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