Dredging issue moves toward resolution: Transportation secretary meets with PotashCorp execs

Published 12:01 am Tuesday, February 10, 2015

POTASHCORP-AURORA DEPTH FINDERS: Last week stakeholders in the Morehead City Port met at the PotashCorp-Aurora Employee Center. Pictured left to right are Paul Dekok, PotashCorp president; David Delaney, PotashCorp executive vice president and chief operating officer; Paul Cozza, CEO of North Carolina State Ports Authority; North Carolina Secretary of Transportation Anthony Tata; and Steve Keen, Gov. Pat McCrory’s eastern office representative.

POTASHCORP-AURORA
DEPTH FINDERS: Last week stakeholders in the Morehead City Port met at the PotashCorp-Aurora Employee Center. Pictured left to right are Paul Dekok, PotashCorp president; David Delaney, PotashCorp executive vice president and chief operating officer; Paul Cozza, CEO of North Carolina State Ports Authority; North Carolina Secretary of Transportation Anthony Tata; and Steve Keen, Gov. Pat McCrory’s eastern office representative.

AURORA — Stakeholders in the Morehead City Port met in Beaufort County last Thursday in an effort to resolve ongoing shoaling issues at the state port.

North Carolina Transportation Secretary Anthony Tata, Steve Keen, Gov. Pat McCrory’s eastern office representative, and Bob Keistler, project manager for the Army Corps of Engineers (ACE), were among those who sat down with PotashCorp-Aurora executives to discuss how shoaling issues are being addressed.

“We had a very good discussion with Secretary Tata, State Ports, Army Corps and Coast Guard representatives. We also had good representation from fellow port stakeholders and others who are concerned about port issues. Our executive leadership had the opportunity to hear first-hand how what actions we can expect in the near future so we can make informed business decisions,” said Ray McKeithan, manager of public affairs at PotashCorp.

PotashCorp-Aurora is losing approximately $2 million per month, McKeithan said. The losses come from a decrease in cargo: ships coming into and out of the port are forced to lighten their loads in order to make it through an increasingly shallow channel, an issue that could cause big ships to seek deeper channels elsewhere. In addition to the shoaling in the channel caused by the migration of Shackleford Banks, a lack of dredging on the part of North Carolina State Ports Authority (NCSPA) at PotashCorp berths has made them unusable.

Thursday, progress was revealed in that Jeff Miles, NCSPA chief operating officer, announced that three bids had been made for dredging around PotashCorp’s berth and anticipates that dredging to be completed by mid-March, according to a press release from PotashCorp. Tata, in daily discussions with ACE, state and federal leaders, also announced that $8.8 million has been allocated for MHC channel dredging in the year 2016.

“Clearly, our General Assembly and congressional members are fighting hard for our interests, and we’re seeing the results of that now,” McKeithan said. “It is critical that responsible parties follow-through on promises to ensure safe, efficient vessel transit in and out of Morehead City Port as soon as possible.”

Keistler said ACE channel dredging could begin as soon as April, to be completed in June, but accelerated shoaling may further limit loading capacities, impacting future vessel traffic, before dredging is completed, the release said.

“There is still much work to be done, the crisis is not over,” McKeithan said. “We’re seeing positive movement and will continue to engage government leadership until normal port operations resume and are maintained. It is to the mutual benefit of our company, the port and to the economic health and viability of the region and state.”