Now Everybody Cares About The Ports
In case you’re unfamiliar with the way things operate in South Carolina, nothing is ever done proactively.
Public policy is almost always a knee-jerk reaction geared exclusively toward mitigating short-term PR problems, as opposed to creating the conditions for sustained success.
As a result, our state continues to be consistently unsuccessful at pretty much everything it does.
The latest example of this short-sighted approach to governing is Sen. Glenn McConnell’s proposal to “restructure” the S.C. State Ports Authority.
Introduced yesterday, McConnell’s “restructuring” bill represents a colossal failure to correctly diagnose the true problem with this arrogant, pseudo-socialist state agency.
In fact, if passed it would only make matters worse than they are today.
Of course, McConnell’s bill is only up for discussion because S.C. Gov. Mark Sanford has failed miserably in exercising his authority over the Ports Authority’s board.
You read that right, people … failed miserably.
But McConnell has been around long enough to know better.
After sitting back for more than two decades and watching the Ports Authority’s socialist management model run our state’s most important competitive asset into the ground, McConnell finally recognized last summer that things needed to change.
Or at least we thought he did.
Like a typical South Carolina politician, though, it wasn’t until the highly-publicized departure of the Ports’ Authority’s biggest client last month that he decided to do something … or at least make it look like he was going to do something.
“The port is too important to the economic vitality of our state to be used as a political tool,” McConnell said in unveiling his bill. “We’ve got to take the politics out of the port’s operations and demand that it be run like a business. Job creation comes with long term planning, not political trade winds.”
Unfortunately, despite the obligatory “run it like a business” reference, McConnell’s port bill absolutely fails to even address the single most “non-business” aspect of the Ports Authority – i.e. its “total state control” approach to managing infrastructure.
Which makes this bill nothing more than a literal rearranging of the containers on a cargo ship that’s pulling up stakes for more competitive waters.
Seriously, our state has said “no thanks” to billions of dollars worth of private investment over the last decade, all because turf warriors at the SPA wanted to cling to total operational control of all facilities.
Apparently, that arrangement is just fine with McConnell.
On top of that failure, this bill would strip future governors of their ability to exercise control over the Ports Authority board and would dramatically expand legislative influence over the agency’s operations – which let’s face it, is a recipe for disaster.
You think the Ports Authority is mismanaged now? Wait till the General Assembly gets a hold of it.
“If we want more accountability in the Ports Authority, we need to start stripping away the layers between the governor and the president, not adding them,” Sanford spokesman Joel Sawyer told us when asked for comment on McConnell’s bill.
He’s right, even if his boss has been an unmitigated disaster when it comes to using the executive authority he already has.
Sawyer did say that the governor would be inclined to support Rep. Jimmy Merrill’s bill, which would eliminate most of the political problems by removing the board entirely and allowing future governors to directly appoint the SPA President.
You know, kind of like an “executive branch” of government is supposed to work.
But even Merrill’s bill fails to address the antiquated, Soviet-style management model, one which state leaders were warned years ago would hurt our competitiveness … and now has.
Without addressing that fatal flaw, our ports will never be economically competitive no matter what leadership structure is in place.
Sanford, McConnell, Merrill and the entire General Assembly share the blame for our port system’s failure, which was already well underway prior to the global economic downturn.
Now if only they could share in a free-market solution instead of peddling more of the same reactionary half-measures, we might be able to turn this ship around.






Comments
By Elmo on January 30th, 2009 at 8:08 am
If you really want to run our port like a business, why not let a private business own it,or lease it, or build it, and run it ? Get government as far away from it as possible.
Here is a simple cost effective plan- offer 2 out of our 3 container terminals in Charleston for sale to private steamship companies. Have them sold or at least rented out within 18 months. Return the proceeds to the state treasury. Allow the SPA to continue to operate one of the terminals and dramatically downsize the SPA.
Let a private company finance and build a terminal in Jasper county.
State taxpayers win- they do not have to spend any money – and money actually flows back into the Treasury – which will make our port an “asset”.
This creates quite a bit of competition without any taxpayer investment.
By Jeffrey Sewell on January 30th, 2009 at 10:33 am
Are you advocating a SSA unionized public-private venture?
By Lowcountry on January 30th, 2009 at 10:39 am
The most viable shipping terminals in the world today are run by the shipping lines themselves or by stevedore companies that are contracted to run the terminal for the lines. You are absolutely correct in your statement that the SCSPA has run this port into second tier status by demanding that themselves have the absolute authority on the docks. Ten years ago Maersk Line wanted to purchase the Wando terminal for it’s hub on the southeast coast. The SCSPA would have none of that relinquishing of power to a costumer. In turn Maersk approach the state of Virginia, who were more than happy to have Maersk run their own terminal. Since then two other shipping lines have approach the SPA about private terminals and were ultimately turned down. They are building as we speak in Jacksonville Florida.
By fitsnews on January 30th, 2009 at 11:55 am
Jeffrey,
No we are not.
First of all, the vast majority of Port employees are already unionized, and we think we’ve made our position on unions pretty clear in the past.
As for SSA, it should be free (like Maersk or any other company) to engage in a competitive bidding process with the the state to determine if their proposed partnership should be implemented.
No one is taking ownership of these facilities or control of their destiny away from the state, and at the end of the bidding process the state would retain the right to insert whatever conditions in the contract it wanted.
All we’re saying is let the state lease the facilities to private management.
-FITS
By Earl Capps on January 30th, 2009 at 11:56 am
Nice to see someone cares. Just wish someone cared when it actually mattered.
By Elmo on January 30th, 2009 at 9:34 pm
Here is how the Port of Los Angeles leases out their terminals – and holy cow- they make everything public and on the record.
Sic Willie,
Could it really be this dam simple to do?
http://www.portoflosangeles.org/DOC/POLA_Leasing_Policy_1st_Amendment.pdf
Once a Qualified Tenant is approved by the BHC, information pertaining to
the competitive selection process, responses, and evaluation results will be
posted publicly on the Port’s website. Further, in the competitive selection
document all proposals submitted as well as correspondence will be made
public on the Port’s website.
By BIN News Editorial Staff on January 30th, 2009 at 10:07 pm
What everyone wants is details on the SLED beat down squad.
By BIN News Editorial Staff on January 30th, 2009 at 10:08 pm
What everyone wants is detail on the SLED beat down squad.
By bargeman on February 3rd, 2009 at 4:54 pm
Maersk has just opened up a terminal in Mobile. They don’t even have to bring ships to the East Coast that come from China.