Did S.C. Gov. Nikki Haley sell out South Carolina’s maritime interests for a few cheap campaign contributions and a prime time speaking slot at next summer’s Republican National Convention?
That remains to be seen … but S.C. Senator Tom Davis (R-Beaufort) isn’t focused on the pay-to-play drama associated with Haley’s instantly infamous “Savannah River Sellout.”
Instead, Davis is zeroing in on how Haley’s controversial appeasement of Savannah’s port expansion plans adversely impacts the state of South Carolina’s long-term economic competitiveness.
Earlier this month, Haley’s appointees to the S.C. Department of Health and Environmental Control (SCDHEC) reversed the agency’s previous decision and granted a controversial environmental permit to the U.S. Army Corps of Engineers.
That decision – which has prompted outrage from Republicans and Democrats alike – would enable the Port of Savannah to handle larger container ships, thus enhancing its competitive advantage at the expense of the Port of Charleston while effectively eliminating any chance that a deep water port will ever be constructed in Jasper County, S.C.
The decision also guarantees that U.S. taxpayers will be on the hook for Savannah’s expansion – rather than private capital going to fund a Jasper facility that would create thousands of South Carolina jobs and cause much less damage to the environment.
Haley has been accused of receiving financial and political favors from moneyed interests in Georgia in exchange for her advocacy on behalf of the Port of Savannah – and one Atlanta fundraiser has already been confirmed.
Yet while Senate Majority Leader Harvey Peeler and Attorney General Alan Wilson investigate those allegations within the context of Haley’s broader flip-flop on port-related issues (Haley started off her term as an anti-Georgia antagonist), Davis is driving home just how bad this deal really is for the state.
“The DHEC board failed in its duty to protect the economic and environmental interests of South Carolina,” Davis said in a statement released shortly after Haley held a press conference defending herself against pay-to-play allegations.
In his statement, Davis meticulously documents how the Georgia Ports Authority (GPA) and the U.S. Army Corps of Engineers have failed to honor their agreements regarding a spoil easement that must be lifted in order for the Jasper project to proceed.
“The failure of the GPA and the Corps to keep its promises and follow the law is a classic case of politicians, political appointees and government bureaucrats protecting a powerful special interest – the Port of Savannah,” Davis said. “And it sickens me to see one of our own state agencies help them do it.”
According to Davis, the GPA and U.S. Army Corps of Engineers are deliberately refusing to release the easement because they don’t want to see the Jasper project built. Both entities have ignored directives from the U.S. Congress – saying that releasing the easement would be “difficult.”
Davis says that’s hogwash – referring to the speed with which the Corps negotiated the release of an unrelated easement per the terms of the SCDHEC agreement.
“In a matter of hours, the Corps commits to releasing its easement on 1,690 acres – something that it has not done in regard to the Jasper County port site despite four years worth of work and millions of dollars in required studies,” he says.
On Monday, Haley pledged her support for a Jasper Port – saying it would eventually be needed to handle “overflow” from the Port of Charleston.
Davis challenged her – and other state officials – to put up or shut up.
“It is way past time for South Carolina’s statewide elected officials – including the governor, the state attorney general and our United States senators – to insist that the GPA and the Corps keep its promises and follow the law, and immediately release the spoil easement from the Jasper County port site, and allow its development by private companies with private capital to proceed,” he said, adding that “it is shameful that public officials and bureaucrats have blatantly blocked the development, with private capital, of a tremendous maritime asset in Jasper County.”
Davis is absolutely correct.
Our state is sitting on the last deepwater port site on the Eastern Seaboard – a competitive asset that’s potentially worth billions of dollars and tens of thousands of jobs to our state. Yet rather than aggressively pushing to develop this asset with private funds, Haley is intent on accommodating a government-funded project that would primarily benefit the state of Georgia.
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By Old Bike Dude November 28, 2011 at 7:13 pm
We need Tom Davis on that wall, we want Tom Davis on that wall…why…because Nim can’t handle the truth!
By keeping 'em honest November 28, 2011 at 7:34 pm
Other than the fact that Tom Davis “on that wall” was instrumental in getting Nimrata where she is today…and was complicit in everything Sanfraud did that allowed Nim the opportunity to stack the DHEC board with her minions.
Bet it hurts ole Tom to get stabbed in his own backside
By CNSYD November 28, 2011 at 7:37 pm
A pandering Sanfraud clone caarpetbagger.
By CNSYD November 28, 2011 at 7:38 pm
Oops, should read “carpetbagger”.
By Billy Mulligan November 28, 2011 at 8:22 pm
A “directive” is not a federal law. Trikki Nikki did sell out South Carolina though. She’s going to get everything she can in the four years she’s guaranteed a job, short of indictment and removal from office before landing in Charlie Sharpe’s old room.
By Waterfront commentator November 28, 2011 at 9:24 pm
Different from Charleston, where most freight forwarders, customs brokers and steamship agents have now disbursed from near the U.S. Customs House (downtown) to all over the county, Savannah’s FF/CHB/SSA community has pretty much stayed put in the same old offices they’ve inhabited for decades, in the old city. That is, within a few blocks of one another and their U.S. Customs House.
In Charleston, the FF/CHB/SSA crowd used to meet after work at one downtown bar, but that doesn’t happen any more thanks to the “Orion diaspora” — the U.S. Customs/SCSPA manifesting program — that allowed the shipping community to operate electronically anywhere. This eliminated the need for the ubiquitous “runners” and abolished informal in-person encounters among the players. The “high price rent” and lack of parking in downtown Charleston encouraged this exodus.
In Savannah, nothing has changed. Savannah has always had a “drinking” waterfront community — downtown, and is famous for nobody answering the phone after 5 PM. Men and women, young and old, including those with children, typically stop in for a drink after work. Every work day. Religiously. Faithfully. Happily. A social phenomenon completely unlike Charleston.
My Savannah friends are speechless at the gullibility of our governor — and their good fortune — and those in the stevedoring, container stripping/stuffing and export packing arenas are now able to make longer-term commitments (including capital improvements and contracts with shippers and carriers) than they can in Charleston, where the SCSPA is regarded as “the enemy.”
So South Carolina’s waterfront has a coin with “the enemy” on one side and “the fool” on the other. So now, no matter what side comes up, South Carolina loses. Bobby Hitt is probably the only person on our governor’s team who appreciates this setback.
Georgia doesn’t use that bad coinage. Its waterfront community works together, takes market share from SC, and does not, as did the Propeller Club of Charleston last week, politely “give Governor Haley a standing ovation before and after her remarks.”
By imprimatur November 28, 2011 at 10:00 pm
Who knew there was an adult in the room?
By Bonhoeffer November 28, 2011 at 10:44 pm
So why doesn’t he run against Haley in 2014?
By Mike at the Beach November 28, 2011 at 11:38 pm
Who says he won’t?…
By But wait November 29, 2011 at 12:31 am
What do you mean run against Haley? Don’t you know Alan Wilson wants that job. He used his AG position to get into politics. Wilson hasn’t done anything for our ports he hasn’t accomplished anything for our state. Tom will do more for our port situation than our worthless AG. SO much for his stepping stone!
By Charleston dock workers et al. November 29, 2011 at 1:43 am
Nikki Haley battles critics on ports
Georgia fundraiser donors named
By Yvonne Wenger
ywenger@postandcourier.com
Tuesday, November 29, 2011
*****
Haley said the future vitality of South Carolina ports both in Charleston and Jasper County is forefront in her mind.
“You don’t undercut people in order to beat them; you beat them by winning,” Haley said.
She added, “I know we are going to have the strongest ports in the country and we’re getting ready for that, and the companies that we are recruiting are proof of that.”
*****
The GPA’s Garden City Terminal includes separate intermodal terminals operated by CSX and Norfolk Southern, giving shippers and consignees the maximum competition between these two Class I rail carriers. The decision about whether that competition will exist at the SCSPA’s new Navy Base Terminal is, remarkably, still “undecided,” with the ultimate decision in the hands of Commerce Sec. Robert Hitt, who answers to Gov. Haley. Major shippers are not holding their breath and are “voting with their feet”: Savannah!
Some of the country’s largest construction and farm equipment companies (John Deere, Caterpillar, Carrier, GE Energy, Chicago Bridge & Iron Co., Kenworth, Westinghouse, FMC Link-Belt, Bucyrus-Erie, etc.) prefer Savannah over Charleston due to its large marshaling yard, generous free time, low storage fees, on-dock export packing capabilities (performed by private companies, not the GPA), and, significantly, “hands-on GPA board” with the personal sales efforts of Georgia’s governors.
In the 1990s, we solicited for Charleston J.C. Bamford LLC [JCB], the huge privately-owned UK-based construction equipment manufacturer (exporter to the US) when it was contemplating a distribution center in the Southeast.
Ric Tapp, the Nexsen Pruet law partner, Bill Schachte, retired “Navy Rear Admiral,” and Friends of the Hunley Chairman Warren F. Lasch, a federal criminal to whom Sen. McConnell forced the SCSPA to hand over (free) the breakbulk “Veterans Terminal” at the old Charleston Navy Base, LEARNED FROM US about JCB.
Their “new statup” company was called Charleston International Ports, LLC, which at its zenith employed four people, including the children of “Admiral” Schachte and North Charleston Mayor Keith Summey.
JCB’s chairman, president and senior executives were given the royal treatment by the Governor of Georgia, his Commerce Secretary, and the Board of the Georgia Ports Authority, many of whom personally greeted JCB at Atlanta Hartsfield Airport, made a great impression, offered incentives, took them to tour the GPA’s Savannah facilities, and closed the deal before anyone from South Carolina had a chance.
Including us.
You never heard this story before.
It’s time to tell it.
The JCB people reportedly said of Charleston, South Carolina and the SCSPA, that they didn’t want to conduct business with Federal criminals or a group of lawyers running a “new startup company.” JCB wanted to work with cargo-handling, not politicians and their rich, insider cronies.
Sorry, Glenn!
The rest is history. JCB’s Savannah business has snowballed, cascaded, becoming a torrent of high-value freight involving much “value added” — yes, Savannah is now its principal U.S. distribution port.
Here’s the latest:
December 09, 2010 08:00 AM Eastern Time
GE Capital and JCB Launch Financing Program to Construction Equipment Dealers in U.S.
Alliance Provides Increased Liquidity and Online Account Management Tools
IRVING, Texas–(BUSINESS WIRE)–GE Capital and JCB, a leading global construction equipment manufacturer, announced today an agreement to provide financing to JCB’s U.S. dealerships; this new arrangement allows them to better manage wholesale floor planning by obtaining more flexible payment terms and increased liquidity.
The third-largest heavy equipment manufacturer in the world and a family-owned company, JCB makes more than 300 different types of construction equipment, including backhoe loaders, skid steer loaders, compact track loaders, rough terrain fork lifts and telescopic handlers. Its North American headquarters in Savannah, GA, is a 500,000 square foot facility built in 2000 to showcase its lean production processes and manufacturing technology.
The two companies have had a relationship in Canada since August 2009, with GE Capital providing inventory financing for JCB’s nationwide dealer network.
“GE Capital is a trustworthy and resourceful financing partner,” said Ken Bianco, Vice President of Commercial Operations at JCB. “GE’s cash flow management options, combined with their powerful suite of online management tools, will support our dealers’ continued growth objectives.”
GE Capital’s 25-year history in the construction equipment industry gives it the collateral expertise and the technology infrastructure to successfully handle high-volume dealers. Thousands of dealers currently rely on the company’s well-known COMS system to manage inventory finance transactions online.
“We’re seeing signs that the construction industry, both residential and commercial, is starting to strengthen again,” said Kristi Webb, Commercial Leader of GE Capital’s Dealer Finance division. “We are ready to be a reliable source of financing for JCB’s dealers as they prepare for improving market conditions.”
“In addition to our inventory financing capabilities for equipment manufacturers and dealers, we are also making significant additional investments in best-in-class online tools that will assist dealers with their financing needs,” continued Webb. “Our tools allow them to obtain speedy decisions on credit applications, easy document preparation and same-day funding decisions.”
About JCB
From its home base in Staffordshire in the United Kingdom, JCB operates 18 plants on four continents: 11 in the U.K., three in India and others in the U.S., China, Germany and Brazil. The company employs more than 7,000 people worldwide. For more information, visit http://www.jcb.com or follow company news via twitter (@JCBna).
Celebrating its 65th anniversary this year, JCB is privately owned by the Bamford family; Chairman Sir Anthony Bamford is the son of the company’s late founder, Joseph Cyril Bamford.
JCB has won more than 50 major awards for engineering excellence, exports, design, marketing and management, as well as for its environmental stewardship. Among them are 25 Queen’s Awards for Technology and Export Achievement.
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Between the corrupt Nexsen Pruet law firm, Ric Tapp, SCSPA, Sen. McConnell and his criminal business partner — and now the ethically-challenged Gov. Haley — we’re sure to lose more business (trade, distribution, financing, AND manufacturing) to our southern rival.
Remember Gov. Haley’s instructions: “cooperate” with the State of Georgia!
By Mrs. Ethel Krabitz November 29, 2011 at 5:09 am
Say what you will about Tom Davis, he is 100% right on.
By Dr. (Well I'll Be) M.D. November 29, 2011 at 8:14 am
You know…it really sucks when the suckers that bucked the fuckers gets fucked by the fuckers that got fucked by the suckers who the fuckers fucked…and it of course…is all about the bucks…what a bunch of hypocritical smucks!
By toyota kawaski November 29, 2011 at 8:20 am
Davis says that’s hogwash!!!!!! That’s what comes out of your mouth on a daily bases Mr.Davis
cnSTD is that really you glad to see your out and about after that ass kicking sat
By Silas DoGoode November 29, 2011 at 9:41 am
Anyone willing to guess how many “campaign contributions” have changed hands from the big money that is pushing for this “private” port concept?
I can only guess how much that “private” port will end up costing taxpayers when the fine print is revealed. I guess we will see it when Davis gets elected Governor and, just like Haley and Sanford, his first move will be to reward his loyal friends.
The differences between the rule of the carpetbaggers in the 1870′s and the rule of the tea partiers in the 2000′s is getting smaller and smaller by the year.
By Longtime Republican November 29, 2011 at 9:46 am
FITS, What other politician do you pimp for besides Tom Davis? This is like his personal website. You are such a good little whore for him.
By CNSYD November 29, 2011 at 9:52 am
toyota the jap, congrats on the cocks victory. Good luck in the SEC championship game Saturday.
By Walt November 29, 2011 at 10:55 am
“We didn’t get any money from anyone with an interest in the Ports issue, just companies we already work with like GE.”
Scuse me, Guvnuh, but isn’t GE one of the Savannah Port’s largest users, and the primary investor in JCB, which operates the port?
Oh, yeah, that.
This one ranks right up there with, “I didn’t have a password, it was where I went to high school,” “I barely know Will Folks” and “I am an accoutant.”
Fits, you ought to do a survey on Nikki’s biggest whoppers…
By Bogart November 29, 2011 at 11:25 am
Didn’t “The Tom Davises of the World” help escort Haley to the throne?….Poor ole Tom can’t win,his first throne dweller became an Applachian Trail guide and now this one has become a Georgia peach.He needs to make his life complete and campaign for family values Gingrich.
By toyota kawaski November 29, 2011 at 12:01 pm
cnSTD good luck scoring in the acc championship game? See what happens when you face a real defense BTW SEC went 3-1 sat vs acc
By Waterfront commentator November 29, 2011 at 3:16 pm
Competition between Charleston and Savannah – Case study.
If our governor doesn’t appreciate the ferocious competition between Charleston and Savannah for steamship lines, read the article below (just published) knowing that the venerable CSAV (Chilean Line, Compañía SudAmericana de Vapores S.A) calls both ports for cargo to both ECSA (East Coast South America) and WCSA (West Coast South America). These are called “Tango Service 1” and “Tango Service 2.”
When a well-established and hitherto rock-solid carrier like CSAV (“the national flag carrier”) loses this much money, it typically goes into “rationalization” mode to staunch the red ink: looking to merge with or sell itself to another carrier, enter into VSAs (vessel sharing agreements), or … drop ports.
Dropping a port is the kiss of death for a port authority because once a steamship line leaves, it’s hard – typically impossible – to get it back.
This is the sort of thing that keeps SCSPA President Jimmy Newsome awake at night — even with his $300,000+ salary and 7-year contract.
But it doesn’t keep anyone else in the State of South Carolina up at night – including the SCSPA’s board (too stupid to realize the danger, too lazy to read the Journal of Commerce). While SOUTH CAROLINA’s governor travels to Malibu, Santa Monica and Palm Springs, GEORGIA’s governor and GPA’s Chairman are probably traveling to Plaza Sotomayor in Valparaíso to call on CSAV’s Chairman offering more competitive long-term incentive rates to persuade CSAV to TERMINATE its CHARLESTON service and “rationalize” all CSAV service via SAVANNAH.
When losing $100 million a month, steamship lines will drop a port they’ve served for 30 years in a heartbeat.
Remember, though, we must “cooperate” with Georgia.
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CSAV Loses $340.3 Million, Denies Sales Plan
Joseph Bonney, Senior Editor | Nov 29, 2011 4:32PM GMT
The Journal of Commerce Online – News Story
Chilean carrier continues to search for “strategic partner”
CSAV posted a net loss of $340.3 million in the third quarter, reversing a $151.8 million profit a year earlier, and the Chilean carrier denied reports that its container shipping business is for sale.
The company said it is continuing to pursue a restructuring that “involves the search for a strategic partner for our container business, but not the finding (of) a buyer for that business unit.”
CSAV posted a third quarter loss from continuing operations of $301.8 million, compared with a profit of $151.9 million a year earlier. Third quarter revenue fell 13.2 percent to $1.4 billion. Through the first nine months of the year, revenue rose 6.3 percent to $4.35 billion.
The latest losses brought the company’s net loss for the first nine months of the year to $859.5 million, compared with a $188.7 million net profit a year earlier.
CSAV has ridden a financial roller coaster in recent years. The line underwent a financial rescue in 2009, and then embarked on a rapid expansion that vaulted it into the top 10 lines in global capacity, only to retrench after heavy losses. CSAV has suspended several services and entered joint services with other carriers.
Earlier this year the company received a $1.2 billion capital injection through the issuance of new stock. The carrier also unveiled a new corporate structure that split CSAV’s container shipping line from its ports, tugboat and shipping services unit, SAAM, “with the objective of propelling the growth of the latter.”
CSAV this month announced plans for a joint venture between SAAM and Boskalis, the Dutch dredging and marine services group, for a towage operation in Central and South America.
– Contact Joseph Bonney at jbonney@joc.com. Follow him on Twitter @josephbonney.
By CNSYD November 29, 2011 at 4:40 pm
toyota the jap, If Clemson scores only one point Saturday, it will be more points that USCe will score Saturday.
By toldyaso November 30, 2011 at 11:26 pm
I told many members in open meeting that it would. E a cold day when a PORT came to Jasper County, wasn’t going to happen then or now. It is easy to see aslong as we have a Republican Governor and a county that votes Democratic, wait on it! It is a shame but the current state of politics, we all need to wonder why we continue to put peopke of wealth in power and not people with common sense!