Port Explores Private Partnership For Veterans Terminal
A neglected terminal at the former Charleston Navy Base could be ground zero for a new era in port management in South Carolina, as sources tell FITS that the State Ports Authority has agreed in principle to enter into its first ever public-private model to manage the facility and rebuild its infrastructure.
Veterans Terminal, which handles only break bulk shipping and automotive traffic, has been all-but shuttered by the Ports Authority in recent years as the agency’s competitive position has plummeted across the board.
In fact, Ports Authority officials were turning business away from Veterans Terminal to focus on bringing in additional container traffic, which represents over 90% of the global shipping market.
“SPA allowed (Veterans Terminal) to fall off the map,” said a source familiar with the pending deal. “Landlord-tenant is the only way to get it back up and running.”
Landlord-tenant relationships involve private companies leasing port facilities from the state, which retains ownership of the land and infrastructure. With the exception of Savannah and Charleston, every other major port in America uses them.
Interestingly enough, another break bulk facility located at the Port of Port Royal in Beaufort County was shuttered five years ago after it began operating at a deficit. Lawmakers instructed the Ports Authority to sell the property, but two years after the legislative deadline they have failed to do so.
In fact, when the Port of Port Royal was shuttered, many felt it would be a boon to Veterans Terminal.
“There is a market for break bulk,” our source said. “The SPA just choose not to pursue it.”
If a public-private terminal is erected on this 110-acre site, South Carolina may not have to look far for a client.
BMW, whose North American headquarters is located in Greer, S.C., is reportedly in negotiations with the port to use the facility as a hub for loading and off-loading thousands of vehicles each year.
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Comments
By Philip Branton on February 3rd, 2009 at 3:57 pm
Guess where the present operation will move FROM…??
Mayor Riley gets what he wants and Summey gets his too…!!
Sounds like a done deal ! This should have happened a DECADE ago..!!
By Reform the SPA on February 3rd, 2009 at 7:38 pm
Sic Willie- The SPA leased out this terminal to a private operator back in 2000. The results were disastrous for the state taxpayers- We got no rent and had to end up busting the lease and paying the company with no port experience owned by Warren Lasch – a major Hunley supporter- over 6 million dollars.
Here is what we learned-
1. Get a minimum amount of guaranteed revenue each year- do not do a profit sharing lease.
2. Make the lease transparent to the public.