Shipping and Logistics

Georgia Ports Expanding to Meet Demand

November 13, 2017

Georgia Ports Authority announced Monday the approval of $42.27 million in funding for a rail and gate project that will significantly expand capacity at its Garden City Terminal in Savannah. The project is part of the GPA’s $128 million Mason Mega Rail Terminal and will increase the Port of Savannah’s on-dock rail capacity by 100 percent to one million containers per year. So far, GPA has allocated $90.7 million toward the project.

The existing Gate 8 at Garden City Terminal will be enlarged to absorb future growth and offer a better link to the Jimmy Deloach Parkway connecting to Interstate 95. The $13.2 million project will expand the terminal’s gate infrastructure by 12.5 percent for a total of 54 truck lanes.

Cargo volume has been swelling at the Georgia ports. In October, container trade at GPA’s Garden City Terminal grew 32 percent for an all-time Savannah record. Total tonnage for all GPA terminals climbed 25 percent from 2.5 million tons to 3.2 million tons last month. Breakbulk tonnage, which includes lumber, steel and autos, jumped 14.7 percent.

“Since the opening of the expanded Panama Canal, Garden City Terminal has experienced meteoric growth,” said GPA Executive Director Griff Lynch. “We’re now handling more ships, bigger vessels and larger cargo exchanges.”

The port expansion will position Savannah to rapidly increase service to inland markets from Memphis to Chicago. Construction on the projects will begin in December and be completed by the end of 2020.

Savannah Harbor has been undergoing dredging to deepen the waterway to accommodate the larger 14,000-TEU vessels. Funded to date by $266 million in state funds and $127.8 million in federal construction dollars, the outer harbor expansion is about 60 percent complete. Additional federal funding will be required to complete the project.

According to a study by the U.S. Army Corps of Engineers, the Savannah Harbor deepening will return $7.30 for every dollar spent on construction. The Corps estimates the net benefit of transportation savings for shippers and consumers at $282 million per year and a total savings to the nation over the course of 50 years of $14.1 billion.

“What makes Georgia and the Georgia Ports Authority a continuing success story is the relentless effort to stay one step ahead of the curve and the competition,” said Jimmy Allgood, GPA board chairman. “The projects approved today will do exactly that.”