Features

Gateway at a Glance: Southeast

Southeast ports are preparing for explosive growth in the coming decades. New contenders have emerged, and traditional leaders are struggling to keep pace. Competition is fierce as ports jostle for market share.

Rising costs and congestion at west coast ports have forced shippers to seek alternative gateways to the United States. Southeast ports are well positioned to serve over 170 million U.S. and Canadian customers within 24 hours of their docks. When the Panama Canal expansion project is completed in 2014, larger ships will make Southeast ports even more competitive in attracting imports from Asia.

An expanded canal will bring larger vessels, and only ports offering adequate depth, along with sufficient terminal capacity and the ability to efficiently move cargo, off the docks will capture this trade.

Depth and terminal capacity are major concerns at most Southeast ports. Dredging and terminal construction projects are costly and time consuming. The race is on as Southeast ports prepare for unprecedented growth.

Norfolk
The Virginia Port Authority operates three major deep-water facilities within 15 miles at the mouth of Hampton Roads Bay. The port recently reconfigured terminal operations. Break bulk cargos have been concentrated at the Newport News Terminal, while Norfolk International and Portsmouth handle container traffic.

Norfolk is the port’s largest terminal and boasts the world’s largest container cranes. The Suez class cranes measure 219 feet and can work container ships stacked 22 across.

Norfolk is the only major Southeast port not constrained by depth. The channels are 50 feet deep at mean low water, but the port has approval from the Army Corps to extend their channels to 55 feet, should the need arise.

In 2010, Norfolk Southern Railroad’s ‘Heartland Corridor’ will be complete. The project has cleared 28 tunnels in order to provide clearance for double-stack rail cars. Upon completion, dedicated overnight and second morning rail service to Columbus and Chicago, respectively, will be possible from Norfolk.

The port is also working to develop a new terminal at Craney Island. The current economy has temporarily delayed construction, but the port still plans to complete the design and permitting process for the new terminal by early next year. At full build-out, the 600-acre facility is expected to move upwards of 2.5 million TEUs annually. The new timeline calls for completion of phase 1 between 2017-2019. The facility is expected to be fully operational by 2035.

Jaxport
The Jacksonville Port Authority is an established leader in automobile handling. Last year, they ranked second in the nation, behind New York/New Jersey, in total vehicles moved. The port is diversifying its cargo base.

In 2002, work began on a project to deepen the 23-mile stretch of the St. Johns River connecting the port to the Atlantic. The project is expected to be complete in early 2009, giving the port a mean low water depth of 40 feet. Studies are underway for a subsequent dredge project that would deepen the channel to 45 feet. The port hopes to begin work on the 500 million dollar project in late 2009.

A new container terminal was recently completed at Gaines Point. The facility was built in conjunction with MOL of Japan. In January, MOL will take over terminal operations and begin moving cargo through the facility, which has an annual capacity of 1 million TEUs.

Jaxport and Hanjin of Korea recently reached an agreement to build a $360 million dollar container terminal. Hanjin and Jaxport hope to have the facility built by 2012. Once completed, the terminal is expected to have capacity to process 1 million TEUs annually.

Wilmington
The North Carolina Port Authority operates in Morehead City and Wilmington.
In 2004, a dredge project was completed, bringing Wilmington to a depth of 42 feet. In the past two years, a number of highway infrastructure projects have been completed, improving ports access to I-85 and I-95.

A new terminal is in the initial planning stages. The NC International Terminal is being planned at 600 acres of undeveloped land in Brunswick County. The project is expected to cost at least $1.7 billion. Related infrastructure improvements for land and waterside access are estimated to cost an additional $600 million.

Charleston
The South Carolina State Ports Authority operates in Charleston and Georgetown. Charleston, the southeast’s long-time leader in container traffic, lost its dominant position to Savannah in 2006, and more recently to Norfolk.

Charleston is operating at capacity, moving 2 million TEUs annually. Existing facilities are being expanded, and construction of a new terminal is underway. The port hopes to double capacity.

Expansion of Charleston’s largest container facility, Wando Welch Terminal, was recently completed. A fourth container berth and 90 additional acres of yard space were added and are expected to increase productivity by 10 percent. Another expansion under consideration would add an additional 10 percent.

In 2000, a proposal to build a new $1.4 billion, 1,200-acre terminal at Daniel Island was stymied by strong local resistance. A new project at the former Charleston Naval Complex is now underway. The state and the Army Corps have issued permits for the $600 million, 280-acre terminal. Preliminary work to prepare the site for consolidation and construction is well underway. The terminal’s 171-acre first phase is slated to open in 2014. The third, and final, phase of the project is expected to be operational by 2025. The completed terminal will be capable of moving 1.4 million TEUs annually.

Jasper Ocean Terminal
In January 2008, the GPA and the South Carolina State Port Authority (SCSPA) signed an agreement to develop a new port in Jasper County South Carolina. The port is to be jointly owned and managed by the two state port authorities.

In July, the SCSPA and GPA approved acquisition of 1,518 acres near the mouth of the Savannah River from the Georgia Department of Transportation for $7.59 million.
In October, Moffatt & Nichol was hired to conduct preliminary terminal planning studies and economic analyses for the new Jasper Ocean Terminal.

Savannah
The Georgia Ports Authority (GPA) operates deepwater ports in Brunswick and Savannah. In 2006, Savannah surpassed Charleston to become the top container port in the Southeast.

Much of Savannah’s growth is due to the port’s strategy of attracting high volume retail chains to Savannah’s abundant distribution space. Wal-Mart, Kmart, Home Depot, Lowes, Dollar Tree, Pier 1 Imports, and IKEA have all opened facilities in Savannah. Local distribution centers cover over 14 million square feet and generate more than 500,000 TEUs annually.

Savannah’s primary container facility, Garden City Terminal, moved 2.7 million TEUs last year. In anticipation of future growth in Asian trade, the Georgia Ports Authority will invest $1.2 billion in expansion projects over the next decade. Garden City Terminal is scheduled to add two high-speed super post-Panamax container cranes every 18 months, bringing the facility’s total to 25 cranes.

Theoretically, Garden City Terminal can move 6 million TEUs annually, however, channel depth is an issue. The Georgia Ports Authority is seeking to dredge 26 miles of the Savannah River Channel, taking it from 42 feet to a desired depth of 48 feet, to accommodate the larger ships that an expanded Panama Canal will bring.