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The S.C. State Ports Authority’s operating earnings in the 2009 fiscal year dropped by $29 million compared with the year-ago period, as container volume fell to lows the Port of Charleston had not seen for a decade. The SPA noted in a news release that it handled 1.37 million 20-foot-long containers in the 2009 fiscal year; secured several new business accounts; and is “primed to take advantage of the deepest harbor in the U.S. Southeast.”
By Molly Parker
mparker@scbiznews.com
Published Aug. 18, 2009
The S.C. State Ports Authority’s operating earnings in the 2009 fiscal year dropped by $29 million compared with the year-ago period, as container volume fell to lows the Port of Charleston had not seen for a decade.
Still, the SPA put a positive spin on its close-out report for the fiscal year that ended June 30.
“The global economic situation has been incredibly tough on port communities across the world, including ours,” David J. Posek, chairman of the SPA board, said in a statement. “We should be proud that the people of South Carolina’s ports have banded together to better serve our existing customers, while at the same time attracting new business.”
In a news release following this morning’s board meeting, the SPA noted that it handled 1.37 million 20-foot-long containers in the 2009 fiscal year; secured several new business accounts; and is “primed to take advantage of the deepest harbor in the U.S. Southeast.”
But the Port of Charleston saw 19.3% fewer TEUs move across its docks last year than in fiscal 2008. Container volumes fell to numbers the SPA hasn’t seen since 1999, said Peter Hughes, the SPA’s chief financial officer.
At this morning’s board meeting, Hughes presented final container volumes and budget numbers for fiscal 2009. He painted a stark picture.
Between July 1, 2008, and June 30, 2009, the SPA handled 782,200 pier containers, compared with 972,800 containers in the same period a year ago.
In fiscal 2009, operating earnings dropped by $29 million, from $54.7 million to $25.7 million. Container volume accounts for roughly 90% of the SPA’s operating earnings, Hughes said.
On a slightly positive note, container volumes for the first month of the 2010 fiscal year bested the SPA’s projections — albeit narrowly — for July. The SPA is projecting roughly an additional 6% container decline for fiscal 2010.
“Based on what our forecast calls for, we’re slightly ahead for the first month,” said Fred Stribling, vice president of marketing and sales for the SPA.
The Port of Charleston handled 58,603 containers in July, compared to the 58,119 that the fiscal 2010 budget projected. That’s less than a 1% difference — but any upward trends are a point of celebration these days. Still, that number represents a 26% decline in the number of containers the SPA handled in July 2008. That month, 79,419 boxes moved through the Port of Charleston.
Interim CEO John Hassell said he’s optimistic that Charleston will benefit from shipping lines looking to consolidate business moving forward.
“Fewer, larger ships will handle world trade in the years to come,” Hassell said. “With the deepest shipping channels in the region, Charleston is well-positioned for this development, as well as for the expanded Panama Canal in 2014. South Carolina is the place to do business now and in the future.”
TEU Growth Comparison* FY2009
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Charleston | FY ’09 1,367,980 | FY ’08 1,694,508 | % change -19.3% |
*Includes empties
(Source: AAPA)
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