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The New Media Department of The Post and Courier

WEDNESDAY, DECEMBER 14, 2005 12:00 AM

3 bid to build port terminal

State Ports Authority to mull offers to develop $600 million terminal

BY JOHN P. McDERMOTT
The Post and Courier

The State Ports Authority has received written proposals from three of the 11 groups that have expressed interest in helping the agency finance and develop a $600 million container terminal on the former Navy base in North Charleston.

The formal pitches were submitted ahead of last Thursday's deadline, but the SPA declined to release any information about them until a board member raised the issue Tuesday at the authority's monthly meeting.

Port officials said the three groups represent nine maritime businesses. The proposals were based on the terms the SPA laid out in October.

The financial details of each deal and even the identities of the businesses are considered confidential, the SPA said.

The port's next step is to study the three opening offers, and, if necessary, initiate follow-up talks with some or all of the participating companies within the next 60 days to clarify specific points.

After that, the SPA said it hopes to "enter into further discussions to negotiate a contract with the firm or firms offering the most favorable proposals."

The key considerations will include the length and financial structure of any deal, as well as some guarantees about future port usage and container volume. Also, each proposal must take into account the requirement that the SPA own and operate all of the cargo-lifting equipment, including the container cranes.

The negotiations could lead to more than one deal, or the authority could reject all three offers and develop the 280-acre Navy base site on its own, said Bernard S. Groseclose Jr., SPA president and CEO.

Groseclose said Tuesday he's confident a deal can be struck with at least one of the private-sector groups because demand for dock space across the country is outstripping the available supply.

"They're all interested in securing their long-term future and locking up port capacity," he said.

The search marks a sea change for the SPA, which never before has solicited private-sector help to finance an expansion.

The project originally drew interest from 11 groups representing 15 steamship lines and terminal operators. Groseclose said some of the companies that declined to draw up a formal deal could be involved in the expansion later.

The new container terminal, which is planned for the southern end of the former Navy base, will be capable of handling the equivalent of 1.38 million 20-foot-long cargo containers a year. The SPA hopes to obtain clearance for the expansion from the U.S. Army Corps of Engineers by August and start construction by 2007.

The first phase would take about five years to complete.

Contact John McDermott at 937-5572 or jmcdermott@postandcourier.com.


This article was printed via the web on 1/6/2006 2:37:00 PM . This article
appeared in The Post and Courier and updated online at Charleston.net on Wednesday, December 14, 2005.