SC Ports Enters Second Phase of Comeback Plan with New Cargo Commitments

Cargo Rebound Takes Shape at Port of Charleston as New Leadership Trims Costs

North Charleston’s maritime engine is finding its footing after a turbulent stretch. The South Carolina State Ports Authority is pushing through the second leg of a three-part comeback plan, backed by a 6-percent increase in committed containerized cargo and a leaner financial operation.

Micah Mallace, who took over as president and CEO a year ago following the abrupt resignation of the agency’s previous leader, delivered the update Tuesday at the North Charleston Convention Center. Speaking before a record crowd of 1,150 attendees at an event hosted by the Propeller Club of Charleston, Mallace struck a cautiously optimistic tone about the port’s trajectory.

Last year, the picture looked starkly different. Operating expenses had grown too high while cargo volume lagged, and container ship operators and other clients faced steep pricing that outpaced what rivals like the Port of Savannah charged. Today, the strategy has shifted toward cost discipline and targeted growth.

Port Cuts Expenses to Attract More Containers

To reverse the downward slide, port leadership slashed operating expenses by more than 20 percent over the past year. Those savings were passed directly to customers, fulfilling a core pledge Mallace made during his first State of the Port speech a year ago.

While year-over-year cargo volumes dipped 5 percent by the close of the most recent fiscal year, the financial stabilization has already unlocked new commitments. Businesses have agreed to route an additional 159,000 containers through Charleston in the coming year.

The composition of that incoming freight tells a changing economic story. Manufacturing historically drove the port’s volume, but the new business coming online through 2027 spans a broader mix of industrial products, consumer goods, and export commodities.

“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, noting that while expenses were reduced broadly across operations, the size of the commercial team was expanded twofold.

The Path to Reopening Leatherman Terminal

Despite the momentum, leadership emphasizes that the recovery remains in a delicate state. The authority indefinitely paused operations on August 1 at the $1 billion Leatherman Terminal in North Charleston. High unionized labor costs left the facility underutilized compared to the port’s other container terminals, which operate under different labor structures.

Reopening the Leatherman Terminal serves as the primary benchmark for the third and final phase of the comeback strategy. Mallace noted that the facility will not resume operations until the port achieves sufficient volume and an operating cost structure that guarantees long-term viability.

At the same time, negotiations continue with Norfolk Southern and CSX Corp. regarding the Navy Base Intermodal Facility, a near-dock rail yard designed to speed cargo movement. No formal opening date has been scheduled for the rail yard as talks proceed.

For now, the focus centers on holding operating costs steady, improving truck turn times, and attracting retail distribution centers to a state where warehouse space has historically lagged behind regional demand. Consumer goods make up 81 percent of containerized cargo value nationwide, compared to roughly 50 percent in Charleston.

“We are not rushing any of these things,” Mallace said. “We want to be intentional. We want to do it right.”