Shippers add more DCs, while port expands internally to meet trade demand.
Cargo owners and logistics service providers added 2.77 million square feet of nearby warehouse space in fiscal year 2014 to take advantage of the Port of Savannah’s import and export capabilities, Georgia Ports Authority Executive Director Curtis Foltz said Thursday in his annual State of the Port address. External growth is being matched by internal upgrades, he added.
The expansion of industrial space, coupled with record cargo volumes for the period ending June 30, helped Georgia’s economy and led to the creation of 1,900 port-related jobs, Foltz said, according to a summary of his remarks and slide presentation provided by the port authority.
Businesses that opened new distribution centers in the Savannah area included Bed Bath & Beyond, St. George Warehouse, Trident Seafood and Dynacraft Bikes.
The presence of Georgia Gov. Nathan Deal at the Savannah event underscored the degree to which state officials consider the ports of Savannah and Brunswick strategic assets.
“Our ports are a critical driver of our economy, creating jobs and offering new opportunities in every corner of the state,” Deal said. “In the past two years alone, Georgia has been ranked the top state in the U.S. for business by three different scoring agencies. Our state’s commitment to maintaining a high-performing, interconnected logistics infrastructure such as our ports is one of the reasons we were able to achieve this success. Companies know that when they choose to locate here, they are choosing a state with a global logistics hub, top-ranked workforce and a business-friendly government.”
Foltz, referencing fiscal-year data first released in July, noted that the Port of Savannah handled a record 3.14 million TEU in the fiscal year, up by 6.3 percent, or 186,567 TEU, compared to the previous year. Exports accounted for just more than half of containerized tonnage.
The two ports moved 29.4 million tons of cargo, an 8-percent increase.
The Port of Brunswick’s dedicated auto and machinery terminal moved 674,327 units in FY14; Savannah’s Ocean Terminal added another 26,375, for a record total of 700,702 ro/ro units, a 10-percent increase.
Breakbulk cargo saw a gain of 5.2 percent for the year, growing by 129,861 tons to reach 2.63 million tons. Meanwhile, bulk cargo expanded by 8.4 percent, or 212,086 tons, to reach 2.73 million tons of agricultural and other bulk goods moved across GPA docks.
Foltz said a federal-state cost sharing agreement for deepening the Savannah River will be signed soon, which will allow construction to start later this year. The state of Georgia has committed to contribute $266 million toward the $652 million project, which would lower the depth to 47 feet from 42 feet for bigger vessels. Congress gave final authorization for the project in the recent Water Resources Reform and Development Act.
The GPA’s $1.3 billion, 10-year capital plan is expected to increase capacity on the existing Savannah footprint from 4.5 million TEU to 6.5 million TEU by 2024, Foltz said. Investments will include eight more long-reach, ship-to-shore cranes (for a total of 30) and 45 more rubber-tyred gantry cranes for the container yard (for a total of 169).