1. Logistics Aspects & Multi-Modal Transportation 29 November 2004 Presented by Peter O. Lehman, Esq. Director, Planning & Business Development South Carolina State Ports Authority plehman@scspa.com

2. Charleston’s Current Position 4 th Largest U.S. Container Port Mid-way Between NY & Miami Largest Operating Port Cargo Valued at US$39 Billion in 2003 1.7 Million TEU Last Year Volume Up 15% Jul-Oct

3. Current Issues Facing Our Port Increasing Trade, More Cargo Larger Ships, Deeper Channels Need for Investment Port Security Demands Balancing Economy, Environment Political, Public Support and Cooperation

4. Increasing Trade, More Cargo Importance to U.S. Economy –Growth in % of GDP In-land Infrastructure, Road/Rail –Pressures on Coast Information Systems –New Yard System Higher Utilization –Better Equipment, Training

6. Larger Ships, Deeper Channels Bridge Construction –Largest in Americas, US$635 million –Higher, Wider Clearance –Complete in mid-2005 Harbor Deepening, Maintenance –47’ entrance channel, 45’ inside harbor Alliances, Impacts on Margin –Volume Concentrated in fewer services

8. Need for Investment Short-Term Planning Long-Term Development at Navy Base –Three berths, 280 acres Infrastructure –To serve new facility Funding Sources –Internal, State, Federal, Private

9. Port Security Demands Balancing Security, Cargo Flow Rapidly Increasing Costs –From $2 million to $4 million –From 50 to 80 officers Federal Role, Local Costs New Equipment, Assets –C-TPAT, VACIS, RPMs Instituted Security Surcharge

10. Balancing Economy, Environment Maintenance Dredging –Disposal Options –Beneficial Uses New Fuels, Cold Ironing NRDC, Other Actions

11. Political, Public Support & Cooperation Education initiatives –Legislators, Congressmen, public Garnering support Vital to continue growing our port and trade

12. Current Issues Facing Our Port Increasing Trade, More Cargo Larger Ships, Deeper Channels Need for Investment Port Security Demands Balancing Economy, Environment Political, Public Support and Cooperation