Calling the Port of Savannah “extremely important” to the success of the Panama Canal, Panama’s Minister for Canal Affairs has urged state leaders to continue to make the dredging of the Savannah harbor a top priority.
Roberto Roy, who also serves as Panama Canal Board Chairman, toured the state this week, providing updates on his country’s massive canal expansion project and getting updates on efforts to deepen the Savannah River channel to the Garden City Container Terminal.
“Savannah is a key player in the changes that will come when our new expansion is complete,” Roy told members of the Georgia Ports Authority board who, along with the Savannah Economic Development Authority, hosted his visit to the city Friday.
“This port is a leader in global commerce and must be ready to accept the larger container ships that will come with the completion of the canal expansion,” he said. “There is a real sense of urgency here.”
Roy had high praise for Georgia leaders — from former President Jimmy Carter and Gov. Nathan Deal to Atlanta Mayor Kasim Reed and the state legislature — for their tireless efforts to move Savannah’s deepening forward.
“I applaud the state for making the improvement of its port infrastructure a fiscal priority,” Roy said, adding that he is hopeful the federal money will follow suit.
The Record of Decision, signifying final federal approval for the Savannah Harbor Expansion Project, was issued in October, meaning that federal funding for construction can be allotted in the FY2014 budget.
“This final clearance affirms this project carries national significance. It is a major milestone,” said GPA executive director Curtis Foltz. “The next step is for Congress to approve the project budget and fund the deepening.”
Earlier in the week, Roy met with former President Carter, who signed the Panama Canal Treaty in 1977 promising to give control of the canal to the Panamanians by the year 2000. He said the former president promised to be on hand for the opening of the new locks.
Roy also spoke with Deal, who stressed the importance of both maritime projects.
“The expanded Panama Canal will play a pivotal role in the future of global commerce, instituting a sea change in the efficiency of Trans-Atlantic trade,” Deal said.
“As the busiest terminal on the East Coast for U.S. export tonnage, it is vital for the Port of Savannah to prepare for the larger ships that will soon transit via Panama.”
The Panama Canal expansion will increase the maximum possible draft of vessels traveling to and from the U.S. East Coast via Panama from 39.5 feet to as much as 50 feet in tropical fresh water. Vessel capacity will also increase from the current limit of 5,000 20-foot equivalent container units — or TEUs — up to approximately 13,000 TEUs. That project is now scheduled for completion in midyear 2015.
Georgia Ports Authority Board Chairman Robert Jepson noted that U.S. Army Corps of Engineers studies indicate the port deepening will reduce shipping costs by at least $213 million a year.
“The 5.5-to-1 benefit-to-cost ratio demonstrates that the expenditure would be a wise investment of federal dollars,” Jepson said.
It’s also a necessary investment, Roy said.
“The arrival of these larger, more efficient ships will be an irreversible phenomenon,” he said. “A port as important as Savannah can’t be relegated to a Tier 2 status.
“It has to be ready as soon as possible.”
ABOUT GPA
Georgia’s deepwater ports and inland barge terminals support more than 352,000 jobs throughout the state annually and contribute $18.5 billion in income, $66.9 billion in revenue and $2.5 billion in state and local taxes to Georgia’s economy. The Port of Savannah was the second busiest U.S. container port for the export of American goods by tonnage in FY2011. It also handled 8.7 percent of the U.S. containerized cargo volume and 12.5 percent of all U.S. containerized exports in FY2011.
BY THE NUMBERS
• 47 percent — the total numbers of TEUs coming to the Port of Savannah through the Panama Canal.
• 795 of 2,003 — containerized vessel calls in 2012 that came through the Panama Canal.
• 16 — the number of vessel services calling on Savannah that transit the Panama Canal.
• 6.5 million TEUs — the projected capacity of Garden City Terminal by 2020.