Bernie Groseclose looked relaxed and carefree as he settled behind his
desk at the State Ports Authority headquarters at midafternoon Tuesday.
The chief executive officer of the fourth-largest U.S. container port had
nary a hair out of place. A purple-striped tie was knotted flush against
the collar of his impeccably pressed white shirt. The tone of his voice
was measured and calm.
His unruffled appearance aside, Groseclose had already put in a long
day - and it wasn't over yet. It began with early back-to-back meetings,
first with the SPA's finance committee and then with the full board of
directors. Immediately afterward, a driver whisked him several blocks away
to give a briefing members to Charleston County's legislative delegation
and answer their questions. That evening, it was on to a $75-a-ticket
business function at the Harbour Club, where Groseclose spoke about the
future of the Port of Charleston.
"It's my hobby now, as well as my job," he said.
Nearly nine years after taking the helm at the SPA, the even-keeled,
snappy-dressing CEO who was once described as "the thread king of the port
industry" seems none the worse for wear, even as his time, talents and
delegating skills are being stretched in multiple directions at once.
"You're talking about the smallest local matters to issues of
hemispheric proportions," said SPA board member John Hassell, who also is
president of the Maritime Association of the Port of Charleston.
"As a board member, all I can say is that's why we pay him the big
bucks. Thus far, he seems to be balancing all the matters very well."
Groseclose's crowded plate is stacked with an assortment of issues that
are critical to the region and state, none more important than the $600
million container terminal he is pushing to build on the former Navy base
in North Charleston. As part of that effort, the port chief also is
seeking private-sector investment to offset the SPA's portion of the
project while addressing concerns about the impact the expansion would
have on nearby neighborhoods.
In the meantime, he must ensure the SPA can keep up with and handle the
growing volume of containers moving across its existing docks. All the
while, he is awaiting a court decision that, no matter what, is sure to
make life at 176 Concord St. more interesting, if not more stressful.
Groseclose's ability to multitask during this pivotal period will have
widespread implications.
Because the Port of Charleston is the lifeblood for thousands of
businesses in the region and throughout the rest of the state, his success
or failure could mean the difference between an economy that thrives and
one that runs aground.
Groseclose shrugs off the notion that he's taking on too much at once,
as does SPA Chairman Harry Butler. "I think he's handling things fine,"
Butler said. "There's no doubt we have a lot of issues in front of us, but
we're making a lot of progress in a lot of areas."
Groseclose, who joined the SPA as its planning chief 20 years ago, said
he's been in similar pressure-cookers before and that his staff capably
handles more than its share of the work load.
He recalled the "intensity" of the late 1990s when the SPA was battling
fierce opposition to the its Global Gateway mega-terminal on Daniel
Island, a fight it ultimately lost. Groseclose also was deeply immersed at
that time in a proposed redevelopment of the authority's Union Pier, a
complicated real estate project that has since been mothballed. "It's been
a continual juggling of a lot of different issues," Groseclose said.
The difference this time around is that the SPA is under more intense
pressure to get a new terminal up and running.
"It becomes more of a challenge with each year," Groseclose said.
His main concern is that steamship lines and other important customers
will take their business elsewhere, or won't consider Charleston at all,
unless they are assured the agency has enough capacity, either now or 10
years from now, to handle their containers. As Groseclose sees it, the
issue is not so much that the port has lost significant volume to
Savannah, Norfolk and other competitors. He pointed to the 14 percent
growth rate that the SPA posted in its last fiscal year.
"And that's growth on top of a record year ... What we're missing is
the opportunity to have higher growth," he said.
That's why the Navy base expansion is so critical, said Groseclose. But
the SPA can't pull off the project alone. In a first, the authority is
soliciting proposals from private-sector groups interested in helping it
finance and develop the terminal. It expects formal responses by Dec. 8
from up to 11 groups that have expressed interest in the deal.
"We're very encouraged by that, based on conversations we've had with
many of those companies," he said.
Groseclose also is seeking financial support for another key component:
a new access road connecting the new terminal with Interstate 26 that must
be completed before the container facility can open. Last week, he urged
legislators on the port oversight committee last week to throw their
weight behind the funding request. They agreed.
Groseclose hopes to obtain the permits for the Navy base site by next
summer so that the first phase of the three-berth container facility will
be ready by 2012. At a public hearing last week, environmental regulators
began gathering community feedback about the project, all of which will be
weighed in the final decision.
In the interim, the SPA is trying to address short-term concerns about
capacity by making better use of its existing dock space.
Last month, for instance, the board approved a 50-acre expansion of the
Wando Welch Terminal, using up its last large piece of undeveloped land
there. In September, the agency agreed to its biggest one-time purchase of
cranes and other container-handling equipment in its history, saying the
nearly $64 million acquisition plan should tide it over until the new
terminal is completed.
"We have to bridge that gap," Groseclose said.
The other major pressing issue that has been preoccupying the SPA
chief's thoughts these days - a governmental turf war that could reshape
the maritime industry in South Carolina - now rests in the hands of the
state Supreme Court.
The case pits the ports authority against Jasper County, which wants to
build, with private funds, a $500 million shipping terminal on the
Savannah River. The SPA has argued it has the exclusive right to control
such development in South Carolina, saying in a court filing that only it
has the power to "promote, develop, construct, equip, maintain and operate
a harbor or harbors within the state."
The county has maintained that the law that created the SPA doesn't
supersede its rights to build the 1,800-acre cargo-container terminal. The
proposed project, it said, "is a legitimate governmental exercise" allowed
under home rule.
If the court rules against the SPA, it would open the authority up to
head-to-head competition in its own state with a for-profit private
business. Maritime interests in Charleston already have expressed concerns
that a large terminal down the coast could siphon cargo from the local
terminals.
In the event of a victory, Groseclose said he would move immediately to
acquire the land, a task complicated by the fact that the state of Georgia
owns it. He said he would then start the permitting process and seek
private-sector financial partners, with the goal of beginning construction
in about seven years.
"We're accused of not having a thought-out plan," he said. "We have as
good a plan as anybody."
Contrary to his planning background, Groseclose said he isn't preparing
for the possibility of a defeat. "I think we have that certain level of
comfort in our case that we have, if not the exclusive right to operate a
public terminal, then the predominant or pre-eminent right to do that," he
said.
In any event, Groseclose has his work cut out for him. And he does have
a plan for dealing with that. "Sleep less, come in earlier and stay
later," he joked.
At a glance
Bernard S. Groseclose Jr.
Title: President and chief executive of the State Ports Authority.
Education: Undergraduate degree in business administration and
economics from Hampden-Sydney College; master's degree in business
administration from the College of William and Mary.
Background: Joined the SPA in 1985 as planning and development
director. Succeeded Don Welch as president and CEO in January 1997. Before
joining the ports authority, Groseclose spent six years with Rockwell
International.
Personal: Born in West Virginia. Married to Colleen. Lives in Daniel
Island.
Extracurricular activities: Was installed as chairman of the American
Association of Port Authorities last month. Is a vice president of the
International Association of Ports and Harbors. Co-author of the book
"Strategic Planning: A Guide for the Port Industry."
Some other SPA priorities
aside from port expansion: Winding down operations at Port Royal near
Beaufort; marketing and selling the SPA's 1,300-acre property on Daniel
Island.
Contact John McDermott at 937-5572 or jmcdermott@postandcourier.com.