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Georgia Ports Authority Expects Big Growth in Next Decade

Posted on: Saturday, 24 September 2005, 21:00 CDT

Sep. 22--The Georgia Ports Authority has the potential to increase its handling capacity to 4.3 million containers a year -- comparable to the volume handled now in all New York and New Jersey terminals -- by 2015.

That was GPA Executive Director Doug Marchand's message to a packed house of mostly businesspeople at the Savannah International Trade and Convention Center Thursday.

But it will take an aggressive growth strategy that includes an investment of more than $700 million in new infrastructure, the completion of Container Berth 8, the Savannah River Channel deepened from 42 feet to 48 feet at mean low tide and the continued diversification in both import and export cargo that will expand GPA's reach into rapidly growing markets around the globe. "When we do all of these things, we will truly have the port of tomorrow," Marchand said.

Many of those projects are already under way: The first phase of Container Berth 8 is approximately 65 percent complete and expected to come online in 2006.

"When this first phase is complete in early 2006, it will give the port more than 9,800 linear feet of berthing space, increasing what is already the largest single container facility on the East and Gulf coasts," Marchand said.

When fully utilized, the container berth should increase Savannah's capacity by 20 percent and create about 11,000 new jobs throughout the state, he said. Studies on the deepening of the Savannah River Channel are basically complete, Marchand said, adding he hopes the U.S. Army Corps of Engineers' "record of decision" will be released in July 2007. Construction, dependent upon Congressional funding, could begin in 2008 and be completed as early as 2012.

"The need to deepen is driven by the size of the container ships calling on the ports," said Mack Mattingly, Authority chairman. "Getting the channel deepened is absolutely critical to recognizing the long-term potential of the ports."

While import trade from Asia will remain its strong suit for the foreseeable future, the GPA continues to experience significant growth in other trade regions, Marchand reported. Imports from the Mediterranean and Eastern Europe are up 26 percent; 27 percent from India and the Middle East; 31 percent in Latin America and 40 percent in North Europe.

"Traditional Georgia exports such as wood pulp, kaolin clay, paper, cotton and poultry will continue to dominate, but serious new opportunities and trends are beginning to take shape," he said.

The fastest growing export by percentage increase through the Port of Savannah last year was auto parts, which grew by 102 percent. Chemicals grew 72 percent; staple fibers, 63 percent; and synthetic resin, 43 percent.

These products, coupled with new export markets, offer significant opportunities for Georgia-based businesses, he said.

Marchand called on local and state leaders to help the needed road improvements and harbor deepening become reality.

"To build the port of tomorrow, we must work together, he said. "We must take the steps to prepare our facilities and, at the same time, create opportunities for Georgia businesses."

Both GPA chairman Mack Mattingly and GPA vice chairman Steve Green hinted Thursday that Wednesday's announcement of the 2 million-square-foot Target import warehouse was but one of several major economic development announcements expected for the Savannah area in the near future.

"We still have a few cards up our sleeves," Green said when asked what was next for Georgia Ports. Mattingly just smiled and offered two words of advice.

"Stay tuned."

BY THE NUMBERS: Georgia Ports' Fiscal Year 2005 in Review

--16 million tons of cargo handled, a 13.6 percent increase over FY'04

--1.76 million Twenty-foot Equivalent containers coming in and out, an increase of 12 percent.

--1.8 million tons of breakbulk cargo, ranging from coiled and flat steel to forest products, transiting Ocean Terminal docks.

--12 million additional square feet of distribution space either completed, under construction or planned.

--7 additional shipping services to the Port of Savannah -- four from Asia (including one via the Suez Canal), two from South America and one from the Eastern Mediterranean.

--26 percent growth in exports to India, 21 percent to Australia/New Zealand, 21 percent to Latin America and 17 percent to North Europe.

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Copyright (c) 2005, Savannah Morning News, Ga.

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Source: Savannah Morning News

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