South Carolina Ports Authority — Financial Profile
Port of Charleston (SCPA)
East Coast Port Powerhouse — Net Revenue Bond Credit Analysis
Disclaimer: This article is AI-generated educational content only and does not constitute investment, legal, financial, or credit advice. Forward-looking statements are based on publicly available information current as of the date shown. Investors should consult primary sources (bond offering documents, audited financial statements, rating agency reports) before making credit decisions.
Entity financial data: Sourced from the port authority's published ACFR, official statements, and EMMA continuing disclosures. Figures reflect reported data as of the fiscal years cited; current figures may differ.
Credit ratings: Referenced from published rating agency reports. Ratings are point-in-time; verify current ratings before reliance.
Operational statistics: Based on port-published cargo volumes, vessel calls, and operational reports. Cargo data is subject to revision.
Governance and organizational information: Based on publicly available port authority enabling legislation, board records, and organizational documents.
Analysis and commentary: DWU Consulting analysis. Port finance is an expanding area of DWU's practice; independent verification of specific figures against primary source documents is recommended.
Changelog:
2026-02-23 — Initial publication: South Carolina Ports Authority FY 2024 financial profile, Leatherman Terminal reopening analysis, and East Coast competitive positioning.
Update (Feb 2026)
Leatherman Terminal Reopening (Sep 25, 2024): After a 14+ month closure due to an ILA labor dispute, the Hugh K. Leatherman Terminal resumed container operations in late September 2024. This marks a critical operational recovery event for Port of Charleston's capacity and competitive standing. Charleston Harbor has been deepened to 52 feet, the deepest on the East Coast alongside Baltimore (50 ft) and Norfolk (55 ft), positioning Charleston for sustained growth in neo-Panamax traffic. FY 2024 operating revenue reached $404.0 million, reflecting post-pandemic normalization (-9.9% YoY), with SMART Chassis Pool revenue growing strongly at +9.7%.
Introduction
The South Carolina Ports Authority (SCPA) operates one of the fastest-growing, deepest-water container ports on the U.S. East Coast. Serving the Port of Charleston and inland ports in Greer and Dillon, the Authority has emerged as a major gateway for containerized cargo moving to and from the Southeastern United States, with particular strength in import-export balance and berth productivity.
FY 2024 presented a mixed operating environment: while total operating revenue declined 9.9% to $404.0 million (a post-pandemic normalization pattern observed across the sector), the Authority navigated a critical 14+ month operational disruption related to a labor dispute at the Leatherman Terminal (reopened Sep 2024) and continued aggressive capital investment in terminal capacity and port infrastructure. With $998.0 million in outstanding senior revenue bonds and $373.9 million in direct borrowings, SCPA operates under a net revenue pledge structure and carries stable credit ratings (S&P A+, Moody's A1).
This profile examines SCPA's financial performance, bond structure, capital program, and credit characteristics — essential reading for investors evaluating East Coast port revenue bonds or comparative port credit risk.
Entity Overview
| Characteristic | Value |
| Full Legal Name | South Carolina Ports Authority (SCPA) |
| Code | CHS-P / SCPA |
| Primary Ports | Port of Charleston (Wando Welch Terminal, Hugh K. Leatherman Terminal, North Charleston Terminal) |
| Inland Ports | Greer, Dillon (South Carolina) |
| Governance | Board of Directors (9 Governor-appointed, Senate-confirmed) + ex-officio: SC Secretary of Commerce, Secretary of Transportation |
| Legal Structure | Political subdivision of the State of South Carolina (SC Code Title 54, Chapter 3) |
| Fiscal Year End | June 30 |
| Funding Model | Self-sustaining — NO state appropriations for operations |
Operational Performance
The Port of Charleston ranks approximately 8th largest among U.S. container ports by throughput, moving roughly 2.5 million TEUs (twenty-foot equivalent units) annually. The Authority benefits from a strong import-export cargo balance, which significantly reduces expensive vessel repositioning costs — a competitive advantage relative to other East Coast gateways.
| Metric | Value |
| Container Throughput (TEUs) | ~2.5 million |
| U.S. Ranking | ~8th largest by volume |
| Channel Depth | 52 feet (deepest East Coast, neo-Panamax accessible) |
| Cargo Balance | Import-export balance (reduces repositioning costs) |
| Terminal Capacity (full build-out) | Approaching 10 million TEU threshold |
Key credit strength: Moody's has characterized the Authority as having "unusually high productivity" — reflecting excellent berth utilization and operational efficiency benchmarks relative to peer ports.
Financial Summary
| Item | FY 2024 | FY 2023 | YoY Change |
| Total Operating Revenue | $404.0M | $448.5M | -9.9% |
| SMART Chassis Pool Revenue | $42.6M | $38.9M | +9.7% |
| Capital Assets | $2.2B | $2.0B | +10.2% |
FY 2024 Performance: Total operating revenue of $404.0 million represents a 9.9% decline from FY 2023 ($448.5 million), consistent with post-pandemic normalization across the sector as containerized cargo volumes stabilized after the extraordinary pandemic surge. However, the SMART Chassis Pool — the Authority's owned fleet of over 1,000 chassis units — generated $42.6 million and increased 9.7% year-over-year, demonstrating revenue diversification strength. Capital assets grew 10.2% to $2.2 billion, reflecting continued investment in terminal infrastructure.
Revenue Drivers: Primary revenue sources include container tariffs (wharfage and handling charges on containerized cargo), terminal operating leases (equipment and facility use), the SMART Chassis Pool, breakbulk and general cargo services, and warehouse/storage operations.
Hugh K. Leatherman Terminal — Capital Investment & Operational Recovery
The Hugh K. Leatherman Terminal represents the Authority's most significant capital project to date — a transformational investment in Charleston Harbor's container capacity and competitive standing. Originally completed with a $422 million investment funded by 2019A/2019B revenue bonds, the terminal was closed for 14+ months (mid-2023 through late September 2024) due to an unresolved labor dispute with the International Longshoremen's Association (ILA). This extended closure was a material operational and financial disruption and serves as a critical credit risk event that bond investors must understand.
| Feature | Details |
| Phase 1 Capital Cost | ~$422 million |
| Primary Berth Length | 1,400 feet |
| Ship-to-Shore (STS) Cranes | 5 units (169-foot lift, 228-foot outreach) |
| Rubber-Tired Gantry (RTG) Cranes | 25 hybrid units |
| Phase 1 Capacity | 700,000 TEU/year |
| Full Build-Out Capacity (Phases 1+2) | 2.4 million TEU/year |
| Reopening Date | September 25, 2024 |
| Labor Closure Duration | 14+ months (mid-2023 through Sep 2024) — ILA dispute |
Phase 2 Status: The second berth for full build-out capacity is currently in bidding process, requiring additional bonding authority and capital funding. This ongoing capital requirement represents a material consideration for debt service coverage and leverage metrics going forward.
Bond Structure & Debt Outstanding
| Debt Component | Amount |
| Outstanding Senior Revenue Bonds (as of Jun 30, 2024) | $998.0M |
| Direct Borrowings Outstanding | $373.9M |
| Total Debt Outstanding | ~$1.372 billion |
Revenue Pledge: All outstanding revenue bonds are secured by a pledge of net revenues — operating revenues minus operating and maintenance expenses. Facilities pledged include Wando Welch Terminal, Hugh K. Leatherman Terminal, North Charleston Terminal, Greyfield Terminal, and inland port facilities at Greer and Dillon.
Credit Ratings:
- S&P: A+ (Stable outlook)
- Moody's: A1 (Stable; reaffirmed December 2023)
- Fitch: Does not rate SCPA revenue bonds
Major Bond Series: 2019A (Non-AMT), 2019B (AMT), 2019C (Refunding of 2015), 2019D, 2018, 2015. The 2019 issuance totaled $547 million — the largest in Port history — and financed Leatherman Phase 1 and the Port Access Road.
Capital Program & Infrastructure Investment
SCPA operates under an aggressive multi-decade capital plan funded through revenue bonds, state appropriations, and federal grants. Two signature projects define the Authority's strategic positioning:
1. Charleston Harbor Deepening (~$580M total)
Successfully completed at 52 feet — the deepest harbor on the U.S. East Coast (matching Baltimore's 50 ft and exceeded only by Norfolk's 55 ft in the region). This depth is sufficient to accommodate neo-Panamax container vessels, providing a sustainable competitive advantage. Funding sources: State appropriation of $300 million (set aside 2012), Federal funding totaling approximately $138 million (2019) plus $25 million FY 2024 and $21.28 million FY 2025.
2. Hugh K. Leatherman Terminal (~$422M Phase 1 completed; Phase 2 in bidding)
As detailed above, Phase 1 provides 700,000 TEU/year capacity with world-class equipment. Phase 2, currently in procurement, will add a second berth and bring total capacity to 2.4 million TEU/year. Historical investment FY 2016–2020 totaled $1.05 billion. The State of South Carolina has committed approximately $800 million to ongoing infrastructure — a significant credit support signal.
Credit Analysis: Strengths & Risks
Credit Strengths:
- Deep-Water Harbor Advantage: At 52 feet, Charleston Harbor is the deepest on the East Coast and accessible to modern neo-Panamax vessels. This provides long-term competitive positioning and revenue stability.
- Strong Cargo Balance: Import-export equilibrium reduces expensive vessel repositioning costs, a key competitive advantage over other East Coast gateways.
- Geographic Reach: Proximity to major markets (Charlotte, Raleigh, Atlanta, Greenville) within 200-mile radius supports sustained cargo growth.
- Operational Excellence: Moody's recognizes "unusually high productivity" — indicating strong berth utilization and labor productivity benchmarks.
- Self-Sustaining Model: No state operating appropriations required demonstrates underlying operational strength and reduces dependency on legislative funding cycles.
- Revenue Diversification: SMART Chassis Pool ($42.6M, +9.7% YoY) provides non-tariff revenue streams reducing exposure to container volume volatility.
- Investment-Grade Ratings: S&P A+ and Moody's A1 reflect solid creditworthiness in the investment-grade spectrum.
Credit Risks:
- Cargo Volume Volatility: FY 2024 revenue declined 9.9% reflecting post-pandemic normalization. Further recession or trade disruption poses downside risk to net revenues and debt service coverage.
- Substantial Debt Burden: ~$1.37 billion outstanding with ongoing capital requirements for Leatherman Phase 2 may necessitate additional debt issuance, pressuring leverage and coverage metrics.
- Labor Relations Risk: The 14+ month closure of Leatherman Terminal (mid-2023 through September 2024) due to an ILA labor dispute demonstrates systemic labor risk. Future labor actions pose material operational and financial disruption risk.
- Competitive Pressure: Georgia Ports (Savannah) is actively expanding capacity; Virginia Port (Norfolk) is enhancing channel deepening and efficiency. Charleston's market share may face pressure.
- Capital Requirements: Leatherman Phase 2 and ongoing infrastructure maintenance require substantial future borrowing, which may stress debt-service-to-revenue ratios if cargo volumes do not recover robustly.
- Economic Sensitivity: Container traffic is highly cyclical, sensitive to industrial production, international trade flows, and consumer demand. Tariff policy changes or recession could reduce cargo throughput and tariff revenues.
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