Worried about surrendering control of its docks,
especially to unionized companies, the State Ports Authority on Tuesday
voted to block private businesses from running the new shipping terminals
it plans to build in North Charleston and Jasper County.
The 5-3 decision comes as the agency is reviewing inquiries from firms
interested in operating one or both of the proposed container facilities.
Carroll A. Campbell III urged his fellow board members to prevent the
SPA from completely privatizing the new terminals, partly because the
author-ity's only role would be to collect the rent.
"My biggest concerns, to be honest, are the union issues," Campbell
said.
At privately run container yards around the country, he said, the
operators are contractually required to hire only organized labor.
"When it comes to ports, privatization means unionization," Campbell
said.
If the SPA relinquishes control of the new terminals to an all-union
work force, it could raise operating costs, lead to work stoppages and
make the port less competitive, he said. Also, the increased labor
activity on the waterfront could spread to other industries in the state,
he said.
Campbell said he's not opposed to the use of unionized workers on the
docks, but he wants to make sure the numbers do not tip the balance of
power. "At some point there's a percentage where you start to lose
control," he said.
Campbell said the SPA's current business model "is the way it should
be," noting that a mix of union workers represented by the International
Longshoremen's Association and non-union state employees "do a great job"
handling freight at the Port of Charleston. He pointed out that the
authority just closed out a record-breaking fiscal year in its strongest
financial position ever.
"It's not broken and doesn't need to be fixed," Campbell said.
The SPA is looking to set the ground rules now for any partnerships it
might need to form as it expands its container-handling capacity. It's
unclear whether the new North Charleston terminal, planned for 280 acres
on the former Navy base, will require private-sector investment. The
1,800-acre Jasper County facility, if it is ever built, almost certainly
will.
Anticipating that, the authority has solicited "expressions of
interest" from private companies. Of the 21 respondents, 15 "are still in
the mix," said Ber-nard Groseclose, the SPA's chief executive. Some of
those requested "a landlord-tenant arrangement," Groseclose said.
Campbell is opposed to that. Reading from a lengthy statement, he said
he would not support any proposal "that requires this board to surrender
its responsibilities to a private company."
"While private participation is a good thing, privatization of our
state's public ports ... is a very bad idea," Campbell said.
He also made reference to his father, former Gov. Carroll Campbell, who
has battled Alzheimer's disease for six years and recently moved into a
full-time residential care facility.
"I'm sorry my dad can't be here to speak to this issue," Campbell said.
"He was able to sign a letter that other former governors signed urging
the state to maintain control over all port facilities. But that letter,
as direct as it was, did not communicate his intensity about this issue."
Board members John F. Hassell III, Thomas C. Davis and Glen P. Kilgore
voted against Campbell's proposal, saying they did not have enough
information Tuesday to make an informed decision.
Voting in favor of the measure was SPA board chairman Harry J. Butler
Jr., as well as James A. Bennett, William H. Stern and Whitemarsh S. Smith
III.
Gov. Mark Sanford would like to see the ports authority create some
sort of public-private partnership to run the proposed terminals, said
spokesman Joel Sawyer. "As for what form it ultimately takes, we defer to
the board on that," Sawyer said.
The authority began seeking private partners after suing to block
Jasper County from developing its own $450 million deep-water shipping
terminal on the Savannah River. The SPA has argued it has exclusive power
to develop ports in South Carolina. The state Supreme Court is expected to
hear arguments in the case Sept. 20.