Ports & Transportation

NEWS - Ports & Transportation

SBJ Staff Report

Feb 6, 2012 - In live testimony before Congress last Wednesday, Georgia Ports Authority Director of Administration Jamie McCurry explained the need for greater federal funding for harbor maintenance and modernization.

House Ways and Means subcommittee members heard from industry professionals regarding Harbor Maintenance Trust Fund (HMTF) spending. At present, the HMTF holds an uncommitted balance of $6.1 billion. In FY2010 alone, $1.2 billion in harbor maintenance taxes were collected, while only $793 million was spent on dredging and related maintenance, its intended purpose.

“Because maintenance dredging has been underfunded and the modernization of harbor channels constrained, the U.S. is missing out on the full job growth that can come through world trade,” McCurry said. “New, larger ships serving global commerce offer dramatically lower operating costs and decreased environmental impacts as more goods can be carried on fewer ships.”

GPA Executive Director Curtis Foltz said the trust fund has long needed attention.

“We applaud the Ways and Means Committee for holding hearings on this vital issue,” Foltz said. “This was also a good opportunity to deliver the message of the critical role the Ports of Savannah and Brunswick play in the national economy.”

While Savannah is home to the nation’s fourth busiest and fastest growing container terminal, the Port of Brunswick is now the fifth busiest port for the import/export of automobiles and machinery units. Georgia’s deepwater ports serve a region covering all or part of 18 states, encompassing 44 percent of the U.S. population and 42 percent of all job-creating companies in the nation.

Foltz said the delay caused by underfunding harbor maintenance -- and its related costs to U.S. exporters and importers -- will only grow as shipping companies move to larger vessels.

“These companies must limit expenses in order to remain competitive,” he said. “Mounting economic pressures are leading shippers to demand increased efficiency in a world where speed is the currency of the day.”

In his prepared statement, McCurry said the same logic holds true for deepening the Port of Savannah to more effectively serve the larger vessels set to transit the Panama Canal after its expansion in 2014.

“If these ships cannot access U.S. ports, we stand to not only forego the benefits of these vessels, but also to lose jobs and economic opportunities to the other countries around the world that can accommodate them,” McCurry stated. “It is therefore vital that this country both invest the necessary money to maintain authorized channel depths at our ports and to see that necessary expansion projects are completed in ports where deeper harbors are needed for the future.”

McCurry was invited to speak by Congressman John Lewis, the ranking Democrat on the Oversight Subcommittee, and subcommittee Chairman Charles Boustany Jr., and by Congressman Pat Tiberi, Chairman of Subcommittee on Select Revenue Measures.

Georgia’s deepwater ports and inland barge terminals support more than 295,000 jobs throughout the state annually and contribute $15.5 billion in income, $61.7 billion in revenue and $2.6 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.

NEWS - Ports & Transportation

SBJ Staff Report

Feb 6, 2012 - The U.S. Army Corps of Engineers failed to obtain a South Carolina pollution control permit for its project to deepen the Savannah River, according to a legal challenge filed Friday in South Carolina state court by the Southern Environmental Law Center on behalf of Georgia and South Carolina conservation groups.

“This project cannot proceed until and unless the Corps obtains a South Carolina Pollution Control Act permit that guarantees the right of citizens to review the proposal and reduce its serious impacts on the Savannah River,” said Chris DeScherer, senior attorney, Southern Environmental Law Center.

“The federal government cannot ignore South Carolina’s process to protect the health of the state’s natural resources and its residents against the risks and harm of deepening. As it stands now, the Corps proposes to dredge up potentially toxic pollutants, dump spoils in South Carolina, and damage the river so badly it needs mechanical life support that the government’s own experts say could be lethal.”

“The U.S. Army Corps of Engineers and the Georgia Ports Authority propose to spend $650 million in taxpayer money and irreparably harm the river despite the Corps’ finding that deepening the river for large “post-panamax” ships would not increase Savannah’s port business, and that cargo volume would remain the same even without the costly deepening project,” according to DeScherer.

The suit, filed in state circuit court in Jasper County, claims the Corps failed obtain a permit that would ensure the implementation of pollution controls during its 38-mile deepening project as required by South Carolina law.

Dredging to deepen the river to the planned 48 feet will stir up toxic cadmium and other pollutants and discharge the pollution into the water. Exposure to certain forms and concentrations of cadmium is known to produce toxic effects on humans. The Corps plans to dump much of its dredging spoil in Jasper County, South Carolina.

The $650 million deepening project will deplete the Savannah River’s dissolved oxygen levels so much that the Corps proposes to put the river on untested mechanical life support—called Speece cones—for perpetuity, the group alleges.  Even if Speece cones work and funds are found for their ongoing maintenance, the Corps’ own experts report that “the oxygen injection system proposed (Speece cones) could have lethal impacts to fish species.”  Endangered and threatened short-nosed sturgeon, American shad and striped bass in the Savannah River would be among the fish harmed by either the deepening or the Corps’ proposed Speece cones, they believe.

“Lower oxygen levels in the Savannah River from deepening will also create complications for industrial dischargers and lake communities upstream, and seasonal dead zones compounded by salt water intrusion further into the river and the ground water supplies for local communities on both sides of the river,” according to the group. 

Attorneys from the Southern Environmental Law Center filed the claim in state court on behalf of the Savannah Riverkeeper, based in Augusta, as well as the Coastal Conservation League and the South Carolina Wildlife Federation.

The Southern Environmental Law Center is a regional nonprofit using the power of the law to protect the health and environment of the Southeast (Virginia, Tennessee, North and South Carolina, Georgia, and Alabama). Founded in 1986, SELC's team of more than 40 legal and policy experts represent more than 100 partner groups on issues of climate change and energy, air and water quality, forests, the coast and wetlands, transportation, and land use.

NEWS - Ports & Transportation

By Lou Phelps. SBJ Staff

Jan 30, 2012 - Charleston's harbor pilots and docking pilots worked with the Army Corps of Engineers last week for a tabletop exercise to examine the current shipping channel and turning basins as part of the Corps study of the potential of deepening the Port of Charleston to 50 feet, even at low tide.

The expertise of the harbor pilots on how big ships move through Charleston Harbor will help the Corps narrow its alternatives that will be simulated as part of what is called Charleston’s Post-45 feasibility study.

"It's one of those things we think will allow us to do the study smarter, better and faster," Brian Williams, the Corps' project manager, told the Associated Press. By engaging the pilots earlier in the study process, "we're saving ourselves time and money by weeding things out," he said.

The Charleston deepening is projected to cost $300 million, versus costs in excess of $650 million to deepen the Savannah River, and both ports authorities are in a stiff political battle to win Congressional approval of one plan versus the other.

In the Charleston scenario, the federal government would pay $120 million, and South Carolina taxpayers would pay $180 million. Deepening the Charleston port is projected to return $100 million a year to the state. 

Currently, Charleston maintains a harbor of 45 feet (13.7 meters) of depth at mean low tide throughout the main shipping channel and -47 feet (14.3 m) in the entrance channel. A five to six foot tidal lift provides even deeper access for several hours during the day.

In addition to having deep water now, the Port of Charleston is advancing a next-generation harbor deepening project. The U.S. Army Corps of Engineers completed the project's reconnaissance study in the summer of 2010 and determined that there is not only a federal interest in the further deepening of Charleston Harbor, but also that it was most likely the best value for scarce public dollars, according to the Charleston Ports Authority.

The project is currently in the feasibility phase, with a commitment from the Corps to an accelerated time frame.

The Charleston Ports Authority has voted to provide an additional $2 million to the Corps for ongoing work in fiscal year 2012.  The total study is projected to cost $18- to 20-million, funded 50/50 by the Corps and the South Carolina Ports Authority

NEWS - Ports & Transportation

SBJ Staff Report

Jan 30, 2012 - The Southern Environmental Law Center (SELC), the largest environmental advocacy organization dedicated to protecting the Southeast, announced its fourth annual list of the top 10 places in the South that face immediate, potentially irreparable threats in 2012.

Many of the areas on SELC's Top 10 list are endangered by pressure to undercut environmental protections and to lower the hurdles for potentially destructive projects, whether it's fracking in the North Carolina Piedmont, uranium mining in Virginia, or deepwater drilling in the Gulf.

Included in the SELC’s top ten is the Savannah River along the South Carolina and Georgia border.  “The U.S. Army Corps of Engineers' plan to deepen 38 miles of the Savannah River shipping channel would increase saltwater intrusion in the river and jeopardize freshwater marshlands in the Savannah National Wildlife Refuge, drinking water supplies for Savannah and other communities, and habitat for endangered aquatic species,” they state.

"The South's special places and natural riches are threatened by a wave of calculated attacks on the bedrock laws that protect our environment and health," according to Marie Hawthorne, SELC's Director of Development. "Under the guise of promoting economic growth, anti-environmental forces are working in Congress, in state legislatures, and in government agencies to gut our most essential safeguards.

"The truth is, environmental protection had nothing to do with the financial crisis or today's weak economy," Hawthorne added. "Doing away with effective laws and enforcement will accomplish nothing except sacrifice the natural treasures like those on our Top 10 list and other resources that make the South such a great place live, work, and raise our families. We owe it to ourselves -- and to future generations -- to make sure this doesn't happen."

Top 10 Endangered Places in the Southeast for 2012

The following endangered areas were chosen from among hundreds of special places that the SELC is defending through its law and policy work in the six states of Virginia, Tennessee, North Carolina, South Carolina, Georgia and Alabama, according to Hawthorne, including:

Alabama's coast: Following the tragic BP spill, the government has returned to business as usual and is authorizing risky deepwater drilling projects under the same assumptions that failed in the Deepwater Horizon disaster. This approach is irresponsible, illegal, and poses an ongoing threat to Alabama's beaches, marshes, wildlife, and coastal communities.

Dawson Forest, Georgia: A costly, unnecessary proposed reservoir would siphon 100 million gallons per day from the Etowah River to fuel metro Atlanta's unchecked sprawl, threatening prime habitat for endangered aquatic life, water supplies of downstream communities, and a popular recreation area.

Catawba-Wateree Basin, North Carolina & South Carolina: The health of the Catawba-Wateree River, which provides drinking water for hundreds of thousands of residents of central North Carolina and South Carolina, faces an array of threats, including pollution from toxin-laden coal ash ponds, hydroelectric dams that will continue to disrupt stream flows and fish migration, water withdrawals that rob water from downstream farms and communities, and unnecessary reservoir projects that promote inefficient development and water use.

North Carolina Piedmont: The gas drilling industry and its allies in the North Carolina General Assembly are pushing hard to pass legislation that would expedite hydraulic fracturing (a.k.a. 'fracking') to extract natural gas, despite mounting evidence that the drilling technique, in the absence of appropriate regulatory controls, can lead to the contamination of groundwater and surface water. Potential fracking sites in North Carolina's Piedmont are underneath or upstream from water supplies for 2.4 million people.

Chilhowee Mountain, Tennessee: The outdated plan for completing Corridor K between Chattanooga and Asheville includes a proposal to cut a new four-lane highway through the Cherokee National Forest near the Ocoee Gorge, even though improvements to the existing two-lane highway on its current footprint would be less damaging, less costly, and no less effective.

Chesapeake Bay, Virginia: For decades the Bay has suffered from pollution from all sides -- air, land, and water. Unfortunately, industry interests and their political allies are doing all they can to impede a comprehensive rescue plan.

Mountains of Tennessee & Virginia: Mountaintop removal and other destructive coal mining practices have already destroyed at least 500 mountains and damaged 1,700 miles of streams in Virginia, Tennessee and other central Southern Appalachian states, and pressure continues to mount.

Charlottesville, Virginia & Surrounding Countryside: Local and state decision-makers are attempting to revive a wasteful, destructive, and ineffective proposed bypass that would leave a permanent scar on one of the South's most special communities.

Southside Virginia: An intense push to mine uranium in southern Virginia risks polluting drinking water supplies with radioactive and toxin-laden wastewater. Lifting the state's ban on uranium mining could open up Virginia's Piedmont countryside to more large-scale mining projects.

About the Southern Environmental Law Center (SELC)

SELC is the largest environmental organization focused exclusively on the South. For 25 years, the Southern Environmental Law Center has worked successfully in all three branches of government to create, implement, and enforce environmental law and policy. Their major programs cover clean energy, transportation and land use, southern forests, the coast and wetlands, and preservation of rural countryside and community character. SELC has 46 attorneys (out of a total staff of 90) and offices in Charlottesville (SELC's headquarters) and Richmond, Virginia; Chapel Hill and Asheville, North Carolina; Charleston, South Carolina; Atlanta, Georgia; Birmingham, Alabama; and Washington, D.C. www.SouthernEnvironment.org.

For more detailed descriptions of each endangered area, SELC's protection efforts, photographs and video, visit www.southernenvironment.org/topten.

NEWS - Ports & Transportation

SBJ Special Report
Jan 30, 2012 – At the Georgia Ports Authority Board meeting last Monday, the board approved the purchase of four electric-powered rubber-tired gantry cranes (ERTG) which will introduce a cleaner and more efficient method of operation. “The purchase and electrification of these RTGs represents a very important milestone for the GPA,” according to Curtis Foltz, GPA’s Executive Director. “In the future, we hope the new industry standard for the operation of yard equipment will be cleaner, shore-based power and not diesel.”

Foltz explained that this initial $1 million investment will reduce fuel consumption, emissions and operating costs. “We plan to retrofit the rest of our RTGs and make additional purchases that will bring our total number of electrified RTGs to 169 by 2022.”

GPA Senior Director of Engineering, Wilson Tillotson, said electric-powered RTGs are more reliable than diesel-powered versions with less downtime. In addition, fewer hours of diesel-powered operation will mean reduced maintenance costs.

The required power infrastructure will be installed by fall of this year, with the ERTGs commissioned for service in October, Tillotson added.

“Greater reliance on an ERTG fleet will allow the GPA to drastically reduce diesel consumption and continue our ongoing commitment to make substantial environmental improvements,” said Tillotson. “Reducing consumption and emissions is a powerful combination in our ongoing mission to be good stewards of the environment.”

The repower project will be accomplished through a change order to Konecranes, which is already constructing 20 RTGs for use at the Garden City Terminal. The four demonstration ERTGs will be powered through 480-volt bus bars that will be installed on the container yard. The ERTGs will operate at the rear of Container Berths 4 and 5.

The ERTG project is the latest in a series of GPA initiatives designed to increase the productivity and capacity of the port in environmentally responsible ways. Through efforts such as electrifying ship-to-shore cranes and refrigerated container racks, the Port of Savannah avoids the use of more than 4.5 million gallons of diesel annually.

NEWS - Ports & Transportation

By Lou Phelps

Jan 23, 2012 – CSX (NYSE: CSX) announced major changes in the leadership of the railroad and shipping company today, including naming Oscar Munoz as executive vice president and chief operating officer, replacing David A. Brown, no longer with the company.

They also named a new CFO, Frederik J. Eliasson, who will also serves as an executive vice president of the company. Munoz was previously the CFO.

Before joining CSX, Munoz held senior leadership positions at PepsiCo, Coca-Cola and AT&T.   Eliasson has been with the company for 16-years. He was previously vice president of sales and marketing for CSX’s chemicals and fertilizer business/

CSX Corp. reported net income of $457 million for the fourth quarter of 2011 today, up six percent increase over 4^th Qtr. 2010.

“CSX once again delivered record earnings per share while investing in resources to support high customer service levels and growth in the near- and long-term,” according to Michael J. Ward, chairman, president and CEO,  in a news release today.  “Our performance in 2011 has set a strong foundation for growth, and CSX remains committed to achieving a 65 percent operating ratio by no later than 2015.”

NEWS - Ports & Transportation

SBJ Staff Report

Jan 23, 2012 - Gov. Nathan Deal joined U.S. Rep John Lewis, Atlanta Mayor Kasim Reed, University System of Georgia Chancellor Hank Huckaby and Georgia Tech President Bud Peterson last Friday to announce that Georgia Tech has been designated by the U.S. Department of Transportation as one of 10 National Tier One university transportation centers (UTC).

The Georgia Tech ‘UTC’ will focus on important transportation issues throughout the region and nationwide such as highway safety and how the transportation network impacts economic competiveness.

The purpose of the UTC is to advance U.S. technology and expertise in the many disciplines comprising transportation through research, education and technology transfer as well as provide a critical transportation knowledge base outside the U.S. DOT and address vital workforce needs for the next generation of transportation leaders.

“Georgia Tech is uniquely qualified to lead the University Transportation Center,” Deal said. “It is home to one of the largest and most accomplished transportation and logistics research programs in the country, and is responsible for many of the strategic improvements that have been made to Georgia’s infrastructure.

“I want to congratulate Dr. Peterson, his team and all of those standing with me today who played a role in this important project. Today represents a positive step toward addressing the infrastructure issues we face. This work will help to ensure that we have the transportation network Georgia needs to move people and products efficiently, to remain competitive and to create jobs.”

Funded by a $3.5 million federal grant and an additional $3.5 million in matching funds from various state transportation departments, the Woodruff Foundation and others for the first two years, the UTC will bring together a conglomerate of universities in Georgia, Florida and Alabama. These universities include the University of Georgia, Georgia State University, Georgia Southern University, Southern Polytechnic State University, Clark Atlanta University, Spelman College, University of Alabama at Birmingham, Florida International University and the University of Central Florida.

Additional funding for the UTC will come from the Georgia DOT, the Woodruff Foundation and university partners, according to Deal. Future support will come through government, private and corporate resources.

NEWS - Ports & Transportation

SBJ Staff Report

Jan 23, 2012 - International freight forwarder and customs broker John S. James Company of Savannah has selected IES Technology’s new logistics and compliance software Forwarder Suite to enhance its customer service capabilities.

The software provides the company with one central point of connectivity, will streamline operations and will help the company realize productivity improvements.

"The successful implementation is a milestone for John S. James Co. as it moves into 2012. John S. James Co. has significantly grown in our market niche over our 70 year history," according to Len James, CFO of the Savannah-based company, "Our growth is based on leveraging the best technology to deliver more customized services. We were essentially looking for technology that is future proof— that can grow with us as we expand into new markets.

"The move to IES was a logical step for us," continues  James. "IES solutions are flexible and cover all aspects of our business. The software helps close the information gap that exists between what's happening in the real world and the information systems world. In particular, the integrated accounting product has helped us to examine key metrics within our organization and streamline controls."

The company describes how previous technology providers required them to act in more of an IT capacity which detracted from their overall directive. The new technology “frees us to do what we do best— moving freight. The technology is an enormous resource for our company and a springboard for our business."

The John S. James Co. was founded in 1941 in Savannah, with a mission to offer personalized service to the international transportation community.  Over the years, the company has become a leader in the international freight forwarding and customs brokerage industries. Their founder's initial vision to "provide unparalleled service to our customers," which still resonates in their culture today, according to James.

In the years since its founding, operations have expanded to offices in six major cities in the United States.  The company also maintains partnership agreements with a multitude of companies both in the United States and around the globe, allowing shipments to be handled from all international ports.

The organization now employs over 150 international customs and forwarding specialists, serving the needs of the transportation community.