NC Ports - moving forward toward sustainable long term growth

Thomas J. Eagar, CEO, NC State Ports Authority

While the global economy and the shipping industry are experiencing a roller coaster ride which appears to be culminating in a deep recession, the North Carolina State Ports Authority is moving forward with sustainable development and key expansion projects at the ports of Wilmington and Morehead City, and the new NC International Terminal.

During the annual “State of the Ports” address to the Cape Fear Chapter, NC World Trade Association in Wilmington, Ports Authority CEO Thomas J. Eagar told the group that the development process must continue to ensure that North Carolina’s Ports are positioned to support the future needs of the shipping industry to attract business growth that will result in stable, good paying jobs for the region and State.

The Ports Authority has begun reconstruction of a second container berth as part of a multi-year container terminal expansion program at the Port of Wilmington. Additionally, the Port of Morehead City is preparing for the export of Spirit AeroSystems’ new Airbus fuselages with a refurbished rail system and a new 6-acre paved, open storage area.

At the same time, planning for sustainable development is moving forward for the NC International Terminal on a 600-acre undeveloped industrial tract four miles from the mouth of the Cape Fear River and 22 miles from the Port of Wilmington. The Authority is working on a port wide vulnerability assessment and response plan in conjunction with neighboring facilities, and is partnering on infrastructure improvements with federal and state agencies. 

“It’s important to recognize that historically economic downturns have been followed by corresponding recoveries, and we must continue our expansion programs and facilities improvements to be ready for the rebound” Mr. Eagar said.

He added that the Ports Authority has embraced the concept of sustainable port development and expansion as key to economic growth and employment opportunities. “Today you can neither develop nor operate major ports without proactively considering the broadband of environmental impacts ports generate. It’s a part of doing business and it’s a strategic imperative: ports must manage environmental affairs effectively, he said.”

The Ports Authority this year named Bill Bennett to the newly-created position of emergency preparedness and environmental sustainability director to develop and implement an environmental sustainability plan addressing energy and water conservation practices, environmentally-friendly procurement and contracting procedures, recycling, air quality, training and public outreach.

“The Authority also is committed to developing a sustainable operation at the new NC International Terminal with emphasis on innovation to promote worker health and safety and advance stakeholder social interests,” Mr. Eagar said.

Turning to the global economic crisis, Mr. Eagar explained that the outlook of the Authority’s customers reflects national reports indicating an economic recovery may not be likely until the second half of 2009.

“The prolonged economic slump, particularly in the housing market for which many of the Authority’s key commodities are destined, continues to affect business volumes for the general cargo terminals at Wilmington and Morehead City,” Mr. Eagar said, adding that the Authority posted a positive cash flow from operations in fiscal year 2008 and forecasts a positive forecast for 2009 fiscal year despite a continued decline in volumes of certain key cargoes.

“We have anticipated the prolonged nature of the business downturn by continuing our very conservative approach in the FY 2009 budget. We anticipate that overall revenues will hold steady despite fluctuations in commodity groups and project a positive net income for FY09,” he said.
Mr. Eagar assured the group that the Authority is determined to continue to provide quality service to its customers and support their business in the world’s markets, while maintaining a firm foundation of sustainable expansion and development so the Authority can move forward as anticipated growth remerges.