What started 15 years ago as a “leap of faith” — the development of a large business park to offer shippers options for warehousing and distribution — has snowballed into a national logistics trend, with ports across the country scrambling to follow suit.
Today, Georgia leads the nation in warehouse and distribution center development, according to the latest figures available from global real estate firm Colliers International.
With 3.4 million square feet of warehouse space under construction as of last October, Georgia nearly doubled Tennessee’s rate of increase, which ranked second at 1.8 million square feet.
Ohio was third at 1.7 million square feet; California and Arizona rounded out the top five with each having 1.5 million square feet of distribution center space under development.
“Bringing more warehouse capacity to Georgia has a domino effect throughout the logistics industry,” said Georgia Ports Authority Executive Director Curtis Foltz.
“When cargo owners decide to distribute their goods from Georgia, that means more business for Georgia’s deepwater ports, as well as private trucking and rail providers.”
Foltz said the global reach of Georgia’s deepwater ports has been a strong draw for distribution centers such as Target, The Home Depot and Bass Pro Shops.
“Goods that arrive at Georgia’s ports are expedited to domestic markets via extensive rail systems and access to four major interstates, which put 80 percent of the U.S. within a two-day truck drive from Georgia,” Foltz said.
It’s a draw that’s benefiting the entire state.
Georgia’s largest current project is the 1.4 million-square-foot distribution center for Lowe’s Home Improvement in Rome, a $125 million investment that will create 600 jobs.
Carter’s, the largest branded marketer of baby and young children’s apparel in the country, has made Braselton the home of its new multi-channel distribution center. Opening last year, the 1 million-square-foot facility supports the company’s e-commerce, retail and wholesale businesses and provides 250 full-time jobs.
The company invested approximately $50 million in the new center that is expected to create more than 600 full-time jobs in Georgia by 2015.
Closer to home, Matson Logistics is expanding its Port of Savannah distribution operations and in September signed a lease to expand its presence in Building 100 at Interstate Centre in Bryan County. The expansion adds 237,600 square feet to their current 135,000-square-foot facility.
New construction by major importers such as The Home Depot in McDonough and ADT Security Services in Atlanta — as well as the expansion of Electrolux in Atlanta — reflect the statewide impact of Georgia’s ports.
“Atlanta and Savannah may be geographically distant, but they are alike in their profound importance as transportation hubs and economic drivers for the state of Georgia,” said Chris Cummiskey, commissioner of the Georgia Department of Economic Development. “The Port of Savannah and Hartsfield-Jackson Atlanta International Airport are the linchpins of our comprehensive and sophisticated logistics system that puts Georgia on the short list for relocating and expanding companies.”
Page Siplon, executive director of the Georgia Center of Innovation for Logistics in Savannah, was not surprised by the Colliers ranking.
“Our state is uniquely complete from a logistics point of view, offering nationally top-ranked infrastructure for roads, rail, air and sea,” Siplon said. “The job we have of keeping Georgia logistics on everyone’s mind has never been easier, and the success ‘Team-Georgia’ has had in helping companies locate and expand here is great news for the whole region.”
According to the Georgia Department of Economic Development, four of the top 10 warehouse providers in North America are headquartered in Georgia, and 90 percent of the top 25 global third-party logistics providers have established operations here.
Companies like UPS, Delta Airlines, SAIA and Manhattan Associates, among others, leverage Georgia’s 4,700 miles of railway, 118,777 miles of public highways, the world’s busiest and most efficient airport, and two deep-water sea ports to maintain competitive advantage and offer cost efficiencies to their customers.
Go to savannahnow.com/exchange for the list of Georgia warehouse/distribution center developments and expansions in 2012.
Jasper meeting postponed
Members of the joint-state board charged with developing plans for a new container port on the Savannah River have canceled a quarterly meeting that was set for Monday in Savannah.
Chairman David Posek and vice chairman Jim Balloun, representing South Carolina and Georgia, respectively, on the Jasper Ocean Terminal Joint Project Office board, issued the announcement Wednesday.
“After an in-depth review of the current status of the updated economic study for the Jasper Ocean Terminal, we determined that additional information was needed prior to review with the (board),” the statement read. “Thus, January’s meeting will be canceled. We plan to present the updated findings at the next JPO meeting, which is scheduled to take place in Charleston on April 16.”
Plans for the proposed bi-state terminal have been stagnant for nearly two years as South Carolina mounted a campaign of opposition to Georgia Ports Authority’s efforts to deepen the Savannah Harbor.
Senior business reporter Mary Carr Mayle covers the ports for the Savannah Morning News. She can be reached at 912-652-0324 or at mary.mayle@savannahnow.com.
SHIPPING SCHEDULE
These are the ships expected to call on Georgia Ports Authority’s Garden City and Ocean Terminals in the next week. Sailing schedules are provided by Georgia Ports Authority and are subject to change.
Terminal Ship name Arrival
GCT OOCL OAKLAND Today
GCT MAERSK VIRGINIA Today
GCT ZIM MEDITERRANEAN Today
GCT MSC ILONA Today
GCT PRESIDENT JACKSON Today
GCT CSCL NEW YORK Today
GCT HANJIN SAN DIEGO Today
OT HMCS VILLE DE QUEBEC Today
GCT EVER DELIGHT Saturday
GCT BUXCLIFF Saturday
GCT CLEMENTINE MAERSK Saturday
GCT CMA CGM AMBER Saturday
GCT KAETHE C. RICKMERS Saturday
GCT ST LOUIS EXPRESS Saturday
OT LIVANITA Saturday
GCT SINGAPORE STAR Sunday
OT SAFMARINE SUMBA Sunday
OT PARSIFAL Sunday
GCT MUKADDES KALKAVAN Monday
GCT CMA CGM L’ETOILE Monday
GCT NYK DIANA Monday
GCT ZIM SHANGHAI Monday
GCT NYK LAURA Monday
Terminal Ship name Arrival
GCT MAERSK DRURY Tuesday
GCT GENOA EXPRESS Tuesday
GCT DRESDEN EXPRESS Tuesday
GCT AKINADA BRIDGE Tuesday
GCT YM PORTLAND Tuesday
GCT MOL PRESTIGE Wednesday
GCT HYUNDAI GLORY Wednesday
GCT RANJAN Wednesday
GCT SEA-LAND MERCURY Wednesday
GCT HANJIN PHILADELPHIA Wednesday OT BBC NILE Wednesday
OT TONSBERG Wednesday
GCT MSC STELLA Thursday
GCT ESSEN EXPRESS Thursday
GCT MAERSK ROUBAIX Thursday
GCT ZIM HAIFA Thursday
GCT ZIM QINGDAO Thursday
GCT XIN NAN TONG Thursday
GCT CATHRINE RICKMERS Thursday
GCT MAERSK DANANG Thursday
GEORGIA DEVELOPMENT
Georgia warehouse/distribution center development for calendar year 2012:
New Locations
Tractor Supply — Macon
Lowe’s — Rome
The Home Depot — McDonough
Carter’s — Braselton
The Judge Organization — Garden City
Kenco Logistics — Black Creek
Nordic Cold Storage — Pooler
Gulf States Cold Storage — Garden City
Outdoor Networks — Albany
ADT Security Services — Atlanta
Dukal — Savannah
Expansions
Electrolux — Atlanta
American Textile Co. — Tifton
Academy Sports & Outdoors — Jeffersonville
D & H Distribution — Newnan
Best Buy — Dublin
Matson Logistics — Black Creek
Tumi Luggage — Vidalia