AnchorAge, Vol. 47, no. 1 (1st quarter 2007)

GEORGIA PORTS AUTHORITY
2007 VOLUME 47 NO. 1
Focused On The Future:
GPA's Operations Infrastructure Improvements and Preparations for Record Volumes

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In This Issue
2007 Volume 47 No. 1
COVER STORY
Focused On The Future: GPA's Operations Infrastructure Improvements
and Preparations for Record Volumes...........................................................................................................................................12

GEORGIA PORTS AUTHORITY

Photo: Russ Bryant
Feature
Governors Perdue, Sanford Announce Bi-State Port Proposal................................................................8 Governors Perdue, Sanford Appoint Bi-State Port Task Force Members ............................................9 Deepening Stakeholder Group Reaches Milestone Meeting ..................................................................10 Focused On The Future: GPA's Operations Infrastructure Improvements and Preparations for Record Volumes ............................................................................................................12 Port Security: How K9 Units Protect Georgia's Deepwater Ports ........................................................14 People, Plan and Product: Initiatives in Trade Development ..................................................................16 TransPacific Maritime Conference Reinforces Savannah's Role............................................................20 Associating With The Associates ......................................................................................................................21
Emerging Markets
Shanghai International Port Group: A Strong and Growing Terminal Operator ............................26 GPA Hosts Third Annual China Trade and Logistics Conference: Savannah Leads in China-South Atlantic Trade ..........................................................................................28
Carrier Services
UASC, M/V Al Abdali Maiden Voyage..............................................................................................................33
Economic Development
Target: Third-Party Logistics Providers ..........................................................................................................30 Welcome to Port Retail ........................................................................................................................................32
Sailing Schedule ..........................................................................................................................................22
WWW.GAPORTS.COM

ROBERT C. MORRIS Editor (912) 964-3855
KAREN WILDS Managing Editor (912) 964-3885
AMY SHAFFER Copy Editor (912) 964-3806
JUDY WOLFE Advertising Associate (912) 964-3855
gaports.com
The Georgia Ports Authority AnchorAge is the official publication of the Georgia Ports Authority, published quarterly and distributed free of charge to more than 9,000 readers worldwide.
This publication is not copyrighted and permission is given for the reproduction or use of any original material, provided GPA's External Affairs office is contacted.
GEORGIA PORTS AUTHORITY ANCHORAGE P.O. Box 2406 Savannah, GA 31402 Phone: (912) 964-3855 Toll Free: (800) 342-8012 Fax: (912) 964-3921 Email: rmorris@gaports.com
Cover Photo: Russ Bryant
3

AUTHORITY MEMBERS
Georgia Ports Authority

MACK MATTINGLY
Chairman
ST. SIMONS

STEVE GREEN
Vice Chairman
SAVANNAH

SUNNY PARK
Secretary/Treasurer
ATLANTA

ZACKARY AULTMAN
Member
ALBANY

MAXINE H. BURTON
Member
BOGART

DONALD CHEEKS
Member
AUGUSTA

CLINT DAY
Member
NORCROSS

HUGH GILLIS
Member
SOPERTON

RUSTY GRIFFIN
Member
VALDOSTA

JIM LIENTZ
Ex-Officio Member
ATLANTA

BARTOW MORGAN, Jr.
Member
LAWRENCEVILLE

JOHN NEELY
Member
MAUK

HUGH M. TARBUTTON
Member
SANDERSVILLE

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Professionalism

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4

GPA ANCHORAGE

Perspective: Doug J. Marchand
Georgia's Ports: On the Cutting Edge of New Technologies

PERSPECTIVE

Among the cutting edge technologies being developed at GPA is the Automated Terminal Asset Management System (ATAMS). ATAMS is a system that identifies trucks with RFID tags, as well as containers and chassis with smart cameras. Additionally, the system monitors yard equipment and provides live yard location updates using a differential global positioning system. In a nutshell, ATAMS links all systems in the field with a wireless network, thereby providing a seamless flow of cargo movement.

At a time when greater efficiency and security are required to stay ahead of the growth curve and outpace the competition, it is critical that we develop new technologies to meet the needs of our customers and community. To meet these growing demands, the Georgia Ports Authority (GPA) is working hard to develop and implement new technologies. Information technology (IT) and research and development are major components of GPA's long-term strategic plan to stay ahead of the growth curve and provide customers with the highest degree of service.

Another example of cutting-edge technology at GPA is the new web-based system known as COAT. The system, which was created in partnership with the U.S. Customs and Border Protection (CBP), represents the four major processes of CBP: ATCET (Contraband Enforcement Team), Outbound, Agriculture and Trade. COAT provides an innovative solution as a real-time container inspection tracking system that improves critical communication between GPA and CBP.
Through cutting-edge technologies like the ATAMS and COAT systems, the Georgia Ports Authority is outpacing the competition and redefining the pace of trade.

The role of technology at GPA is to meet the challenges of exponential growth, while supporting the strategic direction of the organization. Eliminating delays and implementing improvements, while maintaining reliability and production and providing services and features that differentiate GPA from the competition, are a few examples of how technology is the solution for customer satisfaction.

Doug J. Marchand, GPA's executive director

Executive Staff
DOUG J. MARCHAND Executive Director
CURTIS J. FOLTZ Chief Operating Officer
DAVID A. SCHALLER Chief Administrative Officer
THOMAS H. ARMSTRONG Director of Strategic Development and Information Technology
LISE MARSHALL Director of Human Resources
ROBERT C. MORRIS Director of External Affairs
MARIE H. ROBERTS Director of Finance
WILSON TILLOTSON Director of Engineering and Maintenance
JOHN D. TRENT Director of Operations
JOHN M. WHEELER Director of Trade Development

WWW.GAPORTS.COM

5

PORT OF SAVANNAH AND CHINA

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FEATURE
Governors Perdue, Sanford Announce Bi-State Port Proposal

both Georgia and South Carolina. Commerce doesn't begin or end at a line drawn on a map, so it was crucial for the two states to come together and ensure that prosperity continues."
South Carolina's Governor Mark Sanford said: "If South Carolina and Georgia are going to maintain our respective competitive advantages when it comes to being Southeastern shipping destinations, the time to act is now. This proposal Governor Perdue and I are making is an incredibly important step toward that end, and I think it represents our best chance to get this port built sooner rather than later."
The bi-state port proposal will accomplish the following:

Create a bi-state port authority to be
owned on a 50-50 basis.

Authorize the Georgia Department of
Transportation's sale of its right, title and interest in the Jasper terminal site to the bi-state port authority for its fair market value.

Photo: Stephen Morton Governors exchange ties as a symbolic gesture of their commitment to work together on the Jasper port concept.

Fund (with each state bearing one-half
of the cost) the bi-state port authority land acquisition, administrative costs related to its accomplishment of its responsibilities, etc.

G

eorgia Governor Sonny Perdue and South Carolina Governor Mark Sanford jointly announced a bi-state port proposal on March 12, 2007. The proposed port, located in Jasper County, S.C., would be owned, developed and operated

jointly by the State of Georgia and the State of South Carolina. According to

the proposal, both states would form a bi-state port authority with a bi-state compact, which

must be approved by legislatures of both states and ratified by the U.S. Congress. The proposed

port location in Jasper County is currently owned by the Georgia Department of Transportation.

"The announcement marks an historic day in the long-term economic viability of this region," said Governor Sonny Perdue. "Governor Sanford and I have proposed a plan that will benefit

Immediately petition the U.S. Army
Corps of Engineers for a relocation of the spoil easement on the property.
Ask for private companies to
submit proposals to participate in the development of the first phase of the Jasper terminal site using private capital.

8

GPA ANCHORAGE

FEATURE

Governors Perdue, Sanford Appoint Bi-State Port Task Force Members

G

eorgia Governor Sonny Perdue and South Carolina Governor Mark Sanford announced on April

4, 2007, six members appointed

to the task force that will jointly develop a

proposal for a port in Jasper County, S.C.

Task force members appointed by Governor Perdue include: Chief Operating Officer for Governor Perdue Jim Lientz, State Senator Jack Hill and former CEO of Acuity Brands Jim Balloun. South Carolina representatives selected by Governor Sanford include: Chief of Staff for Governor Sanford Tom Davis, SC Ports Authority Chairman Bill Stern, and former SC Ports Authority Chairman Bill Bethea.

An additional group of three advisory members were appointed by Governor Sanford to provide input and expertise during the process of drafting the bi-state compact. The advisory members are Gayle Averyt of Columbia, former chairman of Colonial Life Insurance; Jim Micali of Greenville, chairman and president of Michelin North America; and David Maybank III of Charleston, president of Maybank Properties, LLC. Governor Perdue also said members of Georgia's business, financial and maritime communities will be called upon to advise the Governor and the task force as the need arises.

request by the Georgia DOT, show that we are committed to this process."
"Today's announcements are an important step for both states as we continue down this cooperative path," Gov. Sanford said. "Putting this committee together and the fact that Georgia has already made its easement release request both show that our respective states are committed to the idea of getting this port built sooner rather than later."
Task Members Biographical Sketch
Jim Lientz -- As chief operating officer for Governor Perdue, Lientz oversees the leadership, management, and supervision of state departments, agencies, and their respective boards and commissions. He is an ex-officio member of the Georgia Ports Authority Board of Directors. He and his wife Peggy have three daughters and six grandchildren.
State Sen. Jack Hill -- Senator Jack Hill, of Reidsville, is chairman of the Senate Appropriations Committee, and also serves on the Ethics, Natural Resources and the Environment, Regulated Industries and Utilities and Rules committees. Sen. Hill and his wife Ruth Ann, a retired elementary school principal, are the parents of three children and five grandchildren.
Jim Balloun -- Jim Balloun retired as chairman and chief executive officer of Acuity Brands, Inc. on September 1, 2004. He is the former chairman, president, and chief executive officer of National Service Industries, where he led the company for five years prior to the spin-off of Acuity Brands, Inc. in November 2001.
Tom Davis -- Tom Davis serves as chief of staff to Governor Mark Sanford, where he oversees all day-to-day operations of the Governor's office. Davis resides in Beaufort with his wife and three daughters.
Bill Stern -- Bill H. Stern is president and CEO of Stern & Stern and Associates, a commercial real estate development company doing work throughout the southeast. Stern is chairman of the South Carolina State Ports Authority. Stern lives in Columbia, S.C., with his wife Linda. They have three sons.
Bill Bethea -- William L. Bethea, Jr., is senior vice president and general counsel of Chaffin/Light Associates Co. Bethea currently resides near Bluffton, S.C., with his wife, Paula.

Additionally, according to Governor Perdue, the process is underway to petition the U.S. Army Corps of Engineers to release or modify the easements on the Jasper County property.

"I look forward to the great work this task force will perform on behalf of our two states," said Governor Perdue. "I am hopeful that these appointments, and the easement

Photo: Stephen Morton
The proposed bi-state port will be built on land currently owned by the Georgia Department of Transportation in Jasper County, South Carolina.

WWW.GAPORTS.COM

9

FEATURE
Deepening Stakeholder Group Reaches Milestone Meeting

A t its latest meeting on the proposed deepening of the Savannah River harbor, the Stakeholders Evaluation Group (SEG) reached the milestone of its 100th month anniversary. Created by the Georgia Ports Authority (GPA) in cooperation with resource agencies and area stakeholders, the SEG was tasked to identify all predicted and potential environmental impacts, identify studies to address impacts and reach consensus on a mitigation plan to fully and adequately address impacts of the Savannah Harbor Expansion Project's (SHEP) goal of deepening the Port of Savannah up to 48 feet.

Incorporating external peer review
for three project issues/studies: the modeling, economics and aquifer; and
Inclusion of 11 additional SEG-identified
studies, which have been funded by the project sponsor and the US Army Corps of Engineers.

Despite the membership of the group remaining open, the broad representation of community, commercial and environmental interests, and federal and state agency representatives has maintained a fairly stable environment of cooperation.
In its capacity as the project sponsor, the GPA has supported the SEG process and provided funding for studies and administrative support. The GPA's involvement has been guided by its charter responsibility to serve Georgia business, while maintaining the natural quality of Georgia's coastal and river environment.
The SEG's early and consistent involvement in the project has been an integral and essential component of the project. This involvement has benefited the proposed project by:
Allowing the project sponsor to reach stakeholders in a more organized fashion and
address problems constructively;
Fostering working relationships with disparate parties; Encouraging inquiry and full vetting of issues; Enabling education of diverse stakeholders of the scientific studies and body of
knowledge gained;
Enabling the U.S. Army Corps of Engineers and project sponsor to receive and merge into
the project more timely input and feedback throughout the process, rather than fixing problems at the end of the process;

According to GPA Chief Administrative Officer David Schaller, "The SEG process has had some bumps along the way, especially in the beginning, but has really proven to be a tremendous resource for all interested parties to find solutions before major problems are created and cannot be reversed. The GPA is quite proud of its involvement in this process and hopes that we can serve as a model for future projects of its kind throughout the U.S."
"We are proud of our commitment to excellence and innovation," continued Schaller after attending the milestone meeting. "We are looking forward to the final approval of this vital project in the near future with the full cooperation and support of every stakeholder and interest group it affects."

Members of the Stakeholders Evaluation Group (SEG), reached the 100th month anniversary milestone in March 2007. SEG, a group created by the Georgia Ports Authority, is a partnership with resource agencies and area stakeholders tasked to identify all predicted and potential environmental impacts, as well as identify impact studies and reach consensus on a mitigation plan. The plan will address impacts related to the Savannah Harbor Expansion Project's (SHEP) goal of deepening the Port of Savannah up to 48 feet.

10

GPA ANCHORAGE

FEATURE
Focused On The Future:
GPA's Operations Infrastructure Improvements and Preparations for Record Volumes
By Michael White

Photo: David Smalls

T

he right tools for the right job could well be the motto for the Georgia Ports Authority (GPA). The GPA has unveiled new plans to improve its cargo handling facilities and invest in the latest equipment to stay ahead of the phenomenal cargo growth

forecasted for Georgia's ports.

The most critical improvement to the GPA's already world-class infrastructure is the ongoing Savannah Harbor Expansion Project, which calls for deepening of the port's main shipping channel from 42 feet up to 48 feet.

"This critical project will give us the ability to handle the latest generation of vessels serving the world's trade lanes," said GPA's Executive Director Doug J. Marchand. "It will make us even more attractive to carriers wanting to improve their service profile to the southeastern United States."

Efforts to deepen Savannah's harbor are part of a much larger, comprehensive plan to expand capacity and maintain Savannah's position as the fastest growing port in the nation.

Last summer, the GPA's Board of Directors approved an aggressive 10-year, $1.2-billion capital improvement plan giving the GPA the tools it needs to enhance its cargo handling capability.

With the newest Container Berth 8 (CB-8) dock completed, GPA is scheduled to complete the paving of 42 acres of the 72 total acres container storage space by March 2008. Fifteen additional rubber-tired gantry cranes will go into service by July 2007, and four super postPanamax container cranes scheduled for delivery in the first half of 2008. "This new equipment will enable us to handle cargo density as volumes increase and demands on the ports' infrastructures become more intense," said Curtis Foltz, GPA's Chief Operating Officer.

In Brunswick, the expansion of the Anguilla Junction marshalling yard, as well as the construction of the Overton Junction rail connector and the Colonel's Island viaduct, are key components to the port's future growth. Together, these projects will further enhance

Photo: Russ Bryant 12

GPA ANCHORAGE

FEATURE

Photo: Russ Bryant

terminal access and accommodate projected growth for cargo transiting the Colonel's Island Terminal.
In addition, work to deepen Brunswick's channel to 36 feet is scheduled to be completed in 2007.
Brunswick alone saw its cargo throughput increase by 11 percent in FY2006 with a record 2.6 million tons of bulk commodities and a record 379,001 autos and machinery units handled at its terminals.
Container throughput at Savannah also reached record levels last year.
The port handled 2.16 million twenty-foot equivalent units (TEUs) in 2006, a 14-percent increase from the previous year, making Savannah the fourth largest container port in the U.S. This achievement is largely driven by the growing number of retailers such as

IKEA, Target, K-mart/Sears, The Home Depot, and Wal-Mart with Southeast regional distribution centers.
In the past year, several major ocean carriers have introduced new or improved existing routings through Savannah and Brunswick.
In April 2007, Maersk Line announced the addition of the MECL2 service that provides direct service from Chennai/Madras, India. The service also provides Southern India with a unique direct link to and from the United States by allowing Chennai/Madras, India to act as a transshipment hub for cargo to and from Visakhapatnam, Calcutta/Haldai and Bangladesh. Additionally, the MECL2 provides improved service reliability in the Middle East and Indian Subcontinent.
In January 2007, the GPA and Maersk Line, the world's largest shipping line, signed a 20year agreement making the Port of Savannah

one of its primary South Atlantic ports of call. Simultaneously, Maersk Line inaugurated a new service utilizing six modern containerships to link Savannah with the ports of Alexandria, Haifa, Izmir, and the Italian ports of Gioria Tauro and Cagliara.
"The GPA has a global reputation as being forward thinking in our strategic planning," said John Trent, GPA's Director of Operations. "As a result, shippers look at us as a partner to help them grow their business, while carriers see us as perfectly situated to optimize their cargo-carrying potential."
The GPA has fostered a genuine partnership between those that use the port as a gateway for cargo and those who offer and support the services making that happen.
"That's what makes us different," said Marchand. "We haven't taken our eye off the future and it shows."

WWW.GAPORTS.COM

13

FEATURE
GPA and CBP Develop Real-time Inspection Tracking Software

T

he Georgia Ports Authority (GPA) has developed, in partnership with U.S. Customs and Border

Protection (CBP), a real-time

container inspection tracking system that

improves critical communication between the

GPA and CBP.

This new web-based system, known as COAT, was launched in first quarter 2007. The system is named COAT to represent CBP's four processes: ATCET (Contraband Enforcement Team), Outbound, Agriculture and Trade. COAT allows local CBP officers to notify GPA when a container is designated for inspection, creates work orders to move containers through the inspection process, updates seal changes and tracks the release of individual containers all in real time.

"At a time when greater efficiency and security are both required to grow container operations, it is critical that we develop new technologies to meet our needs," said Doug J. Marchand, GPA's Executive Director. "The COAT system does exactly that."

COAT is accessible to CBP anywhere its officers have Internet access and replaces a stand-alone database system previously used in-house by CBP in Savannah. The COAT system is directly integrated with Navis Express at the Port of Savannah. GPA's customers may track shipments online through Express in real-time.

"Thanks to the ingenuity and expertise of GPA's information technology department, Client Relations Center, and CBP personnel, the COAT system offers a win-win for security and customer service," said Tom H. Armstrong, GPA's Director of Strategic Development and Information Technology.

The COAT software, GPA's latest information technology development, also alerts CBP to the location of held containers in the process of being cleared, making the port secure.

"Although the Automated Manifest System (AMS) is the sole release notification system for the trade community, the development of COAT to track containers has minimized the possibility that cargo exits the port without inspection," said Lynn Brennan, CBP Acting Port Director for Savannah. "COAT enables our officers to know exactly where a shipment is in the inspection process strengthening our enforcement posture while facilitating the release of cargo."

14

PORT SECURITY
How K9 Units Protect Georgia's Deepwater Ports
By Betty Darby

T

o ensure national security, the Georgia Ports Authority (GPA) turns to some of the newest technology known to man, such as passive radiation detectors, and to some of the oldest the nose of a dog.

Over-the-road trucks and employee vehicles are checked routinely upon entering the port property. Mirrored devices enable security personnel to see beneath vehicles. In fact, every part of a vehicle must be accessible to search, so drivers quickly learn they cannot enter the port if they cannot open their trunks or cargo areas for inspection.

At least twice a month, at random times, these thorough search measures get an additional boost. The trained snout of a Belgian shepherd joins the routine screening at both the Port of Savannah and the Port of Brunswick.

By working on an unpredictable random schedule, the dogs' services are a real deterrent to potential acts of terrorism. When the U.S. Coast Guard believes the threat of an attack is higher, however, explosive-detecting dogs will work overtime like their human counterparts.

The dogs' work schedule is keyed to the Coast Guard's three-tiered Maritime Security (MARSEC) levels. Each of the three levels carries with it a designated action plan. The random and occasional use of dog-assisted searches are part of the lowest level, MARSEC Level 1. At the higher levels of security, enacted when threats are seen to be heightened, the dogs take a progressively more active role in searches at the port entrances.

Law enforcement has learned to use the talents of trained dogs to assist in a variety of ways, from sniffing out contraband drugs to tracking fugitives. In a security-conscious environment such as the facilities of the GPA, it is the dogs' ability to find weapons and explosives that earns them a place in the security plan. But these highly trained animal officers are expensive, due to their rigorous training requirements. The port police partner with other law enforcement entities the Chatham County Sheriff's Department for the Port of Savannah and local police departments for the Port of Brunswick to provide this remarkable and effective service.

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FEATURE

PEOPLE, PLAN and PRODU

By John Powers

Initiatives in Trade

PEOPLE
In the competitive arena of port marketing, there are three target groups: carriers, cargo owners and third-party logistics providers (3PLs).
To successfully solicit a diverse steamship roster, Georgia Ports Authority (GPA) relies on representatives with carrier backgrounds. John Wheeler, Director of Trade Development said: "We want people who can speak the carriers' language. They must know what carriers are looking for in terms of market penetration and port pair selection. Then, we equip them with tailored trade lane and transit specifics to make a winning case."
GPA's most recent hires reflect this strategy. John Petrino, GPA's new General Manager of Trade Development, spent two decades trotting the globe with Maersk. Gordon Hammer brings his long experience with Wilhelmsen to his new role as head of GPA's Client Relations Center. Greg Ciggelakis, a veteran GPA player who heads carrier sales efforts in New York, cut his transportation teeth with Hyundai and POL and is connected at the highest levels in the nation's major carrier hub.
Internationally, carrier and cargo sales are handled through GPA offices in Japan, Norway and Argentina, and by GPA's proven partner, Barwil. On the U.S. side, shipper solicitations are handled by Bill Jakubsen and the GPA's Cargo Sales Team.
Wheeler also envisions a key role for the recently formed Inside Sales Group. "This

group will reach out electronically and telephonically to communicate ship schedules, routing options and transit advantages to current customers and prospects."
Stacy Watson, GPA's head of economic and industrial development, is spearheading efforts to entice 3PLs to Savannah.
PLAN
As Savannah has become a true global port, the nature of the competition has changed. "Charleston, Jacksonville and New York are not our major competition any longer. It's the West Coast," said Roberto Rodriguez, GPA's General Manager of Marketing and Business Development. He said that the new goal is to make sure carriers and cargo owners who have been locked into routing patterns for decades understand that there is an alternative. "There are still people in Asia and even Europe who have no idea what we have to offer as a competitive port," he said.
The answers to the following three basic questions often turn the tide in Savannah's favor:
Where is cargo actually going? Where are the consumers? Which port is best positioned to
serve them?
One specific trade lane is currently the subject of close attention. Traditionally, goods produced in Southeast Asia and India for U.S. markets have first moved to ports like Kaohsiung and Hong Kong. There, they were transloaded for shipment to the U.S. West Coast, followed by mini-landbridge routing to inland points.

As standards of living in China have risen, more importers are turning to lower-cost sources in places like India and Vietnam. GPA is actively courting ocean carriers to serve these markets via the Suez, lowering transit days, transshipment hassles and shipping costs. Factor in the absence of vessel size constraints in the Suez, and the option becomes even more viable. "Savannah will become the funnel for these cargoes for the South and Midwest," said Wheeler.
If one word characterizes the GPA sales approach, it's "tailored." Marketing support qualifies decision-makers, analyzes trade lane and freight patterns and creates compelling electronic presentations and collateral materials. "Nobody else has taken the customer-centric marketing approach that we have," said Rodriguez.
For carriers, GPA representatives come armed with detailed information as to:
Freight destinations by trade lane. Ocean transits. Inland road and rail connections. Surface transits. Handling efficiencies and cargo
throughput velocity.
Shippers are approached with much of the same information, plus carrier options, distribution center site availability, and rosters of logistics service providers.
"In a nutshell, the approach is to make an irrefutable case as to why cost and operational factors dictate that ship and cargo deserve to be in Savannah and Brunswick," said Petrino.

16

GPA ANCHORAGE

CT
Development
PRODUCT
There are two models for port development. Traditionally, many ports have opted for a "Build it, and they will come" model, where they rely on investment to spur growth. The GPA employs a different approach. Constant testing of customer trade objectives and future operational demands drives intelligent development. Rodriguez said, "We actively go and find the markets, then develop our physical plant and service capabilities in a way that will generate earliest return on our infrastructure investment." Sound business philosophy for the GPA... terminals that perform for shippers and carriers. Home of the fourth-ranked port in the country, the GPA has built a team determined to sustain double-digit growth. The cookie cutter has been replaced by a tailored marketing approach that targets optimal trade lanes, carriers, shippers and third-party providers. A long-range capital improvement plan, driven by customer input, will provide the equipment, technology and infrastructure for a robust future. People, plan, product... GPA's blueprint for global prominence.
WWW.GAPORTS.COM

FEATURE
Photo: Russ Bryant 17

FEATURE

TransPacific Maritime Conference Reinforces Savannah's Role
by John Powers

T

his is how John Petrino, Georgia Ports Authority's (GPA) General Manager of Trade Development

described the 2007 TransPacific

Maritime Conference (TPM). "Because this

represents the largest trade in and out of

North America, and also for Savannah, it

makes great sense for us to be there."

This year's event, staged in Long Beach, Calif., lived up to its reputation for attracting both high quality speakers and a highpowered audience. The diverse registration list included shippers, carriers, terminal operators and port interests.

GPA attended with specific strategies in hand. "There is still a lingering notion that the

West Coast is THE place to go for cargoes from North and Southeast Asia," said John Wheeler, GPA's Director of Trade Development. "We want to take the opportunity to clearly demonstrate to shippers and carriers that much of that cargo should move through Savannah. From cost and transit perspectives, there's a great deal of convoluted routing. We can show them a better way."
Of particular interest to GPA was a panel on Inland Point Intermodal (IPI). With many carriers shaving their list of inland delivery points, port-based transload operations assume greater importance. The GPA team used the opportunity to explain to fellow attendees that Savannah's combination of

efficiency, location, carrier roster and infrastructure make it the logical North American transload hub for Asian freight.
GPA congratulates the Journal of Commerce on another stellar event with the TPM conference. Fortunately, they are also the driving force behind the China Trade & Logistics Conference (CTL) which Savannah will again host June 4-5, 2007. Paralleling the TPM, it is the premier venue for information exchange related to the China trades.
For full particulars on the 2007 China Trade & Logistics Conference (CTL), please visit www.joc.com/conferences/ctl.

Photo: The Journal Of Commerce

20

GPA ANCHORAGE

FEATURE

Photo: Danica Grone

Associating With The Associates
by John Powers

I n the Wal-Mart corporate culture, everyone is an "Associate." So at the retail giant's recent Logistics Expo, associating was the order of the day.
"It's attended by everyone who's tied to (Wal-Mart's) distribution centers, warehouses, trucking operation... any function related to their overall logistics program," said Stacy Watson, Georgia Ports Authority (GPA) Manager of Economic and Industrial Development. In Wal-Mart's case, this equates to some 10,000 associates participating in the function. To maintain operational continuity, they attend in two equal increments during a two-week window.

At the biennial event, Wal-Mart's logistics vendors are invited to set up informational exhibits.
GPA's Herman Brown, Sales Representative in Trade Development, is the newest member of GPA's Wal-Mart Customer Care team. "It gets the associates at Wal-Mart involved in logistics a venue to interact with their vendors to learn who we are and what we do for them," Brown said.
Equally important, the Expo provides ample opportunity for cross-pollination. Watson said: "Wal-Mart Associates are keenly interested in ways to accelerate freight velocity to their stores. In this regard, the

Expo is a tremendous resource for them."
Wal-Mart and the Port of Savannah share a vital strategic relationship. The retailer operates two Savannah-area distribution centers that combine to total 2.3 million square feet. Supplying the U.S. Southeast and heartland, these facilities generate a tremendous trade and economic impact throughout the state of Georgia and its hinterland. For Wal-Mart's part, Savannah provides it with the most efficient platform for stocking store shelves in the country's fastest growing markets.
By any measure, this is a classic example of a mutually beneficial association.

WWW.GAPORTS.COM

21

Port of Savannah
Compiled by: Georgia Ports Authority www.gaports.com

Photo: Russ Bryant

Port of Savannah

Trade Area/Line

Agent

Frequency

Terminal

Type Service

Africa (East-South-West) CMA CGM ............................................CC ......................Bi-Weekly ........................GCT ..........................CONT/BB/REF Hapag-Lloyd......................................HPL......................Bi-Weekly ........................GCT ..........................CONT/BB/REF Hoegh Autoliners..............................HU......................Fortnightly ........................OT ..........................................RO/RO Mediterranean Shipping ..............MSC ........................Weekly ..........................GCT ............................................CONT Safmarine ............................................MS ....................Inducement........................OT ....................................................BB ZIM ........................................................ZIM ........................Weekly ..........................GCT ..................................CONT/REF

Australia/New Zealand Australia National............................AUS......................Bi-Weekly ........................GCT ............................................CONT CMA CGM ............................................CC ......................Bi-Weekly ........................GCT ..........................CONT/BB/REF Hamburg Sud ....................................HS ..........................Weekly ..........................GCT ..........................CONT/BB/REF Hapag-Lloyd......................................HPL......................Bi-Weekly ........................GCT ..................................CONT/REF Maersk ..................................................MS..........................Weekly ..........................GCT ..................................CONT/REF Marfret ................................................CAP......................Bi-Weekly ........................GCT ..................................CONT/REF Safmarine ............................................MS..........................Weekly ..........................GCT ..................................CONT/REF Wallenius Wilhelmsen....................WW ........................10 Days ............................OT ....................RO/RO/CONT/BB
Caribbean/Islands of the Atlantic China Shipping ..................................CS ..........................Weekly ..........................GCT ............................................CONT CMA CGM ............................................CC..........................Weekly ..........................GCT ..........................CONT/BB/REF Evergreen ..............................................E ..........................Weekly ..........................GCT ..................................CONT/REF Hapag-Lloyd......................................HPL ........................Weekly ..........................GCT ..................................CONT/REF Mediterranean Shipping ..............MSC ........................Weekly ..........................GCT ............................................CONT NYK ......................................................NYK ........................Weekly ..........................GCT ..................................CONT/REF ZIM ........................................................ZIM ........................Weekly ..........................GCT ..................................CONT/REF

Savannah
Ocean Carrier Agency Key

ACL APL AUS B
BAR C
CAP CC COS CS

Atlantic Containers (800) 225-1235 APL (800) 999-7733 Australia National (912) 963-2825 Biehl & Company (912) 234-7221 (770) 495-0567 Barwill Agency (912) 233-3239 Carolina Shipping Montship Inc. - General Agent (912) 234-7221 Capes Shipping (888) 627-3738 CMA CGM (America) Inc. (201) 770-5268 COSCO (843) 769-5443 China Shipping (912) 231-6568

22

GPA ANCHORAGE

Savannah
Ocean Carrier Agency Key

CSA E
ESL
HJ
HPL
HS
HU HYU ISS K
MOL MS MSC NL NYK
OOC SS STR
TER TUR
UA

CSA (732) 635-2600 Evergreen / Hatsu Marine / Italia Marittima (843) 856-7600 Emirates Shipping Agencies (USA) 1-866-488-5501 Hanjin Shipping Co., LTD. (912) 966-1220 (678) 239-0200 Hapag-Lloyd (America) (912) 238-3510 (800) 351-8811 Hamburg Sud (888) 920-7447 (888) 930 7447 Hoegh Autoliners Inc. (904) 696-7750 Hyundai (704) 972-3100 Inchcape Shipping (912) 644-7151 K-Line (800) 609-3221 (770) 618-4100 Mitsui OSK Lines (843) 965-4900 Maersk (800) 321-8807 Mediterranean Shipping (843) 971-4100 Norton Lilly, NJ (908) 791-6893 NYK Marine (912) 964-9413 (770) 956-9444 OOCL (USA), Inc. (888) 388-6625 Southern Shipping (912) 644-7083 Star Shipping (912) 236-4144 (770) 226-5900 Terminal Shipping (912) 964-5200 TURKON LINE (201) 866-6966 (912) 966-1008 UNITED ARAB (912) 233-1970 (908) 272-0050

Trade Area/Line

Agent

Frequency

Terminal

SAILING SCHEDULE
Type Service

Port of Savannah Sailing Schedule Continued

Far East/Indonesia/Malaysia APL ......................................................APL ........................Weekly ..........................GCT ..................................CONT/REF Australia National............................AUS ........................Weekly ..........................GCT ..................................CONT/REF China Shipping ..................................CS ..........................Weekly ..........................GCT ............................................CONT CMA CGM ............................................CC..........................Weekly ..........................GCT ..........................CONT/BB/REF COSCO ................................................COS ........................Weekly ..........................GCT ..................................CONT/REF Emirates ..............................................ESL ........................Weekly ..........................GCT ..................................CONT/REF Evergreen ..............................................E ..........................Weekly ..........................GCT ..................................CONT/REF Hanjin ....................................................HJ ..........................Weekly ..........................GCT ..................................CONT/REF Hapag-Lloyd......................................HPL ........................Weekly ..........................GCT ..........................CONT/BB/REF Hatsu Marine ........................................E ..........................Weekly ..........................GCT ............................................CONT Hyundai ..............................................HYU ........................Weekly ..........................GCT ..................................CONT/REF Italia Marittima ....................................E ..........................Weekly ..........................GCT ............................................CONT K-line ......................................................K ..........................Weekly ..........................GCT ............................................CONT Maersk ..................................................MS..........................Weekly ..........................GCT ..................................CONT/REF Mediterranean Shipping ..............MSC ........................Weekly ..........................GCT ............................................CONT Mitsui OSK ........................................MOL ........................Weekly ..........................GCT ..................................CONT/REF NYK ......................................................NYK ........................Weekly ..........................GCT ..........................CONT/BB/REF Oldendorff ........................................BAR ......................Monthly............................OT ....................................................BB OOCL ..................................................OOC........................Weekly ..........................GCT ..................................CONT/REF Pan Ocean..........................................BAR ....................Fortnightly ........................OT ....................................................BB Rickmers Line....................................WIL ....................Inducement........................OT ....................................................BB Safmarine ............................................MS..........................Weekly ..........................GCT ..................................CONT/REF Saga ........................................................C ..........................Monthly............................OT ....................................................BB Stolt ......................................................ISS......................Fortnightly ......................GCT ............................................BULK Toko ........................................................C ......................Fortnightly ........................OT ....................................................BB United Arab ........................................UA..........................Weekly ..........................GCT ............................................CONT Wallenius Wilhelmsen....................WW ........................10 Days ............................OT ....................CONT/RO/RO/BB Yang Ming............................................YM..........................Weekly ..........................GCT ..................................CONT/REF ZIM ........................................................ZIM ........................Weekly ..........................GCT ..................................CONT/REF

Mediterranean China Shipping ..................................CS ..........................Weekly ..........................GCT ............................................CONT CMA CGM ............................................CC..........................Weekly ..........................GCT ..................................CONT/REF COSCO ................................................COS ........................Weekly ..........................GCT ..................................CONT/REF Evergreen ..............................................E ..........................Weekly ..........................GCT ..................................CONT/REF Hanjin ....................................................HJ ..........................Weekly ..........................GCT ..................................CONT/REF Hapag-Lloyd......................................HPL ........................Weekly ..........................GCT ............................................CONT Hatsu Marine ........................................E ..........................Weekly ..........................GCT ..................................CONT/REF Italia Marittima ....................................E ..........................Weekly ..........................GCT ..................................CONT/REF K-line ......................................................K ..........................Weekly ..........................GCT ..................................CONT/REF Maersk ..................................................MS..........................Weekly ..........................GCT ..................................CONT/REF Mediterranean Shipping ..............MSC ........................Weekly ..........................GCT ............................................CONT Norasia ................................................CSA ........................Weekly ..........................GCT ..................................CONT/REF NSCSA ....................................................B ..........................21 Days ............................OT ..........CONT/RO/RO/BB/REF OOCL ..................................................OOC........................Weekly ..........................GCT ..................................CONT/REF Turkon ..................................................TUR ........................Weekly ..........................GCT ..........................CONT/REF/BB United Arab ........................................UA..........................Weekly ..........................GCT ............................................CONT ZIM ........................................................ZIM ........................Weekly ..........................GCT ..................................CONT/REF

North Europe/UK/Ireland/Scandinavia/Baltic APL ......................................................APL ........................Weekly ..........................GCT ..................................CONT/REF Atlantic Container Line ................ACL ........................Weekly ..........................GCT ..................................CONT/REF Australia National............................AUS ........................Weekly ..........................GCT ..................................CONT/REF CMA CGM ............................................CC..........................Weekly ..........................GCT ..........................CONT/BB/REF Evergreen ..............................................E ..........................Weekly ..........................GCT ..................................CONT/REF Hamburg Sud ....................................HS ..........................Weekly ..........................GCT ..................................CONT/REF Hapag-Lloyd......................................HPL ........................Weekly ..........................GCT ..........................CONT/BB/REF Hyundai ..............................................HYU ........................Weekly ..........................GCT ..................................CONT/REF Italia Marittima ....................................E ..........................Weekly ..........................GCT ..................................CONT/REF Jo Tankers ............................................SS ......................Fortnightly ......................GCT ............................................BULK Port of Savannah Sailing Schedule Continued

For all-water and inland transit times and services, visit the GPA Global Carrier Service Matrix at www.gaports.com.

WWW.GAPORTS.COM

23

SAILING SCHEDULE
Trade Area/Line

Agent

Frequency

Terminal

Type Service

Savannah
Ocean Carrier Agency Key

Port of Savannah Sailing Schedule Continued
Maersk ................................................MS..........................Weekly ..........................GCT ..................................CONT/REF Marfret ................................................CAP......................Bi-Weekly ........................GCT ..................................CONT/REF Mediterranean Shipping ..............MSC ........................Weekly ..........................GCT ............................................CONT Mitsui OSK ........................................MOL ........................Weekly ..........................GCT ..................................CONT/REF NYK ......................................................NYK ........................Weekly ..........................GCT ..........................CONT/BB/REF OOCL ..................................................OOC........................Weekly ..........................GCT ..................................CONT/REF Rickmers Line....................................WIL ....................Inducement........................OT ....................................................BB Saga ........................................................C ..........................Monthly............................OT ....................................................BB Star........................................................STR ........................10 Days ............................OT ....................................................BB VOC STEEL ........................................TER........................Monthly............................OT ....................................................BB Wallenius Wilhelmsen....................WW ........................10 Days ............................OT ..................CONT/REF/RO/RO ZIM ........................................................ZIM ........................Weekly ..........................GCT ..................................CONT/REF
Red Sea/Persian Gulf/India/Pakistan/Burma APL ......................................................APL ........................Weekly ..........................GCT ..................................CONT/REF China Shipping ..................................CS ..........................Weekly ..........................GCT ............................................CONT CMA CGM ............................................CC..........................Weekly ..........................GCT ..........................CONT/BB/REF COSCO ................................................COS ........................Weekly ..........................GCT ............................................CONT Evergreen ..............................................E ..........................Weekly ..........................GCT ..................................CONT/REF Hanjin ....................................................HJ ..........................Weekly ..........................GCT ............................................CONT Hapag-Lloyd......................................HPL ........................Weekly ..........................GCT ..........................CONT/BB/REF Hoegh Autoliners..............................HU......................Fortnightly ........................OT ..........................................RO/RO K-line ......................................................K ..........................Weekly ..........................GCT ..................................CONT/REF MacAndrews ......................................NL..........................Weekly ..........................GCT ..................................CONT/REF Maersk ..................................................MS..........................Weekly ..........................GCT ..................................CONT/REF Mediterranean Shipping ..............MSC ........................Weekly ..........................GCT ............................................CONT Mitsui OSK ........................................MOL ........................Weekly ..........................GCT ..................................CONT/REF NSCSA ....................................................B ..........................21 Days ..........................GCT ........CONT/RO/RO/BB/REF NYK ......................................................NYK ........................Weekly ..........................GCT ..........................CONT/BB/REF OOCL ..................................................OOC........................Weekly ..........................GCT ..................................CONT/REF Rickmers Line....................................WIL ....................Inducement........................OT ....................................................BB Safmarine ............................................MS..........................Weekly ..........................GCT ..................................CONT/REF United Arab ........................................UA..........................Weekly ..........................GCT ............................................CONT ZIM ........................................................ZIM ........................Weekly ..........................GCT ..................................CONT/REF
South/Central America APL ...................................................... APL ........................Weekly ..........................GCT ..................................CONT/REF China Shipping ..................................CS ..........................Weekly ..........................GCT ............................................CONT CMA CGM ............................................CC..........................Weekly ..........................GCT ..................................CONT/REF Evergreen ..............................................E ..........................Weekly ..........................GCT ..................................CONT/REF Hamburg Sud ....................................HS ..........................Weekly ..........................GCT ..................................CONT/REF Hanjin ....................................................HJ ..........................Weekly ..........................GCT ..................................CONT/REF Hapag-Lloyd......................................HPL ........................Weekly ..........................GCT ..................................CONT/REF Hatsu Marine ........................................E ..........................Weekly ..........................GCT ..................................CONT/REF Hyundai ..............................................HYU ........................Weekly ..........................GCT ..................................CONT/REF Italia Marittima ....................................E ..........................Weekly ..........................GCT ..................................CONT/REF K-line ......................................................K ..........................Weekly ..........................GCT ..................................CONT/REF Maersk ..................................................MS..........................Weekly ..........................GCT ..................................CONT/REF Mediterranean Shipping ..............MSC ........................Weekly ..........................GCT ............................................CONT Mitsui OSK ........................................MOL ........................Weekly ..........................GCT ............................................CONT NYK ......................................................NYK ........................Weekly ..........................GCT ..................................CONT/REF Yang Ming............................................YM..........................Weekly ..........................GCT ..................................CONT/REF ZIM ........................................................ZIM ........................Weekly ..........................GCT ..................................CONT/REF

Port of Brunswick

Trade Area/Line

Agent

Frequency

Terminal

Type Service

WIL WW YM ZIM

RICKMERS LINE (888) 742-56377 WALLENIUS WILHELMSEN (912) 965-7450 Yang Ming (America) Corp. (912) 238-0329 ZIM AMERICAN-ISRAELI (912) 964-3100

Savannah Terminal and Cargo Service Keys

GCT OT CONT BB BULK RO/RO LASH REF

Garden City Terminal Ocean Terminal Container Breakbulk Bulk Roll-On/Roll-Off Lighter Aboard Ship Refrigerated

Brunswick
Ocean Carrier Agency Key

C

Carolina Shipping

(912) 265-9861

HU

Hoegh Autoliners Inc.

(904) 696-7750

ISS

Inchcape Shipping

(912) 644-7151

Far East/Indonesia/Malaysia Eukor ....................................................ISS..........................Weekly ............................CI ............................................RO/RO Hoegh Autoliners..............................HU......................Fortnightly ........................CI ............................................RO/RO Wallenius Wilhelmsen....................WW ........................Weekly ............................CI ............................................RO/RO

24

GPA ANCHORAGE

Photo: David Smalls

Brunswick
Ocean Carrier Agency Key

STR WW

Star Shipping (912) 236-4144 Wallenius Wilhelmsen (912) 264-9559 (912) 280-1182

Brunswick Terminal and Cargo Service Keys

CI MP BB RO/RO

Colonel's Island Mayor's Point Breakbulk Roll-On/Roll-Off

Port of Brunswick
Compiled by: Georgia Ports Authority www.gaports.com

Trade Area/Line

Agent

Frequency

Port of Brunswick Sailing Schedule Continued

Terminal

Type Service

Mediterranean Star........................................................STR ........................10 Days............................MP....................................................BB
Mexico VW Transport ......................................C ........................Bi-Weekly ..........................CI ............................................RO/RO
Northern Europe/UK/Ireland/Scandinavia/Baltic American RO/RO ............................WW ........................Weekly ............................CI ............................................RO/RO VW Transport ......................................C ........................Bi-Weekly ..........................CI ............................................RO/RO Wallenius Wilhelmsen....................WW ........................Weekly ............................CI ............................................RO/RO
South America (East-North) Star........................................................STR ........................10 Days............................MP....................................................BB VW Transport ......................................C ........................Bi-Weekly ..........................CI ............................................RO/RO

WWW.GAPORTS.COM

25

EMERGING MARKETS
Shanghai International Port Group:
A Strong and Growing Terminal Operator
By Shanghai International Port Group

F

or more than five years, China has fueled annual world trade with volume growth rates above 20 percent. In 2006, China processed 93 million twenty-foot equivalent units (TEUs), up 23 percent over the previous year, with the Port of Shanghai posting 21.71 million TEUs in container throughput and 20 percent growth.

The rapid growth rate of the Port of Shanghai is mostly attributed to the ample hinterland of the Yangtze River Delta, which comprises the city of Shanghai, Jiangsu Province, and Zhejiang Province, and extends its influence to the vast inland area in the Yangtze River Valley. Yangtze River is not only the shipping route linking the east and west of China, but the area is an important economic corridor of the country as well. Even though this region accounts for only one percent of China's land and 10 percent of China's population, it generates 23 percent of China's GDP. In 2006, the Yangtze River Region generated 19 million TEUs and accounted for 86 percent of the Port of Shanghai's total trade.

In order to ensure sustainable development, the Shanghai International Port Group (SIPG) has worked out its five-year strategic plan, which will position SIPG as the premium terminal operator by adopting local (Yangtze River Strategy), regional (Northeast Asia Strategy) and international plans based on its container, non-container and port-related logistic activities.

Given the position of the Yangtze River corridor as both a cargo-generating area and a major transportation artery, SIPG has invested significantly in several ports and feeder operations along its path. SIPG has cooperation with three main Yangtze River ports--Chongqin, Wuhan and Nanjin -- and has the ability to control much of its Yangtze River traffic through its subsidiary barge operator, Jihai Shipping. In 2006, four million TEUs were transshipped via Shanghai, which contributed 18 percent to the port's total.
Now that Yangshan's Deepwater Port Phase One and Two are operational, the container throughput of the SIPG in 2007 is targeted at 25 million TEUs. In the master plan, Yangshan will have 30 berths by 2012 and will be able to handle 15 million TEUs.
With the expansion of the Yangshan Deepwater Port, in the next few years, SIPG expects to increase its share of the Yangtze River, coastal lines, and international transshipment. In 2007, SIPG's transshipment target is 35 percent of the total container volume, which brings SIPG closer to being a major transshipment hub in Northeast Asia.
The SIPG is the exclusive operator of the public terminals in the Port of Shanghai and is consolidating its wide-ranging business covering port-related activities. SIPG operates 36 container-handling berths, on a total quay length of more than 17.7 km (11 miles). SIPG has relocated terminals from Huangpu River, to the Yangtze River estuary (Waigaoqiao region), and now is moving more business to the East China Sea (Yangshan Deepwater Port). During its development, SIPG has undergone a series of important structural reorganizations. In January 2003, SIPG reorganized the former Shanghai Port Authority by separating its governmental function from its managing operation. In October 2006, SIPG became a controlling shareholder with Shanghai Port Container Co., LTD. (SPC), fully absorbing SPC's

shares in order to privatize and be listed on the Shanghai Stock Exchange.
In China, SIPG is also looking for new business growth. Its Ro/Ro and cruise terminals are still in their infancy, but SIPG expects high growth in the future. The Haitong Ro/Ro Terminal cooperates with GM Shanghai and NYK. It occupies a quay length of 217 meters (712 feet) and will expand another quay length of 600 meters (1,969 feet), due for use by the end of this year. The cruise terminal will start operation by the end of 2007, and world-famous cruise companies have shown interest in setting routes making Shanghai their homeport.
At the same time, SIPG is keen to expand out of China. In 2006, SIPG confirmed a deal with APM Terminals (APMT) for a minor stake in APMT's container terminal in Zeebrugge, Belgium. This is the first step for SIPG to become a premier international terminal operator.

26

GPA ANCHORAGE

Currently, SIPG is also giving priority to port logistics. By consolidating resources of trucking, warehousing, shipping agency and cargo forwarding, SIPG focuses on synergies of port-related logistics and the port itself.
SIPG is looking forward to continued development as a port. In January 2007, SIPG posted growth of 2.05 million TEUs, an increase of 22.7 percent over the previous year. This growth should continue as SIPG strives to provide carriers and shippers with more convenient and higher quality services in the future.

EMERGING MARKETS

WWW.GAPORTS.COM

27

EMERGING MARKETS

GPA Hosts Third Annual China Trade and Logistics Conference
Savannah Leads in China-South Atlantic Trade
By Jeff Neil, Manager-Market Research and Development, Georgia Ports Authority

C hina's rapid trade growth is driving tremendous change in the logistics industry. This will be the main topic for the third annual China Trade and Logistics Conference (CTL), hosted by the Georgia Ports Authority (GPA) and organized by the Journal of Commerce on June 4-5, 2007, at the Savannah Trade and Conference Center.
Savannah remains the dominant portal for China trade in the Mid- and South Atlantic, so it is fitting that GPA continues to host the conference, as it has since its inception. Savannah has more direct China services than any other port on the East Coast. In 2006, the Port of Savannah handled 44 percent of total Mid- and South Atlantic port trade with China.
China now constitutes about 43 percent of GPA's total business, up from 31 percent in 2001. Trade between Savannah and China has grown 86 percent in the past five years. Much of that growth is the result of increased shipper interest in "all-water service."
More shippers are realizing that all-water service from China to Savannah beats service to the West Coast for Eastern-U.S.-bound cargo. With Savannah's congestion-free capacity, GPA is a strong performer on reliability and total time to market. Cargo coming from Shanghai to Savannah arrives in as few as 22 days and moves congestion-free by truck or rail. Savannah's location is ideal with is proximity to North/South Interstate 95 and East/West Interstate 16, and two Class 1 railroads, CSX and Norfolk Southern. Rising U.S. rail rates in the western U.S. and Savannah's vast room to grow also increases GPA's attractiveness.
Savannah's hinterland, a region where about 40 percent of the U.S. population lives, is bounded by Texas in the west to Illinois to the north, and North Carolina to Florida in the east. In 2005, 11 percent of all foreign trade with these states moved via the Port of Savannah.
The U.S. Southeast is the largest growing demographic in the country. With Savannah's central location on the Southeast coast, there is strategic value for retailers to locate more distribution centers (DCs) in Savannah. That has translated into one of Savannah's biggest strengths with 18 DCs located within a two-hour drive from the port. These include Wal-Mart, The Home Depot, Best Buy, and Pier 1 Imports, just to name a few. With Savannah recently welcoming the completion of the Target, IKEA and Oneida distribution centers, Lowes, with an existing DC in Valdosta, will expand its presence in Savannah by 491,000 square feet within Savannah's Crossroads Business Centre.
GPA is also increasing trade with China on other fronts. Given the rapidly growing trade between GPA and the Shanghai International Port Group (SIPG), GPA is building a close relationship with SIPG. This relationship will result in more seamless trade between the two ports. After several high-level meetings, collaboration has shifted to working level managers from both ports.

Photo: David Smalls 28

GPA ANCHORAGE

EMERGING MARKETS

China vastly dominates other emerging countries in its trade with the U.S. on lower-value commodities and is making significant inroads on higher-value commodities. Furniture is the biggest GPA import commodity from China. Given the large presence of retail distribution centers near Savannah, the second largest commodity is retail consumer goods. Other top imports include machinery, hardware, minerals and toys. Textiles and mineral imports have grown the most rapidly. On the export side, raw cotton, food, wood pulp, clay, and paper products are top GPA exports to China. Food and automotive parts have experienced the fastest growth in the last few years.
To learn more on the China trade and the latest on logistics trends, there is no better opportunity than the upcoming China Trade and Logistics Conference. It will bring North American and Chinese logistics leaders to Savannah to deliver the most timely and insightful views and enable participants to share firsthand experiences.
More information on the third annual China Trade and Logistics Conference in Savannah can be found on http://www.joc.com/conferences/ctl/ or by visiting www.gaports.com, and selecting "conferences."

WWW.GAPORTS.COM

29

ECONOMIC DEVELOPMENT
Target:
THIRD-PARTY LOGISTICS P
By John Powers

O

utsourcing. It's a strategy an increasing number of firms are embracing to handle essential business chores that fall outside their core competencies. In the transportation arena, a number of major international players have turned to so-called Third-Party Logistics Providers, or 3PLs, to facilitate their global product movements.

Savannah is THE acknowledged distribution center (DC) hub of the Southeast. As a logical extension of its highly successful DC strategy, the Authority has embarked on an aggressive campaign to lure additional 3PL operators.

Stacy Watson, the Georgia Port Authority's (GPA) manager of economic and industrial development, defines a 3PL as: "An entity that provides door-to-door service from origin to destination. Their comprehensive offerings may encompass warehousing, surface transportation, international ocean and air carriage, distribution and consolidation, tracking and any other specialized services required to provide turnkey handling of a shipment."

The initial phase of the 3PL solicitation program involves detailed research on the Top 25. Watson said:

"First, we determine where their existing facilities are located. Next, we determine if they have an East Coast strategy. If so, what is it? If not, why? Finally, we help plug this gap in their business plan."

Beyond the availability of freight, 3PLs are attracted by many of the same factors that draw distribution center operators to Savannah. These include:
An abundance of excellent, port-proximate construction sites.
Unparalleled freight velocity across Savannah's docks.
Shortest transits to burgeoning markets throughout the Southeast, Midwest and Gulf regions.
Competitive ocean and surface transportation by a multitude of motivated carriers.
An eager, qualified workforce. Sophisticated road and rail infrastructure. Crystal clear freight visibility via GPA's
WebAccess (webaccess.gaports.com).
A final incentive for 3PLs is Savannah's proactive approach toward business

Watson observes that the education process is similar to that undertaken to attract distribution centers to Savannah. "We're calling on these third-party logistics providers to update them on the strength and diversity of our steamship portfolio. We tell them about the operational advantages Port of Savannah customers enjoy. And most important, we show them in a very specific manner that the freight they crave is already here," said Watson.

Savannah has a powerful ally in making its case to the 3PLs. The GPA's customers are already pressing them to extend their service reach to Savannah. Many of the port's DC operators and other shippers already employ 3PLs in some capacity. A number of mega-shippers whose volume gives them the clout to negotiate their own contracts are already here. It's only logical for them to expect vendors to be where their freight action is.

There are a variety of scenarios where international shippers opt for the 3PL option:

Some substantial global traders rely completely on outsourced logistics. Other major shippers strategically farm out pieces of their transportation program. Small to medium shippers who cannot command carrier rate concessions rely on the volume
buying power of their 3PLs to help them optimize delivered costs.

Photo: Russ Bryant

30

GPA ANCHORAGE

PROVIDERS
development. As GPA's point man for economic development, Watson maintains close ties with major retailers. His successes in re-routing their cargoes to Savannah have obvious implications for logistics vendors domiciled here. They enjoy the efforts and results of a well-informed, sophisticated marketing effort with no additional sales costs.
The job is underway. Watson is already in detailed discussions with four of the top 25 3PLs, with more on the schedule. The objective is to foster successful recruiting similar to the results of the port's distribution center thrust. "Thus far, the 3PLs have lagged behind cargo owners in grasping the Savannah phenomenon," said Watson. "It's our job to delineate for them the conditions that have precipitated Savannah's rise to the number-four slot among U.S. ports."
GPA's solicitation of 3PLs certainly has several benefits to the port. These professionals' decisions to locate in Savannah will inevitably be accompanied by an influx of freight they control. Secondly, the port's ability to sustain its record growth will be abetted by the availability of a cadre of 3PLs to serve shippers who have embraced outsourcing. Finally, joint marketing efforts will magnify visibility among cargo owners for both parties.
"Our job is to paint the picture," Watson said. "The ingredients are all in place, and the attraction is compelling. Our inevitable success in building our 3PL base will be a function of our effectiveness in promoting our good news."
WWW.GAPORTS.COM

ECONOMIC DEVELOPMENT
Photo: Russ Bryant 31

ECONOMIC DEVELOPMENT
Photo: David Smalls 32

Welcome to Port Retail
By John Powers

W

hen the Retail Industry Leaders Association (RILA) staged its recent Logistics Conference in San Diego, Calif.,

the Port of Savannah was there, greeting

the members of an association with some of the world's

largest and fastest growing retail and consumer

products companies. The Georgia Ports Authority's

(GPA) mission at the conference was to reconfirm the

Port of Savannah's commitment to defining the global

port prototype for the retail trades.

Stacy Watson takes the point in the GPA's economic development endeavors. "This conference provides us with a tremendous opportunity to mingle with our current and future customers, carriers and 3PLs," said Watson. "We use the opportunity to discover what's happening along the supply chain in terms of routing, technology and market penetration."

Savannah's popularity as a retail conduit has driven its rise to number four in the U.S. port rankings. Eighteen major Savannah-area distribution centers comprising 15 million square feet bear the names of some of the nation's best-known stores. Supporting sales and marketing efforts, the GPA's Client Relations Center, a one-stop assistance center, ensures that small and medium retailers receive the same level of attention to their product pipelines.

The GPA team found willing ears among conferencegoers considering the Savannah option. "The factors that make Savannah the obvious choice are undeniable," Watson said. Market proximity, competitive carrier options and the shortest transits add up to the lowest cost to get goods onto shelves.

"In the chess game that is international trade, Savannah is always thinking several moves ahead of the competition," Watson said. "We are currently making technology and infrastructure investments that will triple our facility throughput within the next 15 years." On the carrier front, the GPA is eagerly developing allwater services via both canals. This will provide customers multiple transport options from traditional manufacturing sources, as well as new manufacturing hubs in Southeast Asia and the Indian subcontinent.

GPA ANCHORAGE

CARRIER SERVICES
UASC, M/V Al Abdali Maiden Voyage

Photo: Danica Grone

Pictured from left to right: Captain Georgi N. Georgiev, Master of Al Abdali, United Arab Shipping Company; Paolo Stefani, Senior Manager Ship Planning, MIX & SINA Services, United Arab Shipping Company; Dr. Anil Jay Vitarana, President, United Arab Agencies, Inc., United Arab Shipping Company; Bill Barrs, Cargo Sales Representative, GPA

J

oining the Singapore-India-North America (SINA) service, the UASC M/V Al Abdali made its maiden voyage to the Port of Savannah on January 23, 2007. The SINA service, one of three services between Savannah and the Indian subcontinent, provides the following port rotation: New York, Norfolk, Savannah, Port Said, the Suez Canal, Jeddah, Colombo, Singapore, and Nhava Sheva. Hanjin, "K" Line, Yang Ming Line, and UASC share in the service.

Warehousing Port Services Crating Intermodal

Project Cargo

ISPM 15 Compliant

Special Projects

WWW.GAPORTS.COM

8 Aviation Court Garden City, GA 31408
P: 912.964.0707 F: 912.964.0808 www.clg-sav.com
33

GEORGIA PORTS AUTHORITY
P.O. BOX 2406 SAVANNAH, GEORGIA 31402

PRSRT STD U.S. POSTAGE
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