Wilmington increases container volume, loses money
Container volume at the Port of Wilmington grew 29 percent to 249,850 TEUs for the fiscal year ended June 30, compared to 194,600 TEUs in 2008-09, the North Carolina State Ports Authority said last week.
The Port of Morehead City experienced a 19 percent year-over-year growth in its breakbulk business, driven largely by increases in metal products such as rail and wire rod coils.
Much of the new volume in Wilmington can be attributed to two new services that Maersk Line and International Container Line started in March 2009. Maersk’s weekly calls connect Wilmington with Central America and ICL calls on northern Europe and the United Kingdom once a week.
Glenn Carlson, the ports authority's chief commercial officer, told the local StarNews that the shipping lines were attracted to the port in part by $82 million in improvements since 2004, including five new container cranes.
The ports authority said it lost $6 million due to significant declines in general cargo at Wilmington, plus one-time write-offs for capital assets and construction projects. Lumber and wood pulp recorded the largest volume declines at 75 percent and 89 percent, respectively, from the previous fiscal year. The drop in lumber business is a direct reflection of the weak housing market in North Carolina. Lumber typically accounts for $4 million to $5 million in revenue per year, the state agency said.
It predicted its revenue would increase about 3.5 percent for fiscal year 2011. Cost containment efforts resulted in $723,000 in savings.
Operating revenues fell from $34.5 million in 2008-09 to $33.2 million for the fiscal year. The ports authority lost $4.3 million in 2008-09.
“The authority is demonstrating that it can operate efficiently and effectively in response to fluctuating cargo volumes, and that it can control costs while delivering unparalleled customer service,' Chief Executive Officer Thomas J. Eagar said in a statement.
In July, the ports authority said it was shelving plans to build a new, deep-draft container terminal 19 miles closer to the ocean on the Cape Fear River because of local opposition. The decision to accede to environmental and residential concerns about the green field project was made easier by the fact that no private investors have yet stepped forward to provide financing. State officials have indicated that they will look for other options for a container terminal able to handle post-Panamax ships.
Wilmington increases container volume, loses money
