NEWS - Ports & Transportation

SBJ Staff Report

Feb 13, 2012 -
Savannah, Ga. – February 8, 2012 – The Savannah Harbor Expansion Project (SHEP) received an additional $2.5 million in construction funding last week. In the U.S. Army Corps of Engineers’ (USACE) work plan released on Feb 9 for the remainder of fiscal year 2012, the USACE allocated a total of $3,088,000 to the work. That includes the $588,000 originally budgeted, with the additional amount coming from a fund created by Congress for underfunded port projects around the nation.

“The credit for this important new funding goes to Georgia’s delegation in Washington and other Congressional leaders, whose efforts will move this project forward in a significant way,” said GPA Executive Director Curtis Foltz. “We are truly grateful to our Senators and Representatives for their work on behalf of the ports.”

According to the USACE, deepening the Savannah Harbor up to 48 feet will bring more than $115 million in annual economic benefits to the United States, primarily by lowering transportation costs. With excellent transportation infrastructure already in place, including two Class I rail terminals on terminal, the SHEP will quickly provide the nation greatly needed benefits to recover from the economic downturn.

The new funding will be used to develop the detailed construction designs required to provide the deeper channel as well as the environmental mitigation components of the project, Foltz said. The design work will need to be completed before moving to construction following the approvals by the Secretary of the Interior, Secretary of Commerce, Secretary of the Army and the Administrator of the EPA.
“The Corps should release the final study documents this Spring clearing the way for federal approval of the project,” Foltz said. “Once construction begins, we anticipate the deepening to be completed in 2016.”

The Port of Savannah also fared well on maintenance dredging funds, receiving an additional $4,842,090 in federal dollars, for a total on the year of $21.9 million. Similarly, the Port of Brunswick received another $1,048,410 for maintenance dredging, for a total of $3,989,410 for the fiscal year.
And, Charleston's already-underway harbor deepening project also got another boost last week with the release of the U.S. Army Corps of Engineers' Work Plan for the remainder of Fiscal Year 2012. In it the Corps included $2.5 million for the continued work on the Charleston Harbor post-45 foot deepening project.

"This is wonderful news for the 260,000 South Carolinians whose jobs depend on the competitiveness of our port," said Bill Stern, chairman of the South Carolina Ports Authority (SCPA) Board. "The nation needs a true 50-foot harbor in the Southeast region to serve the growing needs of trade, including bigger ships and increased demand overseas for U.S. goods. We applaud the Corps for including funds to advance Charleston's project, which is the nation's best buy in harbor deepening."

Many believe the projects in the two cities are competing, while others believe that the Federal government should support deepening both ports.

The $2.5 million for Charleston included in the work plan will continue progress on the Feasibility Study that began last summer. The study is expected to cost around $20 million, which is funded 50/50 by the Federal Government and the local sponsor. The SCPA also has committed to accelerate its half of the study funds as needed to keep the project moving in an expeditious manner.

"Our leaders at the local, state and federal level all stand united in support of this project," said Stern. "In particular, Senator Lindsey Graham and Congressman Jim Clyburn have worked tirelessly to ensure that we continue to advance Charleston deepening for the benefit of our state, our region and the entire nation. We are deeply appreciative of their efforts."

More than 20,000 companies in two dozen states use the Port of Charleston to access global markets, they state. The businesses ship goods worth $50 billion a year through the Charleston Customs District and pay more than $600 million in duties into the General Treasury annually.

 Given national manufacturing, distribution, agricultural and export growth, along with the Panama Canal expansion in 2014, the U.S. needs a South Atlantic port able to efficiently handle larger ships calling in greater frequency over the coming years.

 Charleston already has the deepest channels in the region and routinely handles the biggest ships calling the U.S. East Coast today. While Charleston can accommodate vessels drawing up to 48 feet by using the tides, further deepening will open the port to expanded trade via the world's most modern ships under any tidal condition.

 The Corps stated in its Reconnaissance Study in 2010 that Charleston is likely "the cheapest South Atlantic harbor to deepen to 50 feet." Charleston's harbor deepening project is estimated to deliver $106 million in net benefits annually for an approximately $140-million federal investment. The total deepening project is estimated at $300 million.