Michael Johnson, CEO Cox Industries, Inc.
The southeastern United States is the “Saudi Arabia of Southern Yellow Pine forest products”. We are blessed with one of the most amazing renewable resources on the planet. Not only is the amazingly strong, resilient, Southern Yellow Pine tree a valued commodity for countless end uses; it is also one of the least expensive and most effective carbon sinks in nature. What does this have to do with the port system in the southeastern United States? Everything!
There are countless producers of forest products in various industries in both South Carolina (and the Southeast Region) utilizing the ports of Charleston, Savannah, Norfolk and others to successfully and profitably export our products from Europe to Africa to China. In fact, according to the South Carolina Forestry Commission, forest products are the number one export moved through the port of Charleston accounting for over 30% of the goods moved through the port in 2010. Approximately 83% of forest products exported from South Carolina are transported by vessel. (SC Forestry Article can be found at http://blog.coxwood.com/SC_Forestry_Facts.) While we do import some select forest products from other countries, we are clearly a net exporter in the forest products market. The ability to move our products allows companies in the forest products’ industry to increase volumes and thereby improve their technology; export dollars allow the industry to lower our domestic costs; export dollars allow us to employ more people; export dollars allow us to seize the global stage as it pertains to forest products.
Since 2001, South Carolina’s forest products exports have doubled from approximately $600 million to $1.3 billion today. Our customers include Canada, Italy, the Czech Republic, Taiwan, China, Germany, the Caribbean and many more nations. In an interesting global twist, forest product-related companies from these countries are now seeking locations in South Carolina to domicile their own manufacturing facilities. With the Panama Canal transitioning from the ability to handle ships with up to 5,000 TEUs (Twenty-foot Equivalent Units) to ships that can carry up to 13,000 TEUs, South Carolina cannot afford to be left behind. With the opportunity to upgrade our Charleston port to handle the larger post-Panamax ships, we are in position to dominate forest products trade for the entire United States. With ports in Georgetown and Charleston and the opportunity to expand our presence with Jasper, South Carolina is positioned to be a global leader in the export of forest products.
Despite the fact that we are most likely facing cutbacks in our heavily influenced military installations, we have a great story to tell in South Carolina. We are one of the few places in the World producing Southern Yellow Pine with the highest of strength ratings. We are a State committed to agribusiness. We have arguably the strongest natural landscape for not only our timber, but also our port system. Our products are naturally renewable and are one of the most environmentally sound commodities in the World. The next time you walk by a job site and see Southern Yellow Pine lumber being used in construction, rest assured there are similar sites all around the World.