PORT ROYAL -- Local officials Thursday welcomed the news that Gov. Mark Sanford wants the state to look at closing its Port Royal port.

Sanford suggested at a budget hearing Thursday that the State Ports Authority shutter the tiny Beaufort County operation, which attracts only about 20 ships a year and last year lost $58,000.

Charleston handles more cargo in a week than the state's steamship terminal at Port Royal does in a year.

The suggestion was welcomed by officials in Beaufort County.

"I think that's great and timely," said Dick Stewart, who this week won a special election for the Beaufort County Council seat representing Port Royal and Beaufort. "I think it's time for us to get together and get busy and plan something for Port Royal, including the port."

Port Royal Mayor Sam Murray also said he was pleased with the governor's proposal.

"I would be in favor (of closing the port)," Murray said.

He said he'd like to see development "that would be economically beneficial for the area and provide some (local) job opportunities."

The governor said the land should either be sold outright or used as part of a joint venture between the state and a private developer.

"You always want to be careful with those sorts of things, and I simply want to see proposals on both ends," Sanford said. "... What's the risk the state takes if we enter into a joint venture, versus what's the risk or the return the state makes if we simply sell the land outright?"

Tony Pesavento, terminal manager at the Port Royal port, would not comment on the governor's statements Thursday. Port Director David Schronce could not be reached for comment.

Stewart has been critical of the town of Port Royal for not pushing development of the port. He said the port was no longer viable and would help the local and state economy more by generating tax dollars than by handling cargo.

In 2002, the Port Royal port handled only 168,000 tons of cargo, 54 percent less than the 364,153 tons it processed in 1999.

Stewart, who owns a local real estate management and development firm, said he was pleased the governor responded to the area's concerns about the port.

"We need to get busy on developing a plan down there," he said.

Port Royal entered the discussion at Thursday's budget hearing when Sanford asked Bernard Groseclose, the authority's president and chief executive officer, if there are missions the agency does not need to perform.

Groseclose said the Beaufort County terminal, on 11 acres of valuable waterfront property, handles mainly fertilizer and cement. It lost $58,000 last year, he said.

Closing it would require lawmaker approval. The General Assembly years ago required the authority to operate terminals in Georgetown, Charleston and Port Royal, Groseclose said.

"If you have a multimillion-dollar asset that is sitting there idling, then it's probably not a great use of taxpayer assets," Sanford said.