South Carolina Ports and the U.S. Army Corps of Engineers have signed a feasibility study agreement to investigate deepening the channel serving the North Charleston Terminal (NCT), a move that could complete the harbor-wide dredging project and strengthen the port's competitive position.

The North Charleston Terminal is currently maintained at a depth of 48 feet. By comparison, the Port of Virginia claims the deepest harbor on the East Coast at 55 feet, a depth mandated by Congress to accommodate aircraft carriers at the adjacent Norfolk naval base. Charleston Harbor, at 52 feet, is the deepest in the Southeast, and further dredging would allow all of its container terminals to handle the largest vessels at any tide.

Depth has become a key competitive differentiator among East Coast ports as carriers deploy ever-larger vessels. The Port of Savannah completed deepening to 47 feet in 2022, and the Port of New York and New Jersey maintains 50-foot channels, making any remaining shallower segments a potential constraint on which berths the biggest ships can call at.

"Deepening this final stretch makes our port more competitive and supports our long-term plan to modernize and enhance North Charleston Terminal," SC Ports President and Chief Executive Micah Mallace said in a release. "Having the deepest harbor in the Southeast ensures expedited logistics for port customers and enhances South Carolina's competitiveness, helping to drive cargo growth and create jobs."

Charleston Harbor was deepened to 52 feet in 2022, including the channels up to the Wando and Leatherman Terminals, allowing two-way traffic at any tide. Dredging the Cooper River between the Leatherman and North Charleston facilities would complete the deepening project. The largest vessels calling at East Coast ports are Mediterranean Shipping Co.'s Irina Class ships, the world's biggest container vessels at 24,364 twenty-foot equivalent units (TEUs).

The agreement initiates the Corps' engineering, environmental and economic analysis. According to the port, the study is authorized under the Water Resources Development Act of 2024, with $500,000 in funding included in FY26 federal appropriations. Corps feasibility studies of this type typically assess whether a project's economic benefits justify federal cost-sharing, meaning actual construction would require further congressional authorization and funding beyond this initial analysis.

The study comes as South Carolina Ports shut down operations at its Leatherman Terminal as of August, citing an uncertain trade outlook for the second half of 2026 and the need to reduce costs. The closure occurred even as demand surged and rates from Asia to the East Coast topped $9,000.

"The Port of Charleston is the economic engine of our state. Ensuring the harbor remains the deepest harbor in the Southeast preserves the Port's competitiveness and efficiency by attracting the biggest container ships in the world," said Sen. Darline Graham in a statement. "It's vital we examine the feasibility of deepening the Upper Harbor. I look forward to reviewing its findings and working with stakeholders to make sure the federal government remains helpful and engaged."