2012 Port of Savannah State of The Port Address

Savannah, GA - Georgia Ports Authority 2012 Port Address

Stephen Morton/For Savannah Morning News Georgia Ports Authority Executive Director Curtis J. Foltz spoke to a crowd of more than 1,200 at the annual State of the Port event Thursday. He said that the Authority had record cargo volumes, significant infrastructure improvements and continued environmental leadership in 2012. 

"Again, another record year for the Ports Authority," Curtis Foltz told his audience of mostly business people as he gave his annual State of the Ports Address,  the GPA moved a record 2.98 million TEUs — or 20-foot container equivalents — in the year ending June 30, falling just 16,000 shy of the three million mark.

“We’ll get there this year,” he assured the group.

The Port of Savannah was second only to the Port of Los Angeles in container export volume, making it one of the most — “if not the most” — balanced ports in the country, Foltz said.

Locally, the ports boosted Savannah’s economy with an 85.7 percent occupancy rate for area distribution centers’ more than 44 million square feet. Five new shipping services were added, ending GPA’s fiscal year with 40 weekly services to Asia, the most of any port on the East Coast.

The Port of New York/New Jersey — despite its six container terminals and high volume throughput - was second with 38 weekly calls; Norfolk came in third with 33.

“To me, this translates into three natural East Coast gateways — New York/New Jersey in the Northeast, Norfolk in the Mid-Atlantic and Savannah in the Southeast,” Foltz said.

Corresponding with its growth in trade, GPA infrastructure investments guarantee streamlined truck and rail movements in and out of the terminals, he said.

A new Ga. 307 overpass, just outside the port’s main gate, was completed in June. The new overpass routes cargo trucks over a six-track expansion at one of Savannah’s two on-terminal rail yards. The 6,000-foot rail extension at the Mason Intermodal Container Transfer Facility cuts Savannah-Atlanta roundtrip rail transit by six hours, while boosting safety in surrounding Garden City by avoiding 21 at-grade rail crossings.

Use of the overpass also improves both fluidity and velocity for the 4,000-plus truckloads that come through the main gate every day, Foltz said.

The ports also made progress on the Jimmy DeLoach Parkway project, which will take 5,000 trucks a day off Ga. 21 by bringing Interstate 95 directly into the ports when it’s completed in 2015.
"Now an update on the deepening, all these things are important but this is critical," Foltz said.

The deepening project, which would take the river to 47 feet, hasn't exactly been smooth sailing.  First approved in 1999, it's taken this long to get this close. "The Army Corps of Engineers has come out with an extremely strong recommendation on just how important this is to us and to the nation," Foltz told reporters.

Still, not everyone is so enthusiastic.  Three environmental groups are suing, and this week the South Carolina Department of Health and Environmental Control asked to join the suit. "The legal process will run its due course. I think (South Carolina) Governor Haley has conveyed her support and understanding that the Ports are about regional impact and regional benefit," Foltz said.

Foltz defended the science in the Corps report saying up to 250 million dollars will be spent to mitigate environmental impacts.  He also says they're looking for the green light by the end of the year, and hoping legal action doesn't hold up the start of the project. "I would hope we're far enough along," he said.  "And we would hope the President coming out and conveying the importance of this, we would hope ultimately that at the end of the day, the studies have supported the need to go forward."

ECONOMIC IMPACT - Georgia’s deepwater ports and inland barge terminals support more than 352,000 jobs throughout the state annually and contribute $18.5 billion in income, $66.9 billion in revenue and $2.5 billion in state and local taxes to Georgia’s economy.

The Port of Savannah was the second busiest U.S. container port for the export of American goods by tonnage in FY2012, handling 13.27 million tons. It also handled 8.1 percent of the U.S. containerized cargo volume and 11.6 percent of all U.S. containerized exports.

Resources provided by Carr Mayle, Mary.  “Georgia Ports Authority marks another record year”, Savannah Morning News, September 6, 2012 http://savannahnow.com/exchange/2012-09-06/georgia-ports-authority-marks-another-record-year
Resources provided by JoAnn Merrigan.  “Port of Savannah Sets New Record”, September 06, 2012 WSAV News 3
http://www2.wsav.com/news/2012/sep/06/6/state-ports-address-today-ar-4491194/

GEORGIA PORTS CHIEF 'HOPEFUL' STRIKE WILL BE AVOIDED

Savannah, GA - Georgia Ports Authority

Savannah, GA -- Curtis Foltz, executive director of the Georgia Ports Authority, sprinkled praise throughout his annual State of the Port speech Thursday for the 1,500 members of the International Longshoremen's Association who load and unload cargo at the Port of Savannah. Foltz used his closing remarks to comment on the threat of a strike if no agreement is reached by Sept. 30.

"I'm very hopeful and somewhat optimistic that, between now and the end of this month, they're going to come together and do everything in their power to make sure that our customers that we all worked hard to get to come to the East Coast will continue to come to the East Coast," Foltz told a crowd of about 1,200 government, community and business leaders.

As Foltz was delivering his speech, federal mediators announced Thursday talks will resume Sept. 17 between the longshoremen's union that represents East and Gulf Coast dock workers and the U.S. Maritime Alliance, which represents shippers.

The longshoremen's contract expires at the end of September and talks broke down in late August over issues involving overtime rules, efficiency and automation.

"We're making significant progress," Willie Seymore, president of the ILA's Local 1414 in Savannah, said in his first remarks on the contract talks. "Hopefully, by the end of the month, everything will be in order."

A dock workers' strike would threaten the nation's fragile economic recovery, especially now as retailers are importing more goods to stock their shelves for the holidays. Foltz said some shippers are already diverting 5 to 10 percent of their East Coast-bound cargo to the West Coast as a precaution, though he said it's unclear how the shift will directly affect Georgia ports in Savannah and Brunswick.

In Georgia the economic impact would ripple far beyond the docks. Truck drivers would be sidelined with no cargo to move. Distribution warehouses in the state for retailers such as Wal-Mart, Target and Home Depot would cease receiving merchandise to supply their stores. And Georgia businesses that export products from frozen chicken to kaolin clay may be forced to wait out the strike with no economical means of sending their goods abroad.

If the two sides can't reach an agreement, President Barack Obama could intervene. The Taft-Hartley Act gives the president power to stop strikes that threaten to create a national emergency.

A University of Georgia study earlier this year found more than 352,000 jobs statewide and $18.5 billion in income are tied to goods that move through the state's ports.

Resources provided by Russ Bynum.  “Ga. ports chief 'hopeful' strike will be avoided”, Bloomberg Business Week, September 6, 2012 http://www.businessweek.com/ap/2012-09-06/ga-dot-ports-chief-hopeful-strike-will-be-avoided

World Trade Center Savannah Scores First Success

Savannah, GA - World Trade Center

The Savannah-based firm of Hussey, Gay, Bell and DeYoung was looking for new offshore markets. The newly formed World Trade Center Savannah was looking for case studies to determine the kind of value they could bring to the process of doing business overseas. 

“We are always exploring new international markets,” said Rich Hallman, a principal in the engineering and construction management firm that has already established itself in Bermuda and Saudi Arabia. 

“The Georgia Department of Economic Development and the governor’s office were urging businesses to attend TurkeyBuild, a trade show in Istanbul, last month,” Hallman said. “We decided to go to learn more about the market and opportunities there.” 

It turned out to be a trip well worth the time. 

“Turkey has the second-fastest growing economy in the world right now,” Hallman said. “There are definitely business opportunities there.” 

WTC Savannah was granted a license as a World Trade Center in October of 2011 and is one of more than 320 such centers in 100 countries, each with its own business plan but all working to help area businesses conduct profitable international trade. 

At its meeting June 12, SEDA’s board voted unanimously to rebrand the SEDA building on Hutchinson Island the World Trade Center Savannah. 

The decision to become a World Trade Center — which required an initial $200,000 investment and yearly dues of $10,000 — was the result of a four-month due-diligence process conducted last year by SEDA staff under the direction of president Steve Weathers and a board leadership team that included then-chairman Tommy Hester, Eric Johnson, Brooks Stillwell, Steve Green and Scott Center. 

Is membership in the World Trade Center Association worth the cost for a city like Savannah? 

Absolutely, said Kathe Falls, director of international trade for the Georgia Department of Economic Development. 

“One of the keys to accelerating success in international markets is making sure that you are doing business with the appropriate people,” Falls said. “Having someone to help with those introductions is essential and can save a significant amount of time.” 

That’s where organizations like the Georgia Department of Economic Development, the U.S. Commercial Service and the World Trade Center really shine. Each has its network of contacts overseas that, when properly leveraged, can generate concrete results. 

“What is unique in Georgia is the way these organizations work together with a common goal of accelerating exports,” Falls said. “We are pleased to see this new trade partner in Savannah.”

Resources provided by Mary Carr Mayle, Savannah Morning News, “Idea of a world trade center began nearly 75 years ago” http://savannahnow.com/exchange/2012-06-24/idea-world-trade-center-began-nearly-75-years-ago

And “World Trade Center Savannah Scores First Success” http://savannahnow.com/exchange/2012-06-24/world-trade-center-savannah-scores-first-success

Robert S. Jepson Jr. Elected GPA Board Chairman

Elected GPA Board Chairman

Jepson, who was first appointed to the Board of Directors in 2008 and previously served as vice chairman, was elected June 25th to serve as Chairman of the Board for the Georgia Ports Authority. 

Jepson vowed to make the $652 million Savannah Harbor deepening project his top priority. 

“As we enter the final stages of approval, it is important that we continue to stress the vital impact of this project, the completion of which will preserve the port’s roll as a dynamic economic engine for Georgia and the region,” Jepson said. 

Jepson is the chairman and CEO of Jepson Associates Inc., a private investment firm he founded in 1989. He holds undergraduate and graduate degrees from the University of Richmond. Jepson was formerly Chairman and Chief Executive Officer of Kuhlman Corporation (NYSE) from 1993 until its sale to Borg-Warner Automotive Inc. in 1999. Prior to that, Jepson founded and was Chairman and CEO of the Jepson Corporation from 1983 until its sale in 1989. During his tenure as CEO, Jepson built the corporation into a Fortune 500, NYSE-traded company. He currently serves as Chairman on SCAD’s Savannah Board of Visitors and is on the board of the Georgia Historical Society. 

Jepson will Succeed Alec Poitevint of Bainbridge, who chaired the ports authority board for the past two years. 

Also elected to a one-year term is Stephen S. Green, who will serve as vice chairman – a roll he previously fulfilled before his June 2007 election as chairman. Green was first appointed to the GPA’s Board of Directors in July 2004 by Governor Sonny Perdue. He was board chairman for fiscal years 2008 through 2010.

Resources provided by Dave Williams, Atlanta Business Chronicle “Georgia ports board gets new chairman” http://www.bizjournals.com/atlanta/news/2012/06/25/georgia-ports-board-gets-new-chairman.html
The Maritime Executive “Jepson Elected GPA Board Chairman”
http://www.maritime-executive.com/article/jepson-elected-gpa-board-chairman
Additional information and photo courtesy of http://www.Telfair.org

South Carolina Keeps Up Criticism of Savannah Harbor

South Carolina not in favor of Savannah Harbor

President Barack Obama delivered this month good news for the Port of Charleston, but it wasn’t enough to soften South Carolina leaders’ stance against the Savannah harbor deepening. 

The White House named both Charleston and Savannah harbor deepening projects among five to be completed ahead of schedule. The initiative aims for the federal review process and Record of Decision to deepen the Savannah River from 42 feet to 47 to be done by this November. It also calls for the federal reviews for the Port of Charleston’s plans to deepen from 45 feet to at least 50 feet to be done by September 2015. 

But a top critic of Georgia’s harbor expansion was unmoved. 

“There are serious concerns with what the Savannah port wants to do on the South Carolina side,” said Leon Stavrinakis, a Charleston Democrat serving in the S.C. House. 

Among those concerns: That cadium-tainted dredge spoils will contaminate Jasper County shores, that the dissolved-oxygen injection system won’t keep fish alive, and that saltwater will contaminate fresh water. 

“And those are not abated by the fact that the Port of Charleston, which is a much easier and more sensible project for the government to undertake, is going to move forward in an expedited way,” said Stavrinakis. 

With the expanded Panama Canal to be completed in 2014, ports are racing to prepare for larger container vessels. A rivalry between ports is nothing new. 

What’s special between South Carolina and Georgia’s relationship is that they share a river that opens onto the ocean. That brings unique regulatory interactions, debates over water rights and legal tangles. What Georgia does to the river affects South Carolina’s coastal communities, and vice versa. 

“Our goal is not to beat up on Savannah,” added Stavrinakis. “But we’re not going to promote Savannah at the expense of South Carolina, in terms of business or environment. To the degree we need to fight for both the South Carolina environment and South Carolina business community, we’re going to do that, whether our governor wants to join or not.” 

Does South Carolina risk hurting itself by opposing Georgia’s harbor deepening project, considering that Obama has named it a piece of his infrastructure agenda? 

It’s unlikely, said Leslie Blakey, president and executive director of the Coalition for America‘s Gateways and Trade Corridors, a Washington-based nonprofit trade association. 

“There’s no sense in Washington or among federal agencies of, ‘We’re going to punish them for this.’ I don’t think that is a hazard,” she said. 

As for funding, the S.C. Legislature included $300 million in the state budget to cover the entire estimated construction cost of Charleston’s deepening. 

The American Association of Port Authorities declined to weigh in; as did the White House press staff, when asked if South Carolina’s objections to one of its five nationally significant ports were cause for concern.

Resources provided by SARITA CHOUREY, Bluffton News, “South Carolina Keeps Up Criticism of Savannah Harbor”
http://savannahnow.com/bluffton-news/2012-07-29/sc-keeps-criticism-savannah-harbor

A Tale Of Two Port Cities – Savannah And Charleston

Ports Authority, Savannah and Charleston

Charleston and Savannah have much in common — carefully preserved historic districts, a healthy tourist trade and more than a modicum of moss-draped Southern charm.

They also have deep-water seaports — international trade dynamos that fuel the economies of each respective state. 

Separated by little more than 100 miles of coastline, the ports of Savannah and Charleston combined moved more than 4.2 million 20-foot-containers in 2011, with the potential to grow exponentially when an expanded Panama Canal opens in late 2014. 

The Obama Administration put both on the fast track earlier this month. 

For Georgia, the announcement put the power of a presidential promise behind the last critical steps in a 15-year effort to deepen the Savannah River channel. 

Deepening the Savannah River to accommodate the larger container vessels that are already starting to call on the East Coast has long been on the Georgia Ports Authority’s radar screen. In April, after more than a decade of study, $41 million and a stack of documents more than 10 feet high, the U.S. Army Corps of Engineers released its final reports and recommendations on the Savannah Harbor Expansion Project, concluding that deepening the Savannah River channel from 42 feet to 47 feet at mean low water “is economically viable, environmentally sustainable and in the best interests of the United States,” according to Col. Jeff M. Hall, commander of the Savannah District. 

A final Record of Decision, green-lighting the project, is expected in November. 

Augusta Businesses and The Port of Savannah

Several Augusta businesses export through the Port of Savannah; according to a recent study, by the University of Georgia, nearly 19,000 jobs in the Augusta area are tied to the ports.  

According to Robert Morris, Senior Director of External Affairs for the Georgia Ports Authority, the study by the Selig Center for Economic Growth, at the Terry College of Business, found that the greater Augusta area- Richmond, Columbia and Washington counties – are some of our strongest counties for the export of products coming through our ports and reaching the international marketplace.  


“That’s a very positive sign because every export container comes with it a great number of jobs.”

NutraSweet delivers artifical sweetners all over the globe

A warehouse technician, at the NutraSweet Company, moves pallets of bulk artificial sweetener. The pallets are being shipped to one of Savannah's ports where they will then be shipped to Indonesia. 

The top three Savannah port customers for the Augusta area are DSM Chemicals, Thiele Kaolin Company and Club Car. For Richmond County, the top three Savannah port customers are DSM Chemical, RBW Logistics Corporation and NutraSweet. In Columbia County, the top three Savannah port customers are Club Car, Uniparts and John Deere. In Washington County, the top three Savannah port customers are Thiele Kaolin Company, Burgess Pigment and Shiraishi Calcium Kaisha.


Last year, Richmond County generated $1.2 billion in port business, with $686.4 million in export trade. The top three commodities by volume were chemicals, plastic film and phosphates. Top imports were amino acids, auto parts and fabrics.


Columbia County had $77.7 million in port business, with $60.2 million in export trade.


Resources provided by Latina Emreson; “Augusta businesses depend on Port of Savannah”, Savannahnow.com June 11, 2012
http://savannahnow.com/exchange/2012-06-11/augusta-businesses-depend-port-savannah#.T9ekCNUV1I4