Georgia Ports eyes Asia trade
Aiming for a larger slice of Asia's growing all-water container trade to the US east coast, the Georgia Ports Authority (GPA) is embarking on a US$1.2 million upgrade to accommodate a 10-12 per cent year-on-year growth in South-east Asia volumes via the Suez Canal.
'We're making investments today to accommodate Georgia's booming trade with Asia tomorrow,' said GPA vice-chairman Steve Green. 'Asia's economy continues to fuel world trade and is developing a vibrant domestic market for Georgia-made products.'
In 2006, nearly 8 per cent of GPA's two million TEUs (20-foot containers) of throughput consisted of direct imports and exports to South-east Asia, Port of Savannah (POS) - a GPA owned and operated facility - executive director Doug J Marchand said yesterday at a media briefing in Singapore.
The southern US port is a bit of an anomaly in that export cargo outweighs import cargo, in the ratio 52 to 48. The port's orientation also runs contrary to the current environment in which port authorities typically lease out their terminals to private operators and shipping lines.
'But it works best for us and it works best for the state,' Mr Marchand said, insisting that the port is as efficient as a privately run operation and that its customers are happy.
The GPA's two key ports of Savannah and Brunswick have a total of 24 Asia services, of which 18 are transpacific via the Panama Canal and the rest - three from South-east Asia and three from India/Middle East - use the Suez Canal.
This compares with its bigger northern rival, the Port of New York/New Jersey, which has 16 services via the Panama Canal and eight using the Suez Canal.
There is a growing trend towards moving cargo from South-east Asia via the Suez Canal rather than moving it through north Asian ports before going transpacific and then either overland from west coast US ports via the so-called 'mini-land bridge', or via the Panama Canal, according to the Savannah port's trade development director, John M Wheeler.
The GPA anticipates two more Suez services within the next three months - one from India and one from South-east Asia.
With these new services combined with the existing Suez services, of which the GPA attracted five Asia services last year alone, the authority is forecasting a 10-15 per cent growth in South-east Asian cargo volumes through its terminals, according to Mr Wheeler.
While transit times are relatively competitive through either the Panama or Suez Canals, there is a cost advantage to the all-water Suez route, Mr Marchand argues.
'Keeping ships on the water longer saves shipping lines money,' he said.
Although the transit fees are higher for the Suez than Panama Canal, the cost of transhipping in north Asia and any over-land US transport costs, make a direct South-east Asia service via the Suez more cost effective, he said, but was unable to give specifics.
Included in the upgrading will be terminal and dock improvements including dredging to increase the draft to 14.6 metres, as well as new equipment including four super post-panamax cranes.
'We're making investments today to accommodate Georgia's booming trade with Asia tomorrow,' said GPA vice-chairman Steve Green. 'Asia's economy continues to fuel world trade and is developing a vibrant domestic market for Georgia-made products.'
In 2006, nearly 8 per cent of GPA's two million TEUs (20-foot containers) of throughput consisted of direct imports and exports to South-east Asia, Port of Savannah (POS) - a GPA owned and operated facility - executive director Doug J Marchand said yesterday at a media briefing in Singapore.
The southern US port is a bit of an anomaly in that export cargo outweighs import cargo, in the ratio 52 to 48. The port's orientation also runs contrary to the current environment in which port authorities typically lease out their terminals to private operators and shipping lines.
'But it works best for us and it works best for the state,' Mr Marchand said, insisting that the port is as efficient as a privately run operation and that its customers are happy.
The GPA's two key ports of Savannah and Brunswick have a total of 24 Asia services, of which 18 are transpacific via the Panama Canal and the rest - three from South-east Asia and three from India/Middle East - use the Suez Canal.
This compares with its bigger northern rival, the Port of New York/New Jersey, which has 16 services via the Panama Canal and eight using the Suez Canal.
There is a growing trend towards moving cargo from South-east Asia via the Suez Canal rather than moving it through north Asian ports before going transpacific and then either overland from west coast US ports via the so-called 'mini-land bridge', or via the Panama Canal, according to the Savannah port's trade development director, John M Wheeler.
The GPA anticipates two more Suez services within the next three months - one from India and one from South-east Asia.
With these new services combined with the existing Suez services, of which the GPA attracted five Asia services last year alone, the authority is forecasting a 10-15 per cent growth in South-east Asian cargo volumes through its terminals, according to Mr Wheeler.
While transit times are relatively competitive through either the Panama or Suez Canals, there is a cost advantage to the all-water Suez route, Mr Marchand argues.
'Keeping ships on the water longer saves shipping lines money,' he said.
Although the transit fees are higher for the Suez than Panama Canal, the cost of transhipping in north Asia and any over-land US transport costs, make a direct South-east Asia service via the Suez more cost effective, he said, but was unable to give specifics.
Included in the upgrading will be terminal and dock improvements including dredging to increase the draft to 14.6 metres, as well as new equipment including four super post-panamax cranes.