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Global Logistics Focus Sept.19, 2016

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GLOBAL LOGISTICS PROFILE With the shipping industry's deployment of big container ships and the expansion of the Panama Canal, the South Carolina Ports Authority is poised to deliver the deep-water capacity necessary to handle the largest ships calling on the East Coast. A $1.3 billion investment plan that includes modernization of the harbor, terminals and inland infrastructure, positions SCPA to grow its volumes. SCPA is the only deep-water port in the Southeast; and the most efficient. Charleston Harbor Deepening to 52 Feet With the deepest shipping channels in its competitive region, Charleston has become the big-ship hub of the South Atlantic. Carriers maximizing efficiencies have demonstrated that they will build their supply chains around unrestricted vessel access. Today 16 of 26 of SCPA's weekly container services employ vessels larger than could pass through the Panama Canal prior to expansion. Charleston routinely handles ships more than 1,100 feet long and 150 feet wide, drafting 48 feet. SCPA's preparation for bigger ships with its harbor deepening project will be completed by the end of the decade. Approved plans include deepening Charleston Harbor to 52 feet (the entrance channel, 54 feet), opening the harbor to the largest ships all day, regardless of tides. Harbor deepening has progressed quickly as the first study completed entirely through the U.S. Army Corps of Engineers' SMART Planning Process. Their original estimate of seven years and $20 million dollars for the study was nearly cut in half to four years and $11 million as a result of the new program, plus collaboration with state and federal agency partners. "Our harbor deepening project is integral to the development of our new container terminal," said Jim Newsome, SCPA president and CEO. "We are optimistic the project will soon receive congressional authorization, ending the decade as the deepest harbor on the East Coast." Landside Capacity and Infrastructure Improvements Construction of the Hugh K. Leatherman, Sr. Terminal continues, with the first phase of container operations scheduled for December 2019 in conjunction with harbor deepening. The terminal will boost the port's capacity by 50 percent. The facility is currently the only newly-permitted container terminal under construction on the East or Gulf coasts. "At $700 million for Phase One, the terminal is the single-largest project in our capital plan, and will provide a significant addition to berth and volume capacity," Newsome said. In addition to the new terminal, SCPA is investing approximately $600 million in improvements to existing facilities and technology systems, upgrading the Wando Welch Terminal wharf and infrastructure to support bigger vessels and cranes. The Wando Terminal received two new post-Panamax cranes in August, with two additional cranes of this size delivering at the end of 2017. South Carolina: A Strong Partner Complementing SCPA's capital plan are nearly $800 million in port-related projects funded by the state of South Carolina. The state is constructing an access road from the interstate to the Leatherman Terminal and a new, dual-access intermodal railhead to handle growth of the port's intermodal volume. 1.3 Billion Capital Plan Prepares South Carolina Ports for Big-Ship Era

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