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The New Media Department of The Post and Courier

SUNDAY, NOVEMBER 20, 2005 12:00 AM

Port's multitasking CEO on course

BY JOHN P. McDERMOTT
The Post and Courier

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.


This article was printed via the web on 11/28/2005 9:43:40 AM . This article
appeared in The Post and Courier and updated online at Charleston.net on Sunday, November 20, 2005.