Port leader outlines plan to regain volume, prioritize Navy Base intermodal facility

Micah Mallas, president and CEO of the State Ports Authority, delivered the annual State of the Ports to the Senate Transportation Committee, saying the authority’s single mandate is to grow South Carolina’s economy and outlining a three‑part plan: drive above‑market volume growth, reduce operating costs and create new revenue streams from port property.

Mallas told the committee the port claims roughly $87 billion in annual statewide economic impact and reported 2025 volumes of about 2.6 million TEUs (about 1.4 million containers) with roughly 205,000 intermodal rail moves. He said the U.S. port industry is in a ‘‘reset’’ and the authority must be more aggressive commercially to regain growth: “If the U.S. port industry grows by 5%, we should grow by 8,” he said.

Why it matters: volume drives the port’s finances and capacity to invest. Mallas said Charleston has a long runway of land for future terminal capacity (he cited planning to reach ~8.5 million TEUs by 2050) and stressed that filling existing capacity is the immediate priority rather than large, long‑cycle terminal builds.

On near‑term tactics, Mallas said the port is expanding its commercial sales team and imposing clear growth expectations for staff. He described operational efficiency work to lower costs and thereby offer more competitive rates, noting inflationary pressure on labor, fuel and electricity and rising capital costs for equipment. To fund growth projects without selling property, the authority plans to ‘‘monetize’’ unused acreage by placing revenue‑generating businesses on port land and reinvesting proceeds in cargo operations.

MBIF and rail access: Mallas told senators the Navy Base Intermodal Facility (MBIF) is the authority’s top infrastructure priority. He said terminal infrastructure for MBIF is largely delivered but that rail connections, utilities and road realignments remain to be finished. Crucially, the authority is finalizing operating contracts with the two Class I railroads it depends on, Norfolk Southern and CSX, so the facility works on day one rather than year two or three.

Terminals, costs and customers: Asked why more ships appear at Wando Terminal than Leatherman, Mallas said Leatherman currently carries a higher cost structure and the authority is working with partners to make it more competitive. He noted the port serves a broad customer base—more than 10,000 shippers in a typical month—and singled out automotive manufacturers such as BMW as anchor accounts; he said the authority worked closely with BMW after two flooding events that damaged vehicles and is developing a higher‑elevation, more protected solution for vehicle storage.

Infrastructure constraints and regional competition: Committee members pressed Mallas on the timing and cost of raising the Don Holt Bridge (which blocks access to the North Charleston terminal) and on competition with Savannah for distribution centers and regional business. Mallas said raising the Don Holt Bridge is a DOT matter but called it essential for unlocking North Charleston expansion; he suggested completion timelines measured in years (he mentioned a notional target of around 2035 as an illustrative aspiration) and emphasized early infrastructure investment and coordination with state economic development to attract distribution centers. On competition with Savannah, he said Savannah’s earlier land‑acquisition strategy gave it an advantage but that South Carolina should be more proactive in recruiting and supporting site development.

Labor and governance: On labor questions, Mallas said Leatherman Terminal is now an ILA terminal following litigation and that the port authority is working with the International Longshoremen’s Association to keep operations competitive. He also told the committee the authority launched an early‑retirement incentive two weeks prior and that it expects that program to reduce labor costs in the next fiscal year; he did not provide a precise current labor‑cost percentage to the committee.

Committee reaction and next steps: Senators repeatedly emphasized the statewide nature of port benefits and urged investment in transport links (including the Don Holt Bridge) because expanded port capacity would affect the Upstate and Midlands as well as the coast. Mallas said the port will return with operating agreements and a timeline for MBIF infrastructure delivery and that the authority’s near‑term focus remains taking market share, improving efficiency and delivering the MBIF on an operationally ready schedule.

The committee adjourned after a short procedural motion.