The Ro-Ro business has been growing at a record clip for the GPA (Georgia Ports Authority). The authority has $10 million in expansion studies underway to determine how to keep pace. With two primary facilities – one in Brunswick and one in Savannah – the Georgia Ports Authority (GPA) continues to see record breaking Ro-Ro (Roll On-Roll Off) traffic with no slowing in sight. While the Savannah port primarily concentrates in movement of heavy machinery including construction, mining and the like, the Brunswick facility is very much focused on automobile imports and exports. So much so, that they have dedicated a large portion of their Colonel’s Island terminal as an autoport.
While the heavy machinery side of the business (John Deere, CAT, etc.) experiences “constant ebbs and flows”, that has not at all been the case on the automobile side according to GPA Executive Director Curtis Foltz.
Colonel’s Island occupies a total of 1,700 acres, 700 of which are currently developed and servicing Ro-Ro carriers. The island sees imports and exports from across the globe making it the second busiest port in the U.S. for total Ro-Ro cargo and trailing only Baltimore. Perhaps more impressively, the port holds the number one spot for auto imports thanks to the distinctive list of ocean carriers, which call the port including Hoegh Autoliners, American Ro-Ro Carriers, K-Line America Inc., Wallenius Wilhelmsen Logistics, NYK Bulkship (USA), Inc., Mitsui Osk Bulk Shipping (USA), Inc. and Eukor.
Honda a Good Fit
In addition to the plethora of automobiles the port has traditionally watched roll in and out, a new agreement will bring import business from Honda. Specifically, the 2015 Honda Fit, which is built at the carmaker’s new plant in Celaya, Mexico, will move into the U.S. for southeast distribution through Brunswick.
“Highlighting the truly global nature of auto manufacturing, a Japanese company building cars in Mexico has chosen Georgia’s deepwater ports as a vital gateway to the U.S.,” said Foltz.
GPA Executive Director Curtis Foltz
While Honda has used the port previously to export its U.S. – made vehicles, this marks the first time the company will use the port for imports. In addition to Brunswick, Honda will also use Davisville, R.I. and Baltimore, Md., to push the Fit into East Coast markets. This new Honda business was announced less than two months after an announcement that Porsche’s hybrid supercar, the 918 Spyder, had begun distribution along the U.S. East Coast via the Port of Brunswick.
Porsche company officials said the terminal’s proximity to East Coast markets made it the best option to reach buyers in states ranging from Florida and Georgia through North and South Carolina, Tennessee, Alabama, Mississippi and Louisiana.
Of course these two pieces of new business only punctuate GPA’s success in the market. The port also plays host to imports from Subaru, Toyota, Hyundai, Kia, Volkswagen, Audi, BMW, Nissan and Mercedes and exports from some U.S. manufactured vehicles. Eight automobile manufacturers even have offices on Colonel’s Island - Glovis America, Inc.; Jaguar Cars; Land Rover North America; Porsche Cars of North America, Inc.; SAAB Cars USA, Inc.; Volkswagen of America, Inc.; BMW North America, LLC and Volvo Cars of North America, Inc. as do the following four auto processors – Amports; Atlantic Vehicle Processors; BMW of North America and International Auto Processing, Inc.
The success of the Ro-Ro operation, according to Foltz is due to several factors, including a “great labor source to support it.” He also explains that the port’s strategic advantages include access to two Class 1 railroads, both of which are equally able to service the terminal, the strength and demographic of the southeastern part of the U.S., and a prime location only 2.5 miles from major north/south and east/west interstates - I-95 and I-16.
With the automobile sector of the U.S. economy still extremely strong, growth continues. According to Foltz, the U.S. market for autos has rebounded from prerecession numbers of about 10 million to about 16 million auto sales per year. The port has mirrored that growth handling almost 640,000 automobiles last fiscal year and will exceed that number by 40-50,000 as this year’s fiscal year comes to an end in the coming month. In March, a record number of Ro-Ro units – more than 64,000 – crossed GPA docks representing a 21% improvement over the previous year’s figures.
“It’s been a great story for us,” said Foltz. “One of the growth drivers has been that the space for servicing this business across the U.S. is limited.”
With an additional 1,000 acres of expansion available, the port can continue to flex to meet the needs of its customers. “We have about $10 million targeted for expansion studies, parking area and gate upgrades in the coming fiscal year,” said Foltz - a definitive nod to their continued commitment to the Ro-Ro market.
Fast Terminal
And while GPA’s story is certainly a remarkable one, they aren’t the only ones seeing an expansion in Ro-Ro cargo volumes. SC Line has experienced similar growth in their operations, which services car and truck manufacturers in Mexico along with exporters in South America. As the only RO-RO steamship line to offer a regular connection from the east coast of Mexico and from Port Everglades, Fla., to Venezuela, SC Line has had to establish what they call “Fast Terminal” to accommodate the volume increase in cars, trucks and heavy machinery that they are experiencing.
“Fast Terminal was created to serve the OEM industry by specializing in inventory control with the capacity for over 70,000-vehicles with three current locations: Port Everglades, Fla., Manzanillo, Mexico and Santa Marta, Colombia,” said Ignasi Sola Matas, SC Lines trade and marketing manager.
According to ITA (International Trade Administration), the U.S. automotive industry is the largest manufactured goods export sector and accounted for more than $51 billion in 2012. This number has undoubtedly grown again since those numbers were released and will continue to be a segment to watch as ports like GPA and carriers like SC Lines capitalize on the robust Ro-Ro market.
