38 DC VELOCITY JULY 2019 www.dcvelocity.com
t
h
ou
g
ht
l
e
ad
er
s
Jim Newsome
A The maritime sector has significantly evolved with the growth of containerization since its inception
in 1956. There has been tremendous consolidation, with
many traditional shipping companies disappearing while
newer companies have emerged to dominant
positions. The deployment of large contain-
erships has become the dominant theme in
the industry as a way to reduce unit costs of
ship capacity. We are, fortunately, reaching
a limit [in terms of the] size of ships that can
productively be employed. Big-ship deploy-
ment has had a profound impact on the
required infrastructure at ports to maintain
and improve service levels, leading to signifi-
cant public-sector investment in port facilities.
Jim Newsome has a long history in logistics and supply chain, especially maritime
transportation. He is president and CEO of
the South Carolina Ports Authority (SCPA),
a post he’s held since September 2009. He
was previously president of Hapag-Lloyd
(America) Inc. and served in various positions with Nedlloyd Lines and Strachan
Shipping Co.
Newsome received his M.B.A. in trans-
portation and logistics from the University of Tennessee
and was named the school’s Outstanding Alumnus in
Transportation and Logistics in 1992. He has received
many other industry honors and today is credited with
transforming the South Carolina ports into one of the most
vibrant and innovative supply chain hubs on the East Coast,
according to University of Tennessee professor Ted Stank,
who says Newsome “defines the term ‘rainmaker.’”
“Jim Newsome has overseen the most complete and thor-
ough overhaul of an organization that I have ever seen,”
Stank says. “Key to this transformation has been Jim’s
vision of ports as a critical value node in the integrated end-
to-end supply chain.”
In the U.S., ocean carriers’ move to offer intermodal
services has changed the cost structure and financial drivers
of the industry. The industry became much more vari-
able-cost-oriented as it bought those services from domes-
tic transportation providers, such as railroads and truckers.
Yet the behavior of the industry remained largely one of
filling ship slots at almost any cost. I am convinced that this
fundamental change in economics and lack of understand-
ing of its impact has had a great deal to do with the cyclical
nature of profitability in U.S. trades.
C
M
Q What are some of the most important changes you have observed in the transportation and logistics
industry during your career?
A I would say there are three significant changes. One is the broadening of the transportation and logistics discipline to become an important part of overall supply chain
management. This has led to an integration of all aspects
required to provide time and place utility in a firm, from
sourcing raw materials to delivery of finished goods. Very
much related to this is the significant injection of quantitative techniques and analysis into the supply chain function,
including now a meshing with business analytics.
The second is the transition from a largely regulated
industry to a deregulated industry over a 30-year period.
This led to considerable consolidation in all modes of transportation and a focus on operating only profitable routes.
The last thing, and often I do not feel it to be a positive
change, is the significant growth of the procurement function in buying transportation and logistics services, often
without regard to the consequence for overall supply chain
efficiency. Lower prices do not necessarily lead to the most
efficient operations in terms of total costs.
Q What are your goals and long-term vision for the SCPA?
A The South Carolina Ports Authority is the major eco- nomic engine for the state of South Carolina and, as
such, one of the major engines for the Southeast region.
Global businesses, both import and export businesses, want
to locate near capable ports. My vision for the port is to be
the preferred port among the top 10 U.S. containerports.
We are doing this by providing required port infrastructure
in time to handle both anticipated growth and the deployment of big containerships, the latter having happened very
quickly in this industry. We want to make sure our port
offers the highest possible reliability in terms of productivity and efficiency, so we are a well-working, silent partner in
the supply chain. Finally, we want to be sure that we have
a top-flight staff that is capable of offering creative supply
chain solutions and understanding the needs of increasingly
sophisticated customers. While ports often talk about their
infrastructure, the differentiator is the competence and
commitment of their people.
Y
CM
MY
CY
CMY
K
Q How has the maritime sector, in particular, evolved?
Q What is your proudest professional achievement, and why?
A I have had the good fortune to work for great enter- prises that were experiencing significant challenges
when I joined them—you might say “turnaround” situations. Developing a committed team of people to successfully address those challenges is what I consider my greatest
professional achievement and, along the way, playing a part
in the professional development of many of those key people so they could fulfill their career aspirations.
