Port of Savannah sets new record

[spuwho]

Per Trains:

http://trn.trains.com/news/news-wire/2017/03/22-georgia-ports-touts-another-record-month-of-cargo

Georgia Ports touts another record month of cargo



SAVANNAH, Ga. – The Georgia Ports Authority logged its busiest February in 2017 after moving 2.94 million tons of freight across all of its dock facilities during the month. The 10 percent increase in traffic was led primarily by an uptick in container tonnage.

According to the port agency, container tonnage expanded more than 14 percent to more than 330,000 20-foot equivalent units for the month.

The agency's Savannah Ocean Terminal also logged a more than 9 percent increase in breakbulk cargo for the month, led by linerboard, iron and steel, and automotive shipments.

The Georgia Ports Authority manages the Port of Savannah, Port of Brunswick and other support facilities. CSX Transportation, Norfolk Southern, and Genesee & Wyoming's Savannah Port Terminal Railroad provide rail service to the Georgia port facilities.

[thelakelander]

Hmm, all that growth and business without dredging the Savannah River first?  Is there something that Jax can learn and apply from the Savannah experience, in the event of us needing a "Plan B"?

[I-10east]

^^^I agree that we can learn some things from SAV. Unfortunately FL is so oversaturated (unlike the one horse state GA), with all of these other port powerhouses in the state of FL competing with Jax. Jaxport seems like it definitely has a ceiling where it can only do so much; not saying that improvements will not make it more successful. 

[riverkeepered]

http://businessinsavannah.com/bis/2017-02-23/portside-gpa-marks-busiest-january-record

Since the expanded Panama Canal opened:
"The ports of New York/New Jersey, Norfolk and Savannah each had 31 calls from 10,000-plus TEU vessels between July 1 and Dec. 31 last year. Charleston saw seven of the big ships during the same time period, while Jacksonville and Miami had none."

Curtis Foltz, ED of Georgia Port Authority, seems to have had it right in 2013: "Foltz believes most liners will choose three ports: New York because of its enormous consumer base, Norfolk because it rules the geographic sweet spot midway between New York and the Southeast ports, and either Charleston or Savannah. Miami is considered the outsider because its location is too far removed from major population centers other than south and central Florida."

[thelakelander]

Makes sense and it's something I've heard prior to Brown becoming mayor.

[spuwho]

Makes sense and it's something I've heard prior to Brown becoming mayor.

Ock had made a similar remark, shippers prefer an extra cheaper day or two by boat, then save the 2 days by more expensive rail.

I just read that new CSX CEO Hunter Harrison is closing the 2nd hump yard in Atlanta, which served as an overflow yard to relieve hump congestion for incoming from Jacksonville and Savannah.  It will be interesting to see how that impacts (or doesn't) the flows out of Savannah.

Also South Carolina has approved a 2nd inland port at Greer.  With the other in Spartanburg, it means it will relieve load and sort congestion near the dock in Charleston.

The one thing that Savannah, Norfolk and Port of NY/NJ have that Jacksonville is still working on, and that is exports.  Savannah exports a great deal of raw materials (mostly wood products) to Europe.

[riverkeepered]

We like to think of ourselves as "America's Logistics Center," but it simply isn't true.  According to the "The Great Port Mismatch" from the Brookings Institution and JPMorgan Chase & Co., Jacksonville is not even one of the top 25 port complexes in the U.S. in terms of total exports and imports by value.  However, seven other metropolitan areas on the East Coast made the list, including all of Jacksonville's major competitors. 
https://www.brookings.edu/wp-content/uploads/2015/06/BrgksSrvyGCIFreightNetworks.pdf

However, that doesn't mean that our port won't continue to be successful.  We just have to accept the fact that every port doesn't need deep water and just by having it doesn't mean that you will attract the big ships.  We have a bright future, but it just may be as a cascade or niche port.  Nothing wrong with that.

[thelakelander]

I'm in Norfolk now. Their port is massive in comparison.

[FlaBoy]

I really believe we can compete with Savannah and Charleston to at least take some of the business. We may be competing with other Florida ports as well, but there is a sweet spot we have yet to find which can increase the containers/imports/exports coming through here. It is literally an hour difference between the trip to JAX --> ATL and SAV --> ATL by truck and into the interior south. We can compete.

[thelakelander]

This is what Norfolk thinks about Savannah, Charleston and Jax as competition....

[BridgeTroll]

According to AAPA American Association of Port Authorities Jacksonville ranks as follows:

35th in total trade tonnage

24th in Import Tonnage

35th in export tonnage

30th in total foreign trade tonnage

http://www.aapa-ports.org/unifying/content.aspx?ItemNumber=21048

http://aapa.files.cms-plus.com/Statistics/2015%20U.S.%20PORT%20RANKINGS%20BY%20CARGO%20TONNAGE.xlsx

[Tacachale]

According to AAPA American Association of Port Authorities Jacksonville ranks as follows:

35th in total trade tonnage

24th in Import Tonnage

35th in export tonnage

30th in total foreign trade tonnage

http://www.aapa-ports.org/unifying/content.aspx?ItemNumber=21048

http://aapa.files.cms-plus.com/Statistics/2015%20U.S.%20PORT%20RANKINGS%20BY%20CARGO%20TONNAGE.xlsx

Thanks for that. There's also the fact that our port has been losing ground not because of any natural disadvantage, but lack of movement on the part of local officials when our competition pressing forward. There's also the fact that Puerto Rican trade isn't typically counted among imports and exports as it isn't international; moving that from the domestic column to the international column would also show a clearer picture of the kind of business our port does (for now).

This is where I think the environmentalists and anti-port activists do a disservice. They always complain about JAXPORT exaggerating the impact that deepening the river would have, but then they turn around and exaggerate the negatives, effectively writing an obituary for our port and the thousands of blue collar jobs it provides. Basically no one is giving a true picture of what's going on.

[finehoe]

There's also the fact that our port has been losing ground not because of any natural disadvantage, but lack of movement on the part of local officials when our competition pressing forward.

They'd rather throw money at attracting minimum-wage jobs to EverBank Field than high-wage unionized jobs at the port.

[BridgeTroll]

There's also the fact that our port has been losing ground not because of any natural disadvantage, but lack of movement on the part of local officials when our competition pressing forward.

They'd rather throw money at attracting minimum-wage jobs to EverBank Field than high-wage unionized jobs at the port.

Pretty sure they can do both...lol.  You should go to a game finehoe... you might have fun...

[riverkeepered]

I am more than willing to take my environmentalist hat off and look at this simply as a Jacksonville native and concerned taxpayer.  It still doesn't add up.  While I am no big fan of corporate incentives, at least you have some idea of the number and type of jobs you can expect and there is the opportunity for clawback provisions to help protect taxpayers should the employer fail to live up to their end of the bargain. 

With the dredging, we must invest nearly $1 billion with absolutely no assurance that the big ships will come.  When you look at our prospects of taking market share from Savannah and Charleston, we are clearly betting against the odds.  The time has come to accept reality and quit trying to be something we are not and will never be - a first-in, last-out port.  That ship sailed in the 1990's when Savannah recognized its advantages and started investing heavily in distribution centers, cranes, roads, intermodal, and all the infrastructure necessary to be a top tier port. 

Even if you think it is still possible for us to take share from our competitors, consider this.  Dale Lewis, a retired Director of Strategic Analysis for CSX, has been conducting an extensive analysis of the dredging economics.  Here is what he found:
"To reach its cash-flow goals, Jaxport's plan requires 100% container growth in the first 9 years after dredging. This would be a huge, rapid change. Over the last 3 to 5 years, Jaxport's container business has grown 1% per year. Jaxport's growth plan is 1 Million TEU's per year (55%) higher than the Army Corps of Engineers' demand estimate. This additional 55% growth would have to come from taking 1 Million annual TEUs of market share away from ports in other states....To succeed, Jaxport would have to capture a much larger share from these ports than it does today, capture it quickly, make sure that it grows and then hold on to it for more than 25 years. This level of competitive performance would be more than triple anything ever accomplished by any Florida container port.  It takes a billion dollars to make the attempt."  Are you willing to make that bet?  More importantly, do you have confidence in Jaxport's team to make that bet for you?

I don't.  Instead, let's consider a much more realistic bet with far less risk - let's be the best "cascade ready", niche port.  We already have a successful port and will continue to prosper if we will capitalize on our strengths.  The recent news about the new LNG tanks and the new Dominican Republic service added by Trailer Bridge are examples of the niche markets that offer growth opportunities for Jaxport.  And, both are examples that don't require deep water.

By the way, the high-wage union jobs everyone likes to focus on are going by the wayside.  ILA jobs have been in decline for decades due to increased productivity, primarily from automation.  The unions continue to fight fully automated terminals, but some already exist and more are to come.   Also, a report was released by the White House in December of 2016 that said "A bulk of the jobs come from heavy trucking, which the report estimates will see 80% to 100% of nearly 1.7 million drivers' jobs automated."  For the most part, the job growth opportunities associated with ports have been in the distribution centers. These are primarily warehouse jobs with many being part-time, seasonal, and low-wage with limited to no benefits.