Maersk-port  relationship still a winner

Written by Grooms News on December 17, 2009, 12:21 PM

By Larry  Grooms and Gordon Dorsey

Thursday,  December 17, 2009

Writing to his  son following the end of World War II, the famous shipping leader A.P. Moller  cautioned that "No loss should hit us which can be avoided with constant  care." That strategy is still serving Mr. Moller's company, A.P.  Moller-Maersk, as well today as it did a half-century ago.  

Nowhere has  this recently been more evident than in the negotiations to ensure that Maersk  Line, the S.C. State Ports Authority's largest customer, continues to call on  the Port of Charleston. Maersk Line's recent decision to stay brings to a  close nearly a year of negotiations between port leaders, legislators, and  company officials.

These talks  were often very sensitive, involving important concessions and multiple offers  and counteroffers. Over the months, a high level of trust developed among the  individuals involved. The discussions included after-hours communications,  phone calls on Thanksgiving and Christmas Eve, personal office visits, and  one-on-one talks.

When some in  the local maritime community and the media had written Maersk off in  Charleston, a few key players kept plugging away, remaining patient, keeping  in touch, and expecting the best.

As a result of  this persistent effort on both sides, a relationship of over 50 years between  Maersk, the world's largest ocean carrier, and the Port of Charleston, the  North America's most efficient port, continues. As Jim Newsome, the Port  Authority's resourceful new president and CEO points out, "Maersk Line has 15  percent of the world's market share. I cannot imagine running a major port  without having Maersk as a prominent customer." Thanks to the many  stakeholders involved in the negotiations, Maersk Line will stay and maintain  a competitive position within the Port of Charleston.

The Southeast  has one of the largest regional population clusters in the United States and  is expected to be the fastest growing over the next 40 years. With the  expansion of the Panama Canal in 2014, greater numbers of much larger vessels  are expected to call on the East Coast. Charleston's natural amenities make it  an excellent port of call. Charleston has the deepest channels in the South  Atlantic and its wide harbor accommodates two-way traffic and is close to the  open ocean. Charleston, today, can accommodate every size of ship that calls  on an East Coast port.

The tide has  changed for the Port of Charleston in the last six months. The Port Authority  has put in place an assertive new business plan, a bold vision to boost  marketing and improve customer relations, procedures to maintain  self-sufficiency and high levels of productivity and plans to "aggressively  pursue growth opportunities across all lines of business" while increasing  capacity. It has new leadership, not only in Jim Newsome but in others at the  executive level like Paul McClintock, the new chief commercial officer.  Expansion operations are underway at the former Navy Base.  

The members of  the General Assembly are actively supportive and passed effective new port  governance legislation to position the port to be an engine for the coming  economic rebound. Combined with positive developments like the recent decision  by Tire Kingdom to locate a major distribution facility in the Lowcountry and  Boeing's extraordinary announcement that it will build its second 787 line in  North Charleston, the Port of Charleston's new direction and its continuing  relationship with Maersk Line promise to help make Charleston more  economically successful as the economy turns around.

Charleston and  Maersk Line make a great team. Our mutual constant care has paid off. Maersk  Line will continue to offer reliable and committed service in Charleston to  shipping customers in South Carolina, the Southeast, and across the globe,  while the Port of Charleston will continue to positively influence the economy  of this vibrant, world-class city and the state.

Sen. Larry  Grooms, chairman of  the Senate Transportation Committee, represents parts of Charleston, Berkeley,  Dorchester and Colleton counties. Gordon Dorsey is senior vice  president of operations for Maersk Line in the USA and Canada.