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.