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When it came his turn to question Sylvia Burwell, the nominee to replace Kathleen Sebelius as Secretary of Health and Human Services, Sen. Johnny Isakson, R-Ga. wasted no time going off topic to get an on-the-record commitment to Savannah’s harbor deepening project.
Burwell, as you remember, is director of the president’s Office of Management and Budget and, as such, delivered first the bad news that the deepening project was not funded in the president’s budget for fiscal 2015, then the added blow that the state would not be allowed to proceed with its own funds.
As a member of the Senate Finance Committee, which met Wednesday to discuss Burwell’s nomination, Isakson first apologized to the committee for “bringing up a parochial issue,” then told Burwell he had no more important responsibility as a member of the U.S. Senate than to bring about a resolution of the Savannah Harbor Expansion Project.
“As you know, we’d hit a bump in the road upon the submission of the president’s budget by OMB earlier in the year and did not know a way forward,” Isakson said. “I wanted to bring about clarity on the way forward while you are still with OMB.”
Isakson then recounted a meeting Tuesday with Burwell, her chief legal counsel, deputy director, chief legislative liaison and Undersecretary of the Army Jo-Ellen Darcy.
“In that meeting, we agreed on a way forward which I would like to memorialize with your concurrence,” he told Burwell.
“First, the Water Resources Development Act must pass with an authorization that corrects an outdated spending cap, then the U.S. Army Corps of Engineers, the OMB and Georgia Ports Authority must sign a Project Partnership Agreement — or PPA — outlining responsibilities and, finally, the state must agree to forward-fund initial construction, for which it will receive credit toward its required share of the project,” Isakson said, adding that he has confirmed the spending cap authorization is in the legislation’s final form.
“Do I have a correct representation of the steps forward to complete this project?” he asked Burwell.
“Yes, senator, you do,” Burwell responded. “I’m very hopeful the WRDA will pass quickly and we can get on our way with this important project.”
More cargo coming our way
Two-thirds of shippers who participated in a Journal of Commerce survey this week plan to divert at least some cargo away from U.S. West Coast ports to avoid disruption that could emerge from contract negotiations between the International Longshore and Warehouse Union and West Coast employers.
The ILWU and the Pacific Maritime Association began negotiations Monday on a new six-year contract. The current contract expires July 1.
Because the risk of cargo disruption is greatest during times of waterfront contract negotiations, cargo interests tend to take precautionary action to minimize potential problems, the JOC said.
It noted that shippers reacted similarly two years ago during rocky negotiations between the International Longshoremen’s Association and the consortium representing East and Gulf Coast shipping interests.
“Fully 66 percent of 221 shippers that responded to the survey, conducted from May 12-14, will divert at least some of their cargo through non-West Coast ports,” the JOC reported.
Of those diverting, 73 percent will ship through East or Gulf Coast ports, 25 percent will ship through Canadian ports and 2 percent through Mexico. While 29 percent of shippers using other port said they will divert less than 10 percent of their total cargo volume, 31 percent will divert 10 to 25 percent and 40 percent will divert more than 25 percent of their volume, according to the survey.
In a joint statement issued the first day of negotiations, both the union and employers group said they expected cargo to keep moving until an agreement was reached. However, the survey indicates an overwhelming number of shippers don’t expect contract negotiations to be driven by what is best for cargo interests. Asked in the survey whether their needs are being adequately addressed in the negotiations, 81 percent said, “No.”
Senior business reporter Mary Carr Mayle covers the ports for the Savannah Morning News and savannahnow. She can be reached at 912-652-0324 or at mary.mayle@savannahnow.com.
Following are the ships expected to call on Georgia Ports Authority’s Garden City and Ocean terminals this week. Schedules are supplied by GPA and are subject to change.
TERMINAL VESSEL ETA
GCT HS BRUCKNER Today
GCT YM ETERNITY Today
GCT CSAV LARAQUETE Today
GCT MAERSK UTAH Today
GCT MERKUR BAY Today
GCT MSC JOANNA Today
GCT UASC SHUAIBA Today
OT ATLANTIC PENDANT Today
GCT OOCL KOBE Saturday
GCT CMA CGM DALILA Saturday
GCT NAGOYA EXPRESS Saturday
GCT MSC LUISA Saturday
GCT DS KINGDOM Saturday
GCT RIO THOMPSON Sunday
GCT APL CORAL Sunday
GCT HS LIVINGSTONE Sunday
GCT CHARLESTON EXPRESS Sunday
OT TTM SUCCESS Sunday
GCT DEIRA Monday
GCT MAERSK DETROIT Monday
GCT NYK CLARA Monday
OT EMERALD STRAIT Monday
OT HOYANGER Monday
GCT EVER DELUXE Tuesday
GCT HYUNDAI VOYAGER Tuesday
GCT MOL PROGRESS Wednesday
GCT APL TOURMALINE Wednesday
GCT BOSTON TRADER Wednesday
GCT HANJIN NEWPORT Wednesday
GCT SAFMARINE BANDAMA Wednesday
GCT MAERSK KURE Wednesday
OT ANIARA Wednesday
GCT OAKLAND EXPRESS Thursday
GCT NORTHERN GRANDOUR Thursday
GCT NORTHERN DEXTERITY Thursday
GCT YM MANDATE Thursday
GCT BUXCOAST Thursday
GCT MSC RANIA Thursday
GCT NYK DELPHINUS Thursday
GCT VARAMO Thursday
GCT IBRAHIM DEDE Thursday
GCT DRESDEN EXPRESS Thursday
GCT ZIM TEXAS Thursday