By Richard Stewart
As South Carolina begins the process of steering its economy into
the 21st century, maximizing our state's competitive advantages must
become more of a priority to those in government. Too often,
"politics as usual" trumps the fundamental value of ideas --
preventing our state from moving forward and realizing its
potential. As a result, South Carolina's unemployment is high, our
income levels are low and an increasingly fragmented and inefficient
state government remains part of the problem, not the solution.
The global, Web-based economy is advancing at lightning speed,
but the South Carolina State Ports Authority (SPA) and the political
establishment that controls it is limping along like an old Charles
Towne carriage horse with its blinders on.
Despite huge increases in port traffic and an influx of new Asian
shipping business, the SPA has spent the past decade fumbling over
various expansion plans in Charleston, all while ignoring the best
remaining port site on the Eastern Seaboard -- Jasper County.
Recently, the SPA further disconnected itself from working
families and taxpayers by forbidding public-private partnerships in
the form of landlord-tenant agreements -- effectively eliminating a
critical source of private investment utilized at 45 of the world's
50 largest ports, including 13 of the 15 largest U.S. ports.
Essentially, landlord-tenant models enable private companies to
build and operate terminals with private money, paying a lease to
the government until the facility is turned over to the state.
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Yet while states like Alabama, Florida, Texas and Virginia are
using these win-win agreements to boost port capacity and create
jobs, the SPA is telling private investors to take their money
someplace else.
Unfortunately for our state, that's exactly what's happening.
For example, Maersk Sealand, the world's largest shipping
company, recently entered into a $450 million landlord-tenant
agreement to build a new terminal in Portsmouth, Va. States like
Virginia understand that taxpayer dollars are limited, the private
sector moves faster than government and competition for business is
brutal.
The SPA's defense of its "our way or the highway" approach has
been to raise the specter of unions -- an argument referred to as
"nonsense" by University of Chicago economist Sam Peltzman.
Forgetting that 1,400 unionized employees already work at the Port
of Charleston (compared with just 400 state employees), the SPA
board warned ominously that a public-private Jasper port would "pave
the way for further unionization in South Carolina."
This is simply a scare tactic to distract you from the real issue
of accepting some private control in exchange for private
investment. More importantly, it differs from the statesmen-like
actions pursued in other states. Listen to Joe Dorto, president of
Virginia International Terminals, commenting on the $450 million
agreement his state reached with Maersk Sealand: "It's capacity we
need. We don't have the money to buy additional property or expand
beyond where we are now, but this is all being done with private
money."
The next decade and beyond promises significant growth in the
shipping business, and South Carolina is either going to get in the
game or sit by and watch other ports willing to engage
public-private partnerships generate jobs and prosperity for their
citizens. Our state needs real jobs for working families right now,
and our leaders should be looking for ways to make that happen.
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