Port Productivity: Georgia, Green Bay, Long Beach, Saint John

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On the heels of a state-federal agreement allowing the Savannah Harbor deepening to begin, the Georgia Ports Authority has posted nearly 13 percent growth in container traffic for the first quarter of the fiscal year. Port of Green Bay activity remains strong, with the port handling just over 251,504 metric tons of cargo in September, up 12 percent from September 2013. As a result of the Port of Long Beach’s congestion relief efforts, two truck chassis owners, DCLI and TRAC, are adding over 3,000 chassis to their local fleet over the next few weeks to match supply and demand. Port Saint John reports double-digit container traffic continued through third quarter 2014.

Georgia Ports Mark 13 Percent 1Q Growth as Savannah Harbor Deepening Moves into Construction Phase

On the heels of a state-federal agreement allowing the Savannah Harbor deepening to begin, the Georgia Ports Authority (GPA) posted nearly 13 percent growth in container traffic for the first quarter of the fiscal year.

"September's outstanding cargo volume continued a trend of double-digit growth," said GPA Executive Director Curtis Foltz. "Important investments in infrastructure, including the harbor deepening, new equipment and roadways are helping to position Savannah for additional growth."

The first quarter numbers show container throughput totaling 891,408 TEUs, an increase from a year ago of 102,122 TEUs. That included 295,698 TEUs in September, a 12.9 percent increase from September 2013.

Release of the positive cargo numbers followed the October 8 signing of a cost sharing project partnership agreement between the U.S. Army Corps of Engineers, the Georgia Department of Transportation (GDOT) and the GPA, allowing the state to use the $266 million it has set aside to start construction on the Savannah Harbor Expansion Project.

By deepening the Savannah River, SHEP will enable the port to more effectively serve the larger vessels expected to call in greater numbers after the 2016 expansion of the Panama Canal. The expansion will deepen the harbor from 42 to 47 feet at low tide. A twice-daily tidal swing of 7 feet will make the river 54 feet deep at the high tides. The entrance channel, which extends into the Atlantic, will be dredged from 44 to 49 feet at low water. Bids are due to the Corps of Engineers on the entrance channel dredging contract by October 29.

The Corps of Engineers estimates that the harbor deepening project will bring $174 million in annual net benefits to the U.S. and for the Post-Panamax II vessels, the extra five feet of depth will allow for an additional 3,600 cargo containers per each transit, an increase of 78 percent.

The project will cost approximately $706 million, including construction and environmental mitigation costs. As a part of this cost-sharing agreement, the Corps will be able to use the 40 percent share of state funds to begin construction while it awaits congressional appropriations for the remaining 60 percent of federal funding. The state has already set aside $266 million - the total state share for the project.

The harbor expansion is one facet of a long-term plan for growth, Mr. Foltz said, adding that 9,600-TEU class vessels are already calling on the Port of Savannah. "By employing the most efficient machinery, maximizing land use on our existing footprint, and making the required additions to infrastructure, we are steadily expanding our capabilities, with a capacity goal of 6.5 million TEUs by 2024."

Capital improvement plans include increasing the number of ship-to-shore cranes from 22 to 30 and rubber-tired gantry cranes from 116 to 169. Meanwhile, the state Department of Transportation will complete the Jimmy Deloach Parkway Extension in the summer of 2016 to provide a cargo beltway connecting the Port of Savannah directly to Interstates 95 and 16.

Green Bay Cargo Tons Up 12 Percent in September, Record Year Possible

Port of Green Bay activity remains strong and it shows in the numbers. According to the monthly tonnage report, the port handled brought in just over 251,504 metric tons of cargo in September, up 12 percent from September 2013.

"It’s promising to see the increase in cargo shipments through the Port given the fact we lost six weeks at the start of the season due to ice cover," said Dean Haen, director of Brown County Port and Resource Recovery. "If this pace continues through the remaining months of the season, I’m confident we will surpass last year’s record of 2.1 million tons of cargo."

Twenty ships came through the Port of Green Bay in September. "We're seeing substantial volumes of limestone and petroleum coke coming into the port and petroleum products like ethanol, diesel and gasoline heading out for foreign export," Mr. Haen said. "It's a reflection of our robust economy."

Long Beach: Port Facilitates Short-Term Congestion Relief, Companies to Bolster Local Chassis Fleet

As a result of the Port of Long Beach’s congestion relief efforts, two truck chassis owners, DCLI and TRAC, are adding over 3,000 chassis to their local fleet over the next few weeks to match supply and demand.

"We need to increase the utilization of the more than 100,000 chassis in the San Pedro Bay port complex," said Long Beach Board of Harbor Commissioners Vice President Rich Dines. "Mega container ships with 10,000-plus total moves per call have added pressure on our chassis pools and far too many chassis sit idle on a daily basis. Interoperability of equipment through a ‘gray’ chassis pool will help relieve port congestion and improve the balance of supply and demand throughout our terminals."

Mr. Dines is chairing a key board subcommittee charged with improving port efficiency. In addition to chassis-related issues, Vice President Dines and Commissioner Lori Ann Farrell are discussing a range of productivity issues including rail, truck turn times and terminal productivity and guiding policy-level solutions.

"Increasing inbound rail movement of export cargo and developing ‘short haul rail’ will help ensure an ample amount of chassis return to port for import delivery," said Mr. Dines. "It is time we take a systems approach to moving cargo and we will start by building a better chassis model."

The commissioners are in constant contact with customers and stakeholders, hearing their concerns and ideas. Already, their meetings have focused their discussions on chassis, appointment systems and PierPass.

As a landlord port, Long Beach does not control these issues but recognizes its leadership role as a facilitator. The port is embarking on several efforts seeking solutions. Through the board’s leadership, top management at the Port has secured short-term congestion relief with 3,000 more chassis coming on-line in the next few weeks.

"There haven’t been enough chassis. Some terminals have lots of chassis and others do not have enough, which is contributing to the congestion issues," said Port Chief Executive Jon Slangerup. "We are actively working with our partners to find solutions and I am so pleased with everyone’s cooperation. A special thank you goes to (DCLI CEO) Bill Shea for his help."

On October 7, the port announced a Congestion Relief Team headed by Mr. Slangerup to facilitate solutions to port-related congestion. One of the issues the team identified is an imbalance of container chassis and they have already found a short-term solution.

"A mismatch of chassis supply and demand is just one of the congestion issues and we recognize that more needs to be done," said Dr. Noel Hacegaba, Acting Deputy Executive Director and Chief Operating Officer. "That is why we are meeting daily, convening discussions and implementing meaningful solutions."

The port’s Congestion Relief Team is monitoring performance daily and is in constant communication with tenants, customers and stakeholders. The team was formed in response to customer feedback and to ensure all stakeholders that the port is doing what it can to move cargo efficiently and effectively.

Daily meetings provide Mr. Slangerup and his team real-time data and observations of what is happening at the port, allowing the team to adjust their strategy as issues on the ground change.

"Alleviating congestion is one of my top priorities, and I know our commissioners are focused on facilitating solutions," said Slangerup, "and let me be clear – cargo is moving at the Port of Long Beach. We are customer-focused and this is just another way to let our key tenants know that their business success is our primary mission."

Saint John: Container Traffic Increases Persist through 3rd Quarter

Port Saint John reports its container trade continues to grow in double-digit increments. Through September, box volumes reached 68,687 TEUs, a 17-percent increase from the first nine months of 2013, with the September numbers alone skyrocketing 63 percent to 7,978. That follows the port’s spectacular 60 percent jump for full CY 2013.

"The port is a team of interconnected businesses," said Port Saint John President & CEO, Jim Quinn. "We are pleased our partners at both Mediterranean Shipping Company (MSC) and Tropical Shipping are contributing to the success of shippers and receivers in the region who are using Port Saint John more now than they have in decades. These increases mean greater economic activity for our city and province such as the 500 direct and indirect jobs attributable to movement of containerized cargo at this port."

The port also reported a significant increase in dry bulk, with a notable 119 percent year-to-date increase in salt from the new potash mine at Piccadilly (New Brunswick), to 374,789 metric tons from the year earlier total of just 170,870 tons.

Thanks to these increase, Port Saint John operated facilities experienced an 8 percent increase in cargo tonnage overall.