Newsome: Charleston best value for deepening dollars

   Jim Newsome, the president and chief executive officer of the South Carolina Ports Authority, told members of the port community that the Port of Charleston is the “best value for money for the nation in South Atlantic harbor deepening” and highlighted the importance of deep harbors for exporters. 
   In a “state-of-the-port” address on Tuesday, Newsome said by the time the expanded Panama Canal opens in 2014, there will be as many ships in operation above 5,000 TEU as there are ships of the 2,000-5,000 TEU Panamax variety that mainly call Charleston today.
   All major lines are contemplating the employment of 8,000 TEU ships between Asia and the U.S. East Coast, and soon,” he said.
Newsome said “a ship leaving from the U.S.East Coast headed back to Asia has to be full with exports upon leaving the South Atlantic. We are the only South Atlantic port in future, besides Miami, capable of meeting that requirement.”

Newsome

   “All South Atlantic ports are currently seeking deepening projects, but all other projects are really designed to achieve the functionality, at best, that we have here today in Charleston.”
   “We have just been through 15 years of wholesale outsourcing of low-valued manufacturing to China. At its height, imports from Asia exceeded exports to Asia by a factor of 3 to 1. Things are now changing. We are in a secular export boom based on a two-tier world economy whereby emerging economies (China and others) are growing much faster than developed economies.”
   “The world just saw the birth of its 7 billionth person and that person was likely born in an emerging market economy. China alone is growing a middle class of over 500 million people, larger than our total population. They will become voracious consumers of rising standard-of-living products such as American agriculture.”
   “Such basic exports are heavy and require deep water harbors. They also require a robust infrastructure of transload facilities whereby cargo can be received by domestic rail and efficiently loaded into containers. There are way too many empty containers being exported
from Charleston today, these need to be filled with cargo.”
   At the same time, Newsome said “by no means will we abandon our focus on import cargo. TBC and Adidas have given us the road map on the efficacy of 1 million plus square foot distribution centers in South Carolina. There are many more candidates. Import transloading is
also important and we will soon have our Wando Transload facility in play as a retail transload facility. It will be operated by a capable third-party logistics provider, Performance Team, with specialized expertise in this field.”
   Newsome said the port will invest $1.3 billion dollars in next 10 years ” an all-in bet on the future of big ships with no margin for error.” 
   Following remarks by U.S. Sen. Lindsey Graham and Gov. Nikki Haley and an introduction by Charleston Mayor Joe Riley, Newsome reflected on the progress of major initiatives, including a $23-million improvement project to transform Columbus Street Terminal into a premier ro-ro and breakbulk facility. The terminal now handles several large, in-state customers, including BMW exports and energy equipment for General Electric and – starting next month – Westinghouse.
   Earlier on Tuesday the SCPA Board approved a new seven-year employment contract with option to extend for Newsome, who joined the SCPA at the helm in 2009.