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Image courtesy of GPA
Published 09.12.2022 20:55 by
The Maritime Executive
The Port of Savannah plans to convert its ocean terminal into an all-container facility to meet booming demand for boxship capacity.
After a year of sustained growth in cargo volumes, the Georgia Ports Authority (GPA) has unveiled a plan to modernize and realign the docks at Savannah’s ocean terminal to accommodate expanding container operations.
Under the plan, a section of the terminal that has long handled a mix of container ships and break bulk vessels will be converted to handle containers only. Work begins with rebuilding the docks to provide 2,800 feet of berth that can service two vessels at once. The docks will be serviced by eight new STS cranes.
Apart from new cranes and berth improvements, the overall project will add expanded gate facilities and paving to allow for an annual capacity of 1.5 million TEU. Quayside refurbishment work is scheduled to begin in January next year, with the full terminal refurbishment expected to be completed in 2026.
Breakbulk cargo will be shifted to the Colonel’s Island terminal in the Port of Brunswick, which has historically focused on handling high-volume RoRo shipments.
The realignment and upgrade, part of a $1.1 billion investment in infrastructure approved by the GPA last year, will help increase the Port of Savannah’s container capacity by 60 percent by 2025. Taking all projects together, the authority wants enough capacity to handle 9.5 million TEU per year by the middle of the decade.
The Port of Savannah, the fourth-busiest container port in the US, has seen a significant surge in throughput in the post-pandemic era. This August and October were the busiest months ever. The growth was driven in part by cargo volumes diverted from West Coast ports that were experiencing congestion and threats of labor measures.
In 2021, a boom year for containerized freight, GPA moved a record 5.6 million TEU — about 10 percent of total containerized freight volume in the US.
The pace of growth continued this year as well. In August, the port handled 575,000 TEU, an increase of 18.5 percent compared to the same month last year. In October, the port moved 553,000 TEU, an increase of 9.6 percent compared to the same month last year.
With so much cargo moving through the same terminal, the port has experienced ship congestion. That’s on track to resolve itself, as has the LA/Long Beach ports, as shipment volumes fall rapidly in a cooling economy.
“Although we are beginning to see an expected market correction, it is important that GPA moves forward with projects such as the ocean terminal expansion to accommodate business growth,” said Joel Wooten, GPA’s chief executive officer.