NORTH CHARLESTON, S.C. — The agency that runs the Port of Charleston has finished the first leg of its turnaround and is now in the second of three phases, SC Ports President and CEO Micah Mallace said Tuesday at his annual State of the Port address.
The Propeller Club of Charleston hosted the speech, which drew 1,150 people, a record crowd, to the convention center in North Charleston. He took the top job a year ago after his predecessor stepped down without warning.
His first year centered on getting the port back in the game on price. Operating expenses fell by more than 20%, and those savings went to customers in the form of rates closer to what rival ports such as Savannah charge. Mallace said the cuts were broad, yet the sales staff doubled in size.
The payoff so far is a pipeline of commitments rather than a jump in volume. Shippers have pledged roughly 159,000 more containers over the coming year, close to 6% of a typical year at the port, even though volumes ended the last fiscal year down 5%. The new freight spans retail, consumer goods, manufacturing and exports.
For the second stage, the port plans to deepen its ties with manufacturers and chase added refrigerated and retail freight. Mallace also wants new retail distribution centers in the state, since consumer goods make up about half the value of container freight at Charleston compared with 81% nationwide.
He said the third phase, making the gains last, will be proven when the Leatherman Terminal in North Charleston reopens. The authority paused work at the $1 billion terminal on Aug. 1. Talks with Norfolk Southern and CSX over the Navy Base Intermodal Facility are still going, with no opening date set.
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