South Carolina legislature commits US$300 million to Charleston dredging
THE South Carolina state legislature has earmarked US$300 million to finance the dredging of the Port of Charleston's main navigation channel from 45 to 50 feet to accommodate 8,000-TEUers.
"This commitment is proof positive that South Carolina is serious about competing in a truly global business in order to boost jobs and opportunity for its citizens," said South Carolina Ports Authority (SCPA) chairman Bill Stern after thanking the state assembly for "guiding this appropriation across the finish line".
The harbour deepening is one of the state's top priorities because of its potential to support scores of manufacturers that have relocated to the state in recent years, increase exports and entice ocean carriers operating 8,000- to 12,000-TEU vessels through a soon-to-be-expanded Panama Canal before competing ports can be dredged to new depths.
"This level of commitment instills a great deal of confidence in our customers and shows that the Port of Charleston is ready and able to meet their long-term growth needs," said Jim Newsome, president and CEO of the South Carolina Ports Authority (SCPA). "We have a good partner in the Corps of Engineers, and we will continue our productive collaboration to deliver a true post-Panamax harbour in the South Atlantic as quickly as possible."
The US Army Corps of Engineers is currently conducting a four-year feasibility study of dredging to 50 feet. The federal share of the $20 million study is halfway funded through the corps operating funds and $3.5 million included in President Obama's fiscal year 2013 budget. The feasibility study is included in the $300 million overall price tag, according to American Shipper.
Even though South Carolina is preparing to pay for the entire Charleston deepening itself, it should not have to, Mr Newsome told a recent seminar in Chicago. "It's really not our responsibility to pay to deepen harbours. Harbours are a province of the federal government. To us, it's very clear that not all harbours will be deepened. The federal government cannot pay to deepen all harbours. Priorities have to be made, winners or losers have to be chosen," Mr Newsome said. The only other US east coast ports with 50-foot access are Norfolk, Baltimore and New York (but with air draft restrictions from a bridge).
This amount includes an additional $120 million to complete the project without federal help.
DATE:2012.7.4
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