Charleston has dropped two places in the pecking order of the East Coast's busiest container ports after its nearest rival posted a 14 percent gain last year.

For the 2006 calendar year, the Georgia Ports Authority said its Port of Savannah handled the equivalent of 2.16 million containers, as measured in industry standard 20-foot-long increments.

The Port of Charleston handled 1.97 million of the metal boxes over the same period, a slight decline from the 1.98 million that crossed its docks in 2005.

The surge of cargo volume in Savannah was enough to propel it from fourth place in the port rankings to the second spot, swapping places with Charleston, which also fell behind Hampton Roads, Va.

The Virginia Port Authority, bolstered by activity at its Norfolk terminal, moved about 2.05 million containers last year, an increase of less than one percent.

The Port of New York-New Jersey, which has not yet released its cargo volume for 2006, is expected to retain its long-established top spot. In 2005 those terminals handled 4.79 million 20-foot containers, more than twice as much as their nearest East Coast competitor.

Doug J. Marchand, executive director for Georgia's port system, crowed that investments made to improve and expand the Savannah waterfront are paying "huge dividends for our customers."

"We are setting new records, exceeding service levels and moving forward with an aggressive, $1 billion capital improvement plan to grow our business to new highs and create more jobs and opportunities for the citizens of Georgia," Marchand said.

In contrast, the S.C. State Ports Authority has struggled to secure permits for a $600 million terminal on the former Navy base in North Charleston. That process started more than three years ago.

The gains made in Savannah and Virginia are worrisome for some Charleston-area maritime businesses. The trucking industry, for example, relies heavily on an efficient port that can grow along with container volume.

"We seemed stalled right now," said Patrick Barber, owner of Superior Transportation in Charleston and president of the Charleston Motor Carriers Association. "If you're not moving forward you're backing up."

SPA spokesman Byron Miller said the Port of Charleston has added capacity at its existing terminals and has attracted several new shipping services. Also, it hopes to land a service from Asia via the Suez Canal this year.

But the uncertainty about the SPA's ability to handle more containers years into the future has made steamship lines nervous. Miller said. That has spurred some carriers to rethink where they want to send their ships.

Miller said the two main obstacles to growth are the delays in the North Charleston project and legal challenges to a terminal the SPA is proposing for Jasper County.

"What we're suffering from most is a lack of confidence that South Carolina is going to expand its port system," Miller said. "The best way to solve that is to permit the project and start construction."

A decision on the 1 million container-a-year North Charleston terminal is expected in April.

Even with growth stalling at the moment, some businesses are taking the long view about the port's future prospects. Miller noted, for example, that major port-driven real estate projects are in the works for the Cainhoy, Jedburg and Ladson areas. Those privately funded developments would create new warehouse and distribution sites, making Charleston a more competitive destination for both shippers and shipping lines, he said.

Reach Peter Hull at 937-5594 or phull@postandcourier.com.