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 Daily Port Update

Subject:Charleston Daily Port Update
Date:Wednesday, December 31, 2008
Priority:Normal
Notice:URGENT INFORMATION - NONE

PORT LIMITS/INFORMATION
------------------------
Maximum Depths - (Fresh)
Harbor Entrance - 47.0 ft
Main Channel - 45.0 ft

BERTH LIMITS/INFORMATION:
-------------------------
Current maximum drafts allowed at berths:

Amerada Hess - Max draft of 40'00
Kinder Morgan - berth 1 - 40'00
Kinder Morgan - berth 2 - 40'00
Kinder Morgan - berth 3 - TBA
Kinder Morgan - berth 4 - Max draft 39'00, tide needed for anything
deeper than 36'00
BP - Max draft 32'6" Low water / Salt
Wando Terminal - Max draft 46'00 - Max BM 187'00
North Charleston Terminal - Max 42'00 - Max BM 187'00
CST - Max draft 47'00 - Max BM 187'00
Nucor - Max draft 25'00 (movements daylight & tidal restricted), Max LOA
450', Max Beam 52'

Per pilots - restrictions for Tanker movements:
Drafts of 36'00 or less may transit at anytime Drafts of 36'01 to 40'00 -
window: Start in 1 Hour before low water until 2 hours before high water
Drafts of 40'01 to 41'00 - window: start in 2 hours after low water until
2 hours before high water
Drafts of 41'01 to 42'00 - window: start in 3 hours after low water until
3 hours before high water

VESSEL TRAFFIC:
---------------------------------------------

Kinder Morgan - STENA FR8 SAILED 12/30 0600
Kinder Morgan - ABU DHABI STAR ARRIVED 12/30 ETS 12/31 1300

=============================================
FEDERAL, STATE & LOCAL FILING REQUIREMENTS:
---------------------------------------------
96 Hours - advance notice of arrival required by USCG

48 Hours - advance receipt of crew list by Immigration for any vessel
arriving from a foreign port, or arriving coast wise with detained crew.

24 Hours (minimum) - Foreign cargo must have manifest submitted to
Customs & Border Patrol AMS. Bond must be filed for Foreign flag vessels
or U.S.
flag arriving with foreign cargo aboard.

24 Hours - advance notice to Pilots

24 Hours - advance fax of crew list and approved visitors required by
Terminal.

PRIOR TO ARRIVAL - as of 11/15 - Mandatory Right Whale reporting by all
vessels - for information - www.nmfs.noaa/pr/shipstrike.com

72 Hours - post port call, the Port Authority requires bill of lading
figures for all bulk cargo.

Port Security - All persons doing business within Port Authority property
must have security pass from SCPA. All persons wanting unescorted access
to any vessel must have a valid TWIC.

=========================================

NEWS ARTICLES:

AGENCY HONORS COAL SHIPPER, HITS IT WITH FINE
By Katy Stech (Contact)
The Post and Courier
Wednesday, December 31, 2008

State environmental regulators recently honored Kinder Morgan for its
efforts to improve air quality at its shipping terminal on the Cooper
River. At the same time, however, they were getting ready to assess the
Texas company a five-figure fine for fouling Charleston's air with coal
dust.

Larry DiCenzo of West Ashley on his boat at the Cooper River Marina,
where, he says, coal dust from the Kinder Morgan terminal collects.
Kinder Morgan has made improvements at the facility, but DiCenzo says he
has not noticed a difference in the past year.
The state Department of Health and Environmental Control two months ago
ordered the company to pay $19,000 and change its operations to prevent
coal dust from blowing off its waterfront site in the Charleston Neck
Area.

The Oct. 21 consent order also calls for Kinder Morgan to operate a spray
truck on the property, monitor dust collection systems and water down
coal dust at the facility where it loads coal onto trains.

The enforcement action stemmed from a May 2007 site visit by state health
inspectors who found coal chunks falling off a conveyer belt into the
river, a water truck that did not effectively contain the coal dust and
inadequate maintenance records.

Kinder Morgan came under scrutiny after it sought a permit from DHEC to
expand the terminal to accommodate larger coal shipments. Local residents
and boaters who dock at the nearby Cooper River Marina protested the
request, complaining about existing levels of dust the company releases.

After a three-year fight, the expansion was approved by DHEC in November.

As the permitting process was coming to a close, and as the terms of the
consent order were being considered, DHEC received an application from
Kinder Morgan for the agency's new "Spare the Air" awards program, which
recognizes efforts to improve air quality in South Carolina.

Self promotion
Kinder Morgan's self-nomination for the Spare the Air Awards.
Kinder Morgan, which nominated itself, was recognized at a November
ceremony; and it has since touted the honor to local residents who live
near the Milford Street terminal.

"It was more of a mention," said Arthur Rudolph, the company's regional
general manager. Rudolph noted that a Midlands hospital got the top award
from DHEC, "but we were mentioned as a company that has made an effort in
the past year."

Rudolph said he did not think it was misleading to highlight the award as
the company was facing a fine for violating air standards.

"The consent order is from two years ago, and we've made a lot of
improvements since then," he said. "We're not going to let down our
efforts, and that's a promise we've made to the community."

Kinder Morgan said it has spent more than $1.5 million on environmental
improvements at the site. Despite those efforts, fine specks of dust were
still drifting onto the nearby marina Tuesday morning.

Marina manager Matt Driscoll pointed to piles of black dust that had
accumulated on idle boats. One 38-foot sailboat that was washed on Monday
had within a day collected fine lines of black dust along its raised
edges.

In the distance, Kinder Morgan cranes scooped coal from the belly of a
red cargo ship. Company officials have told marina boaters that the black
dust might not have be coming from their facility, but several DHEC tests
have shown that coal is the main air pollutant.

"They have got to be losing a lot of money," said sailboat owner Larry
DiCenzo of West Ashley, who was preparing to wash off dust that had
accumulated in the three days since the last cleaning. "It collects here
everyday."

DiCenzo, who has docked his boat at the marina for five years, said
whatever improvements Kinder Morgan has made have not reduced the amount
of coal dust that collects on his boat.

Previous stories
DHEC wrapping up Kinder Morgan permit, published 09/30/08

DHEC has memory block; State agency reps differ on using past violations,
published 11/18/08
Since the DHEC fine was issued, Kinder Morgan has held two meetings with
its citizens advisory panel, a voluntary group of residents who meet with
company officials to discuss their concerns and other matters.

Rudolph said he thought the fine had been discussed, but that is not
reflected in the written minutes from the two most recent meetings. Two
board members, including North Charleston resident Kristen French, said
they do not recall hearing about the penalty.

"As a member of the CAP, I would expect that to come up because, in the
spirit of full disclosure, we are trying to be very open and honest with
each other, and that makes me think they aren't bringing everything to
the table," French said.

"We shouldn't have to find out about it by reading about it in the
newspaper or being contacted by someone from The Post and Courier," added
fellow member Susan Graham.

During those two meetings, the company did talk about the "Spare the Air"
recognition.

"I just think they want us to just be so happy with what they've done and
stop bothering them, and I don't think they understand this is supposed
to be a long-term relationship," French said.

PORT BONUSES UNDER FIRE
McConnell says he's lost confidence in agency, is drafting legislation to
alter practice

By Yvonne Wenger (Contact)
The Post and Courier
Wednesday, December 31, 2008

COLUMBIA — With a bottomed-out economy and longshoremen looking for
second jobs, Sen. Glenn McConnell says the State Ports Authority picked
the wrong time to hand out bonuses.

The ports authority awarded $208,000 to its top managers and roughly
$500,000 to the rest of its employees, and McConnell, R-Charleston and
the president pro tem of the state Senate, said Tuesday he is trying to
figure out a way to use legislation to change the practice in the future.

Sen. Glenn McConnell
McConnell said he has lost confidence in the SPA, which could potentially
lose its biggest customer, Maersk Line, and which is struggling in a
shrinking business climate to compete with other ports along the Eastern
Seaboard, notably Savannah.

"They (SPA executives) are getting in one day what most working people in
this community won't make in six months," McConnell said. "What kind of
message does that send?"

Bernard S. Groseclose Jr., president of the ports authority, received a
bonus of nearly $28,000 on top of his $264,000 salary. McConnell compared
that with the average $41,000 salary for Charleston County workers in
2007.

Joe Bryant, vice president for terminal development, took in nearly
$22,000. Peter Hughes, chief financial officer, and William McLean, vice
president for operators, both received more than $19,000.

All the other 434 ports authority employees earned a bonus that averaged
about $1,150. The money was distributed in September.

The plan
A summary of the SPA performance incentive plan , provided by the SPA
The bonuses were based on a pre-determined performance incentive plan
triggered by earnings, said Byron Miller, director of public relations.
Miller earned a $12,000 bonus.

The incentive plan is a more than 20-year-old program that is signed off
on by the authority board chairman and is included in the SPA's annual
budget. Funds are set aside in a special account during the year and
distributed if financial goals are achieved.

About 25 ports across the country have similar incentive plans, Miller
said. The difference here is that the SPA does not receive direct
appropriations from the state for its operations or capital projects.

By comparison this year, the Port of Seattle is estimated to collect
nearly $76 million in taxes for its operation and the Virginia Port
Authority received $36 million in state tax dollars.

"We have earned a global reputation for productivity," Miller said.

A top pick
Charleston is named the 2007 star port in the February 2008 edition of
Cargo Business News by its readers.
Revenue and earnings by the ports authority hit a record high during the
last fiscal year, which ended June 30. The operating margin target set to
trigger the incentives was 32.54 percent, which was exceeded with an
actual operating margin of 34.28 percent.

The SPA is a quasi-public agency with a mission to contribute to the
economic development of the state, and McConnell said basing incentive
pay on earnings is rewarding the wrong successes.

"Their business is down, they are in danger of losing their biggest
account; that's the record of the port at this hour," McConnell
said. "There is no increase in economic activity for the community, but
they reward themselves for a profit on a state monopoly."

McConnell said longshoremen are losing hours while volume is down here,
like elsewhere. The majority of the SPA's business is container traffic,
which dropped nearly 10 percent in the last fiscal year, and for the
first five months of the current fiscal year is down by upwards of 4
percent.

Previous stories
Terminal takeover possible, published 12/24/08

All hands work to keep Maersk, published 12/23/08

Lawmakers, SPA and union reps meet with Maersk, published 12/22/08
McConnell said he is beginning to draft legislation that likely will
require that any future bonuses be approved in a public meeting, along
with other provisions that could change the way the port operates.

Ken Riley, president of International Longshoremen's Association Local
1422, said he is concerned that the SPA is becoming focused on profits.

"It's not a part of the ports authority's mission statement to earn
profits but nurture economic development," he said.

Longshoremen are trying to find second jobs to supplement their work
loss, Riley said. Full-time dockworkers do, however, qualify for
container royalties that range from $16,500 a year for the most senior
workers to $7,500. The royalties, generated by a tax on containers, were
first negotiated about 30 years ago to offset hours longshoremen lost to
modernization.

Miller said the SPA works hard to attract more business and recently cut
rates for its customers. He also noted that the authority has reinvested
more than $600 million into facilities since 1990.

With regard to Maersk, SPA officials contend that the Danish container
carrier wanted no concessions from the agency but rather for the
longshoremen to let the company out of its contract with the union so it
could save money on labor.

BONUSES

The State Ports Authority awarded bonuses to its executives worth more
than $200,000. All 434 other employees also received incentive pay,
averaging $1,150. Here's a look at what the top managers took home:

• Bernard S. Groseclose, president — $27,720
• Joe T. Bryant, vice president — $21,620
• Peter N. Hughes, chief financial officer — $19,243
• William A. McLean, vice president — $19,091
• Philip L. Lawrence, chief legal counsel — $18,930
• Fred N. Stribling, vice president — $18,327
• Stephen E. Connor, vice president — $17,177
• Pamela A. Everitt, chief information officer — $16,991
• L. David Schronce, director — $13,107
• Peter O. Lehman, director — $12,620
• Byron D. Miller, director — $12,132
• Barbara L. Melvin, manager — $11,130


EVERGREEN COST CUTS HIT CHARLESTON OFFICE
By Warren Wise (Contact)
The Post and Courier
Wednesday, December 31, 2008

The company plans to consolidate some administrative functions, resulting
in the loss of some local jobs.
Evergreen Shipping Agency (America) Corp. said Tuesday that it will
consolidate some North America administrative offices and cut its labor
force, blaming a global slump in the ocean shipping business.

The firm's Charleston office on Daniel Island is among those that will
lose an undisclosed number of employees, said Barbara Yeninas of
Evergreen.

"It will be staying open, but there will be staff reductions," Yeninas
said.

The Jersey City, N.J.-based company is an agent for Evergreen Marine
Corp. of Taiwan, one of the world's largest steamship lines.

"The impact of the world financial crisis on Evergreen is no different
than its impact on other worldwide ocean carriers," Yeninas said
Tuesday. "A decline in cargo and a drastic reduction in freight rates
have caused this situation."

She said all customer-service functions and most responsibilities for
logistics and marine operations that are handled locally will be
transferred to Dallas by March 15.

Yeninas did not know the number of workers who will lose their jobs in
Charleston, saying the company had

not determined the number of employees who either will transfer to
different locations or be let go. The Seven Farms Road office has more
than 50 employees, Yeninas said.

The State Ports Authority said Tuesday it was not aware of any reduction
in ship calls to the Port of Charleston, where Evergreen is a major
customer, as a result of the cuts at the local agency.

Yeninas said the container line has been serving Charleston since
1975. "That is not going to stop," she said.

The total number of jobs being eliminated in the U.S. and Canada was not
announced.

Evergreen Shipping Agency's Salt Lake City office will close and its
operations moved to Dallas, the company said in a statement. Other cities
affected by the cutbacks include Baltimore, Chicago, Norfolk, Va., and
Toronto.

Evergreen's shipping line had previously announced capacity reductions on
several trade lanes, and the souring global economy pushed it to
reorganize and trim operations.

"The worldwide economic turmoil has created a situation we have not seen
in our lifetimes," the company said in a statement to its North America
employees. "We are positioning (the company) to survive the catastrophic
economic crisis and to succeed when we recover from these difficult
times."

Employees whose positions will be eliminated will receive severance
packages that include salary and benefits. New positions are expected to
open in Dallas as operations move there, and affected employees can apply
for those jobs, Yeninas said.

Evergreen joins a growing list of shippers looking to reduce their
overhead costs.

In November, Neptune Orient Lines, the Singapore parent of APL, announced
it was laying off 1,000 employees, or about 9 percent of it workforce,
mostly in North America, and moving its Americas regional headquarters
from Oakland, Calif., to a location elsewhere in the U.S.

Earlier this year, Maersk Line, the world's largest steamship company and
the Port of Charleston's biggest client, closed its Mount Pleasant
customer-service center in a cost-cutting move that affected 140 local
workers.

In that case, employees were offered severance packages or transfers to
Charlotte or Houston.


==================================================

CURRENT ISSUES: NONE

FUTURE/ONGOING ISSUES:

01/07 - 0815 - Maritime Association Board Meeting
01/08 - 1700 - SAVANNAH PROPELLOR CLUB DINNER
01/13 - 1145 - CWIT LUNCHEON MEETING
01/13 - 1700 - Commissioners of Pilots meeting
01/16 - 1000 - SCSPA Board Meeting
01/22 - 0815 - Maritime Association NAV OPS Meeting
01/25-27 - GA FOREIGN TRADE CONVENTION
02/06 - Maritime Association Banquet
2014 - ETA FOR NEW CHARLESTON PORT TERMINAL TO BE COMPLETED

-----------------------------------------------

HURRICANE ALERT - 5 - OUT OF SEASON
SEAPORT SECURITY ALERT CURRENTLY AT YELLOW/ELEVEATED - MARSEC 1

============================================

Tides for Charleston (Customhouse Wharf) starting with December 31, 2008.
Day High Tide Height Sunrise Moon Time % Moon
/Low Time Feet Sunset Visible

W 31 Low 3:41 AM 0.3 7:22 AM Rise 9:57 AM 10
31 High 10:05 AM 5.3 5:24 PM Set 9:20 PM
31 Low 4:25 PM 0.3
31 High 10:13 PM 4.6

Th 1 Low 4:20 AM 0.4 7:22 AM Rise 10:24 AM 16
1 High 10:36 AM 5.1 5:25 PM Set 10:18 PM
1 Low 5:00 PM 0.3
1 High 10:52 PM 4.7

F 2 Low 5:06 AM 0.5 7:22 AM Rise 10:51 AM 24
2 High 11:15 AM 4.9 5:26 PM Set 11:16 PM
2 Low 5:42 PM 0.2
2 High 11:39 PM 4.8

Sa 3 Low 5:59 AM 0.6 7:23 AM Rise 11:19 AM 33
3 High 12:01 PM 4.8 5:26 PM
3 Low 6:29 PM 0.2

Su 4 High 12:33 AM 5.0 7:23 AM Set 12:17 AM 43
4 Low 7:01 AM 0.7 5:27 PM Rise 11:48 AM
4 High 12:57 PM 4.6
4 Low 7:23 PM 0.1

M 5 High 1:34 AM 5.2 7:23 AM Set 1:21 AM 54
5 Low 8:09 AM 0.7 5:28 PM Rise 12:22 PM
5 High 1:59 PM 4.5
5 Low 8:23 PM 0.0

Tu 6 High 2:40 AM 5.4 7:23 AM Set 2:28 AM 65
6 Low 9:19 AM 0.5 5:29 PM Rise 1:02 PM
6 High 3:07 PM 4.5
6 Low 9:25 PM -0.3

W 7 High 3:48 AM 5.7 7:23 AM Set 3:39 AM 75
7 Low 10:26 AM 0.3 5:30 PM Rise 1:50 PM
7 High 4:14 PM 4.6
7 Low 10:28 PM -0.5

Th 8 High 4:53 AM 6.0 7:23 AM Set 4:51 AM 85
8 Low 11:28 AM 0.0 5:30 PM Rise 2:48 PM
8 High 5:18 PM 4.8
8 Low 11:29 PM -0.8

F 9 High 5:55 AM 6.3 7:23 AM Set 5:59 AM 92
9 Low 12:25 PM -0.3 5:31 PM Rise 3:55 PM
9 High 6:18 PM 5.1

Sa 10 Low 12:27 AM -1.1 7:23 AM Set 6:59 AM 97
10 High 6:53 AM 6.5 5:32 PM Rise 5:09 PM
10 Low 1:19 PM -0.6
10 High 7:16 PM 5.3

Su 11 Low 1:22 AM -1.3 7:23 AM Set 7:51 AM 99
11 High 7:48 AM 6.6 5:33 PM Rise 6:24 PM
11 Low 2:10 PM -0.8
11 High 8:11 PM 5.5

M 12 Low 2:16 AM -1.3 7:23 AM Set 8:34 AM 99
12 High 8:40 AM 6.6 5:34 PM Rise 7:38 PM
12 Low 2:59 PM -0.8
12 High 9:04 PM 5.5

Tu 13 Low 3:09 AM -1.2 7:22 AM Set 9:11 AM 95
13 High 9:29 AM 6.3 5:35 PM Rise 8:47 PM
13 Low 3:47 PM -0.8
13 High 9:57 PM 5.6



Notice posted on Wednesday, December 31, 2008

Disclaimer
For quality assurance purposes please note well that while the above information is regularly vetted for accuracy it is not intended to replace the local knowledge or expertise pertaining to port conditions of our marine operations personnel. Port précis should always be verified by contacting the corresponding marine department of a particular location for the most up-to-date information.