SC Ports CEO: 10 million TEUs of capacity, rail capabilities support customers’ growth in booming Southeast

October 17, 2024

In her third State of the Port address, South Carolina Ports President and CEO Barbara Melvin reinforced how SC Ports is a powerful gateway for shippers seeking reliable, highly productive port service in the thriving U.S. Southeast market.

Melvin delivered her address today to more than 1,200 attendees in a warehouse-turned-event space on Columbus Street Terminal. The event, hosted by The Propeller Club, was held on the waterfront, surrounded by vehicle and breakbulk cargo that moves through the Port of Charleston.

In her address, Melvin outlined how SC Ports is strategically investing in port infrastructure to support the tremendous growth occurring in the region.

CEO Barbara Melvin reinforced how SC Ports is a powerful gateway for shippers seeking reliable, highly productive port service in the thriving U.S. Southeast market. (Photo/John Smoak)

SC Ports has three big-ship capable terminals, with more capacity planned; two rail-served inland ports and a near-port rail yard under construction; last-mile connectors underway; the deepest harbor on the U.S. East Coast at 52 feet; and a total of 10 million TEUs on the horizon.

“The investments we’re making today in our port complex support the tremendous growth occurring in the Southeast today and for decades to come,” Melvin said. “With more than $3 billion invested into port infrastructure, SC Ports is perfectly positioned to be the preferred port on the U.S. East Coast.”

South Carolina’s maritime community pulls together to support shippers — including manufacturers, farmers and retailers — who utilize SC Ports’ facilities to access global markets.

“SC Ports is a powerhouse port, with the capacity and capabilities to support our customers’ growth,” Melvin said. “South Carolina’s maritime community delivers highly productive, reliable operations and world-class service to our customers every day, ensuring fluidity in their supply chains and success for their businesses.”

Reopening, expanding Leatherman Terminal

South Carolina’s maritime community recently celebrated a huge victory with the reopening of Leatherman Terminal, marking a monumental moment for the entire port system and state.

This unlocks an additional 700,000 TEUs in Charleston Harbor and a 1,400-foot berth, providing more flexibility and fluidity within the U.S. East Coast port market, and further supporting businesses that depend on the port.

Melvin announced today that expansion plans of Leatherman Terminal are underway, including building a second, 1,600-foot berth for the terminal’s wharf, providing a total of 3,000 feet of berth space for mega container ships. At full buildout, Leatherman Terminal will boast three berths and a total of 2.4 million TEUs of capacity.

This state-of-the-art container terminal is already big-ship ready, with five ship-to-shore cranes that sit 169 feet above the wharf, and 25 hybrid RTG cranes.

“In partnership with the ILA, employers and greater maritime community, we are once again providing excellent port service at Leatherman Terminal for the benefit of our ocean carrier and cargo owner customers, adding critical capacity to the U.S. East Coast,” Melvin said. “We have welcomed our first weekly, first-in-Asia service with ZIM, with many more to come. We now have a stronger partnership with the ILA, and we are all growing together.”

10 million TEUs of capacity on the horizon

With expansions and modernization either planned or completed for its three container terminals, SC Ports is on the cusp of having 10 million TEUs in Charleston Harbor, an unmatched asset in the Southeast port market.

In addition to Leatherman Terminal’s planned capacity, the next major slate of capacity at the Port of Charleston will come from an enhanced and expanded North Charleston Terminal. With great support from our state, SC Ports purchased the former WestRock paper mill site in North Charleston.

The 280-acre industrial site sits adjacent to the terminal along the Cooper River. SC Ports will expand the terminal to handle 5 million TEUs in the future. It will offer 5,000 feet of linear berth space for container ships and 400 acres of terminal space for cargo.

“A modernized terminal with significant new container capacity will yield even more reliable, productive port service,” Melvin said. “This expansion, combined with efforts to raise the Don Holt Bridge and deepen the river to 52 feet, will enable North Charleston Terminal to handle the biggest ships calling the port today.”

Wando Welch Terminal already efficiently handles three mega container ships simultaneously, with highly productive crane operations and truck turn times. The terminal boasts 2.4 million TEUs of cargo capacity, including a large refrigerated container yard to support the influx of goods coming in to support the growing region.

Wando handled a record 1.2 million containers in fiscal year 2024, even as toe wall construction continues at the terminal. When completed, this critical infrastructure project will secure a 54-foot depth for vessels in front of the terminal, supporting the 52-foot harbor depth.

“The Southeast is where people are investing, and we are investing in our operations to support that growth,” Melvin said. “Companies can be confident that if they put capital in the ground and commit to this region, we have the infrastructure and capacity to grow along with them.

Growing rail capabilities

SC Ports’ rail-served inland ports had a very successful fiscal year 2024, handling 24% more cargo compared to the year prior. The daily rail service between the Port of Charleston and Inland Ports Greer and Dillon moves more cargo, more efficiently, with the added benefit of reduced emissions.

To support the tremendous growth occurring throughout the region, SC Ports is investing to expand Inland Port Greer with 9,000 feet of new rail and an expanded container yard to support customers’ growth for years to come.

“We know the confidence our customers place in us when they choose our port,” Melvin said. “We are making strategic investments in rail-supported infrastructure to support their growth in the Southeast.”

SC Ports is significantly expanding rail capabilities at the Port of Charleston with a direct rail connection to the port. With $400 million in state funding, the Navy Base Intermodal Facility is taking shape on a 118-acre site in North Charleston near Leatherman Terminal.

This state-of-the-art facility will provide 35,000-feet of processing tracks and utilize six electric rail-mounted gantry cranes to transfer containers between railcars and trucks.

Site grading and utilities are nearly complete, and concrete paving and track construction is well underway. A private one-mile-long road — dedicated solely for port truck traffic — will connect Leatherman Terminal to the facility, enabling the rapid movement of imports and exports between the facilities.

The Navy Base Intermodal Facility will move cargo quickly and reliably between the Port of Charleston and inland ports, and beyond to key markets like Atlanta, Louisville, Nashville, Birmingham and Memphis.

“With the support of our rail partners at CSX, Norfolk Southern, and Palmetto Railways, the Navy Base Intermodal Facility will make SC Ports well positioned for future growth by providing a capacity of 1 million rail lifts per year, nearly triple the amount of cargo we move by rail today,” Melvin said.

Booming market drives growth

The Southeast market is thriving overall, and South Carolina now ranks No. 1 in the nation for both population and GDP growth.

Many companies — including automotive suppliers and electric vehicle makers, retail and e-commerce firms, and food and beverage companies — are choosing to invest in South Carolina with business locations and expansions. These firms benefit from the state’s strong labor pool, attractive business environment and strong infrastructure network.

“Shippers want their import distribution centers near big population centers and well-run ports — making South Carolina Ports the ideal gateway to the U.S. Southeast for importers,” Melvin said. “The growing population and industry base will drive new investments from cargo owners and attract ocean carriers to bring new services, increasing SC Ports’ cargo volumes and competitiveness.”

During the last decade, shippers have been routing more cargo from the U.S. West Coast to the U.S. East Coast to take advantage of sourcing and transit times to key overseas markets, as well as to be closer to growing population centers in the Southeast.

“To our ocean carriers and cargo owner customers, you are the reason we do what we do every day,” Melvin said. “Your decision to use SC Ports as your gateway in the Southeast is hugely important, and we are committed to delivering reliable, productive and consistent service to your supply chains.”

Generating economic growth for South Carolina

Melvin thanked the SC Ports Board of Directors, SC Ports team, many maritime partners, elected leaders, and ocean carriers and cargo owner customers, noting that the port’s success would not be possible without their support.

Each container moved creates economic growth and high-paying jobs for South Carolinians, with port operations generating an $87 billion economic impact each year, according to a recent study by research economist Dr. Joseph Von Nessen.

South Carolina’s port system supports 1 in 9 jobs in our state, the findings showed. This accounts for everyone working in the maritime and logistics industries, as well as thousands of jobs at businesses around our state that depend on the port.

“Every time you see a truck on the road, a ship in our harbor and stacks of containers filled with goods, or autos on this terminal — it represents jobs and economic prosperity for our state,” Melvin said. “We provide excellent port service so our customers can run their businesses smoothly. Thousands of global brands depend on us to keep goods moving through the supply chain, and we are proud to deliver world-class port service to them.”

Melvin delivered her third State of the Port address today to more than 1,200 attendees in a warehouse-turned-event space on Columbus Street Terminal. (Photo/John Smoak)

 

About South Carolina Ports

South Carolina Ports owns and operates marine terminals at the Port of Charleston and two rail-served inland ports in Greer and Dillon. As the 8th largest U.S. container port, SC Ports connects port-dependent businesses throughout the Southeast and beyond to global markets. SC Ports proactively invests in infrastructure ahead of demand to provide reliable service, efficient operations, cargo capacity, an expansive rail network and the deepest harbor on the East Coast at 52 feet. SC Ports is a vital economic engine for South Carolina, with port operations supporting 1 in 9 jobs statewide. Learn more: scspa.com.