Persistence and Long-Term Investment Enable Georgia Central Railway to Step Up for a Booming Savannah

Alongside the Port of Savannah, which has blossomed to one of the largest and fastest-growing ports in the U.S., Georgia Central Railway (GC) is achieving the growth trajectory that G&W envisioned in 2005 when it acquired the railroad as a break-even business.

Today, GC spans 211 miles across a high-growth industrial corridor between Savannah and Macon, Georgia, offering two Class I interchanges and 35 industrial development sites along the way. Its 42 employees haul a diverse range of commodities – with its top five customers in the corrugated packaging, plastics, aggregates, paper and grain industries.

Prioritizing Investments

Since 2005, GC has prioritized investing for growth. Among numerous improvements over the years, a $4 million multi-year project to upgrade bridges and trestles enabled 286k loadings on the entire line, while an additional $8 million public-private investment from GC and the U.S. Consolidated Rail Infrastructure and Safety Improvements (CRISI) Program spurred further enhancements that allow the railroad to operate at 25 mph track speeds on more than one-third of the line.

“By the end of 2019, the benefits to these investments were obvious,” says Jim Irvin, senior vice president, American Region railroads. “GC was selected as the freight-rail service provider for an adjacent $172 million plastic distribution facility, had exceeded the benchmark for a loyal customer with an overall satisfaction score of 8.1 out of 10 in a biennial survey and completed the year reportable injury- and derailment-free.”

Defying Odds During the Pandemic

Amidst the ensuing COVID-19 pandemic that stressed global supply chains, including the North American freightrail sector, GC continued to earn customers’ trust and forge a reputation for safe, customer-focused and sustainable short line service.

The railroad finished 2022 and 2021 reportable derailment-free and has gone reportable injury-free six of the last 10 years.

In 2021, at the height of the pandemic, GC was awarded a score of 9 out of 10 in overall satisfaction on its biennial customer survey – almost a full point ahead of results from 2019 and a two-point improvement compared to 2017.

“Georgia Central stayed in constant contact with us during the pandemic to provide updates on rail shipments to our aggregate facility,” says Sean Scott, chief engineer at McLendon Enterprises. “They aided us with extended working days and hours to facilitate our immediate needs as well as the needs of our customers. We appreciate the effort shown by Georgia Central during those trying times, but we would expect nothing less based on our history with them and their likeminded approach to customer service!”

From 2019-2022, GC’s traffic grew from 19,000 to 24,000 carloads for an overall increase of 27%. In 2022 alone, traffic was up 7% year-over-year.

To help customers meet ESG goals while supporting its own environmental targets, in 2022, GC completed a twoyear initiative to overhaul its locomotive fleet of 19 by adding 14 cleaner engines that consume 23% less fuel and will reduce the railroad’s annual CO2-equivalent emissions by more than 2,000 metric tons.

Healthy New Business Pipeline

Perhaps the biggest vote of confidence, however, lies in GC’s near-term pipeline of new business.

“Customers are responding to our immediate proximity to and relationship with the Port of Savannah, our 286k capacity, our connections with two Class I carriers, and our reputation for safe and efficient service,” says Trevor Wilhelmy, director of sales and marketing for the road.

The railroad is working with customers in the aggregates, scrap metal and pulp & paper industries to establish or add service along its first 28 track miles out of the Port of Savannah.

With more than 20 million square feet of warehouse space under construction in the Savannah area and double the rail container capacity at Savannah’s port thanks to a recent expansion, the GC team is preparing to haul a variety of commodities – from frozen foods to panel products – to and from customer transload and warehouse sites. GC’s sister G&W railroad, Savannah Port Terminal Railroad (SAPT), is also supporting the area’s extraordinary demand for freight transportation providers via its long-term rail service agreement with Georgia Ports Authority.

According to the Georgia Department of Economic Development, more than 30 electric vehicle-related projects have been announced in Georgia since 2018, totaling $23 billion in investments in the state. In early 2022, Hyundai Motor Group became the latest company to announce such a project: a $5.5 billion electric vehicle and batterymanufacturing facility within the 2,900-acre Bryan County Mega Site along GC and just west of the Port of Savannah. GC is planning to transport inbound raw materials as well as outbound finished vehicles destined for markets across the U.S. beginning in late 2024.

A Bright Future

These opportunities are expected to increase GC’s annual carloads to well over 50,000 by 2032 – with immediate growth expected this year in aggregate carloads for the construction of Hyundai’s plant as well as traffic destined for warehouses. Additional infrastructure investments, including a new $6 million, 9,000-foot double track siding, are underway to handle the railroad’s present traffic demands and near-term volume growth.

“The story of the Georgia Central clearly demonstrates how investing in a railroad, hustling for growth and providing world-class service can be a recipe for success,” says Michael Miller, president of G&W’s North American operations. “The future looks bright at GC for decades to come.” n