With a strategy for growth and renewed momentum, South Carolina Ports President and CEO Micah Mallace delivered his second State of the Port address today, calling upon the room of shippers, ocean carriers, maritime partners and elected leaders to drive the Port’s next chapter of growth.
Speaking to nearly 1,200 attendees, Mallace addressed SC Ports’ challenges head on before detailing the next phase of the Port’s comeback plan. Mallace called for continuing to support growth of its core manufacturing customer base, while also diversifying the port’s cargo base with more consumer goods and refrigerated cargo to drive above-market growth for the port and for South Carolina.
When he took the helm last October, Mallace pledged to rein in spending and cut costs to offer more competitive port service. He announced today that the SC Ports team delivered on that promise, cutting expenses by 20%, enabling rates to get back in line with competing ports.
“The port team — and our many maritime partners — made difficult changes to improve our business and competitive stance in an incredibly short amount of time, but cutting costs alone is not a path to growth,” Mallace said. “We are a highly productive port, with ample capacity, a customer-focused mindset and the market fundamentals to thrive. We are perfectly positioned to achieve above-market growth, and we are now starting to see that momentum generate.”
Through dedicated sales efforts, a return to competitive rates and best-in-class service, SC Ports has secured nearly 160,000 containers of new business in the retail, consumer goods, manufacturing and export commodities. Thanks to strong partnerships with ocean carriers and shippers, this volume is coming online now through 2027.
Recent wins include a newly opened, near-port transload facility for a global retailer, and commitments from national retail brands and major importers who are selecting Charleston as their Southeast gateway for discretionary lanes.
SC Ports further strengthened its foothold in advanced manufacturing, as companies that benefit from expansive intermodal connections opted to bring more business through Inland Port Greer, including the first container arriving this month for Isuzu’s new commercial truck plant in Greenville County.
Charleston’s real estate market also significantly picked up, with 5 million square feet of industrial space leased so far this year, according to Cushman & Wakefield, and the port supported several large-scale leases in the market that will further boost cargo volumes.
“This new business is a direct result of the port team's willingness to rethink how we operate, find innovative solutions and deliver the exceptional service our customers need to grow,” Mallace said. “We are building momentum, we have a clear strategy, and we are committed to turning this momentum into sustained growth.”
Mallace thanked SC Ports’ Board of Directors, state and federal leaders, many maritime partners and the entire SC Ports team for their guidance, dedication and effort over the past year.
“We exist to serve, and we are on a mission to be a more competitive port,” Mallace said. “The stronger we are as a port, the bigger of an economic driver and job creator we will be for South Carolina. Every container secured means more growth and opportunities in our communities.”
SC ripe to be hub for retailers, manufacturers
To drive SC Ports’ next chapter of growth, Mallace emphasized the importance of building on its strong manufacturing base with existing and new customers alike, while also expanding its cargo mix by attracting more retail distribution centers and cold chain cargo to South Carolina.
“A more diversified port is a more resilient one, and boosting volumes with both manufacturers and retail distribution centers will generate incredible volume growth at our port and throughout our state,” Mallace said.
SC Ports is uniquely positioned to capitalize on the Southeast’s rapid growth, operating in both the nation’s fastest-growing state and fastest-growing region. As population growth fuels demand for consumer goods, Mallace emphasized a significant opportunity ahead.
“South Carolina is a force to be reckoned with when it decides to grow a sector, most evident with the success and tremendous economic growth we have seen from our automotive companies and advanced manufacturers,” Mallace said. “South Carolina has the assets needed to support retail supply chains — available land and warehouses, an incredibly deep labor pool and a well-run port that understands the importance of reliability and speed to market.”
Getting back to growth for SC
Mallace shared an honest assessment of remaining challenges, while offering reasons for optimism and reinforcing the port’s mission to serve customers and drive economic growth for South Carolina.
Over the past year, SC Ports started running as a data-driven organization, focusing on KPIs and safety-centered operations.
“It is incumbent upon us to run our port like a business, with a dedicated focus on serving our customers exceedingly well, using data to make decisions and providing the level of service and reliability we are known for,” Mallace said. “All of this will serve to grow our cargo base.”
The team continues to work toward resuming operations at Leatherman Terminal and bringing the rail-served Navy Base Intermodal Facility online. Mallace reinforced the need for intermodal strength, as customers want fast rail connections between inland markets and the Port of Charleston.
Mallace noted that SC Ports has world-class infrastructure and ample capacity to handle additional volume, and a path to grow alongside customers.
Work has started to expand rail-served North Charleston Terminal, making room for additional revenue-generating cargo opportunities in the short-term, and significant container capacity in the long-term.
While volumes remain down, Mallace reinforced that the port is a long-cycle business, and the commitments being made and volume secured today will boost future volumes as the projects come online.
“The business being awarded today will pay dividends for years to come,” Mallace said. “Momentum begets momentum, and we have started to generate ours.”
