SC Ports looks to accommodate future growth and capacity needs.
In the Southeastern United States, the impact of a growing population has East Coast ports looking to ease the burden of an already-stressed supply chain. As such, many ports have projects underway—with most including expansion plans and infrastructure improvements—to help alleviate shipping bottlenecks and cargo delays. At South Carolina Ports, the purchase of additional property and the construction of a new intermodal facility are two key projects expected to address current supply chain challenges, and help prepare SC Ports for future growth.
Population Problems and Port Planning
Among the shared challenges being faced by the shipping industry (i.e. lack of available staff, employee education/training, infrastructure issues, transportation bottlenecks, pirates, tariffs, etc.), there are also additional challenges that are specific to certain areas of the country. In the Southeast, for example, both states and ports are feeling the growing impact of a growing population, as more people arrive daily, increasing the demands of suppliers and shippers that are already stretched too thin to be as efficient as they want to be for their clients.
The spokesperson continued, “Our recent investments in the Navy Base Intermodal Facility, the purchase of the WestRock property adjacent to our North Charleston Terminal, and expansion of Inland Port Greer, all make SC Ports well prepared to handle growth for many years to come. We are adding rail infrastructure, cargo capacity, and enhanced operations at both the Port of Charleston terminals and rail-served inland ports. SC Ports offers reliable, highly productive port service in the Southeast to speed goods to market.”
Barbara Melvin, SC Ports President and CEO, added, “The Southeast market is booming, with a growing population driving imports and new manufacturing investments spurring exports. South Carolina Ports is well-positioned for this growth with a 52-foot-deep harbor, efficient terminals, new capacity on the horizon, and an impressive inland port network.”
Cargo Commodities Get Rail Relief
As a solid competitor for East Coast shipping business, SC Ports handled almost 2.5 million TEUs and 1.4 million pier containers in FY24, with cargo volumes up 7 percent over 2023. In addition, record cargo volumes were achieved at the Wando Welch Terminal, as well as at Inland Port Greer and Inland Port Dillon, where combined cargo volumes were up 24 percent from the previous year. These impressive stats are anticipated to increase even more with the available property for construction, as well as with the opening of the Navy Base Intermodal Facility (NBIF) in summer of 2025.
According to a SC Ports spokesperson, “Approximately 20-25% of SC Ports container volume moves by rail. Currently, the top three container export commodities are chemicals, forestry products, and agricultural products. Despite a 2 percent decrease in total U.S. exports in 2023, South Carolina’s export sales increased by 18% from 2022. We continue to see growth in imported home goods and fresh and frozen foods for mega retailers as the region’s population increases.”
Melvin noted, “Our rail-served inland ports have seen tremendous growth this past year as more customers move cargo by rail. We are expanding Inland Port Greer and building the rail-served Navy Base Intermodal Facility to provide more rail capacity in the Southeast port market and further support our customers’ supply chains.”
To help alleviate the demands of rail-transported cargo, the NBIF will offer increased efficiency for intermodal cargo transportation with a related decrease in supply chain delays.
“The Navy Base Intermodal Facility is a near-dock rail facility (adjacent to SC Ports’ Leatherman Terminal), that will feature six rail-mounted gantry cranes, 7,000-8,000 feet of linear rail track, and be capable of one million rail lifts each year. This facility will be dual-served by class one railroads CSX and Norfolk Southern, and connects Charleston to the broader Southeast market. This is a more efficient, lower-carbon option, that moves goods off the dock and to the consumers more quickly,” said a SC Ports spokesperson.
As a way of “addressing trucking capacity as more cargo continues to flow through SC Ports,” the inner-harbor barge operation will “support the Navy Base Intermodal Facility by moving containers between Wando Welch Terminal and Leatherman Terminal via a designated marine highway.”
Melvin said, “The inner-harbor barge operation and innovative rail yard will add critical capacity to our port market. These investments will further support our customers’ supply chains and attract additional cargo to our port, supporting job creation throughout South Carolina.”
To fully fund these projects, the SC Legislature and Governor Henry McMaster allocated $550 million—$400 million for the rail yard and $150 million for the barge operation.
Population Growth Increases Competition
Along with an increased population in the Southeastern U.S. comes an increase in competition for East Coast shipping transportation business. With the groundbreaking in 2022 of the Navy Base Intermodal Facility—which is intended to provide near-dock rail to the Port of Charleston—the last obstacle was removed for SC Ports to forge ahead as a top destination for imported and exported cargo. Proof of the popularity of the Port of Charleston as a top import location can be found at the on-site facilities of Walmart and Target, the top two U.S. importers that have chosen the Port of Charleston.
Back in 2022, Melvin noted the import of the NBIF, “This resolves the last remaining competitive disadvantage we have as a major East Coast container port. This critical infrastructure project will greatly enhance SC Ports’ capacity, allowing imports and exports to swiftly move between the hinterland and the Port of Charleston.”
SC Ports is well established on the East Coast as a strong competitor – one that is looking forward to adding to its container moves and clients with efficient terminal and rail enhancements planned for completion over the next decade.
A SC Ports spokesperson pointed out, “SC Ports is well positioned to continue adding capacity and modernizing our terminals well into the future. The next 10 years will bring phases 2 and 3 of the Leatherman Terminal online, which will add additional berths to the Port of Charleston. SC Ports also plans to expand and modernize North Charleston Terminal. To complement that effort, the South Carolina Department of Transportation plans to replace and raise the height of the Don Holt Bridge on Interstate 526. This effort, combined with plans to move forward to achieve a 52-foot depth up to North Charleston Terminal, will allow the largest cargo ships calling the East Coast to access all three of SC Ports’ ocean container terminals.”
In addition, the “reopening of SC Ports’ Leatherman terminal, modernization of Wando Welch Terminal, and expansion of the North Charleston Terminal will unlock 10 million TEUs of capacity in Charleston Harbor,” the spokesperson forecasted.
Assessing the intermodal growth at SC Ports, as well as the continued growth of the Southeast market, Melvin summed up, “The South Carolina market is ripe for companies to put new investment in the ground and benefit from direct access to our world-class port system. We deliver reliable port service, a strong intermodal network, and future capacity to support growth.”
