Infrastructure Day - Class of 2023

For the Leadership Wilmington class, January was focused on the region’s critical network of infrastructure.  The class explored assets ranging from a Water Treatment Plant (WTP), not to be confused with a wastewater treatment plant (WWTP), airport, port and even one of the community’s largest pieces of event-based infrastructure, the Wilson Center. Quite literally the day was focused on the assets that physically connect Wilmington to the rest of the world.  

The class began the day with Brian Clark, the Executive Director of the NC Port who discussed and toured the group around the impressive and growing Wilmington port operations. Collectively the North Carolina Port Authority offers customers two unique water-facing ports and an inland port located in Charlotte (who knew?). The primary facility occupies several hundred acres on the banks of the Cape Fear River in New Hanover and Brunswick County. Unlike what many might think, the NC Port boasts a nearly 50/50 split in imports and export traffic. While not the largest port on the east coast the NC port’s reputation among its primary customers/carriers is one of efficiency, meaning the time it takes to unload/load of vessel is very quick compared to peers. Clark and the leadership at the NC Port have been able to achieve high levels of efficiencies through strategic capital planning efforts which has included the addition of new technology. In 2022 the port brought online a new truck access portal which utilizes a network of high-resolution cameras and check-in systems which allow truck drivers contactless access to the port terminal.

Similar to the port, Wilmington International Airport (ILM), is undergoing a period of unprecedented growth and improvements. New airport director, Jeff Bourke and his leadership team discussed the critical importance of air service to the region and how this growth has been made possible thanks to short and long range capital improvement projects. Our group toured a recently opened terminal which would rival any in the industry. We also got a behind the scenes tour of the baggage claim facility and staff-only areas which are monitored by TSA. We were careful not to leave our chaperons. A fine at this point by TSA would amount to $13,000. Airport staff also explained how new carrier decide which airports to add/remove services. Fortunately for ILM the last year has been a year of growth and change. Two new low cost carriers i.e. Sun Country and Avelo announced service to ILM. These carriers have added flights to places like  Minneapolis, MN, Washington D.C./Baltimore, MD, Fort Lauderdale, FL and New Haven, CT.

Following key presentations from the City of Wilmington’ Economic Developer and WAVE Transit Director who discussed planning efforts now underway to improve critical parts of our  local infrastructure network our class toured the Sweeney Water Treatment Facility (WTP). Our class learned that this WTP recently added a new, industry leading, Granular Activated Carbon (GAC) system to the existing treatment process. No small feat. As of October, 2022 the region’s largest water treatment facility is now capable of removing PFAS which had become a concern of operators and customers in recent years. The new facility utilizes relatively new technology to remove these chemicals to below detection levels. Something that makes our local facility one of the most unique in the country.  

Key takeaways from the experiences this month are focused on two items 1) planning and 2) sustainable revenue generation.

Strategic Planning
What became clear with each organization is that our community benefits from exceptional leadership that is responsible for helping develop and implement strategic plans that align our local needs with regional, state and sometimes federal policies. Implementation of large scale capital projects is often dependent on teamwork and working collaboratively with other outside organizations to align plans and financial needs with other complementary projects.

For example, the NC Port is currently in the beginning stages of a channel deepening project that will help ensure larger vessels being constructed now that will begin navigating through the Panama Canal are also able to navigate the Cape Fear River. No small endeavor, this planning process began years ago and has included key personnel and elected officials from virtually all levels of government.

Revenue Generation
Revenue generation was also one of the common threads among many these organizations have ensured success. While each of the organization’s that we visited offered very different services one of the commonalities that the class discovered was the vast majority of the operations are operated similarly to a private business.

Many do not receive direct tax dollars but rather are assets which are funded through revenue from the tangible services/products they provide. The Wilson Center generates funds through ticket sales, the port charges carriers a fee, ILM generates revenue through airfare sales and our local water plant charges for each gallon sold.

In addition to normal revenue, many of the organizations we visited have also found ways to generate additional dollars to help enhance their services and/or tackle needed capital improvement projects. ILM for example has created new airport advertising opportunities and is developing a commercial, mixed use development on their campus which generates lease revenue.

Creativity has allowed our anchor institutions the opportunity to grow and expand services which in turn help our community grow.