A crowd of 1,200 state and local leaders, Georgia Ports Authority (GPA) customers, industry executives and partners gathered on Thursday in Savannah for the annual State of the Port event where GPA leaders discussed the progress of the $1.9 billion master plan and infrastructure investments.
They also shared some reminders of the economic powerhouse that is the port system in the state, from Savannah to Brunswick and the quickly-growing rail network connecting directly from ports to various inland destinations that are improving logistics.
“As economic engines for the state and our gateways to the global market, the ports in Savannah and Brunswick are essential to maintaining Georgia’s unprecedented and decade-long status as the No. 1 state for business,” said Gov. Brian Kemp. “Job creators consistently cite the Peach State’s responsible government, top-ranked workforce training program, and world-class infrastructure as key reasons the state has held this title and for the record trade and commerce our state has enjoyed. I’m thankful the GPA is making strategic moves to keep it that way.”
Perhaps the most important datapoint for the incredible growth of Georgia’s ports is an obvious one, the incredible growth of the Southeast region overall. Since 2012, the region has grown by 9 percent, adding approximately 6.5 million people, with shifting manufacturing and economic growth accompanying the population but also the friendly business climates and incentives offered by many southern states.
Another macro trend redounding to GPA’s benefit is the increasing “China plus one” strategy of international business. Companies are actively looking to diversify their sources beyond just China, notably India, Thailand or Vietnam. The scale of it can be confusing but shipping routes to the U.S. East Coast from these areas via the Suez Canal are five days faster than going to the West Coast. East Coast ports now handle a majority of the country’s global trade. India is now entering a new phase of middle class growth and the opportunity for investment and consumption from this group offers new opportunity for port growth.
“We need to be ready for future economic cycles. We’re talking to customers and designing a gateway port and inland supply chain that meets their long-term requirements. We’re all-in on this. The decisions we make will decide who we become as we prepare for the next wave of future cargo,” said Georgia Ports Authority President and CEO Griff Lynch. “Savannah’s ocean carrier customers are upsizing their vessels; 80 percent of the container ships entering the port are 11,000 TEU or larger.”
Bigger carrier ability is a critical strategy for today’s ports and with 75 percent of the U.S. population within a 3 or 4 day rail trip from the Port of Savannah, these big ships can offload their product to most of the country without another stop or port of call.
“We’re getting ready for the next upswing of cargo. Every company needs access to a competitive port system. Governor Kemp’s leadership is helping us achieve this through a pro-business approach with a strong Economic Development team which continues to attract and win major companies to the Peach State,” said GPA Board Chairman Kent Fountain.
