Fiscal Year 2010 Summary

August 5, 2010 - The addition of two container shipping services to the Port of Wilmington in March 2009, plus steady volumes from Wilmington’s two weekly transpacific container services, drove the North Carolina State Ports Authority’s Port of Wilmington container terminal to a 29% volume increase over the same period last year - the region’s highest container growth rate this year. Throughout the year, the Port of Wilmington consistently outpaced the market at increases ranging at monthly averages exceeding 30% at times. 

The Port of Morehead City experienced a 19% year-over-year growth in its breakbulk business, driven largely by increases in metal products such as rail and wire rod coils. 

The prolonged and deep economic recession continued to erode general cargo tonnage volumes at Wilmington, with lumber and woodpulp recording the largest declines at 75 to 89% since FY 2008. The declines in general cargo commodities at the Port of Wilmington, plus one time writeoffs for capital assets and construction projects largely account for the Authority’s 2010 fiscal year end loss of $5.9 million. Revenue forecasts for FY 2011 predict moderate growth at approximately 3.5%. 

“While there are no signs of significant economic recovery any time soon, the Ports Authority is greatly encouraged to have the region’s highest container growth rate this year. This is a direct reflection of the organic growth by NC businesses, and the exemplary service provided by the Authority,” said Thomas J. Eagar, CEO, North Carolina State Ports Authority. 

“Since cargo handling at the Ports of Wilmington and Morehead City mirrors the State’s economy, it is no surprise that the prolonged economic recession affecting virtually every business continues to impact our ports. Recovery ultimately will be led by resurgence in the housing construction as forest products represent the principal cash commodity historically producing $4 to 5 million in annual revenues,” Eagar said. 

The Authority’s overall liquidity position improved year over year by approximately $5.1 million. With respect to unrestricted cash and investments that position improved by $2.3 million. This improvement is driven from cost containment efforts and effective management of the Authority’s balance sheet. 

Broad cost containment initiatives beginning in 2007 that remain in effect helped to reduce expenses by $723,000 in fiscal year 2010. 

“The Authority is demonstrating that it can operate efficiently and effectively in response to fluctuating cargo volumes, and that it can control costs while delivering unparalleled customer service,” said Eagar.