>> MAJOR SUPPORT FOR CAROLINA BUSINESS REVIEW PROVIDED BY-- >> AS WE HIT OUR STRIDE HERE IN THE SUMMER MONTHS, OF COURSE, HOT CAROLINA WEATHER IS NOT ANYTHING ABOUT BUSINESS, BUT BUSINESS DOES ROLL ON.

AND SO MANY THINGS, INCLUDING THE NORTH CAROLINA PORTS COMING OUT OF WHAT COVID HAD DONE TO ALL PORTS ALL TRANSPORTATION.

WE WILL MEET THE NEW EXECUTIVE DIRECTOR OF THE NORTH CAROLINA PORTS, AND WE START OUR DIALOGUE IN JUST A MOMENT.

STAY WITH US.

[ THEME MUSIC ] ♪♪ >>Announcer: ON THIS EDITION OF CAROLINA BUSINESS REVIEW, BOB QUINN FROM THE SOUTH CAROLINA RESEARCH AUTHORITY, ANNA BEVIN BRADLEY OF NC FREE, AND SPECIAL GUEST, BRIAN CLARK, EXECUTIVE DIRECTOR OF THE NORTH CAROLINA PORTS.

[ THEME MUSIC ] ♪♪ >> WELCOME BACK AND THANK YOU FOR JOINING US.

ANNA BEVIN, BOB, GOOD TO SEE YOU BOTH.

HAPPY SUMMER.

HOPE IT'S GOING WELL FOR YOU BOTH.

>> GREAT.

LOVING IT.

>> ONE OF THE THINGS THAT KEEPS BUBBLING UP AND IT IS HARD TO GET PEOPLE FOCUSED AND GENERAL ASSEMBLIES ARE OUT OR ON BREAK AND BUSINESSES ARE LIKE WE'VE HAD ENOUGH.

LET'S GO TO THE BEACHES FOR A WHILE.

THIS IDEA THAT WE ARE SHORT ON LABOR KEEPS COMING UP AND IT'S NOT JUST SHORT ON LABOR LIKE IT'S BEEN OVER THE LAST FIVE OR TEN B YEARS.BUGH.

ANNA, I WANT TO START WITH YOU.

BOB, I EXPECT YOU TO FULLY WEIGH IN ON THIS ONE.

WE'VE GOT UNEMPLOYMENT, FEDERAL UNEMPLOYMENT BENEFITS ENDING OR IN SOUTH CAROLINA'S CASE, GOVERNOR McMASTER HAS ALREADY ENDED IT.

WE'VE GOT EMPLOYEES THAT ARE JUST NOT IN THE WORKFORCE ANYMORE.

THIS UNEMPLOYMENT STEW TRYING TO FIND TALENT, DO YOU SEE THAT IT'S GOING TO ABATE AT SOME DEGREE?

ANNARE W BEVIN, I'LL START WITH YOU.

>> UNFORTUNATELY, I THINK THAT AS LONG AS THE RED RICT AROUND CON-- REN RHETORIC FOR PROVIDING SUPPORT WILL MAKE IT DIFFICULT FOR PEOPLE TO GO BACK TO WORK AND WANT TO GO BACK TO WORK.

IT WILL MAKE IT DIFFICULT FOR BUSINESSES TO PROVIDE AN INCENTIVE FOR THOSE PEOPLE TO COME BACK TO WORK BECAUSE THEY CAN'T MEET THOSE PRICES.

>> BOB,S WITH GOVERNOR McMASTER SIGNING THIS THING INTO LAW ABOUT NO MORE FEDERAL UNEMPLOYMENT BENEFITS ARE FLOWING THROUGH.

WE'RE STOPPING IT.

WE DON'T WANT ANYONE TO BE AT RISK.

IS THERERE SOME HOPE AND OPTIMISM THAT THIS IS GOING TO BE INTO A WORKFORCE?

>> YEAH.

DEFINITELY, I'M INVOLVED WITH THE STATE'M CHAMBER AND CERTAINLY THE STATE CHAMBER ADVOCATED THE GOVERNOR'S ACTION THERE.

IT REALLY HAS REACHED A CRISIS POINT IN A NUMBER OF INDUSTRIES MOST SIGNIFICANTLY.

I WAS DOWN IN EDISTO AND THERE WASD AN ANNOUNCEMENT THAT ONE OF THE RESTAURANTS WILL BE CLOSED NEXT WEEK AND THE SOLE REASON WAS LACK OF STAFF.

IT'S HAPPENING THROUGHOUT CHARLESTON.

SO IT IS IRONIC THAT AND SAD THAT THE FOOD AND BEVERAGE INDUSTRY AND HOSPITALITY INDUSTRY INOS CHARLESTON SUFFERED THROUGH THE PAN DEMOCRAT PICK NOW THEY'RE BEING INUNDATED WITH TOURISTS COMING IN AND YET THEY'RE NOT ABLE TO FULLY CAPITALIZE ON THAT GIVEN THE LACK OF WORKERS.

>> I'M SORRY, BOB.

I'M SORRY TO INTERRUPT YOU.

I THINK ABOUT CHARLESTON.

WAS THERE A QUICK-- WAS THERE A DEBRIEF OR ANY TYPE OF UNOFFICIAL WORLD COMING OUT OF SPLETO WHEN YOU HAVE THEES THESE FORCES CONVENING IN CHARLESTON TO SAY OUR FOOD BEVERAGE, OUR RESTAURANT BUSINESS WAS HORRIBLE OR WAS IT PASSIBLE OR WAS THERE SOMETHING THAT CAME OUT OF THAT?

>> IFT WASN'T HORRIBLE.

KUDOS TO THE FOLKS AT SPLATO WHO PULLED OFF A WONDERFUL SESSION GIVEN ALL OF THE DYNAMICS THEY HAVE TO DEAL WITH.

I WOULD GIVE IT A PASSIBLE, BUT WE NEED TO DO BETTER THAN PASSIBLE.

>> HOW ARE YOU FEELING ABOUT THE RESTAURANT BUSINESS.

YOU LIVE IN THE TRIANGLE AND THERE ARE PLENTY OF RESTAURANTS BUT EVEN NOW, ARE YOU FINDING THAT IT IS STILL HIGHLY RISKY INDUSTRY?

>> WELL, IT'S A REALLY INTERESTING SPACE TO BE BECAUSE WESP HAVE A LOT OF PEOPLE WHO ARE LOT OUT ABOUT ANN ABOUT.

PEOPLE ARE DOING TO RESTAURANTS.

THEY WANT TO BE IN THE WORLD AND WANT IT SEE ONE ANOTHER.

AND MOVE PAST COVID.

BUT RESTAURANTS ARE OPERATING AT FEWER HOURS, WHETHER THEY'RE QUOTE ON MONDAYS AND TUESDAYS WHEN PREVIOUSLY THEY WERE OPEN OR THEY TAKE A BREAK IN THE MIDDLE OF THE DAY AND THEY'RE OPEN FOR BREAKFAST AND NOTRE FOR LUNCH AND DINNER.

THEY'RE TRYING TO FIGURE OUT HOW THEY CAN SURVIVE WITH THE WORKERS THAT THEY HAVE WHILE STILL PROVIDING A GOOD SERVICE THAT WE REALLY WANT.

WE WANT TO EAT AT RESTAURANTS.

WE WANT TO ENJOY BEING IN THE WORLD AND THAT IS HARDER TO DO WHEN THE TIME IS NOT AS PREDICTABLE.

>> BOB, LET ME COME BACK TO YOU ANDO SHIFT GEARS HERE.

YOU HIT A COUPLE OF THINGS.

FIRST OF ALL, IN COMMERCE IN SOUTH CAROLINA, YOU HAVE A NEW SECRETARY OF COMMERCE, HARRY, THAT'S BEEN NAMED OBVIOUSLY AND A NEW STATEWIDE CHAMBER, BOB MORGAN.

BOTH OF THESE ARE KEY ROLES NOW FOROL THE NEXT AT LEAST HANDFUL OF YEARS.

IS THERE OPTIMISM?

IS THERE CAUTIOUSNESS?

WHAT'S THE GENERAL SENSE ABOUT ECONOMIC DEVELOPMENT NOW IN THE NEAR TERM?

>> YES.

TREMENDOUS OPTIMISM.

I COULD NOT START THIS WITHOUT GIVING TREMENDOUS THANKS TO BOBBY HIT AND EVERYTHING HIS TEAM ACCOMPLISHEDM IN THE LAST DECADE.

SOMETHING LIKE $36 BILLION IN CAPITAL INVESTMENT.

$129,000 NEW JOBS, 17% INCREASE IN MANUFACTURING JOBS.

SO HARRY COMES IN STANDING ON BROAD SHOULDERS AND HAS A STRONG FOUNDATION.

I THINK HE'S EXACTLY THE RIGHT PERSON AT THE RIGHT TIME.

GIVEN HIS BACKGROUND, SENIOR LEADERSHIP AT BELL SOUTH AND AT&T AT A TIME WHEN THE INTERNET WAS EXPLODING, GIVEN HIS LEADERSHIP IN EMERGING TECHNOLOGIES OF GM, HE BRINGS A PASSION AND AN UNDERSTANDING FOR THE ROLE OF TECHNOLOGY AND ECONOMIC DEVELOPMENT THAT I THINK WILL TAKE THE STATE TO THE NEXT LEVEL.

HE'S ALREADY ANNOUNCED THATH HE WANTS TO FOCUS ON INDUSTRIES LIKE LIFE SCIENCES THAT WE ALREADY HAD A STRONG GROWTH IN.

ACTUALLY, IT'S THE FASTEST GROWING INDUSTRY IN THE STATE.

HE WANTS TOO DOUBLE DOWN ON THAT.

AND THEN BOB MORGAN, COMING FROM YOUR HOMETOWN IN CHARLOTTE I THINK WOULD BE A FANTASTIC PARTNER.

HE BRINGS THAT ECONOMIC DEVELOPER MINDSET THAT I THINK IS EXACTLY WHAT WEE NEED IN THE STATE RIGHT NOW.

>> AGAIN, LET'S SHIFT GEARS A LITTLE BIT MORE.

ANNA, I WANT TO BRING THIS BACK TO NORTH CAROLINA FOR YOU.

WHILE ECONOMIC DEVELOPMENT HASEL CERTAINLY BEEN IMPORTANT IN THE OLD NORTH STATE, IT HAS NOT TAKEN THE HEADLINES LIKE THE BUDGETARY PROCESS.

SO THE GENERAL ASSEMBLY IN NORTH CAROLINA IS ON BREAK, BUT THEY'RE NOT ANYWHERE NEAR A BUDGET.

SO HOW DO YOU SEE THIS-- WHAT DO YOU SEE AS BEING THE BIGGEST BATTLE IN THE BUDGET WHENEVER THEY DO FINALIZE IT IN AUGUST OR EARLY FALL?

>> THERE ARE GOING TO BE THREE MAJOR CHUNKS.

I THINK PRETTY MUCH BOTH CHAMBERS AGREE IN INFRASTRUCTURE AND COMMITTING MORE MONEYTR TO BROADBAND, TO WATER AND SEWER, TO BOTH TYPES OF THINGS AND ISSUES.

BUT THERE ARE THREE MAJORAJ ISSUES THAT WE'RE GOING TOO SEE A LOT OF CONVERSATION AROUND AND IT'S NO SURPRISE.

IT IS GOING TO BE BUDGET,S TAXES AND EDUCATION AND MEDICAID EXPANSION.

THAT IS-- MEDICAID EXPANSION CONTINUES TO COME UP YEAR AFTER YEAR AFTER YEAR BECAUSE THAT IS GOVERNOR COOPER'S-- THAT IS A HUGE ISSUE FOR HIM.

HE CONTINUES TO BRING IT UP.

HE WILL NOT FUND BUDGETS BECAUSE OF IT.

NORTH CAROLINA HASN'T HAD A BUDGET SINCE 2017.

WE'VE BEEN CONTINUING TO PASS MINI BUDGETS BUT PASSING A COLLECTIVE BUDGET, THIS WOULD BE A BIG DEAL FOR NORTH CAROLINA TOEA HAVE A BIG-- A FULL BUDGET, A NORMAL BUDGET THIS YEAR.

>> IS EDUCATION AT THE TOP OF THAT?

DO YOU THINK EDUCATION IS THE BIGGEST BATTLE?

>> IS THINK THAT IS THE BATTLE THAT IS EASIEST TO MESSAGE BECAUSE THEY'RE DEALING WITH A LOT OF TEACHERS IN THE STATE.

THEY'RE DOING-- THEY'RE DEALING WITH TEACHERS WHO HAVEN'T GOTTEN RAISES IN LAST COUPLELE OF YEARS AND A LOT OF IT IS BECAUSE THE GOVERNOR DIDN'T SIGN THE BUDGET, HE VETOED THE BUDGET THAT GAVE TEACHERS RAISES BECAUSE IT WASN'T HIGH ENOUGH.

THAT'S CONTINUE BEING TO BE A TOPIC.

HIS BUDGET HAD QUITE A BIT FOR TEACHERS AND SO THAT'S GOING TO BE A STICKING POINT BETWEEN THE LEGISLATURE AND THE GOVERNOR FOR SURE.

>> IS THERE-- JUST QUICK WITHIN 30 SECONDS.

IF THE PLAN IS TO REDUCE CORPORATE TAX FROM 2.25 DOWN TO SKI ROW, CAN THAT REVENUE BE MADE UP FAIRLY EASILY?

IS THAT A BIGGER MOUNTAIN TO CLIMB?

>> I THINK SO.

WE CONTINUE TO SEE YEAR AFTER YEAR A SURPLUS.

THIS YEAR, WE HAVE A $6.5 BILLION SURPLUS AND WE'RE FINDING WAYS W TO MAKE UP THAT MONEY FOR SURE.

>> BOB, JUST BACK TO YOU AND AGAIN, VERY QUICKLY, WE WILL BRING OUR GUEST IN HERE IN A SECOND.

PROTERRA IS A BUS MAKER IN UPSTATE OF SOUTH CAROLINA.

I KNOW YOU KNOW THAT.

I'M SAYING IT FOR THE BENEFITS OF OUR VIEWERS.

WHY HAS THIS STOOD OUT AS A HUGE ECONOMIC DEVELOPMENT WIN?

>> CHRIS, IT'S A GREAT STORY.

IT'S ONE THAT IS DEMONSTRATING WHERE A GROUP OF INDIVIDUALS AND ORGANIZATIONS HELPED TO SAVE AAV COMPANY THAT NOW IS THE COUNTRY'S LEADER IN ELECTRIC BUSES.

SO WE RECRUITED THEM BACK IN 2011 AT THE GREENVILLE FROM COLORADO AND THERE'S AN ELECTRIC BUS AND THERE'S CHARGING STATIONS AND BATTERIES AND WHEN THEY LANDED IN GREENVILLE, THEY HAD A PROMISE FOR TENS OF MILLIONS OF DOLLARS OF INVESTMENTS FROM A VC THATHA THEY PULLED OUT.

THEY LITERALLY HAD A HANDFUL OF WEEKS OF RUNWAY AND WE STEPPED INE AS WELL AS VENTURE SOUTH AND A HANDFUL OF HIGH NET WORTH INDIVIDUALS AND WE DID IT FOR A SMART INVESTMENT BUT WE ALSO DID IT IN TERMS OF CIVIC DUTY BECAUSE WE SAW THAT THE POTENTIAL OF THIS COMPANY TO GROW.

FAST FORWARD, THEY NOW HAVE 350 PEOPLE WORKING FOR THEM IN THE UPSTATE.

THEY HAVE-- HAVE BEEN ABLE TO GARNER HUNDREDS OF MILLIONS OF DOLLARS OF VENTURE CAPITAL FROM THE LIKES OF KLEINER PERKINS AND LAST MONTH, THEY WENT PUBLIC ON NASDAQ AND I WAS ACTUALLY HONORED TO BE WITH THEM AS THEY RANG THE CLOSING BELL.

IT'S AN INCREDIBLE STORY THAT IS JUST STARTING.

BUT IT'S A GREAT EXAMPLE OF TECHNOLOGY-BASED ECONOMICS AND DEVELOPMENT AND STRATEGIC INVESTMENT AT ITS BEST.

>> THERE'S A NEW SHERIFF IN TOWN OR AT LEAST IN WILMINGTON AND MOREHEAD CITY WHICH IMPACTS, OF COURSE, ALL OF NORTH CAROLINA AND THE SOUTHEAST.

I'M REFERRING TO THE NORTH CAROLINA PORTS AND THE NORTH CAROLINA PORTS AUTHORITY.

WE ARE NOW WELCOMED BY EXECUTIVE DIRECTOR, CEO, PRESIDENT, HIS NAME IS BRIAN CLARK.AR AND WE ARE GLADK.

TO HAVE HIM.

PRESIDENT CLARK, BRIAN, WELCOME TO THE PROGRAM AND CONGRATULATIONS W ON THE JOB.

>> THANK YOU VERY MUCH.

GOOD MORNING.

THANK YOU FOR HAVING ME.

>> START WITH THE WHOLE IDEA.

YOU HAVE BEEN ON THE LEADERSHIP TEAM FOR A WHILE, BRIAN.

SO WORKING WITH PAUL.

THIS IS NOT NEW TO YOU, AT LEAST THE PORT IN NORTHH CAROLINA.

BRIAN, WHEN YOU TRY TO-- AS YOU DEPLOYED A FIVE-YEAR PLAN, BUT EVEN BEFORE THAT, WE HAVE COME THROUGH QUITE A SEA CHANGE AND QUITE A SECULAR CHANGE IN OUR BUSINESSES.

SO HOW DO YOU FIND THIS RESET ON WHAT A BASELINE TO WHERE YOU CAN MEASURE GROWTH COMING THROUGH COVID-19.

HOW DO YOU GET TO THAT?

>> SURE.

SO OBVIOUSLY THE YEAR AND A HALF WAS VERY DIFFICULT.

WE SAW SOME SIGNIFICANTC IMPACTS TO THE MARKETS WE TRADITIONALLY SERVE.

THE CARGO THAT WE HANDLED AND IMPACTS TO OUR TEAM.

ULTIMATELY, WE WERE ABLE TO WEATHER THE STORM LAST YEAR.

WE ACTUALLY HAD WHAT WAS A VERY, VERY STRONG YEAR CONSIDERING THE CHALLENGES.

WE JUST COMPLETED OUR FISCAL YEAR, JUNE 30th.

WE'LL BE GETTING READY TO REPORT SOME NUMBERS AND THERE WERE RECORD NUMBERS AND WE'RE PROUD OF THE WORK THAT THE TEAM DID.

THEY WORKED ON THE FRONTLINES, CONTINUING TO MOVE CARGO, WORK SHIFTS.

WE ARE PREPARING FOR OUR NEXT FISCAL YEAR, NEW BUDGET FOR NEXT YEAR AND WE ANTICIPATE GROWTH..

SO WE'RE LOOKING AT CERTAIN SEGMENTS THAT WE EXPECT STRONG GROWTH.

AND THERE ARE CERTAIN SEGMENTS WHERE WE'RE CERTAINLY A LITTLE LESS BULLISH AS TO WHAT THE FORECAST HOLDS.

>> WHEN YOU LOOK AT-- IN MARCH THERE WERE A RECORD NUMBER OF CONTAINERS COMING THROUGH THE PORT.

THAT WAS RELEASED.

IS THAT BECAUSE WE WERE COMING OFF A LOWER BOTTOM, OR WAS THERE SUBSTANTIAL ORGANIC GROWTH IN THAT NUMBER?

>> THERE WAS GOOD, STRONG GROWTH.

THERE WAS VERY STRONG GROWTH IN CERTAIN SEGMENTS.

TRANSPACIFIC VOLUMES WAS BOUND.

EUROPE WAS REBOUNDING.

OUR NORTH-SOUTH SERVICES WHAT I REALLY LIKE COMING OUT OF COVID WAS THIS COLLABORATION AMONGST THE PORTS ON THE EAST COAST.

WE VERY QUICKLY IN A SMALLER GROUP BUT SMA EXPANDED TO A NORTH AMERICA BASE OR AT LEAST A U.S. BASE WAS WEEKLY DISCUSSIONS.

THEY EVENTUALLY MOVED TO BIWEEKLY AND MONTHLY.

IT WAS A BEST PRACTICE SHARING.

I THINK FOR THE INDUSTRY, THE TRANSPORTATION INDUSTRY TO SUCCEED IN THE FUTURE, IF THERE'S EVER A CHALLENGE LIKE THISLL, IT'S TO MAKE SURE THAT WE'RE WORKING TOGETHER, SHARING THESE BEST PRACTICES AND MAKING SURE THAT, YOU KNOW, ULTIMATELY, OUR GOAL IS TO MOVE CARGO AND IF WE'RE NOT ABLE TO OPERATE, THAT'S GOING TO OBVIOUSLY HAVE AN IMPACT.

>> I RECOGNIZE THAT THE LOG JAM OF SHIPS THAT WERE UNABLE TO UNLOAD OFF THE WEST COAST INTO THOSE PORTS WAS DRIVEN BY SOME EXTRAORDINARY CIRCUMSTANCES, BUT IT IS CERTAINLY NOT THE FIRST TIME THAT THOSE PORTS HAVE EXPERIENCED SOMETHING LIKENG THAT.

WHAT ARE THE LESSONS LEARNED FROM THAT?

HOW CAN YOUR PORT AND OTHER PORTS ALONG THE EAST COAST LEVERAGE AND TAKE ADVANTAGE OF THAT FROM A COMPETITIVE STANDPOINT?

>> THERE HAVE BEEN SOME CHALLENGES ON THE WEST COAST IN THE PAST.

WE HAVE SEEN LABOR ISSUES.

WE'VE SEEN OBVIOUSLY WITH THE COVID IMPACT AND THE BACKLOG OF VESSELS.

I THINK THE WAY THE PORTS ON THE EAST COAST CAN TAKE ADVANTAGE OF THOSE OPPORTUNITIES TO PROVIDE THE SERVICES THAT THESE CARRIERS NEED AND CERTAINLY THERE'S THAT INTERMODAL CONNECTION THAT IS KEY TO MOVE THE CARGO INTO THE INTERLAND.

THAT'S AN WHITEWATER WE'RE FOCUSING ON GROWING OUR CAPABILITY AND ENSURE THAT WE HAVE THAT IN THE FUTURE AS IT'S NEEDED.

IT'S BEING FLEXIBLE ENOUGH TO WORK VESSELS OR NEW SERVICES INTO A ROTATION, HAVING THAT R CAPABILITY, HAVING THE LABOR CAPACITY.

WE HAVE SEEN A FEW SERVICES STOOD UP ON THE EAST COAST THIS YEAR.

THEY WERE MOSTLY NORTH OF US.

I BELIEVE THERE'S A BALTIMORE AND A NORFOLK SERVICE.

THE DIRECT TRANSPACIFIC SERVICE WILL HELP ALLEVIATE THAT CONGESTION ON THE WEST COAST.

I BELIEVE THE GOLF HAS A NEW SERVICE AS WELL.

VERY SIMILAR.

THE U.S. GULF HAS A NEW SERVICE FOR THE SAME PURPOSE.

>> BRIAN, YOU MENTIONED THE IDEA THAT THERE WAS COLLABORATION ON THE EAST COAST PORTS AND DURING COVID THIS UNINTENDED CONSEQUENCE OF COLLABORATION FALLS INTO THE IDEA THAT YOUR CLOSEST NEIGHBOR IS A C LARGE PORT, THE SOUTH CAROLINA PORTS, AND I KNOW YOU KNOW.

HAVE YOU GONE MORE FOR IT?

APOLOGYS, SIR, FOR THE WAY THIS IS GOING TO COME OUT.

HAVE YOU GONE FROM A COMPETITIVE NATURE WITH SOUTH CAROLINA ITYTO TO MORE COLLABORATIVE NATURE?

WHAT DOES THAT LOOK LIKE EXACTLY?

>> I THINK THE COMPETITION WILL ALWAYS BE THERE.

YOU KNOW, FROM PROXIMITY, FROM THE MARKETS THAT WE BOTH SERVED OR CAN SERVE AND IT WILL CERTAINLY REMAIN.

I HAVE THE GREATEST RESPECT FOR JIM NUSOME AND HIS TEAM AND THE WORK THEYND HAVE DONE IN SOUTH CAROLINA.

NEW TERMINAL OPENED UP THIS YEAR.

THEY MADE GREAT INVESTMENTS.

WE MADE SOME SIGNIFICANT INVESTMENTS HERE IN NORTH CAROLINA AS WELL AND IT'S REALLY TO TRY TO CAPTURE THAT C MARKET THAT WE HAVEN'T BEEN ABLE TO SERVE IN THE PAST BECAUSE WE DIDN'T HAVE THE CAPABILITY.

I THINK THERE'S OPPORTUNITY FOR COLLABORATION.

WE COLLABORATE WITH OTHER PORTS, YOU KNOW, NOT JUST IN THE COVID ENVIRONMENT.

THERE ARE AGREEMENTS IN PLACE TO WORK FOR, YOU KNOW, ALONGSIDE OTHER PORT AUTHORITIES IN CERTAIN AREAS THERE IS THAT MARKET OVERLAP THAT IS BETWEEN STATES AND PORTS.

>> ANNA?

>> YEAH.

SO AS YOU LOOK TOWARD THE NEXT DECADE, WHERE DO YOU SEE THE GREATEST OPPORTUNITY FOR GROWTH THAT MIGHT HAVE BEEN A LITTLE BITT SURPRISING BEFORE SUR COVID?

>> SO I THINK WHAT REALLY HELPED US WEATHER THE STORM OF COVID T IS THAT WE WERE BALANCED BETWEEN GENERAL CARGO AND CONTAINERIZED CARGO.RI WE SUE THAT WHERE THE INITIAL DROP-OFF OF CONTAINER FREIGHT WAS REALLY SUPPORTED BY SOME OF THE VERY STRONG GROWTHOM IN GENERAL CARGO.

YOU KNOW, I CAN PICK ONE OUT.

THE IMPORT OF LUMBER WAS ONE OF STRONGEST PERFORMING MARKETS OR SEGMENTS THIS PAST YEAR.

NO ONE EVER THOUGHT AS THE COUNTRY WAS SHUTTING DOWN FOR COVID THAT THERE WOULD BE SUCHOU A DEMAND FOR IMPORT LUMBER FOR HOME IMPROVEMENT PROJECTS AND CONSTRUCTION PROJECTS.

AS WE LOOK FORWARD, CERTAINLY MAKING SURE THAT WE HAVE A BALANCED PORTFOLIO AND GROWTH IN THOSE INDIVIDUAL PORTFOLIOS.

WE WANT TO CONTINUE TO HAVE THAT T CAPACITY TO WORKOR GENERALK CARGO, WILL IT'ST BULK'S VESSEL WHETHER IT'S HERE OR MOREHEAD CITY AND MAKING INVESTMENTS LIKE REFRIGERATED CONTAINER SEGMENTS.

WE REALIZE THAT'S ONE OF THE HIGHEST GROWTH AND WE WILL CONTINUE TO DO SO OVER THE NEXT SEVERAL YEARS TO CAPTURE MORE OF THE MARKET THAT SHOULD NATURALLY FLOWING THROUGH THESE PORTS.

>> A BROAD QUESTION.

WHAT DO YOU CONSIDER SOME OF YOUR BIGGEST CHALLENGES?

WHAT ARE YOUR INTENDED SOLUTIONS FOR THOSE CHALLENGES AND SINCE I'M A TECHNOLOGY GUY, THOSE THAT-- THOSE SOLUTIONS THAT ARE TECHNOLOGY-BASED, IF YOU EVER PARTNER WITH UNIVERSITIES OR OUTSIDE ENTITIES TO DEVELOP THOSE SOLUTIONS?

>> I THINK THE BIGGEST CHALLENGE WE HAVE AND WE'RE ADDRESSING IS, YOU KNOW, EXPANDING OUR CONNECTIVITY.

WE SERVE LOCAL MARKETS TODAY BETWEEN WILMINGTON AND MOREHEAD CITY.

THERE'S OPPORTUNITY TO HAVE A FURTHER REACH WITH IN THE STATE, THE REGION AND THROUGHOUT THE COUNTRY.

INTERMODAL RAIL IS EXTREMELY IMPORTANT.

PART OF OUR FIVE-YEAR GROWTH PLAN.

WE'RE WORKING CLOSELY WITH THE RAIL PROVIDERS TOO ENSURE THAT WE HAVE THOSE CAPABILITIES IN THE NEAR FUTURE TO BE ABLE TO GROW AND SUPPORT ADDITIONAL VOLUME.

WE ARE ALMOST AT THE END OF A SIGNIFICANT TECHNOLOGY PROJECT.

WE'RE UPGRADING OUR TERMINAL OPERATING SYSTEM.

WE'RE UPGRADING OUR GATE OPERATING SYSTEMS TO HANDLE THE EXCHANGE OF INFORMATION.

WE ARE DEPLOYING A NEW COMMUNITY ACCESS PORTAL TO MAKE THE VISIBILITY OF THE TRANSACTIONS MUCH MORE EFFICIENT FOR OUR USERS OF THE PORT AND TO YOUR LAST QUESTION, COLLABORATION AND COORDINATION WITH UNIVERSITIES IS EXTREMELY IMPORTANT AND IT ACTUALLY TAKES AUA PROMINENT ROLE IN OUR FIVE-YEAR PLAN AND THAT IS HOW WE CAN BECOME BETTER ENGAGED WITH THE LOCAL SCHOOL SYSTEMS, WHETHER IT'S HIGH SCHOOLS OR COMMUNITY COLLEGES OR UNIVERSITIES.

SO REALLY, IDENTIFY WHAT'S NEEDED TO SUPPORTDE THE INDUSTRY IN THE FUTURE.

AND THEN ENSURE THAT WE'RE TRAINING OR PROVIDING THE TRAINING FOR THOSE INDIVIDUALS THAT HAVE AN INTEREST FOR THIS FIELD.

>> WELL, I KNOW YOU JUST GOT TO HAVE AN APPROVAL FOR A LITTLE BIT MORE THAN 26 MILLION IN CAPEX PROJECTS AS WELL AS A CARRYOVER OF 21 MILLION.

BEYOND THAT, HOW CLOSELY ARE WE WATCHING THIS EXTENDED SESSION OF BUDGETARY DEBATE BACK AND FORTH IN NORTH CAROLINA?

ESPECIALLY AROUND ONE OF THE BIGGEST ISSUES AND THAT'S TRANSPORTATION.

SO THAT HAS TO AFFECT NOT JUST ROADS, RAIL, BUT JUST THE COMMUNITY IN GENERAL ALONG EASTERN NORTH CAROLINA AND HOW KEY WOULD ANY ADDITIONAL TRANSPORTATION AND HOW WELCOME WOULD IT BE FOR YOUR TEAM?

>> WELL, I THINK, YOU KNOW, THE TRANSPORTATION CHALLENGES NEED TO BE ADDRESSED AND THAT'S EXTREMELY IMPORTANT.

OBVIOUSLY, WE HAVE LOCAL CONCERNS.

FOR US TO GROW AND FOR US TO SUPPORT THE STATE AND GROW TO DELIVER ON OUR MISSION WHICH IS TO SUPPORT THE ECONOMY IN NORTH CAROLINA, IT'S TO ENSURE THAT THE TRANSPORTATION NETWORK CONTINUES TO ADVANCE.

WHETHER IT'S THROUGH TECHNOLOGY, ROAD IMPROVEMENTS, RAIL IMPROVEMENTS, BUT ULTIMATELY AS CARGO AND FREIGHT INCREASES, WE WANT TO ENSURE THAT IT CAN MOVE OFFICIALLY.

IT DOESN'T HAVE A NEGATIVE IMPACT IN THE COMMUNITY WHERE IT'S MOVING THROUGH.

SO STAYING CLOSELY INVOLVED AND ANXIOUSLY AWAITING FOR THE FINAL BUDGET DISCUSSIONS IN RALEIGH.

>> YEAH.

AB?

>> IN THE PREVIOUS SHOW, WE TALKED ABOUT UNEMPLOYMENT AND THE HIRING CONCERNS.

ARE YOU GUYS FACING DIFFICULTY IN HIRING?

ARE YOU LOOKING TO EXPAND?

WHAT DOES THAT LOOK LIKE FROM YOUR PERSPECTIVE?

>> SURE, ANOTHER GREAT QUESTION.

I THINK A CHALLENGE EVERYONE IS FACING RIGHT NOW.

WE ARE LOOKING TO EXPAND OUR WORKFORCE.

WE'VE GOT A GREAT TEAM.

WE'VE GOT AN OPPORTUNITY TO GROW IT.

WE'RE LOOKING TO INCREASEE OUR OVERALL HEADCOUNT.

WHAT WE'RE SEEING IS FEW APPLICATIONS TRADITIONALLY FOR THOSE POSITION THAN WE HAVE SEEN IN THE PAST.

SO WE CONTINUE TO WORK THROUGH DIFFERENT SOURCES AND HOPEFULLY ATTRACT THE TALENT THAT WANTS TO STAY AND WORK WITH US ON A LONG-TERM BASIS.

THE TEAM, AS I SAID, HAS BEEN TREMENDOUS THROUGH THE PAST YEAR AND A HALF.

THEY CONTINUE TO DELIVER EXCEPTIONAL SERVICE LEVELS AND WE HAVE THE OPPORTUNITY OTO GROW THAT TEAM.

SO AS I SAID, WE'RE WORKING THROUGH AND TRYING TO BUILD THE OVERALL STAFF.

>> BOB, WE'RE GOING TO RUN OUT OF R TIME.

SO I NEED TO ASK A QUICK FOLLOW-UP QUESTION.

BRIAN, IN THE BRIEF TIME THAT WE HAVE LEFT HERE, YOU REFERRED TO YOUR FIVE-YEAR GROWTH PLAN A COUPLE OF TIMES NOW.

ONE OF THE ISSUES OR ONE OF THE GOALS IN THAT GROWTHROWT PLAN ISH GROWING CONTAINERS IN THE NEXT FIVE YEARS BY 50%.

THAT'S NOT A SMALL NUMBER.

WHAT'S THE PLAN?

HOW DO YOU DO THAT?

DO YOU HAVE THE CAPACITY FOR IT?

CLEARLY.

AND WHAT'S THE CORPUS OF THE IDEA IN HOW YOU GET TO THAT NUMBER?

>> SO AS WE LOOK AT THE VOLUMES THAT MOVE IN AND OUT OF NORTH CAROLINA, TODAY, WE HANDLE A SMALL PERCENTAGE OF WHAT SHOULD NATURALLY MOVE THROUGH OUR GATEWAY.

WE DO HAVE AGGRESSIVE PLANS TO GROW THENS VOLUME.

BUT IT'S TO GROW THE SHARE THAT NATURALLY SHOULD BE MOVING THROUGH THE PORT TODAY.

ULTIMATELY, AS I SAID, OUR GOAL IS TO REDUCE COSTS TO AN EMPTY ECONOMY.

ALL THE INVESTMENTS THAT HAVE BEEN MADE IN THE INFRASTRUCTURE TO HANDLE THE VOLUMES AND HANDLE THE LARGER MAX VESSELS ALLOW US TO GROW OUR SERVICES TO GROW THE NUMBER OF PORT PAYERS AND THE GLOBAL REACH AND MAKE IT EASIER TO DO BUSINESS FOR CONSUMERS AND PRODUCERS IN NORTH CAROLINA.

WE HAVE, YOU KNOW, A FIVE-YEAR PLAN TO GROW THAT VOLUME.

ULTIMATELY, IT WOULD INCREASE AND TODAY IS ABOUT 10 TO 12% SHARE OF THE MARKET TO A 17 TO 18% SHARE.

>> OKAY.

BRIAN, THANK YOU FOR-- I DON'T HAVE ENOUGH TIME TOO UNPACK THE THOUSANDS OF OTHER THINGS.F YOU'RE A GOOD SPORT TO GO ALONG WITH THIS.

IT'S NICE TO SEE FROM NORTH CAROLINA IT'S BEEN AN ORDERLY TRANSFER OF POWER AND THAT WILL BENEFIT THE CITIZENS OF THE REGION.

THANK YOU FOR BEING OUR GUEST.

GOOD LUCK GOING FORWARD.

ANNA, NICE TO SEE YOU >> BOB.

GOOD LUCK IN THE LOWCOUNTRYRY AND ACROSS THE STATE.

HAPPY SUMMER.

UNTIL NEXT WEEK, I'M CHRIS WILLIAM.

IF YOU HAVE COMMENTS OR SUGGESTS, YOU CAN GO TO CAROLINABUSINESSREVIEW.ORG.

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UNTIL NEXT WEEK, GOOD NIGHT AND HAVE A GOOD WEEKEND.