January 6, 2014 — Jim Newsome spoke to our club about the topic of The South Carolina Ports Authority.
Mr. Newsome has been President and CEO of the South Carolina Ports Authority since 2009. He was previously President of Hapag-Lloyd (America), Inc., and was with Nedlloyd Lines prior to that. A Savannah native, Mr. Newsome received a bachelor’s degree in Transportation and Logistics and an MBA in Transportation and Logistics from the University of Tennessee in Knoxville.
Mr. Newsome told how his father worked for the ports in Savannah and that he never thought he would be following in his footsteps by working at the Ports Authority in Charleston. He indicated that a great deal has been accomplished since he obtained his position, but there is still much to do.
The Port, he continued, is about growing volume, about investing in the future and about playing a role in the economic development of South Carolina. Prior to his joining, the Port had lost 40% of it’s volume and it needed to be turned around. Although the Port is a State agency, it is also a business and needs to be profitable to stay in existence. Since Newsome became President and CEO, volume has grown-9% in 2013 and 8% in fiscal 2014. In addition, the growing manufacturing base in South Carolina has been beneficial for the Port as they achieved moving 1M containers in 2014, up from 700,000 in 2009.
The future, however, is in the handling of larger ships. Ships have increased in size to 19-20,000 TEUs (a TEU is a unit of measure of capacity of a single standard cargo container which is 20’ long). As a result, we need to deepen the harbor and strengthen the infrastructure to the maximum extent possible. The largest ship in the harbor today is 9,000 TEUs, but soon the ships will be increased to 13,000 TEUs. Eventually, they are planning on having the capabilities of handling 14,000 TEU ships.
Mr. Newsome shared that he is proudest of the harbor deepening project which will make the Charleston Harbor the deepest port on the east coast by the end of the decade at 52′ deep. Savannah, by comparison, will be 47’ deep. Charleston will have 7′ draught advantage over Savannah which equates to 1000 loaded containers per ship.
Just as harbor depth is important for getting ships in and out, a cargo base is also important for getting goods to and from the port. Therefore, a strong infrastructure is required. However, there are a number of challenges in undergoing these projects.
The major challenge is investment. Although the Port is a State Agency (and partner) the Port has its own credit and financing to obtain. The Port also has multiple projects planned requiring investment (the new rail facility at the former Navy Base and a new Port access road which alone is over $200 Million).
In addition, the North Charleston Terminal has a bridge height limit and the Wando terminal needs upgrades for the larger ships.
Another challenge influencing shipping is having a robust trucking crew. Most container truck drivers own their own trucks and make a percentage of the cargo they carry. So, turn times need to be quick to make it profitable for the trucking industry. The Port has taken measures and increased gate hours to make this easier.
A challenge that the Port cannot directly address is road improvement. I-26 needs to be widened to 3 lanes to increase cargo movement but containers also need to be moved from trucks to rails to limit the amount of trucks on the road.
On a positive note, the Inland port in Greer has provided a more efficient way to move cargo and has also created a link between the Port and the Upstate which has historically been divided. Charleston’s port turns ships and cargo faster than any other port in North America and is the most cost effective and reliable Port to get ships in and out within 24 hours which is of premium importance in the shipping industry. In addition, 2 ships can pass simultaneously in the Charleston Harbor which is a major benefit that is not available everywhere.
Mr. Newsome assures us that many great accomplishments and strides have been made in the Charleston Port Authority and to continue watching for many more improvements and updates over the years to come.
— Don Baus