Richmond County officials are disappointed that North Carolina gubernatorial candidates have said they won’t support construction of the proposed North Carolina International Port Terminal in Southport, if elected.
“This could be the single biggest thing we could do in the whole state to promote economic growth,” said Richmond County Board Chairman Kenneth Robinette. He also serves on the North Carolina Southeast Commission.
Growth in the Southport and Wilmington ports could allow super-barges to enter with cargo. Ships are getting bigger, and we should try to accommodate them, said Robinette.
“Not everyone has the potential for a deep sea port as we do out there in Southport,” said Robinette. “It’s kinda sad — they already bought the property. I’ve walked it. The businesses are already there. The port is almost at full capacity.”
Robinette said he doesn’t like when politicians “talk out of both sides of their mouth,” referring to gubernatorial candidates who say they are for job creation and economic growth, but aren’t willing to pursue the port growth, which would allow 11 counties in the southeast including Richmond County to receive growth in export and import.
Gubernatorial candidates Walter Dalton, a Democrat, and Pat McCrory, a Republican, both said they oppose the plan.
Dalton, now lieutenant governor, reportedly has cited the appearance of lack of federal government support, including North Carolina’s congressional delegation, and opposition from the state General Assembly among his reasons for not pursuing construction of the port. The recently approved state budget for 2012-13 includes language prohibiting any state spending for the proposed N.C. International Terminal, and Dalton contends that the project — that would take years to construct — would cost as much as $6 billion in seaside and land-side improvements.
Dalton also uses data from the recently released N.C. Maritime Strategy Study, which looks at ways to make state ports more competitive, to boost his argument against a mega-port. He instead says that efforts should be focused on improving existing ports, including Wilmington and Morehead City, and expanding exports by creating niche markets.
Robinette said that if the ports are not up fitted for super-barges, the barges and the commerce will go elsewhere.
“We all know commerce takes place via ships,” said Rick Sago, director of Economic Development for Richmond County. “They are widening the Panama Canal for bigger ships. Several ports on the East Coast are already ready. We’re either going to be prepared or we’re not. We’ve got companies (in Richmond County) that use the ports. With CSX rail coming through the county, and with Highway 74, the potential is there. We need to take a long-term look at how we can be competitive.”
“If you’re going to play the game, get on the field,” said Robinette. “To me it’s simple; we’ve got to do what is in the best interest of the majority.”
Heartland News Service contributed to this report.
— Staff Writer Dawn M. Kurry can be reached at 910-997-3111, ext. 15, or by email at dkurry@heartlandpublications.com.
The land was bought in 2006 for $30 million of borrowed money, when it was valued at $5 million. Before the purchase, not a single study had been performed to determine the feasibility of building a container port on that 600 acres, which by the way, is surrounded on two sides by Progress Energy's twin tower nuclear power plant, abutting the largest military munitions depot in the world, MOTSU.
Since then, $10 million has been spent on studies and another $10 million has been spent servicing the debt, which is ongoing. So, to date, sunk costs in this project amount to $50 million buckaroos. An Army Corps of Engineers feasibility study will cost another $10 to $40 million more!
Now for the market: 80% of NC imports and exports travel through competing ports in neighboring states. NC ports offer the lowest handling rates on the Eastern Seaboard and offers generous tax credits to NC companies using our ports. So, why do we only get 20% of NC business? It's as simple as geography and a port at Southport will not change that reality.
There will be four East Coast ports ready to handle the Post Panamax vessels when the locks are complete: New York, Baltimore, Norfolk and Charleston. They are already handling the Panamax sized vessels. The Port of Wilmington services exactly two of those vessels per week. That's it.
Until this year, our ports were bleeding millions each year. This year, they posted a modest gain of around $400K. Their bulk and breakbulk were up. Containers were down.
We have no roads, no rail and no deepwater. In fact, the water depth at the projected port site is 1-2 feet deep. To dredge to 51' will cost $1.2 billion according to the Corps and guess what? The State of NC will be required to pick up 60% of that cost, plus 50% of the ongoing maintenance. Still think this is a good idea?
These are the realities. It's past time for our ports to focus on competing where they can actually win. We have an advantage in import of grain and export of agriculture. We can handle RO/RO with improvements to the POW. There is no shame in being a big fish in a smaller pond.
Both Pat McCrory and Walter Dalton's opposition to the $6 billion port project shows a respect for the taxpayers of NC that has been sadly lacking since 2006. We say, good for them!