Bob Shiles
Staff writer
LUMBERTON — With both gubernatorial candidates saying they would not pursue construction of the proposed North Carolina International Port Terminal in Southport if elected, Robeson County’s chances of benefiting by becoming a hub for distribution warehouses appear gone.
“The growth of Southeastern North Carolina depends on a deep-water port and the port in Wilmington,” said Greg Cummings, Robeson County’s industrial developer. “The wisest investment we can make is in the ports. I’m very adamant about it. If we are going to create economic growth, we need ports. It doesn’t take a rocket scientist to see it.”
Cummings said that business recruitment and job creation in Robeson and surrounding counties rests on a deep-water port that can handle the large container ships that bring goods to the United States from China, Europe, Southeast Asia and Central America. Because of its proximity to Interstates 95 and 74, and its closeness to the port in Wilmington, Cummings said Robeson County is ideally positioned for the location of large distribution warehouses to serve companies transporting products between the port and the markets they serve.
“Just look at the ports in Charleston and Savannah,” Cummings said. “Fifty to 100 miles out you see massive warehouse distribution centers, buildings that are 500,000 to 1.5 million square feet … . That could happen here.”
The idea for the creation of the megaport, to be built on 600 acres owned by the N.C. State Ports Authority and located between the former Progress Energy Brunswick Nuclear Power Plant and the Sunny Point Military Munitions Port, was conceived in 2006. The estimated $3 billion project was put on hold in 2010 when the state legislature did not provide funding for a proposed U.S. Army Corps of Engineers study.
But gubernatorial candidates Walter Dalton, a Democrat, and Pat McCrory, a Republican, both 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 landside 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 megaport. He instead says that efforts should be focused on improving existing ports, including Wilmington and Morehead City, and expanding exports by creating niche markets.
According to a report in the Wilmington Star News, McCrory, a former Charlotte mayor, does not believe that the marketplace would support another port. As governor, a McCrory spokesperson said, he would create and implement a strategy for the existing ports in Wilmington and Morehead City.
Robeson County and Lumberton were among 10 local governments that almost a year ago passed resolutions calling for the U.S. Army Corps of Engineers to conduct a feasibility study of the proposed port. Caswell Beach, Boiling Springs and Bald Head Island are among coastal towns opposing any feasibility study or construction of the deep water port.
A spokesman for U.S. Rep. Mike McIntyre, a Democrat from Lumberton, said in a statement Wednesday that McIntyre does not support the project for several reasons.
“Congressman McIntyre does not support this project because of several concerns, including the lack of commitment as well as lack of funding from the state Legislature; economic concerns (potential cost of $6 billion during a federal deficit and when new projects are generally not being considered by the Appropriations Committee); national security concerns; environmental concerns; and infrastructure concerns, which have not been resolved by the state,” said Dean Mitchell, McIntyre’s chief of staff. “Congressman McIntyre has been a long-time champion of the Wilmington Port, and he is committed to helping the existing port grow and expand to increase business opportunities which will lead to more jobs for our area.”
State Sen. Michael Walters, who currently represents Robeson and Hoke counties, told The Robesonian that while he would like to see the megaport become a reality, that is unlikely in the near future, especially since the Governor’s Logistics Task Force, chaired by Dalton, is recommending not moving forward on the project
“But we need to give the ports at Wilmington and Morehead City the infrastructure they need,” Walters said. “It’s a way to grow the economy and build for the future.”
Steve Yost, head of the 11-member county economic development organization North Carolina Southeast, said that it appears the megaport project will be “stagnant at least for awhile.”
“I hope whoever becomes governor will seek a re-evaluation of the whole project. Maybe a feasibility study can be done to see if it (megaport) is needed by the state,” Yost said. “Everything (data) we see from industries and logistics say that industries have to have deeper ports to accommodate larger ships…It’s no rocket science, but expensive critical infrastructure is needed … It should be considered as an investment to build the economy.”
Bo Biggs, a local Robeson County political observer and businessman from Lumberton, said that the decision by both gubernatorial candidates not to support the construction of a megaport is an indication of the state’s poor economy.
“It tells something about the economy when candidates of both parties agree,” Biggs said. “The price of the megaport is going to be substantial, even with private equity making up a considerable part of the funding. With the state of the economy, tight state funds and a (federal) deficit, the project would not be feasible.”
Biggs attributed such strong support for the project in Robeson and surrounding counties to the need for jobs.
“A megaport is a bit of a reach to ever become reality, but everyone inland is desperate for jobs. We’ll grab at anything,” he said. “There is always the hope that some industry will be landed in the area of the I-95 and I-74 corridor, with the the interstates being used to distribute products … . This (megaport) was our Hail Mary pass. We’re desperate for something here.”
Reach staff writer Bob Shiles at 910-272-6117 or bshiles@heartlandpublications.com.
We got his presentation materials for CAT. Aside from being embarrassingly amateurish, on virtually every page, he promised a deepwater port at Southport. A port that doesn't exist and may never exist. We called for his resignation, but he still sings the praises of a deepwater port where the water is not deep. And still claims that we lost CAT because we don't have a deepwater port. This has been disproved, repeatedly, by Caterpillar, but it doesn't seem to discourage Mr. Bradshaw.
What we need is integrity in town, County and State government. A renewed committment to fiscally responsible decisions and the courage to pull the plug on plans that will not produce. We are encouraged by Pat McCrory's statement on the port at Southport. He seems to recognize the fiscal and market realities of this project and we are hopeful he will kill it, should he be elected our next Governor.
They seem to have forgotten the concept of "prime the pump."
If you want jobs, you have to prime the pump.
Private business is the pump, but even it can't create more jobs without some government help with creating the necessary infrastructure that allows business and therefore job expansion.
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 offer 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!