As harbor deepening project moves ahead, SCPA boasts $53 billion statewide boost
Despite the S.C. Ports Authority’s $53 billion statewide economic impact, its CEO and President Jim Newsome seems to want more.
“Significant investment is required to be a major U.S. container port, and earning adequate return on capital will be a challenge for us in the years ahead,” stated Newsome, who outlined the SCPA’s five-year initiatives at the State of the Port this week in Charleston.
During the last five years, SCPA revenue has increased 75 percent to $196 million in fiscal 2015, while pier container volume handled jumped from 740,000 to 1.095 million.
Plans for the next five years will only build on that growth, Newsome said. This week, the SCPA announced receiving final approval from the U.S. Army Corps of Engineers in regard to the Charleston Harbor Deepening Project, which aims to accommodate more volume and larger container ships in the future. Other investments include expansions of the port’s cargo base, progress on the Navy Base Terminal and Wando Welche Terminal wharf strengthening projects, as well as progress on the Jasper Ocean Terminal.
“The next five years bring great opportunity for our port,” Newsome said. “By 2020, we will complete the harbor deepening project to 52 feet, open Phase One of the Navy Base Terminal and enjoy an operational dual-served intermodal container transfer facility. Delivering on our priorities and aggressive action will be required to meet these goals. The port has a highly talented and skilled workforce, and with the commitment of our entire maritime community, I am confident that SCPA’s best years are ahead.”
A study by the University of South Carolina Moore School of Business was also released this week, pegging its economic impact at $53 billion per year.
The $53 billion figure includes the dollar value of all final goods and services produced in the state that can be attributed to the S.C. Ports Authority, according to the study, which corresponds to 186,206 jobs and $10.2 billion in labor income for state residents that would not exist otherwise.
“The port is our state’s most strategic asset,” Newsome said. “It enables South Carolina to recruit and serve the needs of companies with international supply chains, and in doing so, spurs economic development opportunities and generates well-paying jobs for people across the state.”
According to the study, 1 out of every 11 jobs in the state can be attributed directly or indirectly to the S.C. Ports Authority, while these jobs pay 40 percent higher wages than average annual salaries in the state.
Port operations produced $912 million in annual tax revenue, and had a statewide employment multiplier of 2.4, meaning that every 10 jobs directly supported by port activity created an additional 14 indirectly supported jobs elsewhere in the state.
“Although the port’s $53 billion economic impact is significant on its own terms, the port’s presence in South Carolina also has broader implications for long-run economic development in the state,” said research economist Joseph Von Nessen, who completed the study via the University of South Carolina. “The key competitive advantage of the port comes about through its ability to facilitate the ongoing development of export-oriented industry clusters, particularly in advanced manufacturing. As these industry clusters expand, they will build a strong, stable foundation for the state’s economy that will generate higher and more consistent rates of economic growth across the state over time, which will benefit all South Carolinians.”
