North Carolina State Ports Authority Competes in Global Market

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The North Carolina State Ports Authority is a major player in the global market. The authority operates two ports in the state: the Port of Wilmington and the Port of Morehead City.

The Port of Wilmington is one of the top container ports on the East Coast, handling over 500,000 containers annually.

The authority has made significant investments in infrastructure and technology to improve efficiency and safety.

Recommended read: Ports of the State

History and Overview

The North Carolina State Ports Authority has a rich history dating back to 1923, when Governor Cameron Morrison pushed for the creation of the State Ship and Water Transportation Commission to study the development of port facilities.

In 1933, the North Carolina General Assembly incorporated the Morehead City Port Commission, and in 1935, the Wilmington Port Commission was established. These early efforts laid the groundwork for the state's port system.

Despite a failed bond referendum in 1924, the coastal cities of Wilmington and Morehead City continued to pursue their efforts to improve port facilities.

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History

North Carolina Flag on a Pole Under Blue Sky
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The North Carolina State Ports Authority has a rich history that dates back to the early 20th century. In 1923, Governor Cameron Morrison became interested in establishing official port facilities for the state, and he pushed for the creation of the State Ship and Water Transportation Commission to study the matter.

The commission produced a report recommending that the state government fund the development of port facilities, but a statewide bond referendum for $8.7 million to develop the facilities failed to pass in November 1924, and the commission disbanded. This setback did not deter the coastal cities of Wilmington and Morehead City, which continued to pursue their efforts to improve port facilities.

In 1933, the North Carolina General Assembly incorporated the Morehead City Port Commission, and in 1935, they incorporated the Wilmington Port Commission. These commissions marked an important step towards developing and improving the state's port facilities.

The North Carolina General Assembly established the North Carolina State Ports Authority in 1945 to develop and improve harbors at Wilmington, Morehead City, Southport, and other coastal areas. Improvements began in 1949, and new piers and storage areas were completed in 1952.

In 1952, the authority completed new piers and storage areas, marking a significant milestone in the development of the state's port facilities.

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North Carolina State Ports

Ebuka The Boat Rider In Bonny Island Port Harcourt
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North Carolina State Ports have a rich history that spans over a century. In 1923, Governor Cameron Morrison pushed for the creation of the State Ship and Water Transportation Commission to study the development of official port facilities.

The commission's report recommended that the state government fund the development of port facilities, but a statewide bond referendum for $8.7 million failed to pass in 1924. This setback didn't deter the coastal cities of Wilmington and Morehead City, which continued to improve their port facilities.

The North Carolina General Assembly established the Morehead City Port Commission in 1933 and the Wilmington Port Commission in 1935. In 1945, the General Assembly created the North Carolina State Ports Authority to develop and improve harbors at Wilmington, Morehead City, Southport, and other coastal areas.

Improvements began in 1949, with new piers and storage areas completed in 1952. The authority also opened an intermodal transit terminal in Charlotte in January 1894, allowing containerized goods to be consolidated and shipped to Wilmington.

The Port of Wilmington offers a range of terminal facilities, including container, bulk, breakbulk, and ro-ro operations. It has a 42-foot navigational channel, nine berths, four post-Panamax, and three neo-Panamax container cranes.

Port of Wilmington

Drone Shot of a Cargo Ship on Port
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The Port of Wilmington is a major hub for international trade, offering a range of terminal facilities serving container, bulk, breakbulk, and ro-ro operations.

Its deep 42-foot navigational channel and nine berths make it an ideal location for large ships, including the MV Hyundai Hope, which recently sailed in with a carrying capacity of nearly 14,000 TEUs.

The port has undergone significant improvements, including the addition of four post-Panamax and three neo-Panamax container cranes, designed to work with ultra-large container vessels.

A $200 million capital improvements plan has enhanced the port's infrastructure, supporting the largest vessels calling on East Coast ports.

North Carolina Ports' team and board of directors recognized the importance of infrastructure improvements to support growing vessels, and have been working tirelessly to modernize facilities since the expansion of the Panama Canal in 2016.

The port's modern transit and warehouse facilities, combined with the latest cargo management technology, provide a broad platform for supporting international trade.

North Carolina's ports, including the Port of Wilmington, link the state's consumers, business, and industry to world markets, contributing to over 87,700 jobs and $678 million in state and local tax revenues each year.

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Inland Port and Infrastructure

Appalachian Mountains in North Carolina
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The Charlotte inland port is a 20-acre dry port site located along the CSX rail lines near the intersection of NC 16 and I-85. It serves as a distribution point for intermodal containers connecting the I-85 and I-77 corridors to the CSX rail line and the Port of Wilmington.

The Port of Wilmington is a key player in North Carolina's transportation network, offering a vital link between the state's inland areas and the global marketplace.

Charlotte Inland Port

The Charlotte Inland Port is a 20-acre dry port site located along the CSX rail lines near the intersection of NC 16 and I-85.

It serves as a distribution point for intermodal containers connecting the I-85 and I-77 corridors to the CSX rail line and the Port of Wilmington.

NC Advances Three Rail Infrastructure Projects

NC has advanced three rail infrastructure projects, including the Charlotte Gateway Terminal, which will be a major intermodal facility connecting rail, truck, and ship. It's expected to create over 4,000 jobs and generate $1.5 billion in economic output.

View of the Railway Station and Skyscrapers in Downtown Charlotte, North Carolina, USA
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The Charlotte Gateway Terminal will be a game-changer for the region, allowing for the efficient movement of goods and people. It will be a critical component of the Southeast's transportation infrastructure.

The other two projects are the Winston-Salem Northern Beltway and the Greensboro Gateway, both of which will improve rail connectivity and reduce congestion. These projects are crucial for supporting the growth of the state's economy.

The Winston-Salem Northern Beltway will provide a new rail route, bypassing the city and reducing traffic congestion. It's a vital investment in the region's transportation infrastructure.

The Greensboro Gateway project will upgrade the existing rail line, increasing its capacity and efficiency. This will help to reduce delays and improve the flow of goods through the region.

These projects are a significant step forward for NC's rail infrastructure, and they will have a lasting impact on the state's economy.

Container Traffic and Jobs

The North Carolina State Ports Authority (NCSPA) has a unique opportunity to capitalize on the growth of container traffic. This growth is largely due to the completion of new locks and channels that allow for larger "post-Panamax" containerships to transit the canal.

Panorama of Rough Ridge Lookout in Autumn Forest, North Carolina, USA
Credit: pexels.com, Panorama of Rough Ridge Lookout in Autumn Forest, North Carolina, USA

The NCSPA has identified that there are few ports on the U.S. East Coast that can offer the deep draft conditions and large container terminals needed for this growth. This creates a significant opportunity for the port to attract more container traffic.

Many containers that were previously unloaded at west coast ports and moved via rail to points east could now move more economically to east coast ports through the canal. This shift in container traffic is likely to bring new job opportunities for the region and the state.

Competition and Investment

The North Carolina State Ports Authority faces stiff competition from existing east coast ports, which have been investing heavily in dredging and expansion projects to attract larger post-Panamax vessels. These ports have made significant progress, with the Panama Canal's CEO stating that two deeper, wider ports along the US Eastern seaboard and one in the Gulf coast should be enough to handle the growth in traffic.

Container ship in the Port of Hamburg at Terminal Burchardkai, showcasing global trade.
Credit: pexels.com, Container ship in the Port of Hamburg at Terminal Burchardkai, showcasing global trade.

Competition was further accelerated when President Obama announced in 2012 that the federal government would be expediting five major port expansion projects at Jacksonville and Miami, Fla.; Savannah, Ga.; Charleston, S.C.; New York and New Jersey. These projects were expected to be completed between 2012 and 2015.

The Southport site would have been at a competitive disadvantage geographically, located on an inherently shallow-water estuary.

Competition and Excess Capacity at East Coast Ports

Competition and Excess Capacity at East Coast Ports is a significant challenge for new ports looking to attract business. The majority of existing east coast ports have been investing in dredging and expansion projects to attract larger post-Panamax vessels.

In fact, by 2011, there were approximately 13 port expansions underway on the east coast. This excess capacity has made it difficult for new ports to compete for business.

Alberto Aleman, the CEO of the Panama Canal, noted in 2011 that two deeper, wider ports along the US Eastern seaboard and one in the Gulf coast should be enough to handle the growth in traffic. The large container ships are not going to stop at every port.

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Credit: youtube.com, 10% of freight cargo shipped to East Coast will ‘remain there permanently’: Analyst

As a result, the proposed Southport site would have been in a difficult competitive position due to its poor access to mainstream rail and truck routes. This made it an unattractive option for manufacturers looking for cost-competitive overseas shipping options.

North Carolina manufacturers already have a number of existing cost-competitive overseas shipping port options to keep them competitive with other east coast manufacturers. The federal government's expedited port expansion projects at Jacksonville and Miami, Fla.; Savannah, Ga.; Charleston, S.C.; New York and New Jersey in 2012 further accelerated competition.

The Southport site is also at a competitive disadvantage geographically, located on an inherently shallow-water estuary. This makes it difficult to compete with ports that have natural deep water, like Norfolk.

In fact, NC Secretary of Transportation Gene Conti said as much in 2012, "God gave Norfolk that advantage." He acknowledged that competing with a natural advantage is a tough task.

Take a look at this: Port to Door Shipping

Private Commercial Investment

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Private commercial investment in the NCIT proposal was a major hurdle, with the NCSPA unable to find any willing partners in over seven years.

The lack of commercial interest was a significant concern, casting doubt on the proposal's viability.

Projects at competing east coast ports were already underway or planned, targeting post-Panamax vessels and further exacerbating the commercial viability of the NCIT proposal.

These competing projects made it even more challenging for the NCIT proposal to attract private investment.

Resurrecting the Port Proposal in NC Assembly

In 2015, NC Sen. Michael Lee, R-New Hanover, sponsored a bill to remove "The Rocks" between Zeke's and Smith islands in New Hanover County.

The bill, part of N.C. House Bill 97, was supposedly for "ecosystem restoration and protection of navigational safety", but many regional institutions and local governments questioned its true purpose.

Larry Cahoon, a professor and oceanographer at the University of North Carolina Wilmington, expressed his skepticism, saying "What I smell in this is that we're not being leveled with about what's really going on."

Ferry Terminal in Port
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The "Removal of the Rocks" initiative was seen by many as another attempt to site an international port at the property the NCSPA still owns just west of "the Rocks".

Local governments unanimously rejected the proposal, further fueling concerns that the true intention was to revive the port proposal.

As of early 2018, nothing seemed to have resulted from Rep. Lee's proposal.

Public Support vs Opposition

The North Carolina State Ports Authority has had its fair share of public support and opposition over the years.

The Army Corps of Engineers, the Int'l Longshoremen's Assoc., and the Brunswick County Commissioners were among the supporters of the proposed port. Yes Port NC also solicited public support.

Early opposition began with grassroots organizing efforts of NoPort Southport and Save the Cape.

By 2010, all six communities in the affected lower Cape Fear region, including Southport, Caswell Beach, Bald Head Island, Saint James, Boiling Spring Lakes, and Oak Island, had expressed their opposition to the proposed port.

Close-Up Shot of Boat on a Dock near a Building
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US Congressman Mike McIntyre, who represents the affected 7th Congressional District, announced his opposition to the proposed terminal in 2010, citing several negative issues.

The US Fish and Wildlife Commission also expressed its opposition to the megaport proposal.

Both the Democratic and Republican candidates vying for North Carolina governor in the 2012 elections declared their opposition to the megaport proposal, with Governor-elect Pat McCrory stating that questions of feasibility should have been asked before millions were wasted on land purchases and studies.

Leadership and Strategy

The NCSPA Board of Directors has undergone significant changes in recent years. Carl Stewart resigned as Chairman in 2012, and Tom Bradshaw was appointed as the Executive Director, taking over the position formerly held by Tom Eagar.

In 2012, Governor Perdue appointed state Rep. Danny McComas as the new Chairman of the NCSPA Board of Directors, replacing Carl Stewart. This marked a shift in leadership, with Rep. McComas stating that the megaport project is "not on my radar screen."

The megaport project, which was originally purchased in 2005, remains available for industrial development, despite the lack of interest from private entities and the absence of advocates for further taxpayer investment.

For another approach, see: Lyttelton Harbour Board

NCDOT Maritime Strategy Study

Washington Baum Bridge in North Carolina
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The NCDOT Maritime Strategy Study was a crucial turning point in the Southport megaport proposal. It was initiated in March 2011, after the reorganization of the NCSPA under the NC Department of Transportation.

The study team released its final report on June 26, 2012, which concluded that investing in the existing ports in Wilmington and Morehead City would be more cost-effective than pursuing the megaport at Southport.

The study estimated the total cost for the megaport to be $6.1 billion, including infrastructure.

The study's findings led to a reevaluation of the megaport proposal, which had faced significant public and political opposition since its declaration on July 21, 2010.

Changes in NCSPA Leadership and Focus

Carl Stewart's early resignation from the NCSPA Board was announced on Aug. 23, 2012, marking a significant shift in leadership.

Tom Bradshaw was appointed as the Executive Director of the North Carolina State Port Authority, taking over the position formerly held by Tom Eagar.

Brown pelican flying low over the water at Carolina Beach Harbor in North Carolina.
Credit: pexels.com, Brown pelican flying low over the water at Carolina Beach Harbor in North Carolina.

With Stewart's departure, there were no remaining elected or appointed officials advocating for spending taxpayer dollars on the megaport proposal.

This lack of support was further underscored by Governor Perdue's appointment of state Rep. Danny McComas as chairman of the NCSPA Board of Directors on August 29, 2012.

Rep. McComas stated that the megaport project was "not on my radar screen" and didn't see it going anywhere in the near future.

Despite this change in leadership and focus, the 600-acre parcel originally purchased in 2005 is still owned by the NCSPA and remains available for industrial development.

Frequently Asked Questions

What are the only 2 major ports in North Carolina?

North Carolina Ports operates two major ports: Wilmington and Morehead City, each offering distinct advantages. Learn more about the unique benefits of each port.

How much does NC port pay?

NC Port hourly pay ranges from $12.49 to $28.00 per hour, based on 470 data points from Indeed. Learn more about salary ranges and job opportunities at NC Port.

Is there a cruise port in North Carolina?

Yes, Morehead City, North Carolina has a cruise port that offers a unique experience on the Atlantic coast.

Gretchen Gerhold

Writer

Gretchen Gerhold has established herself as a prolific writer, covering a diverse range of topics including logistics, trade, and economic development. Her articles on container terminals and the logistics sector in India provide deep insights into the complexities of modern supply chain management. Focusing on the state of Kerala, her work on the economy and transport in Kochi highlights the region's significant contributions to India's economic landscape.

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