3 minute read
Record Breaker
SAVANNAH: RECORD BREAKER
For almost 20 years, the Port of Savannah has outperformed all other ports along the eastern seaboard and throughout the whole of North America. AJ Keyes looks at what makes this port so successful
The Port of Savannah handled over 5.62 million TEU in 2021. Less than 20 years ago, it was handling around 1.07 million TEU and had an East Coast share of 8.5 per cent. A combination of a dynamic strategy, a seamless management process and the ability to determine the direction of the port industry has delivered.
The long-term growth of container traffic through the port is clear, but what has driven the increases and how wellpositioned is the port to continue its successful journey?
There are several important factors in play here. Notably, a combination of continued investment in terminal infrastructure to support shipping, development of intermodal rail capacity and the sustained expansion of good-quality warehousing and distribution facilities at or very close to the port.
TERMINAL INFRASTRUCTURE
Over the past 10 years, capital investment from Georgia Ports Authority (GPA) has been US$1.2 billion, but for the next 12 years spending will be US$4.5 billion, with US$485 million approved for 2022.
The Garden City Terminal has been developed to currently offer 9693ft of contiguous berth, supported by 1345 acres of terminal area. There are 30 ship-to-shore container cranes, with eight more eco-efficient units due for delivery in 2023, along with 20 additional diesel-electric rubber tyred gantries (RTGs), to take the total to 178.
There are other confirmed capacity enhancement initiatives, including the Peak Capacity project adding 650,000TEU of annual capacity by Spring 2022, with the Garden City West Expansion project generating 750,000TEU per annum of box space. GPA confirms it is under design and permits have been submitted, with construction commencing in Spring 2022.
In April 2021, GPA began construction to straighten a bend at Berth 1 at Garden City Terminal. Once complete, this realignment will allow the facility to serve four 16,000-TEU vessels and three other ships, simultaneously. Expected completion is June 2023, with capacity rising by one million TEU per annum, according to GPA.
In addition, GCT West Expansion, a new supporting yard area, will deliver an additional 750,000TEU per annum after 2023, while expenditure has been approved for acquisition of 22 acres of land, adjacent to GPA’s West Expansion property, plus a further 18 acres next to GPA’s Peak Capacity project. In total, the investments will add more than 230 acres of container handling space.
INTERMODAL RAIL CAPACITY
The notable expansion of intermodal rail infrastructure at Savannah is via the Mega-Rail project. The US$127 million investment means the port can rapidly increase service to an arc of key inland markets, from Atlanta to Memphis, St. Louis, Chicago and the Ohio Valley.
Savannah is targeting the shift of more cargo from trucks to rail, reducing highway traffic congestion, while Mega-Rail also benefits from being served by both Norfolk Southern and CSX Transportation, who gain 100 per cent on-dock connectivity. In addition, both railroads can serve Chicago, St Louis, and Cincinnati, with up to 24 hours of time savings gained.
With space for six 10,000ft trains, rail-lift capacity is being doubled to two million containers per annum.
WAREHOUSING & DISTRIBUTION
Development of warehousing and distribution facilities at or close to the Port of Savannah has been underway for the past 20 years and to a large extent GPA has helped maximise the concept. This tactic enables cargo to be distributed quicker on arrival, especially via rail.
Overall, GPA has confirmed that there is currently 80 million ft2 of warehouse space within a 30-mile radius of the Garden City Terminal, with a known 50 million ft2 to be constructed.
To help support the activities further, a cross-docking warehouse, dubbed the “One-Stop Dock Warehouse” is planned on 90 acres of land close to Garden City Terminal. It will possess a supporting yard with nine RTGs and an annual capacity of 400,000TEU. This expansion will also improve the availability of chassis and empty containers at Garden City Terminal.
The figure below, provided by GPA, offers confirmation of the direct link between industrial warehousing occupancy and container TEU growth.
Of course, GPAs has to maintain the ability to receive everlarger ships and ensure that onward inland transport is possible. Yet by continuing to add these component parts, while being led by a focussed management team (that changes in personnel but not in philosophy), the strategy that has worked for the past 20 years looks set to continue to work for the foreseeable future.
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