Logistics Aspects &Multi-Modal

Transportation

29 November 2004 Presented by Peter O. Lehman, Esq.

Director, Planning & Business DevelopmentSouth Carolina State Ports Authority

plehman@scspa.com

Charleston’s Current Position

• 4th Largest U.S. Container Port

• Mid-way Between NY & Miami

• Largest Operating Port• Cargo Valued at

US$39 Billion in 2003• 1.7 Million TEU Last

Year• Volume Up 15% Jul-

Oct

Current Issues Facing Our Port

• Increasing Trade, More Cargo

• Larger Ships, Deeper Channels

• Need for Investment• Port Security Demands• Balancing Economy,

Environment• Political, Public

Support and Cooperation

Increasing Trade, More Cargo

• Importance to U.S. Economy– Growth in % of GDP

• In-land Infrastructure, Road/Rail– Pressures on Coast

• Information Systems– New Yard System

• Higher Utilization– Better Equipment,

Training

Larger Ships, Deeper Channels

• Bridge Construction– Largest in Americas,

US$635 million– Higher, Wider Clearance– Complete in mid-2005

• Harbor Deepening, Maintenance– 47’ entrance channel,

45’ inside harbor

• Alliances, Impacts on Margin– Volume Concentrated in

fewer services

Need for Investment

• Short-Term Planning• Long-Term

Development at Navy Base– Three berths, 280

acres

• Infrastructure– To serve new facility

• Funding Sources– Internal, State,

Federal, Private

Port Security Demands

• Balancing Security, Cargo Flow

• Rapidly Increasing Costs– From $2 million to $4

million– From 50 to 80 officers

• Federal Role, Local Costs

• New Equipment, Assets– C-TPAT, VACIS, RPMs

• Instituted Security Surcharge

Balancing Economy, Environment

• Maintenance Dredging– Disposal Options– Beneficial Uses

• New Fuels, Cold Ironing

• NRDC, Other Actions

Political, Public Support & Cooperation

• Education initiatives– Legislators,

Congressmen, public

• Garnering support• Vital to continue

growing our port and trade

Current Issues Facing Our Port

• Increasing Trade, More Cargo

• Larger Ships, Deeper Channels

• Need for Investment• Port Security Demands• Balancing Economy,

Environment• Political, Public

Support and Cooperation