port issues and the port of charleston
TRANSCRIPT
Port Issues and the Port of CharlestonApril 25, 2006
Presentation Overview
Key Factors Impacting PortsCharleston’s PositionHarbor Deepening, New BridgeGrowth, Port InvestmentPort Security
Key Factors Impacting Ports, Distribution
Trade Growth, Larger VesselsTransportation InfrastructureAutomation & TechnologyTrucker ShortagesEnvironmentalPort Expansion OppositionTraditional Work RulesIndustry Consolidation
U.S. Foreign Trade Via Container
Top Importers (000s TEU) Top Exporters (000s TEU)Wal-Mart America Chung NamHome Depot WeyerhaeuserTarget DuPontSears CargillDole Mead WestvacoChiquita Dow ChemicalIKEA CellmarkLowe's Proctor & GambleHeineken BASFCostco Daimler Chrysler
Source: Journal of Commerce
Charleston’s Situation
• Strong growth• Among nation’s top container ports• 1.98 million container TEU in CY05
• Up 6% in CY05 and 14% in last fiscal year (all-time record)
• Renowned productivity• Strong financial position
• Record revenues, earnings in FY05• Operating revenues up 18%, operating
expenses up less than 1%• Able to handle capital needs internally
From Charleston:
14 Major metropolitan areas within 200 miles.
27 Major metropolitan areas within 300 miles.
91 Major metropolitan areas within 500 miles.
Intersection of I-95 and I-26 is just 47 miles from Charleston.
Bigger Container Ships… They’re Coming.
Order Book: 229 Container Ships >6,000 TEU137 of these will be delivered in 2006-2007
The Port of Charleston is ready now to handle post-Panamax containerships.
READY NOW:
Bridge Removal and Harbor Deepening
Entrance Channel: 47-feet MLW.
Main Channel: 45-feet MLW.
Air Draft: 186-feet.
Open Sea: 1.5 hours +/-.
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1,800,000
2,000,000
Series1 1,078,590 1,217,544 1,277,514 1,482,990 1,632,747 1,528,034 1,592,835 1,690,846 1,863,916 1,984,887
CY96 CY97 CY98 CY99 CY00 CY01 CY02 CY03 CY04 CY05
Source: In-house SCSPA data. Loads and empties.
Port of Charleston 10-Year Growth
Port Expansion in Charleston
The Challenge: Develop a 20-year plan to handle growth by existing customers.
Improvements to Existing Terminals
Expansion at the former Charleston Naval Complex
Expansion at Charleston Naval Complex Demand Curve
Improvements to Existing Terminals
Improving Business Practices– Longer operating hours, information systems,
automationInvesting in New Equipment– $64 million ok’d in Sep 05 for new equipment,
improvements – RTGs begin arriving in JuneExpanding Incrementally at Existing Terminals– 49 acres at Wando Welch Terminal, three acres
at Columbus Street under bridge
Charleston is an Operating Port
We’re essentially the terminal operatorWe contract with the ocean carriers, not the stevedoresWe operate half the gatesAll operational levers controlled by SCSPA
Public employees (not unions) operate all container handling machines
Direct impact on productivity and utilization
Ports Must Improve…Productivity
Measures & standards, operational inputsInfrastructure
Landside and watersideCapacity
New facilities, enhanced utilization
Charleston’s New Terminal Construction
• $600 million• 288 acres• Three berths• 1.38 million TEU of new capacity• Permit expected by November 2006• 1st Phase of construction by end of 2011
BARRACKS ROAD
5
6
16
17
18
19
2023
Expansion on Savannah River in Jasper County
Port Security IssuesMTSA ImpactsTerminal Security SurchargeProject SeahawkRadiation Portal MonitorsGrant FundingTWIC/Background Checks
