Port expansion
really means state entering new market
BRUCE
SMITH Associated
Press
CHARLESTON, S.C. - It's an ambitious plan,
building two steamship terminals in two different areas of South
Carolina at an initial cost that could approach $1 billion.
But in size and scope, what the State Ports Authority is
proposing is not terribly larger than envisioned a decade ago with
the ill-fated Global Gateway Terminal on Daniel Island.
However, in planning terminals both in Charleston and now Jasper
County, the agency is expanding to serve a market it has never
served - Savannah, Ga., and nearby communities.
"The Savannah River market and the Charleston market are two
distinctly different markets. We don't see this as taking away from
Charleston," said Harry Butler Jr., the chairman of the State Ports
Authority.
In the future, ports on both sides of the river could even foster
cooperation between South Carolina and Georgia, which have been
fiercely competitive over port business.
"World trade is growing at double-digit rates. I think both
states can win if they find some cooperative way to work," said Doug
Woodward, a research economist at the Moore School of Business at
the University of South Carolina.
He noted that ports, historically, have prompted states to work
together.
"That's why New York and New Jersey have a ports authority," he
said. "These rivers don't respect state boundaries."
The Global Gateway - at the time expected to cost $1.2 billion -
was projected to have 12 steamship berths. The plan was scuttled
when, after public opposition, state lawmakers directed a terminal
be built at the old Charleston Naval Base.
The State Ports Authority is pursing permits to build a $500
million terminal at the base. It also wants to build on an almost
1,800-acre site on the Savannah River where Jasper County has been
pursing plans to build with a private port developer. That tract has
enough space for 11 berths.
The authority has said it will condemn the land owned by the
state of Georgia if a negotiated settlement can't be reached. Jasper
County is continuing with its own condemnation.
That may complicate things and is unlikely to be successful, said
Tom Davis, a former aide to Gov. Mark Sanford and a nominee to the
ports authority board.
"You need to have the standing of the state," he said. "To make a
port a reality in Jasper, you're going to need the stature or
authority that the ports authority has."
State Sen. William Mescher, R-Pinopolis, was one of several
lawmakers who opposed the Global Gateway. But he likes the idea of
the State Ports Authority building on the Savannah River.
"I think it's wise on their part. I'm just surprised they waited
so long," he said. "If I had been involved with the State Ports
Authority, I would have said it looks like there is going to be a
port down there. And if there is going to be a port, it should be
ours."
Butler said the authority will consider both public and private
financing.
"We have always in the past used private sources to finance some
of what we have done," he said. "We are very open and our governor
is very open to the idea of public-private financing. It might be a
little different in Jasper County because a private company has
already expressed a willingness to put the dollars up."
Jasper officials have agreements with a subsidiary of private
port developer SSA Marine to build a $450 million terminal. During a
tour of the site with journalists several years ago, lawmakers
estimated total build-out of the property could reach $2
billion.
The South Carolina side of the river is undeveloped so workers
who live in Savannah and Georgia would immediately benefit from a
terminal, Woodward said.
"If people just drive across that bridge into Jasper County every
day to work and take their paycheck back to Georgia, that's a real
leakage," he said. "That's a very tricky aspect of this."
While there will likely be turf battles, he eventually sees the
states cooperating. "We have to look at our port authority less as a
state asset and more as a regional asset, which it is," he said.
Mescher also sees the possibility of cooperation.
"It might resolve the issue that Georgia owns the property and
South Carolina wants to build a port on it," he said. "It would be a
perfect marriage."
The Georgia Port Authority has said it will honor an agreement
with the U.S. Army Corps of Engineers to use the Jasper land to dump
silt from the Savannah shipping channel.
"This is the current purpose of the land and we plan to follow
the law and our obligation," said Robert Morris, a spokesman for the
Georgia authority.
But Butler said there are other areas to dump dredge spoils.
"There are alternate sites where that could be done," he said.
"We find it hard to believe it can only be done on this property,
which also happens to be the best deep-water site for a port."
Woodward said a new port will prove good for both sides of the
river. But, he cautions, "the economics are one thing, the politics
are
another." |