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Bill could limit SPA’s ability to develop Jasper port
By Dan McCue
Staff Writer
Only days after the South Carolina Supreme Court effectively handed the South Carolina State Ports Authority a virtual right of first refusal in regard to developing a cargo container terminal in Jasper County, a bill has been introduced in the General Assembly that would limit the SPA’s ability to act on that ruling.
The court held that Jasper County has a right to develop a cargo container terminal along the Savannah River, but ceded the SPA’s contention that it has superior eminent domain powers to the county and, therefore, a superior right to develop a facility at that site.
Because of the nature of the April 3 decision, both sides had claimed victory in the long-running dispute.
“We appreciate the court’s consideration,” said Bill H. Stern, SPA chairman. “With their decision in hand, we’re moving forward with steps to acquire the site.
“The Supreme Court made it clear that the Authority gets the first shot at the land,” Stern said.
But HB 4970 prohibits the SPA from taking “any action in connection with the construction of a shipping terminal in Jasper County” without the express approval of the General Assembly, “including, but not limited to, the acquisition of real property.”
Jasper County Administrator Andrew P. Fulghum said the bill “suggests everyone is beginning to realize what a precarious position the state is in thanks to the efforts of our neighbors to build new port facilities.
“I think this is also a response to the fact that we’re already got the financing and private sector money in place and we’re ready to go,” Fulghum said. “It’s not clear at this point how quickly the Ports Authority is willing to move on this thing.”
Prior to the House action, Jasper County officials said if the SPA chose not to act on the property in question, they would continue their efforts to build a shipping terminal in partnership with SSA Marine of Seattle. Under the deal, SSA, which is tangentially involved in the Dubai ports deal controversy, would operate the facility as South Atlantic International Terminal.
The SPA filed a lawsuit last year in an effort to block Jasper County from developing a port on approximately 1,800 acres located in southern South Carolina but owned by Georgia. The county and the SPA both sought to condemn the land used for dredge spoils to build a port terminal.
The land is still owned by the Georgia Department of Transportation, which last year asked a federal court to permanently block any condemnation of the site.
In its ruling, the court said the SPA does not have sole power to develop ports in the state, but it does have priority over the land in this case.
Stern sent a letter to the Georgia DOT immediately after the ruling was announced, informing it of the SPA’s desire to discuss acquisition of the property.
“We’re ratcheting up the discussions,” Stern said. “Without a site, there’s no terminal. The Authority’s superior condemnation powers will ensure we have a site.”
Currently, Jasper County has a pending condemnation on the property, but that action was stayed by a federal judge while the South Carolina case was decided.
Cam Lewis, an attorney for Jasper County, said the SPA can take steps to condemn the land to build a port, but until it does, Jasper County will move ahead with plans to develop a $450 million port.
“We’re going to let our attorneys review the ruling and see what we can do to get our port built,” Jasper County Council chairman George Hood said. “Obviously, there are more hurdles we have to jump.”
But Hood also indicated that the county is willing to work with the SPA.
“That’s what we’ve been doing for the past 10 years,” Hood said. “When things were not moving as fast as we thought they should, that’s when we went out and found a private developer to try to get this thing built.”
In a prior ruling, the state Supreme Court said that Jasper County could not condemn the land in question for a private developer. The county then changed its plan so it would own the land and the port, with SSA Marine managing it.
SSA, which has offices in Mount Pleasant, has been no stranger to controversy in recent weeks. The Seattle-based company had been planning to accept DP World, owned by the government of the United Arab Emerites, as its joint-venture partner at ports in Philadelphia, Pa., Wilmington, Del., and Camden, N.J.
SSA was a partner in those ports with London-based Peninsular & Oriental Steam Navigation, which was purchased by DP World earlier this year for $6.8 billion.
Bob Watters, a spokesman for the company, said SSA had no say in the purchase agreement and had unexpectedly become partners with DP World.
After a political firestorm erupted over Middle Eastern control of U.S. Ports of Entry, DP World said it would divest itself of all its U.S. assets, including those in which it is currently partnered with SSA. Until that divestiture is complete, P&O employees will continue to oversee those operations.
If the SPA moves ahead with its plan for a new container terminal in Jasper County, it will not only develop the port, but operate it as well.
Dan McCue is a staff writer for the Business Journal. E-mail him at dmccue@charelstonbusiness.com.
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