Posted on March 21, 2017
By John McDermott, The Post and Courier
South Carolina’s share of the long-planned Charleston Harbor deepening has been slashed by as much as a third, even though the overall cost remains at more than half-a-billion dollars.
The catch is that the savings — $82 million to as much as $116 million — are far out on the horizon.
Jim Newsome, CEO of the State Ports Authority, said a new federal act recalculated the cost-sharing formula for the three-year project, now estimated to require $525 million to complete. The change cut the state’s portion to $225 million from the latest projection of $341 million. It also increased the federal contribution to $300 million.
“That’s a big difference,” Newsome said.
Lawmakers in Columbia put $307 million in the bank several years ago to cover South Carolina’s portion of the bill, according to the SPA.
Even with the new cost-sharing formula, it’s possible the state will have to tap all of the money it has set aside because the financing needs for the dig will move faster than the “appropriations curve” on Capitol Hill, Newsome said. The state would then have to seek reimbursements from Washington for any “forward spending” expenses it incurs beyond the first $225 million, he said.
Driving the harbor deepening deal are the bigger, heavier container ships from Asia that can travel to the East Coast more quickly now that the Panama Canal has been expanded. Economic development officials have described the dredging as critical to ensuring South Carolina remains a competitive location for global business investments and new jobs.
Congress authorized the work in December with the passage of the U.S. Water Infrastructure Improvements for the Nation Act.
“It’s an exciting time,” Newsome told the SPA board. “We can really foresee having a dredge in our harbor in the fall of this year.”
The Army Corps of Engineers is in charge of taking the local navigation channel to 52 feet from about 45, which would give Charleston the deepest port on the East Coast.
The work is scheduled to be finished by the end of the decade, about the same time the SPA opens a new Cooper River container terminal on the old Navy base in North Charleston. A late 2017 start date for the deepening would be “just in the nick of time,” Newsome said.
The next step is the signing of a partnership agreement between the state and federal agencies that spells out their responsibilities and other terms.
“We’re going to execute that agreement in the next day or two,” Newsome said.
He also commended the Army Corps for producing that document “in record time.” The agreement will become public once it is finalized.
“The Corps deserves a lot of credit for their cooperation,” said Pat McKinney, chairman of the ports board.
Source: The Post and Courier
