In a state that is one of the nation’s most important for logistics, a railroad stoppage would have been a disaster. Fortunately, on Thursday, President Joe Biden announced an agreement had been reached between railroad companies and union leaders to avert a nationwide strike. The agreement means Georgia officials can breathe a little easier – for now anyway.
“Georgia Ports Authority (GPA) is pleased the parties involved have reached a tentative agreement, averting a rail stoppage. GPA liaisons are in constant communication with CSX and Norfolk Southern and will continue to follow developments closely,” said the GPA in a statement.
“Operations at the Port of Savannah remain fluid as a record volume of cargo moves by truck and rail on and off the terminal. Likewise, automobiles and heavy machinery moving through the Port of Brunswick are being transported to and from inland destinations as usual.”
The agreement will almost certainly put off a work stoppage but the concerns of workers remains as the deal reached falls short of hopes. Union leaders had lobbied for 15 days of sick leave but the final tally landed on one day. There is potentially some grumbling from workers unhappy with the final deal but the White House and defensive union leaders noted that the agreement removes penalties for missing work due to an illness or medical emergency. The deal also includes the largest wage increases for railroad workers since the Reagan administration – a 24 percent pay increase by 2024, which includes an immediate 14 percent raise and $1,000 bonuses over five years. Average worker pay by 2024 will be $110,000 a year.
For the Biden administration, which is already facing sagging approval numbers, inflation problems and a looming midterm election, the agreement at least delays what would be a disaster scenario for the economy. Farmers were already in discussions about steps to take as harvest time approaches and what it would mean if crops could not be shipped across the country.
In Georgia, the Port of Savannah’s Garden City Terminal is the South Atlantic region’s busiest rail gateway. More than 40 trains per week leave the facility, and the recently opened Mega Rail Project increased the Port of Savannah’s rail capacity from 500,000 to more than 1 million containers per year. The Garden City Terminal has more than 180,000 feet of track, more than 34 miles. When everyone is working, cargo moves from the ship to rail within 24 hours, the fastest in the country.
August was another record-breaking month for the port, handling more than half a million containers, an increase of nearly 20 percent over this time last year. “The Port of Savannah’s geographic and capacity advantages remain a driving force behind current and new customers deciding to move cargo through Georgia,” said GPA Executive Director Griff Lynch. “Our central location, and service through the largest container terminal in the Western Hemisphere offers speed to market and unmatched room to grow.”
