Page 46: of Maritime Reporter Magazine (February 1993)

South Carolina's Ports

Close To Securing Land

For Proposed Box Terminal

Plans for a 287-acre, eight-berth container terminal on Charleston's

Daniel Island are nearing comple- tion, now that the South Carolina

State Ports Authority is about to close on the proposed site located between the Cooper and Wando riv- ers.

The port authority wants to build the terminal on the Cooper River side of the island, which offers 20,000 feet of waterfront and could ulti- mately cost $500 million to develop.

A drawback to the location, how- ever, is the relatively narrow Coo- per River ship channel, which is restricted to one-way traffic. Al- though the Charleston Branch Pi- lots Association is recommending that the Wando River side of the island be used as it allows two-way traffic, the authority is locked into the Cooper River site because of zoning regulations.

In a compromise worked out be- tween local and state officials and the port, an agreement to purchase the Cooper River property for $7 million is ready to be signed.

After the property is acquired, the port intends to examine whethe the channel should be widenec where a turning basin ought to b constructed and how a river ben should be removed to facilitate shi] traffic.

Reduction In Harbor Tax

Could Be Forthcoming

According to industry sources, several factors relating to the con- troversial harbor maintenance tax may eventually result in the first rate reduction.

First, Army Corps of Engineers spending for routine maintenance dredging has remained flat while tax collections have increased, pri- marily because of the rate hike from 0.04 percent to 0.13 percent.

A second factor is the recent tight- ening of Customs enforcement ef- forts aimed at domestic shippers, which is expected to create a wind- fall in profits similar to one reaped this year from audits of exporters.

Also, because of the growing sur- plus in the harbor maintenance tax trust fund, there is a risk that a complaint may be filed with the Gen- eral Agreement on Tariffs and Trade (GATT) that the tax is not being used for its designated purpose. The

U.S. has been forced by GATT in the past to cap its merchandise process- ing fee, a similar assessment which also grew too large.

These developments could signify the first hint of progress in a long campaign by ports and shippers to roll back the harbor tax to 1990 lev- els.

San Francisco Bay's

Tug Escort Rules Opposed

By Area Tanker Operators

A requirement for tankers oper- ating in the San Francisco Bay area to have tug escorts, even those with double hulls, is expected to cost ves- sel operators about $1 million a year in added expenses, according to in- dustry sources. The tug escort rule designed by state authorities will go into effect by mid-January, despite opposition from the area's tanker operators.

After the Valdez spill, California passed a law designed to toughen standards for tanker operators in its harbors, through the state's new

Office of Oil Spill Prevention. The legislation specifically directed San

Francisco's harbor safety committee to develop a tug escort plan for tank- ers. The new escort regulations do not exempt vessels with double hulls, as hoped by the bay's major tanker operators, which include Chevron,

Arco Marine and Exxon Shipping

Company.

Based on the results of studies reportedly carried out on the escort versus double hulls subject, tanker operators claim that tug escorts can improve safety margins by eight to 11 percent, while double hulls can improve safety margins by 37 to 51 percent.

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