Iconic Port Royal shrimp docks could close if operations don’t improve

The town of Port Royal is ready to end operations at its iconic shrimp docks unless something improves soon.

The docks along Battery Creek at the end of 11th Street have long been a financial strain on the town. A 2015 fire destroyed the seafood market housing the operation and further slowed production.

Now shrimpers are behind on rent payments, and no seafood is coming off the boats. The town has collected only about $175,000 of its expected $500,000 in revenue from the docks for the fiscal year.

Unless money begins coming in with the start of shrimp season, there will be little incentive to continue, town leaders said Wednesday.

“We can’t keep on feeding good money into a bad situation,” Councilman Tom Klein said.

Klein predicted town residents will oppose the idea of ending the operations but said there is little choice if the town continues to lose money.

The docks lost about $280,000 in five years after being taken over by town in 2009, leased from the S.C. Ports Authority. Much of the expense in recent years went to equipment purchases, dock improvements and to remove derelict boats.

The docks about broke even for the 2014-15 fiscal year and the town began selling seafood from its market adjacent to the docks last summer. But a July 2015 fire destroyed the market and an all-important ice machine needed to preserve shrimpers’ catches.

Dockside Restaurant, which operated more than 20 years adjacent to the docks on Battery Creek, moved out without assurance of a long-term lease from the S.C. Ports Authority.

The town collects money from boat rent, offloading catches and other dock fees. Shrimpers sell their catch to the town, which then had sold to large buyers in South Carolina and Georgia.

“We’re making money there, but not enough to justify being open year-round,” town manager Van Willis said.

In 2014, Port Royal explored contracting with a private company to work the docks, but a deal didn’t come together.

There is a question of what will become of the $1.8 million insurance settlement for the destroyed market and adjacent warehouse. The money is enough for a first-class seafood processing facility, town leaders said, but there is doubt the new facility would draw enough business to justify the expense.

“We’re running a business we really don’t have any business in, unfortunately,” said Councilwoman Mary Beth Gray-Heyward.

The topic came up Wednesday during Town Council’s annual retreat to cover a range of issues. Among the discussions were rules for long-term and short-term rentals, direction for the town’s parks and whether the town should form an organization to better mobilize its businesses.

The town is looking at ways to draw new businesses and plans to continue an incentive program to spruce up storefronts.

This story was originally published April 6, 2016 at 7:39 PM with the headline "Iconic Port Royal shrimp docks could close if operations don’t improve."