The South Carolina Port Authority recently released its
fiscal year report and among the not so surprising details was the fact that
the Port of Charleston was the fastest growing top 10 US container port for the
first six months of 2012 with volume growth of 7.4% for the period.
Among the leading exporters include global companies such as
BMW, Eastman, International Paper and Meadwestvaco. Kuehne + Nagel and Panalpina are the two
largest logistics providers that offer export services through the port.
Leading importers include BMW, Michelin, Bentler, Daimler Vans and Deere
Hitachi Construction Machinery.
The top tradelanes (based on loaded import and export boxes)
have changed little over the years. North Europe continues to be the largest
lane representing 30% of total loaded boxes followed by Northeast Asia at 25%
and India and Other Asia at 10%.
To maintain its growth, the Port is focused on four
strategic priorities – infrastructure development, cargo growth, efficiency and
financial sustainability. Indeed, the focus on infrastructure development has
received a good bit of press of late. To date, more than $2bn has been
committed to new port-related infrastructure including a new container
terminal, deepening of the Charleston Harbor to provide all-tide access to
post-Panamex ships, widening of Interstate 26 which connects the Port to the
upstate, a dual-served intermodal rail facility and the development of an
inland port.
BMW’s only US manufacturing facility is located in
Spartanburg, South Carolina over 200 miles from the Port of Charleston. Its annual
economic impact to the state is about $8.8bn and as a result was instrumental
in driving the inland port decision. The facility will be located in Greer –
close to the BMW facility. BMW expects to ship by railway from Charleston about
20,000 to 25,000 containers to the inland port annually and will be the anchor
tenant once the facility is completed in late 2013.
The inland port is expected to help ease congestion along
Interstate 26 as well by converting 50,000 all-truck container moves to
multimodal moves.
Not only will BMW benefit, but other companies will as well
– including the numerous automobile suppliers that have set up shop around the
state. Port officials expect cargo to double the BMW anticipated volumes within
just the next few years.
The cost of the inland port will be split between the South
Carolina Port Authority and Norfolk Southern with the Port Authority bearing
most of the cost and Norfolk Southern responsible for the laying of tracks.
Although the inland port is anticipated to ease congestion
along the Interstate 26 corridor, the Interstate 85 corridor will likely become
even more strained. Growth along the corridor has greatly expanded over the
years. BMW, Michelin and a new Amazon distribution facility are among the
growing number of companies along this stretch of road that connects Atlanta
Georgia with Charlotte North Carolina. In fact, according to Jim Newsome,
President and CEO of the South Carolina Port Authority, “The I-85 corridor
centered on the Greenville – Spartanburg area, is projected to be the fastest
growing part of the Southeast over the next 20 years. This facility (the inland
port) will be a further catalyst to the development of an enhanced distribution
hub in this area.”
Next week, in the second part, growth along the Interstate 85 corridor will be explored
further.
