In his first full board meeting as State Ports Authority chairman, Columbia businessman Bill Stern shot back Tuesday at critics who want the agency to completely privatize its proposed new container terminals.

But he also made it clear that the SPA is willing to soften its opposition to the idea if that's what it is going to take to increase South Carolina's cargo-handling capacity.

Based on recent meetings with lawmakers and business leaders around the state, Stern said, he is bothered by "the misinformation that continues to float out there" about the port's expansion plans.

Stern, who was elected SPA chairman in January, was responding partly to the launch of S.C. Free Market Ports last week. The group, led by Beaufort County Councilman Dick Stewart, has said it is working to pressure the authority into letting private companies finance and run the two large container yards being proposed for North Charleston and Jasper County.

That idea runs counter to a decision the SPA board made in August specifically barring private-sector businesses from operating the proposed $600 million North Charleston terminal without non-union state workers, who currently run the cranes and hold other key jobs on the public docks.

Instead, the authority is seeking to work out a "public-private" deal with one or more companies that would ensure the facility generates enough business to pay for itself while assuring the SPA some measure of control.

Port officials in Charleston are now reviewing three confidential proposals from steamship lines, which knew in advance that the state wouldn't consider a hands-off "landlord-tenant" deal at the 280-acre facility being planned for the former Navy base.

Critics like Free Market Ports have questioned the SPA's decision to slam the door on privatization while many other U.S. port owners are embracing it, partly out of financial necessity. The cost of building the North Charleston and Jasper facilities has been estimated at as much as $1.6 billion.

The SPA and Free Market Ports agree that the state needs to add more capacity quickly to keep pace with the surge in global trade and maintain a competitive edge in the container business.

Stern stood behind the board's stance on privatization, noting that the companies that have submitted formal written offers represent eight of the world's 10 biggest shipping companies.

He dismissed as "inaccurate" reports that the SPA's solicitation was "poorly received" within the industry. "It's been a very positive response," he said.

But Stern also said talks likely will require some give and take from both sides. He also said the SPA may have to soften its stance against privatization and make compromises to finalize any deals. "We are willing to sit down and negotiate with those companies that we find have the best shot of ... increasing capacity," Stern said.

His remarks came as a contentious debate over port privatization flared up on Capitol Hill.

The controversy stemmed from the Bush administration's decision allowing a company owned by the United Arab Emirates to run six major U.S ports - Charleston is not among them - in a move that has raised national security concerns and divided lawmakers. President Bush said Tuesday that he would veto any legislation seeking to block Dubai Ports World from taking over control of the terminals. The government-owned company is not among the bidders that have submitted proposals for the new North Charleston terminal.

Separately, the SPA denied recent published reports that it is looking to buy land for an inland port along Interstate 95.

"We are denying any involvement in any property acquisitions for such a purpose," spokesman Byron Miller said Tuesday.

Reach John McDermott at 937-5572 or jmcdermott@postandcourier.com.