the region show that significant players in the global trade community have already given their vote of confidence to South Carolina and its port.
“We all share a responsibility to prepare for the future,” he said. “Together, we must commit ourselves to generating economic development opportunities while making Charleston a better place to live.
“In addition to bringing new businesses here and new customers, we also need to proceed with the understanding and the goal that a cleaner environment and economic development can occur together,” he said.
Dan McCue is a staff writer for the Business Journal. E-mail him at dmccue@setcommedia.com.
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