Copyright Charleston Post and Courier
NORTH CHARLESTON — The newly hired CEO of the S.C. State Ports Authority pledged Oct. 28 to fix his full attention on investments that will quickly deliver growth and revenue based on “intelligent risks” in his first update to the maritime industry. Just a few weeks into the top job, Micah Mallace thanked his predecessors at the SPA and lawmakers for “laying the groundwork to allow the port to shift” its time and energy away from costly, long-term investments, such as the deepening of Charleston Harbor’s shipping channel and the completion of a new terminal on the former Navy base. “That work set the table for what we have to do next,” he told an audience of about 1,100 at the Charleston Area Convention Center on Tuesday. The new priority is to expand the port’s cargo base — in short order. “We have the infrastructure. Now we fill it,” he said. Mallace cautioned that the pivot will take time. “For me personally …. from where we are today to where I would like for us to be is a couple of years away,” he said. Mallace outlined a bottom-line-driven growth strategy that will rely on the SPA’s “heft” and its real estate. “Early movers” with well-thought-out proposals will be rewarded, he told decision-makers in the audience. “If it generates immediate revenue we’ll invest,” he said. “If it doesn’t we will defer.” Mallace repeatedly cited the Inland Port Greer rail hub in the Upstate as a prime example of a customer-driven “momentum-changing” project that’s been a runaway success. This year, the SPA completed a new $55 million expansion of the rail-served site it owns near the BMW car plant. “We will monetize our acreage,” Mallace said. “I don’t mean sell. We’re not interested in selling property, but we’ll use our real estate as an incubator for growth projects.” He also wants the SPA to work more closely with shippers and ocean carriers by offering them “white-glove service” to help them solve problems or improve their competitiveness. “Bring your challenges, hardest supply chains and most demanding freight to S.C. Ports,” he said. “We will provide a consultive approach.” A Chicago native and College of Charleston graduate, Mallace previously worked for the SPA for 11 years, most recently as its chief sales officer, before leaving in late 2022 to help run a trucking and warehouse business. He was recruited to rejoin the agency as CEO on Oct. 6 under a five-year contract to replace Barbara Melvin, who abruptly resigned in Aug. 21. “It was recommended, this being my third week on the job, that I should probably introduce myself,” he said at the opening of his first “State of the Port” address to the Propeller Club of Charleston. He’s stepping into the top job at a time when the global shipping industry is still struggling to exit the volatile roller-coaster ride that began during the pandemic. Mallace already has made his first major executive decision by pushing back the planned January opening of a rail yard the SPA is building near its Leatherman Terminal on the old Navy base because it won’t be completed. “We will deliver it at the right time,” he said. During the last fiscal year, the SPA’s critical box ship business rose by 2.8 percent reflecting what Mallace described as a nearly four-and-a-half year global freight recession. He called the modest gain a “step in the right direction” but added: “To be clear, we are not satisfied with 3 percent container growth. … We have work to do.” The outlook for a short-term turnaround isn’t encouraging. At a board meeting earlier Tuesday, SPA chief commercial officer Byron Miller reported that the National Retail Federation is projecting a 12 percent to 16 percent downturn in U.S. imports through the end of 2025, namely because many overseas shippers moved their holiday goods before stiffer new tariffs took effect. “We anticipate the next couple of months to be challenging,” Mallace said. Over the longer run the new CEO is more bullish about the port’s growth prospects. He pointed to the swelling population within the Southeast, which fuels inbound cargo, and continued investment by manufacturers and other businesses that transport raw materials and other goods by ship. “This is a wind in our sails,” he said. Mallace added that South Carolina is “beautifully located” to capture its share — and then some. “Fortunately, this is a region where one can engineer above-market growth. … We have cause for optimism,” he said.
