Posted on January 25, 2018
By DeAnn Komanecky, savannahnow
The Port of Savannah broke multiple records in 2017, Griff Lynch, Georgia Ports Authority executive director said on Monday.
Lynch said the port handled more than 4 million twenty-foot equivalent container units, called TEUs, in 2017. That volume is an additional 400,000 containers and an 11 percent increase over last year.
Lynch reported to GPA board members at their regular monthly meeting those numbers represent the highest volume ever for the port.
“We are the first single terminal in the U.S. to do this,” Lynch said. “These numbers clearly show that Georgia has the fastest growing and most critical port in the Southeast.”
The volume numbers are also better than any other Southeast ports, Lynch said.
“Charleston had 2.2 million,” Lynch said. “Georgia Ports continue to prove that we are the gateway of choice for customers.”
GPA also broke records in December, handling 323,000 TEUs making it the busiest December on record. The December volume is a 10.6 percent increase over 2016.
A record was also set in total trade for 2017, with 35 million tons of cargo going through the port. Cargo was up 3.8 million, or 12 percent.
“We don’t anticipate 11 percent growth (this year),” Lynch said. “That is tough to repeat. “
The port is starting the year with a bang, however, with 50,000 lifts completed just during last week.
Imports drive increase
Ocean Terminal saw an almost 20 percent increase, going to 1.16 million tons in calendar year 2016 and to 1.34 million tons in calendar year 2017. The Ocean Terminal gains were driven by increased imports of iron, steel and lumber, along with exports linerboard, machinery, wood pulp and autos in both directions. A decrease of 6.4 percent was seen in December for breakbulk tonnage. Breakbulk cargo is defined as general cargo or goods that do not fit in or utilize standard shipping containers or cargo bins.There was a 9.5 percent increase in the first half of the fiscal year and a 6.2 percent expansion for the calendar year, finishing with 2.73 million tons.
Lynch said much of the GPA growth is based on imports from Asia.
“We are strong on exports, but imports do continue to outpace exports.”
Pricing for moving cargo from Asia to the Southeast is cheaper going an “all-water,” route, Lynch said.
Larger ships bring more capacity
Lynch said even more vessel capacity — and port growth — is expected.
“We are hearing about more upsizing of vessels — nothing beyond 14,000 TEUs — but 6,000 going to 8,500 TEUs and 8,500 going to 10,000 TEUs.”
Currently there are about eight ships over 13,000 TEUs and two over 14,000 TEUs that call on the Garden City Terminal.
“We are focused on increasing capacity,” Lynch said. “Added capacity only helps bring more containers.”
Part of that growth plan involves SHEP, the Savannah Harbor Expansion Project. The deepening will allow the large Neo-Panamax ships come into GPA more fully loaded. Currently the large ships coming to Savannah can not be loaded to capacity.
Lynch said with many ports vying for federal harbor deepening dollars, the port’s continued growth makes the message clear.
“…there is no deepening project more significant in the nation at this time than the Savannah Harbor Expansion Project,” Lynch said.
Jimmy Allgood, GPA board chairman, said capacity has grown much more than “we ever anticipated we could at Garden City.”
“We have all this, and now we are sitting on this $300 million we don’t have to finish SHEP.”
Deepening funding remains crucial
Allgood said port officials have been doing everything they can to “play in their (federal) sandbox,” but in the end the deepening has to happen, no matter where they money comes from.
“It’s incumbent on us to do it,” Allgood said. “If not, we’ll lose business.”
Allgood, along with Lynch and other port officials have all made trips to Washington, D.C. for meetings that included Office of Management and Budget officials.
“We’ve spent $266,000 (the state) and federal has spent less than $200,000 on dredging,” Lynch said. “We’d like to see them contribute their portion that was contracted.”
The Water Infrastructure and Improvement for the Nation Act, called the WIIN Act, holds the federal government to a 75 percent cost share of the deepening project. The Water Resources and Environment Subcommittee has the authority to reauthorize the Act. The Act was signed in December of 2016 by President Barack Obama.
The outer harbor dredging portion is the first step in deepening the entire 40-mile shipping channel and harbor from deep ocean to the Garden City terminal. The outer harbor portion extends the entrance channel by 7 miles and deepens the outer harbor from near Fort Pulaski to 18.5 miles into the Atlantic Ocean. SHEP seeks to deepen the Savannah Harbor from 42 feet to 47 feet.
The outer harbor deepening portion of SHEP should be complete in about six weeks, Lynch said. There are currently three hoppers dredging at the entrance channel.
Other progress includes the recent removal of the tide gate and embankments in the Back River. Up river and down river dissolved oxygen sites are nearing completion but are behind schedule. The down river system should be complete by March and then testing of the system can begin. Inner Harbor dredging can not begin until the down river system is found to be performing as predicted.
The 2018 federal budget had $50 million for project, about half of what is needed yearly to stay on track.
Lynch said they welcomed the commitment of Gov. Nathan Deal who has put an additional $35 million in his proposed budget.
“It’s an absolute fact that the governor is stepping up to the plate in putting in money in a good faith effort to contribute to a partnership with the federal government,” Lynch said. “Hopefully they will see that and in return reward us.”
Lynch said he hopes the president’s budget will be set soon and answer some questions.
Sen. David Perdue also knows what is at stake, Allgood said.
“Perdue has been leading the charge and we appreciate that,” Allgood said. “Perdue served on the board (GPA) so he knows.”
Source: savannahnow
