Savannah, Ga. – September 20, 2018 – At the Savannah State of the Port event today, GPA Executive Director Griff Lynch thanked Governor Deal for his leadership and detailed GPA’s 10-year, $2.5 billion plan to expand the capacity of the nation’s fastest growing and single largest container terminal from 5.5 million twenty-foot equivalent unit containers (TEUs) to 8 million.
“We’re preparing to redefine the Port of Savannah as not simply the load center for the Southeastern U.S., but as the port of choice for major inland markets east of the Mississippi River,” Lynch said.
During his presentation to nearly 1,400 people, including Gov. Deal, Georgia House Speaker David Ralston, Congressman Buddy Carter, other elected officials and business leaders from across the state and nation, Lynch detailed projects that include the Mason Mega Rail facility, which will double the Port of Savannah’s rail capacity to 1 million lifts per year by 2020; new equipment purchases including eight additional ship-to-shore cranes and 64 additional rubber-tired gantry cranes; gate and container storage expansions, berth improvements and off terminal road additions.
“Almost eight years ago, Gov. Nathan Deal established a goal to make Georgia the best state in the nation to do business by providing state government, business leaders and our ports what they needed to make that happen,” said GPA Board Chairman Jimmy Allgood. He noted that since Governor Deal took office in 2011, the Port of Savannah has grown by 45 percent or an additional 1.2 million TEUs; the harbor deepening project has been approved and is now 50 percent complete; and, state transportation improvements like the Jimmy Deloach Parkway ensure that cargo moves more efficiently and without delay.
In just the past year, GPA handled a record 4.2 million TEUS, for an impressive 8.4% increase, or 325,000 additional units. Intermodal rail lifts surged to 435,000, an increase of 16.1%, or more than 60,000 additional moves, another GPA record.
Lynch expressed thanks for the leadership provided by state and local economic development authorities for helping to land 29 port-related projects in Fiscal Year 2018, bringing more than $1 billion in investment and 4,741 jobs to Georgia.
“Industries are drawn to Georgia by its growing population, economic energy and its superior connectivity to important centers of production and commerce,” Deal said. “Companies that ship through Georgia’s ports benefit from superior road and rail infrastructure, and more global container services than any other port on the U.S. East Coast.”
Over the past year, Lynch said, the Savannah market has seen record private investment in industrial real estate. In FY2018, developers added more than 6 million square feet of industrial space, according to Collier’s International. The area’s vacancy rate was still only one half of one percent by the end of the year. Strong market demand has resulted in an unprecedented 9.75 million square feet currently under construction.
Bigger Ships, Deeper Harbor
Work on the Savannah Harbor Expansion Project (SHEP) is expected to be finished in late 2021. “Thanks to Governor Deal’s leadership, U.S. Senator Isakson and Perdue, Congressman Buddy Carter and the entire Georgia delegation, the construction project is fully funded this year,” said Lynch.
A U.S. Army Corps of Engineers study estimates the deepening’s net benefit in transportation savings for shippers and consumers at $282 million per year. The expected total savings to the nation over the course of 50 years is $14.1 billion. For every dollar spent on construction, the project will return 7.3 dollars to the nation’s economy through savings on cargo transportation – one of the largest returns on investment on a navigation project for taxpayers in the country.
As deeper water allows larger vessels to call on the Port of Savannah, the GPA, along with its state partners, will be examining future infrastructure requirements, including air draft capacity of the Talmadge Bridge. Although no such vessels currently call on the US East Coast, the port could handle some vessels up to 19,000 TEU capacity.
“At the GPA, we are not only focused on expanding capacity on and off our terminals, but we are committed to finding, training and retaining the next generation of port professionals,” Lynch said.
Lynch unveiled GPA’s new workforce development initiative, the Youth learning Equipment and Safety program, or YES, created to hire and train high school graduates for careers in the port industry. The new hires will shadow experienced workers and learn forklift, truck and container equipment operations. The first six employees hired through the program were referred to GPA by school administrators after taking classes and expressing interest in a logistics career.
“Through our YES program, we are hiring promising young people who are ready to get to work,” Lynch said. “In today’s market, we have to do more than search for qualified applicants – we have to be willing to train the workers we need. Maintaining a well-qualified workforce is critical to remaining competitive.”
Allgood said the enhanced employee training policy places the GPA in a leadership role among the nation’s ports. “At Georgia Ports, we’re setting the right example by creating opportunities for young people to enter a career that will allow them to support themselves and their families over the long term,” Allgood said.
“The young people joining GPA today will be able to learn from the best in the business as they find their niche within our operation,” said Lise Altman, GPA’s Senior Director of Human Resources. “We hope to increase the number of high school graduates hired through the YES program next year. Those who are interested in taking part should reach out to their school administrators for more information.”
See a summary of Executive Director Griff Lynch’s presentation at www.gaports.com/stateoftheport. Find print-quality images of port operations here. Georgia’s deepwater ports and inland barge terminals support more than 439,000 jobs throughout the state annually and contribute $25 billion in income, $106 billion in revenue and $2.9 billion in state and local taxes to Georgia’s economy. The Port of Savannah handled 8.5 percent of U.S. containerized cargo volume and 10 percent of all U.S. containerized exports in FY2017.
For more information, visit gaports.com, or contact GPA Chief Communications Officer Robert Morris at (912) 964-3855.
Savannah State of the Port 2018
8 Million TEUs by 2028
- To keep up with the growing container trade, the GPA will spend nearly $2.5 billion over the next decade to increase Garden City Terminal’s annual capacity from 5.5 million twenty-foot equivalent container units to 8 million TEUs per year.
- By 2028, GPA will expand its ship-to-shore crane fleet from 30 to 42 cranes. This will include replacing the port’s older cranes, so the entire fleet will accommodate vessels greater than 14,000 TEUs.
- GPA will increase its container handling fleet from 146 rubber-tired gantry cranes to more than 210. Featuring the largest RTG fleet in North America will aid efficiency by serving the trucks that call on Garden City Terminal without congestion delays.
- Other projects to include gate and container storage expansions, berth improvements and off terminal road additions.
- Georgia Ports Authority handled a record 4.2 million TEUs in Fiscal Year 2018, for an impressive 8.4% increase year-over-year, or 325,000 additional units.
- Intermodal rail lifts surged to 435,000, an increase of 16.1%, or more than 60,000 additional moves, another GPA record.
- Total cargo crossing docks in FY18 grew by 8%, or 2.6 million tons, to reach a record 36 million tons.
- Savannah’s cargo growth is outpacing the nation. For the past 10 years, the Port of Savannah has grown faster than any other major port in the U.S., achieving a compound annual growth rate of 4.5%. (National average among the top 10 U.S. container ports: 1.9%.) GPA moved 2.68 million TEUs over Garden City Terminal during FY2008. In FY2018, that number reached 4.2 million TEUs.
- 29 port-related projects came to Georgia in FY2018, bringing more than $1 billion in investment and 4,741 jobs.
- Private investment will also play a role in Savannah’s growth. FY2018 saw record industrial real estate investment. Developers in the Savannah market added more than 6 million square feet of industrial space.
- Strong market demand has resulted in 9.75 million square feet currently under construction.
Mason Mega Rail
- Completion set for 2020
- Project doubles the Port of Savannah’s rail lift capacity to 1 million containers per year.
- Features 180,000 feet of rail, 18 working tracks and the capability of building 10,000-foot unit trains on terminal.
- Unit trains (greater than 10,000 feet long) make direct service over greater distances more attractive to Savannah’s Class I rail roads, CSX and Norfolk Southern. This will open new markets, spanning an arc of cities from Memphis to St. Louis, Chicago to Cincinnati.
- The project will cut rail time to the American Midwest by 24 hours, presenting a viable new option for manufacturers, shippers and supply chain professionals.
- Will allow GPA to bring all rail switching onto the terminal, avoiding the use of nearly two dozen rail crossings – including those on Ga. Highways 21 and 25 – for improved vehicle traffic flow.
- Customers will start to see results from the project by the fall of 2019, when Norfolk Southern will have the capability of building unit trains on terminal. By the end of Calendar Year 2019, CSX capacity will begin to expand, and by the fall of 2020, CSX will handle unit trains.
YES Program (Youth learning Equipment and Safety)
- GPA is hiring and training recent high school graduates, providing an entry point into a logistics career, and expanding GPA’s labor pool.
- YES participants will shadow experienced workers before beginning more formal training.
- At Garden City Terminal, YES hires will learn forklift and jockey truck operation. Training will include safety and readiness inspections for jockey trucks, radio and equipment use, and safe work practices. The program involves both hands-on and classroom instruction.
- At Ocean Terminal, YES trainees will learn warehouse operations and proper breakbulk cargo handling.
- First six participants hired through the program were referred to GPA by school administrators after taking classes and expressing interest in logistics as a career.
- YES participants will train for their eventual positions, how to handle finances and other life skills.
- Aimed at developing additional equipment operators, the training will take one year. Participants will be paid during the training period, with a pay increase upon completion of the training.
- Georgia’s ports support 439,220 full- and part-time jobs across the state, according to a study released by the Selig Center for Economic Growth at UGA’s Terry College of Business.
- The latest figure is based on Fiscal Year 2017 impacts, and represents an increase of 70,000 jobs (up 19%) compared to the previous report covering FY2014.
- Georgia’s ports now account for 9% of total state employment, or one out of 11 jobs. Personal income derived from port-supported jobs totaled $25 billion statewide in FY2017.
- According to the report, authored by Dr. Jeffrey Humphreys, port activity accounted for 11% of Georgia’s total sales in FY2017, reaching $106 billion.
- Maritime trade amounts to $44 billion in state gross domestic product, or 8% of Georgia’s total GDP.
- Business conducted through the ports resulted in $5.9 billion in federal taxes, $1.4 billion in state taxes and $1.5 billion in local taxes, according to the report.