South Carolina State Ports Authority

Given the current economic and trade outlook, 2009 will challenge all ports to balance financial demands with the need to advance long-range port improvement projects. The near-term volume situation drives shippers, consignees, ocean carriers and others in the supply chain to reduce costs and further rationalize their operations. Ports must do the same, trimming expenses in a thoughtful way where reasonable and feasible. However, the most successful ports will find ways to press forward with their long-term development plans, despite the challenges of sliding business volume and instability in financial markets. The long lead time and complexities of port development projects demand that they stay on course and continue to advance. New terminal capacity will be exceptionally important once markets rebound and volume returns. Those ports ready for the growth will reap tremendous rewards. Beyond the challenges of permitting new terminal capacity, we will all have to depend on good financial management in these difficult economic times to provide the capability to advance capital spending without having to turn to an unstable credit market. As development progresses on new terminals, ports must also find ways to add value for their customers. One such area of opportunity is finding solutions that combine productivity and environmental enhancements. Regardless of current economic conditions, our industry must increase its focus on the environment. We must embrace and implement reasonable initiatives that enhance our environment while expanding our business. Protecting and improving air and water quality around our port areas is not incompatible with improving terminal productivity and handling increased international commerce.