The Charleston Port
April 12, 2011: James I. (Jim) Newsome, III addressed our club on the topic of the South Carolina State Ports Authority. Mr. Newsome became President and CEO of the SCSPA in September of 2009, bringing with him more than 30 years of experience leading international shipping lines. Prior to joining SPCA, he was President of Hapag-Lloyd (America), Inc., He has held numerous other positions in the shipping industry. A Savannah native, Mr. Newsome received a bachelor’s degree in Transportation and Logistics in 1976 and an MBA in Transportation and Logistics in 1977 from the University of Tennessee in Knoxville.
Mr. Newsome spoke about the deep water harbor initiative, growth prospects for the port, and the cruise business in Charleston. The $300 million initiative to deepen the Port of Charleston from 45 to 50 feet is a strategic priority for the port. The deepening would allow larger ships, specifically from the Panama Canal, to come into the Charleston port, bringing more business and boosting the state’s economy. The volume of large, post-Panamax ships is expected to increase dramatically when the expansion of the Panama Canal opens in 2014. While currently enjoying the deepest waters in the Southeast, the port is already seeing some of the larger ships that need more than the port’s current 45-foot low-tide clearance. The deepening will open the port to all classes of vessels under any tidal condition. There is consensus that a deepened Charleston Harbor is essential to facilitate the expected increases in trade through the harbor and the continued economic growth of the Southeast region.
The Port of Charleston closed 2010 with a nearly 17 percent increase in container volume, capping a year marked by new shipping services, statewide business initiatives and the arrival of the biggest ships on the East Coast. Newsome noted that South Carolina’s ports are positioned to continue the upward trend in 2011. Charleston offers efficient access to a healthy growing base for both import and export cargo. On the export side, Charleston is an ideal gateway for the export-rich Southeast and this service links shippers across the region to another growing consumer market — China. BMW’s plant in Spartanburg currently produces approximately 1000 vehicles each day and is the exclusive exporter of passenger vehicles through the Port of Charleston to more than 130 global markets. The SCSPA handles international commerce valued at more than $50 billion annually while receiving no direct taxpayer subsidy. An economic development engine for the state, port operations facilitate over 260,000 jobs across South Carolina and nearly $45 billion in economic activity each year
Regarding the cruise business, Charleston is moving ahead with plans to open a new cruise terminal next year on the northern end of Union Pier Terminal. The $25 million terminal will replace the current cruise terminal that opened in 1973 much farther south on the property. It is expected to greatly improve the cruise experience in Charleston while also complementing the character of Charleston. The port is expected to handle 90 cruise ships in 2011. Charleston will remain a niche market for the major cruise lines, however, and the SCSPA is committed to limiting cruise ships to 104/year. The cruise business is a significant economic force for both the maritime and tourism industries in South Carolina, supporting more than 400 jobs and $37 million in total economic output in 2010, including $16 million in wages and $3.5 million in tax revenues. It’s a vital economic driver for the maritime industry. Other businesses benefit, as well, as the cruise ships and crew buy products and services here. In addition, passengers spend money in shops, restaurants, hotels and attractions.
Submitted by Loretta Wilson, Keyway Committee