Mike Klein Online

After Harbor Project, Georgia Looks Toward New Savannah River Terminal

MIKE KLEIN

MIKE KLEIN

Make no mistake about it, a deeper trench in the Savannah River harbor and channel is a really big deal to ensure that Georgia’s port remains globally competitive, but when you look down the road just a few years there is an even more critical strategic priority: building a completely new port. The proposed Jasper Ocean Terminal would be constructed in South Carolina on land owned by Georgia and it would benefit from the new deeper Savannah River access to the Atlantic Ocean, and the world.

“We have stated many times that we need to deepen the harbor here at Savannah, we need to deepen the harbor at Charleston and we need to ultimately build the port at Jasper County,” on the South Carolina side of the Savannah River, said Billy Birdwell, public affairs specialist for the U.S. Army Corps of Engineers in Savannah. “At some point Charleston and Savannah will reach their capacity but we predict trade and commerce will continue to grow. We will need the Jasper port as well. We will need all of them.”

SHEP – the Savannah Harbor Expansion Project – will deepen the existing 32-mile-long harbor and extend the channel eight miles further into the Atlantic Ocean. The current 42-foot Savannah River low tide depth will be dredged to 47 feet with a 54-foot high tide capacity. The project timetable is three years. When SHEP improvements finish in late 2017 or early 2018 Savannah will be able to handle the world’s largest container ships loaded to full capacity.

Georgia Ports Authority Garden City Terminal in Savannah

Georgia Ports Authority Garden City Terminal in Savannah

“Georgia has done an outstanding job dealing with the landside components, our port capacity, the inland capacity with road and rail,” said Georgia Ports Authority Executive Director Curtis Foltz. The GPA spends more than $100 million per year on internal improvements. “The one Achilles heel we have had has been the limited depth of the Savannah River.”

U.S. Army Corps of Engineers Savannah River Dredging

U.S. Army Corps of Engineers Savannah River Dredging

Savannah docks 37 container ships per week. These sea beasts move the world’s products. Ships that call at Savannah transit through the Panama and Suez Canals. Their reach is everywhere in the world. Savannah port demand is expected to exceed its capacity within 15-to-20 years. “Under almost any growth curve when you reach the 2030 to 2035 time frame both of our ports (Savannah and Charleston, South Carolina) are effectively maxed out,” said Foltz.

Georgia owns 13,000 acres on the South Carolina side of the Savannah River. The proposed Jasper Ocean Terminal would be constructed on two massive sections of that site. The proposed location is sections 14A and 14B in yellow on a color-coded SHEP project map published by the U.S. Army Corps of Engineers. The yellow section is where 24 million cubic yards of ocean and river bottom will be deposited during SHEP dredging expected to start this fall.   Watch this video.

The Savannah River harbor and channel are continuously dredged to maintain current levels so to most folks, all this effort will look like business as usual. “It’s not going to look any different from what we do anyway,” said Birdwell at the U.S. Army Corps of Engineers. Initial deepening will occur in a 20-mile section of the Atlantic Ocean, starting at approximately Fort Pulaski.

Getting this far with SHEP took nearly fifteen years, lots of scientific analysis, lots of politics, lots of environmental mitigation, lots of compromise, lots of expense. SHEP is currently funded at $652 million and the Corps says 25 percent of that total is cost overrun contingency funding. Up to $706 million is authorized by federal legislation but that amount has not been appropriated.

Savannah’s port is a robust economic engine that generates $61 billion in annual revenue and it supports more than 320,000 jobs in Georgia and South Carolina. Savannah is the fourth largest port nationally, the second largest on the East Coast behind only New York – New Jersey ports, and Savannah is the nation’s fastest growing port in terms of containers served.

Savannah operates at 50 percent maximum docking capacity with 7 percent annual growth over the past decade. GPA Executive Director Foltz predicted that even if annual growth was reduced to 4 percent, which nobody expects, the Garden City Terminal at Savannah would reach 80 percent capacity before 2030. “It starts getting tight,” Foltz said. “That’s our story.”

Jasper Ocean Terminal would be operated as a Georgia – South Carolina port and nearly every detail about that relationship is a work-in-progress, as is the extensive federal review process. Foltz predicted it could take twenty years to fully move from concept to an operational facility.

“South Carolina and Georgia both recognize we need to take advantage of the Savannah River,” Foltz said. “It’s not a complicated site but as you can expect there aren’t any easy wins today when you talk about coastal development. We’re already kind of behind the curve.”

Additional Resources:

U.S. Army Corps of Engineers SHEP Project Map

(Mike Klein is Editor at the Georgia Public Policy Foundation)

(Published Friday, June 27, 2014)

June 27, 2014 Posted by | Uncategorized | , , , , , , | Leave a comment

Georgia Public – Private Partners Launch Internet Shipping Marketplace

Mike Klein

The next big thing in logistics (that means moving stuff from one place to another) might already have happened right here in Georgia.  Georgiafreight.com is a coordinated marketplace of transportation options for moving anything from here to there or almost anywhere.

It exists entirely on the Internet, it’s easy to use (even I was able to understand it) and here’s the best news yet, it comes with a whole bunch of built-in discounts. You can get discounts for being a Georgia company and for shipping from one Georgia address to another.

Georgiafreight.com is a project of Efreightsolutions, a private company, but it was hatched with lots of assistance from the Georgia Center of Innovation for Logistics which is headquartered on the Georgia Tech campus in Savannah.  It received a big boost forward from Kennesaw State University president Dan Papp who connected Efreightsolutions and the Innovations Center.

“It’s an online freight portal and there are lots of them out there, but what was lacking was a focus on Georgia,” said Page Siplon, director of the state’s Center of Innovation for Logistics.  This online model provides several tiers of service and lots of options for moving product by air, rail, truck or water.  Siplon said the model could soon be expanded to California and New York.

The Georgiafreight.com story will be center stage when the 2011 Georgia Logistics Summit convenes over two days next week at the Cobb Galleria Centre in Atlanta.  But the company’s ability to help industries move products will be just one reason that it makes headlines.

Using its own private funds, Georgiafreight.com will make program awards to five Georgia universities that offer logistics education.  Siplon said the company will also announce an inaugural Logistics and Community Leadership Award to a person (or persons) for work within the industry and dedication to foster care programs.  University and personal award recipients will be honored during Monday evening’s reception at the Cobb Galleria Centre.

Page Siplon

Next Tuesday’s daylong third annual Georgia Logistics Summit is rapidly becoming a must-attend event for private industry and public stakeholders.  Siplon launched the event as a 2009 luncheon and 450 attended.  “We knew we were onto something,” Siplon said.  Last year it moved to the Cobb Galleria and attendance doubled.  Some 1,200 are registered for Tuesday.

The entire reason the conference exists is to explain how Georgia can move products.  “It’s a complicated industry so when you say logistics, a lot of things come to mind,” Siplon said.  “What was lacking was a place where all those people could get together and talk.”

Tuesday scheduled keynote speakers include Jack Wells, chief economist for the U.S. Department of Transportation.  Wells will meet with Georgia Ports Authority executives on Monday in Savannah before his conference address on Tuesday in Atlanta.

The Savannah River and harbor deepening project remains the biggest elephant in the room. Georgia needs to dredge the river from its current 42-foot depth to 48 feet to accommodate larger ships that will begin to navigate the new Panama Canal in three years.  Project cost is estimated at $500-to-$600 million, to be shared between Georgia and the federal government.

Georgia has already committed its share of about 25 percent, but Washington has not followed suit.  “Yes, that is probably the most visible project because it affects so many things,” Siplon said.  “It is a project we are going to have to fund one way or another.  Georgia is at the crossroads of global commerce.  We shouldn’t have to beg for resources to do that.”

Here is a video about the economic impact of the Georgia ports in Savannah and Brunswick.

Tuesday’s conference will include breakout sessions on air freight, agribusiness, energy, life sciences, manufacturing and ocean freight.  Other scheduled speakers include Governor Nathan Deal, Atlanta Mayor Kasim Reed, Georgia Ports Authority executive director Curtis Foltz, state economic development commissioner Chris Cummiskey, state transportation commissioner Vance Smith and logistics industry executives.

Click here to learn more about the Georgia Center of Innovation for Logistics.

(Mike Klein is Editor at the Georgia Public Policy Foundation)

May 6, 2011 Posted by | Uncategorized | , , , , , , , , , , , , , , | Leave a comment