By Karen E. Thuermer, AJOTGeorgia Ports Authority is readying itself for the future, despite the fact that seaports everywhere have been faced with diminished cargo volumes and less traffic due to the worldwide economic downturn. “We are doing well compared to other ports,” says John Wheeler, GPA director of Trade Development. “Figures for July 1 through December 31 show that our volumes were down only 3.7 percent on containers. This indicates we have weathered what has been going on pretty well.” While in past years ports often showed increases in trade, Wheeler refers to today’s lower volumes as the “new normal.” Important now is how GPA is positioning itsself for the future. That’s because officials expect trade volumes to not only increase again; container trade will dominate most of that business; intermodal will be a big factor; and more ships will continue shifting their routes through the Panama Canal after its expansion in 2014. They will also increasingly use U.S. East Coast ports over West Coast ports. Thanks to improved intermodal connections and an emphasis on saving costs, many shippers importing goods from Asia have already begun shipping via the East Coast to reach Midwest and East Coast markets rather than via mini-landbridge from West Coast ports. According to Wheeler, the port is benefiting from this migration. He attributes this to the fact that much container volume comes from big box retailers, which have been expanding their logistics network during the last decade by using East Coast ports as “the head of funnel.” “That stream of business is going to become a flood once the Panama Canal is expanded,” he says. According to Wheeler, GPA’s Port of Savannah will be able to handle that flood of business because the port has a lot of room to grow. Head of the Funnel The Port of Savannah may have accommodated 2.7 million TEUS last year before the recession hit, but its Garden City Terminal—the largest single container facility in all of North America, offers 1,200 acres and, therefore, can grow that capacity to 6.5 million TEUS per year. “This will happen over the next three years or so,” Wheeler tells AJOT. He points to the big box retailers and their decisions as to where to locate distribution centers as indicators why. “They say that if I am going to locate a distribution center (DC) near the population centers on the East Coast, it has to be near a port that they know can handle the surge in volume that is expected in 2014,” he says. Already scores of retailers have located large import DCs in and around the Port of Savannah. Among the 20+ big box retailers currently located within 100 miles of the port are Target, IKEA, Lowes, Pier One, The Home Depot, Wal-Mart, Kmart, and Dollar Tree. An additional 200+ DC’s operated for wholesale retail suppliers with names like Toys “R” Us, Bass Pro Shop and Academy Sports are located within a five-hour drive. These make up the largest concentration of import DCs along the East Coast. In addition, land and buildings are available within five miles of the port. Consequently, GPA has earned the nickname “Port Retail.” Fortunately, the same strategic advantages that propelled Savannah’s unparalleled growth remain in place: Cost competitive access to 80 percent of the nation’s population; a diverse sailing portfolio, particularly from Asia; fluid inland access to a large hinterland – rail, highway, intermodal; port-proximate development sites; ability to double current throughput levels; high throughput capabilities; terminal velocity; and unparalleled information systems. Intermodal Links The Port of Savannah’s intermodal links and their importance to the ports’ growth cannot be underestimated. “We are in a better position than any other terminal in the United States in that we have two Class I railways —Norfolk Southern and CSX, both located with on dock facilities here in Savannah,” Wheeler emphasizes. “No one else can say tha