Annual report fiscal year 2005 [2005]

Letter from Governor Perdue

In 1905, when cot ton was king, thE: Port of Savannah moved more exports than all other South Atlantic Ports comb ined. Today, through a foundation ot innovation for international commerce, it has earned its place as one of the top fivE: container ports in the nation, along with t he Port o f Brunsw ick, which is ranked as one of the top 10 auto port s in the United States.

As an ambassador to the maritime industry for the p ast 60 years, the Georgia Ports A uthority (GPA} has provided a gateway bringing Georgia's top commodities to the worldwide market. building rapid t rade growth through Savannah and Brunswick. This foundat ion has provided a wealth o f opp ortunity for our state from its earliest b egi nnings to t he growth of the 1980s and 1990s lead ing to the record-breaking moves of today. Georgia's port s contribute thousands o f job s to our ec onomy and are one of t he reasons this state is an attractive place to do business. Georgia's dynamic business climate is ideal for t he needs of logistics-based companies and distribution centers, whose spirit of innovation matches the stat e's own.
From the t hriv ing poultry and carpet industries of North Georg ia, t o the bustling interstate, intermodal and air freight hubs of Atlanta: from kao lin clay, building materials. and pulp and paper companies in the south to the distribution centers, transportation and logistics-based businesses c ropping up all over t he state - GPA is indeed helping to fuel Georgia's . growing economy.

GPA's innovation and technology, when combined with the state's superior transportation infrastructure and pro-business climate, have allowed Georgia to be recognized internationally as a powerfu l competitor in the global economy.

Sonny Perdue, Governor
Cefebrat1ng 60 Years of lnternalrona l Curnnrerc.e

GEORGIA PORTS AUTHORITY

MACK MATTINGLY
Chairman
ST. SIMONS

STEVE GREEN
Vice Chairman
SAVANNAH

SUNNY PARK
Secretary/Treasurer
ATL A NTA

MAXINE H. BURTO N
Member
A TH ENS

RICH AR0 C. "STOC:K" COLEMAN
Membe'r
WAYCROSS

CLINT DAY
Member
NORCROSS

HUGH GILLIS
Mem ber
SOPERTO N

RUSTY GRIFFIN
Member
VA L D O STA

JIM LIENTZ
Ex-Officio Member
AfL ANTA

JOHN NEELY
Member MAUK

HUGH M. TARBUTTON
Member
SANDERSVILLE

.(ieDIJ]ia.D.etx,r;tmeot of Ecoriom,c DeveJo.Qment

02

Letter from GPA Chairman of the Board
As chairman of the board for the Georgia Ports Authority (GPA), I am honored to be part ofthis year's annual report. The ports of Savannah and Brunswick have become an international marketplace of great opportunity.
In FY2005, GPA again received worldwide accolades as t he second largest importer and exp orter for Asia on the East Coast. As this market continues to expand at great pace, the importance of-the GPA's position cannot be underestimated. What is perhaps not as well known, is that GPA also dominated trade to and from Australia and New Zealand and added new shipping lines to western Europe and t he Mediterranean, thus firmly establishing Georgia as a major player in those markets as well. By fully recognizing the emerging economies of Africa and India, as well as t he incredible opportunities available with the signing of the Central America Free Trade Agreement, Georgia's ports are building strong new gateways for Georgia's businesses - now and for years to come,
GPA's board of directors is dedicated to realizing and ensuring Governor P.:,rdu.<a's v ision for Georgia's ports in Brunsw ic k and Savanna.h, which has three straight-forward objectives:

take in as much.as we ship out, and thus support both American industry and commerce.
These objectives must be pursued in an environment of great competition, However, the GPA team is showing the rest of the country and the world that our ports are an outstanding choice for our customers at home and abroad.
How are we doing this? By planning, like any successful business, for today and for the future. By striving to provide the best services of any port in the country, by focusing on the customer, and by demonstrating day in and day out that Georgia and the GPA are a great place to do business. We are friendly, we are competitive, we work hard to meet individual and sometimes unique shipping needs. That is why businesses prefer to work with Georgia and the GPA.
It is an exciting t ime to serve Georgia and be part of t he international trade community. It is a chance to create jobs and economic opportun it ies for citizens throughout our g reat state - and a chance to create business relationships that can bring free people around the world closer together.
Along with my fellow members of the board of d irectors and the GPA staff - we can and will lead our ports to even greater heights. Corne watch us grow!

First. to conduct the business of exporting and importing at a profit for the benefit of Georgia taxpayers; second, to conduct our business in such a manner that will continue to grow the ports responsibly and ethically, and third, to have a balance of imports to exports - in other words - to

Mack Mat tingly, GPA Chairman of the Board

Ce!d)rallriy 60 Years o f ln::emat1cnal Commc-~rte

It was the flourishing Savannah River that fed the city's forefathers' motivations of trade, commerce and wealth.

04

It was the river that nourished the city, which birthed maritime brilliance in the 18th and 19th centur ies.

Celebrating 60 Years: The Legacy and Innovation of International Commerce

More than a century ago, early cotton trade through Georgia's Port of Savannah brought more than $20 million in total export revenue and worldwide prominence to the city In 1925, the Georgia legislature authorized the Savannah Port Authority to acquire property, operate a terminal and incur indebtedness of up to $3 million.
on March 9, 1945, Governor Ellis Arnall signed legislation creating the GPA. The measure. overwhelmingly passed by the legislature, established a three-member commission with the power to finance, build and operate seaports along Georgia's coast. "Nothing this administration has undertaken," Arnall said, "is as important as doing this port development job well. With the huge merchant marine America will have at the end of the war, and the world markets clamoring for American goods, we have the greatest opportunity to develop our ports that we have ever had"
What began as a post-war opportunity flourished into a 21st century economic engine. W orldwid e services, hundreds of thousands of containers, state-of-the-art distribution and real-time t racking are all products of the legacy first signed into law 60 years ago.
Garden City Ternifnal officiallY opened for business in 1953, consisting of four general cargo berths, two 55-ton gantry cranes, three transit sfleds and one tanker berth. Also in the 1950s, GPA bought land for its terminals ir:1 Bainbridge, Savannah (Ocean Terminal) and Brunswick. In 1959, GPA bought the Whitehall Plantation for $970,000, which is now part of Garden City Terminal.
The 1"960s proved to be pivotal as the GPA purchased 2,000 acres on Colonel's lslane in Brunswick for $1.1 million. Its location in proximity to the future Interstate 95 maee it a prime tract for industries requiring access

to deepwater facilities. That purchase led to the eventual pcirtnership with automakers b ringing worldwide fame to the state's ports.
GPA enjoyed phenomenal growth in the 1980s cind 1990s. Completion of a multi-product, export dry bulk facility at Colonel's Island was followed by construction of Savannah's Talmadge Bridge in 1991, offering a clearance of 185 feet by 500 feet. In 1994, the Port of Savannah narbor was deepened to 42 feet and welcomed its first 4,000 TEU (Twenty-foot Equivalent Unit) vessel in 1994. Two years later, athletes were ushered into Georgia through GPA as the port of entry for the 1996 Olympic Games.
Savannah greeted the new millennium by reaching its milliont h TEU milestone and dedicating the James D. Mason lntermodcil container Transfer Facility ( ICTF) in 2001. lntermodal rail service provided by CSX Transportation and Norfolk Southern Railroad give GPA's customers significant cost advantages including overnight -rail service to Atlanta. In 2003, GPA's first two Super Post-Panamax cranes came on line and other cranes were converted to electricity.
As one of only 13 strategic ports in the nation, the Port of Savannah hcis served the military in times of deployment, as it did in 1991 for Desert Storm and in 2003 for Operation Iraqi Freedom for the 3rd lnfcintry Division.
In 2004. the GPA captured a large percentage of new exports, thanks to facility upgrades, new equipment, new employees, gate and security enhancements. technology research and development and substantial cost-saving measures.
Future improvements will include completion of Container Berth Eight (CB-8), which will allow the Port of Savannah to more effectively meet increased trade demands, while attracting new business and growth opportunities.

Celelm1tlng 60Years of lntemabonal Commerce

"Georgia's ports contribute thousands of jobs to our economy and are one of the main reasons the state is an

06

attractive p lace to do business." Governor Sonny Perdue

GPA Today
The GPA measures success by customer service satisfaction. With its strategic South A tlantic location, stellar terminal assets, -ability to serve 70 percent o f t he U.S. po pulatio n and its commitment to efficiency, t he GPA leads the way in American maritime shipping excellence.
Today, Georgia's deepwater ports and inland barge term inals support more than 275,968 jobs t hroughout the state annually and contribute $10.8 b illion in income, $35.4 billion in revenue and some $1.4 b illio n in state and local taxes to Georgia's economy. W ith GPA's projected g rowth, its impact wi ll more than double in the next decade and t riple in 15 years.
To accommodate anticipat ed g rowth, the GPA is building upon the solid foundation laid by a history of trad e and innovat ion. W it h a reputatio n of staying ahead of the g rowth c urve, it s facilities have reacted seamlessl y to the recor-dbreak ing growth in recent years. The GPA plans to continue this trend with an aggressiv e capital investment pro gram, by completing expansions currently underway.
One present ex~ansfon projeet is the constructio n of CB 8. The new b erth will increase Savannah's container handling capacity by 20 percent and will create m ore t han 11,00 0 new jobs throughout the state. When the first p hase is complete in early 200 6, the Port o f Savannah will feat ure more t ha n 9,800 linear feet in berthing space, inc reasing what is already t he longest continuous dock on t he East and Gulf coasts of the United States.
During FY2005, 12 million squ11re f eet o f additional distribution space was built, is under construction or has been planned for the Savannah area. The ICON Health & Fitness, Inc. 600,0 00.square-foot d istribution center is complete. 'Target's 7,5-million-square-fo ot regional d ist ribution center, in Liberty County, is under oonstruc tio n, as are numerous other projects

by commercial real estate firms. With thousands of developable acres in Chatham and adjacent counties, the GPA expects to see an increase of 30 to 40 million sq uare feet of new warehousing built by 2015. In B.runswick, a m ajor expansion of t he Brunswic k N avig ation Channel is more than halfway complete. Congress has awarded a federal appropriat ion o f $19 million to resume d red g ing and completion o f
the navigation channel fro m t he Bar Channel to the Co lonel's Island
Terminal. Upon co mplet ion, GPA's m ajo r Ro/Ro ( Ro ll-On/ Roll-Off ) and grain faci lities will welcome a new generatio n of d eeper d raft vessels. Today, about o ne jo b o ut o f 14 in the st ate o f Georg ia dep ends upon t he ports in some way. As a result of t hese strat eg ic expansions, Georgia's ports will continue t o foster g rowth and econo m ic op portunity.
Port of Savannah: Consist ent Balanced Trade
C:V2005 IMPORTS 4 7%
FY2005 EXPORTS 53%

Celebrating 60 Years of International Commerce

"These developments underscore a deeply rooted commitment by the GPA to provide its customers with

the most cost-effective and efficiently operated alternatives available to move goods to and from markets

08

around the globe." Byron Hock, GPA's director of Trade Development

Battle Cry of the Retailer: Faster. Better. Cheaper

"Moving cargo faster. better and cheaper than our competitors is our business," said Doug J . Marchand, GPAs executive director. Heeding this battle cry, the GPA continues its visionary and longterm strategic plan to be the "retaildriven" port of the 21st century.
With its eye on the future o n e thing has not changed at the Port of Savannai1: GPA's evolv:r,9 commitment t o serve as a driver o ! economic growt h a nd p rosperity not o nly for Georgia, but the U.S. Southeast and the ent ire country.

Port of Savannah Conta iner Throughput ISYear History
1"50....................................... . . ~
l.5% ...
\000 ......

In FY2005, t he GPA welcomed seven new services inc luding four new allwat er container services that serve as a magnet attracting new ret ail business. In addition to being the second busiest U.S. East Coast port in Asian trades, GPA now offers retailers more options linking the Port of Savannah wit h the Far East. Mediterranean and South America.

Other factors helping GPA lure retailers include a 10year, S700million capital improvement plan. the completion of CB8. the improved Gate 3 interchange complex and new equipment purchases including toplifts and rubbertired gantry cranes.

In proximity t o the Port of Savannah lie 13 major distribution centers; more than 60 additional distribution centers are within five hours of the port. A tremendous growth spike in retail cargo helped GPA record double-digit container growth in FY2005 and an increase of more than 50 percent in the past three years.

As Savan nah maint ains its posit ion as one of the most logistics-friendly cit ies in the nation, GPA continues its long legacy of responding t o the needs of retailers.

In FY2005, the GPA w elcomed two new Super Post-Panamax shiptoshore cranes.

Port of Brunsw ic k: Ro lling w ith Po t ent ial

In one o f his most fam ous poem s " Marshes o f Glynn," Georgia poet Sidney Lanier described t he Port of Brunswic k as a land " by a world of marsh t hat bord ers a world of sea.'' W hile t he marshes' beauty remains, t he sleepiness depicted in the poem has b een replaced by a world -class port.
During FY2005, t he Port of Brunswick handled more than 2.2 m illion tons of cargo, experi enced an 8 4.7-percent increase at its Mayor's Point t erminal and supported more than 80,000 jobs. A nd , wit h a m ajor harbor deepening p roject u nderway, the port is poised to c reate even g reat er econo mic o pp ort unit y fo r t he people o f Glynn Count y and the state o f Georg ia in the years to come. Once deepening is complete, 45 percent o f the vessels currently unable to call on Brunswick because o f depth rest rictio ns w ill be able to safely navigate the Brunswic k Harbor. The g reater depth al Marine Port Terminals, Mayo r's Point and Colonel's Island w ill allow t he retent io n and expansion o f exist ing customers, as well as at t rac t add itio nal services, sh ip ca lls and jobs. When co mplete, GPA p lans to have the most competit ive auto, g rain, and breakbulk facilities o n the entire East Coast.

The deepening p roject is part of an agg ressiv e capital im p rovement plan launched by the st at e. Future road and rail improvement s to Co lonel's Island w ill add capacit y and efficienc ies t o cu rrent and futu re o peratio ns. One improvement in part ic ular is exp ected to reduce Class I rail t r~vel t imes from auto manufacturers and grain-produci ng exp o rters t o Colonel's Island by 70 p ercent.
As deepened channels com e closer t o com p let io n and t he current
capital invest ment s come t o fruition, GPA plans to build on exist ing markets, while attracting new trade, new products and new opportunities, bringing the markets of the world to "a world of marsh that borders a world of sea.''

~ Sales ....................................,.......... ..............................,......,.

le-~~

; ,_- Income..... ........................................................

....$3.13 Billion

Jobs................................................ .........................................,.................80,031

Federal Tax ..................... ..................................................... . ..$930 Million

Stalli? & Loeal Tax .........................................

.......$410 Million

Celebrating 6 0 Ye a rs o f fnter:ic!lonal Comrrn]rce

By preparing for tomorrow's needs today, the GPA and the state of Georgia have made a habit of stayi ng

ahead of the ports' phenomenal growth . Georg ia's ports are becoming the "ports o f tomorrow" by

12

improving service to its businesses and people.

Ports of Tomorrow
Str;,tegic pl,mning today will ensure access to the g lobal mar ket p lace romorrow. Projections indicate volume at t he Port of Savan nah wi!I increase by one and a half t imes in the next decade. With facility improvements. the current Garden City Terminal footprint w ill be able to accommodate that growth. As a result. the GPA has begun implementing a strategic capital improvement program, which will guide investments for necessar y infrastructure.
Increasing t erminal density is a top priority for GPA. These projects include continuing the current paving and overlay program. expanding st orage cap ;,c ity, dockside improvement s and lntermodal enha ncerner1ts. New equ ip m ent needs t hrough 2015 inc lude purchasi,,g 10 ship-to-shore container cranes and 45 rubber- tire gantry c ranes.
GPA's most c ritical project and number-one strategic priority is the d eepening of the Savannah Harbor. The GPA Is working with both state and feder;,I officials to deepen the Savannah River Channel from 42 to 48 feet at mean low water.
In Brurn;wick, the current construction of Colonel's Island's Highway 17 overpass will create additional opportunities on the island's south side. Once complete, the 900 acres of developable land on the south side will become highly marketable to auto manuiacturers seeking a reliable and cost-effective method of consolidating the delivery of new cars to growing markets. A connecting track of more than 7,000 feet is also planned for Brunswick to facilitate Class I rail service to and from Colonel's lsl;,nd. This improvement will cut travel times dramatically from north to south for auto makers and grain producing exporters, as well as eliminating at least seven rail crossings and reducing t rain-relat ed traf fic congestion.
To facilitate the rail connect o r project and further bolster rail serv ices,

Gard en City Terminal Current & Future Throughput Capacity

"

14

IS

the GPA will Invest $2.3 million to expand Anguilla Junction Station by ;,dding trackage to move trains through the interchange more efficiently.

Building infrastructure for its ports will involve the GPA working hand in
hand with local, state and federal officials to secure a shared goal for
Georgi;,'s people. Through diligence and hard work, Georgia w ill continue to reap the benefits of ports that are always prepared for tomorrow.

Ce leb,at ~9 6 0 Years O' lnt,cm~t1nl"':a C.:oMmerco

"Safety and security are vital to the growth of Georgia's ports, as well as the state's economy."

14

Doug J. Marchand, GPA's executive director

Safety and Security: Vita l to Georgia's Ports and the St ate's Economy

services. The Port Police Department now employs more t han 80 full -time personnel, who work in a variety of capacities t o monitor terminal operat ions, contro l access and en sure com p liance with laws gover11ing regulated waterfront facilities. Port police officers are accredited through the Georg ia Peace Officers Standards and Traini ng Council as certi fied law enforcement professionals.

A lso during FY2005, t he U.S. Coast Guard cert ified the GPA's facility security pl.,ns at all four operating terminals in Savannah and Brunswick.

Homeland security is one of t he GPA's top p riorit ies. Through cooperative work ing relationships with the U.S. Coast Guard. U.S, Customs and Border Patrol a11d many other loca l, state a11d federa l law e11forcement agencies, the GPA is committ ed to securit y programs designed to protect people, cargo and i11frastructure assets. Terminal security improvements are d ri ven w ith a focus o n target-hardening and designed specifically to detect and prevent act s of terrorism .
011e of the GPA's m ajor security enhancements during FY2005 was the installation of a perimet er m onitoring system to det ect and prevent unlawf ul access to restricted terminal areas. Credentialing badg es are required for all persons seeking ent ry upon terminal fac ilities owned and operated by the GPA.
Since passage o f t he Mari time Transportation Security Act of 2002 by the U.S. Congress. the GPA has added new posit ions in protective

In addition to security init iat ives, safety was also a top prio rit y in FY2005. Workers' compensation frequency was reduced by 30 percent and workers' compensation severity al so decreased by almost 50 percent for the year. GPA's safety initiatives for FY20 05 included safety meeti11gs for all operations and maintenance departments, weekly safety reviews, safet y inspections/audits and depart ment recognit ion. The GPA also implemen ted several aggressive safety campaigns including installing permanent signage.with warnings and safety-related messages, as well as rescue training c oo rdinated with the Savannah Fire Department Rescue Uni ts.
Maintaining port security, while stayi11g on the cutting edge of technology, is vital in today's h ighly competit ive marketplace. The Marit ime Logistics Innovation Ce nter ( MLIC), which provides a forum for the demonst ration of best practices, is key in prepa ring Georgia's s.eaports as world renowned centers of excellence in maritime logistics and security. These developments w ill not on ly offer m ore secure seaport s, but will also inc rease efficiency. Through a p roactive approach to safety
and security, the GPA is committed to protecting Georgia's citizens and t he state's economy while preserving t he productive flow of commerce.

Ce&~brating 60 Years of International Co"nmerce

16

" You make a living by what you get, bu t you make a life by what you g ive." Winston Churchill

Community Involvement: It's Everyo ne's Job

Achievement and Communities in Schools. As a business education partner supporting posit ive school-commu nity relations. the GPA p rovided students opportunit ies to develop desirable work-related skills and attitudes through Groundhog Job Shadow Day. GPA's sponsorship o f Savannah Morning News Honor Roll and WTOC-TV's Top Teacl1er Program celeb rat ed stu'dent academic achievement and teaching excellence. In addit ion, the GPA c hampioned improving access to higher education opportunities for deserving students during Savannah State University's Hill Hall Gala fundraiser.

Caring for t he less fortunate is also a top p rio rity for GPA. Last year, GPA ranked among the t op five corporate givers for United Way o f the Coasia l Empire, and its internal March o f Dim es campa ign raised more than $11,000.

GPA employees know what it means to g ive back to their communities through service. Every year they go above and beyond the call of duty by providing a helping hand through generous d onations of their time and resources.
During t he past year. GPA demonstrated its commitment t o ac adem ic excellence by vo lunteering in public and p rivat e schools t hrough Junio r

GPA employees partnered with the community for the 2005 Rebuilding Together Savannah p roject t o make significant home improvements for a low-income, d isabled homeowner. Hundreds o f books were collected for k ids during the Compa nies & Ki d s Book Drive. During the holiday seaso n, employees d onat ed gifts to CASA (Court Appointed Special Advocate) for kids in foster care, w hile o t her employees support ed activities throug hout t he year such as b i-monthly American Red Cross blood drives, Coast Fest, Eart h Day and the Law Enforcement Torch Run for Georgia Special Olympics.
In FY2005, more than 87,000 people were reac hed through efforts such as port t o urs, school p resentations, civic and community meet ings and speeches.
From donating gifts to children in fost er care to assisting low-inco me, elderly and d isabled homeowners, t he GPA is ded icilted to g iv ing back to its communities.

"Maintaining the natural qualit y of our environment is integral to our mission. We understand the

importance of being a good neighbor and that sustaining the right balance is paramount when planning

18

for future growth." Doug J. Marchand, GPA's executive director

Preserving Our Past - Protecting Our Enviro nment's Future

The GPA's legacy inc ludes preservi ng its past and sustaining the right environmental balance in its community. Three years ago. the GPA found a remarkab le opportunity to preserve an important part of Georg ia's histo ry and environment.
Today, as a result of GPA's efforts, more than one ton of artifacts dating back three centuries. hundreds of wetland acres and a national historic site all hav e b een prese rved. At the core of these significant undertakings was an unwavering commitment to historic p reservatio n and environmental protect io n.
Mulberry Grove Plantation
This is t he land alo ng the Savannah river where in 1873 , Eli Whitney first invented the cotton g in. Some 132 years lat er, the GPA has placed almost 1,100 acres int o an environmentally p rotective covenant and is sup porting t he Mulberry Grove Foundation initiative to develop an interpretative center near the nat ional historic site.
Today more than a century after Eli W hitney's revo lutio nary invention. the Mulberry Grove Foundation and the GPA are working together t o give future g enerations an opport unity to experience this remarkable history.
Mary Musgrove Exhibit
Another significant historic expanse of land lies just down river from t he Mulberry Grove Plantatio n. This site, which has p rod uced thousands o f historical artifacts t hanks to a GPA-led arehaeological d ig, is believed to be t he 1730's trading post of Mary Musgrove. A s o ne o f the most prominent women in Georgia's colonial history, she served as an interpret er for t he City of Savannah's founder General James Oglethorpe and the

Creek Indians. Musg rov e's t rading post is consid ered one of Georg ia's greatest archeological find s. Covered in cen turies of silt and mud and virtually untouched for more than 250 years, the GPA was able to help excavate thousands of important artifacts. In fact. more than one ton of Native American, colonial and anteb ell um artifacts were unearthed d uring an effort that will one day be d isplayed at th e Savannah History Mu seum a nd other museum facilities around the state.
"The GPA is proud to contribute to an exhib it furthering Georgians' and visit o rs know ledg e about our coast's h ist o ry,"
said Marchand. "These artifacts telI t he story of how Savannah served as an area for trade with the Europeans, just as our city serves as a leader in trade with the world today."
GPA also repro duced an integrated archaeological outreach program including on -site media tou rs, public archaeology days, as well as an educational video and school lesson plans, which were d ist ributed to schools, m useums and libraries st atew ide.

Wildlife PteservationThe Caretta Project
In add it ion t o supporting efforts protecting th right whale, t he GPA partnered w ith the Caret Project to protect more t han 60 loggeri'lead t Wassaw Island ,n 200 5.
Through this project, researchers may populat ion levels, t rends and nest1mg enhance survival of eggs and hatchlin9s on a educate and include the p ub lic in resear~h an
GPA helped give 15 volunt eers an op Island for one week to assist in pro\/i
t hat allow the nests to successfully ti
pat rol ling for nesting turtles, prqt ec and beach erosion and collect il)g cfa lo ggerhead sea t urtle.
"Maintaining the natural quality o f our to our missio n," Marc hand said. " We 1:1

Celebrating 60 Years of lntemat,onal Commerce

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" I am proud to report FY2005 will stand out as the year the GPA implemented one of the boldest

development and growth plans of any port in the United States."

20

Doug J. Marchand, GPA's executive director

Bold Initiatives Yield Impressive Results

With solid growth in every ca tegory. I am proud to report the GPA increased its total container volume by 12 percent to more than 1.7 million TEUs, up almost 200.000 from the previous year. Total ca rgo tonnage surpassed a staggering 18 million. an increase of more than two s!nd a half t imes the total In 1990. This surge of slctivity w ill lead t o new jobs and economic growth throughout Georgia.
The key to maintaining our steady growth pattern is the continued development of a network of docks s!nd distribution facilities linked through a system of ,ail and road arteries. By st ayi ng ahead of the g rowth curve, the GPA fosters a seamless flow o f goods through Savannah and Brunswick to botl, domestic and international market s.
New trade lanes are help ing accelerate the growth of new export commodities including au to pa rts. chemicals.. staple fibers and automobiles, all up more than 60 percent since FY2004.

nearly $20 million in federal appropriat ions t o deepen it s channel t o accommodate even larger vessels.
In FY2005. the Port of Brunswick also served as the export "port o f choice" for several of the largest companies in the U.S. Southeast handling more than 740,000 tons of export cargo ranging from paper products, grain, retail goods and automobiles.
One of the main components of our port g rowth strategy is internal capita l impro vements. During the next decad e, t he GPA and the sl ate of Georgia wi ll continue to make the necessa ry investments t o attract new cargo and economic opportunities. If we stay on course with t his aggressive g row th strat egy, we w ill hav e t he capaci ty to handle m o re than 4.5 million TEUs by 2015.
What this means for Georgia, its economy and its people are additional
jobs. greater earning C<!pacity and opportunities. What Georgia's ports generate today will become an even greater economic engine for tomorrow.
We take g reat pride in o ur impact o n t he state's economy and opportunities c reated b y o ur growt h. We look forward to creating a new legacy of delivering t he world to Georgia's doorstep.

While our staff has been keenly focused on capturing additional container cargo, the GPA also has committed itself to serving the unique needs of o ur region with a concerted effort to imp rove our Ro/Ro (RoOn/RollOff) and bulk cargo handling capabilities. This commitment has paid off as total bres!kb ulk tonnage at Brunswick's terminals increased almost 25 p ercent in FY2005. These fig ures are likely to climb as the port is in line to receive

Doug J . Marchand, GPA Executive Director

Celebrat,n9 60 Years of lntemat,onal Commerce

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.o..s of June 30. 200s. 200<1. AND 2003 Georg ia Ports A uthority Condensed Statements of Net Assets

Dollars in tho usands

FY2005

FY2004

FY2003

Assets

Current Assets ..................................................................................................$82.220 ..................................................................................................$45.976 ...................................................................................... ...........$46,151

Restric ted Assets................................................................... ................................300 ..........................................................................................................934 ....................................................................................... ...........517

Capit al Asset s ....................................................................................................518,158 ..................................................................................................50 3,328

.........468,668

Other Lo ngTerm Assets .................................................................................14,946 .................................................... ....... ........................................14,332 ..................................................................................................14,558

Total Assets ........... ...........................................................................,.......... .....615,624 ........................................................ .........................................564,570 ..............................................................................................529,8 94

Li ab ilit ies

Current Liabilities ...............................................................................................16,338 .........................................

..................................................12,854 ................................................................................ ...........25,281

Long-Term Debt .

.............................................. .....................35,057 ..................................

........................ ...............................38,512 ........... ...

..................................... ...................32,145

Other NonCurrent Liabilities ...... .....................................................................5,577 .......................................................................... .............................5,4 27 ...

...................................................................... 3,784

Total Liabilities

................................................ ..................... ......... 56,972 .................. ........... .............................. ............ ......................56 ,793 ...........

................ ......................... ....... ...................61,210

Net A ssets
Invested in Capital Assets, Net of Related Debt ................................ 4 90 ,838 ................................................................................................ 473.468 .............. ..........................................................................442,520 Restricted .................... ............................................................................................. 30 0 ..........................................................................................................934 ......... .............................................................................................. 517 Unrestricted .......................................................................................................... 6 7.514 ......................................................................................................33,375 ................................................................................................ 25.647 Total Net Assets ............................................................................................$5 58,652 .................................. ..............................................................$507,777 ........... .............................................................................. $468,684

To request a copy of the Georgia Ports Aul'horitys full financial report as at1dited by Mauld in & J enkins. LLC. please visit gaporrs.com.

22

For the years ended June 30, 2005, 2004. AND 2003 Georgi a Ports Authority Condensed Statements of Revenues, Expenses, and Changes in Net Assets

Dollars in thousands

FY2005

FY2004

FY2003

Operating Revenues ............

..................................................... $149,019

........ $128,951 ......................

................................................ $121,453

Operating Expenses ....................... ......... . ........ ..... ................................. 117,763

......................................................108,537 ...............................

..........................................101,598

Gain ( Lo ss) on Disposal of Capital A ssets

................. (804) .........

........................................48 . .

.. . ......... 58

O perati ng Income.... ...........................................................

...... 30,452 ............................................

.............20,462 .........

............................................................ 19,913

Non-Operating Income (Expense) ................... ........................... ...... (1,850) ...............................................................

.... ... ......(2.681) .....................

...... .................................................. (30647)

Capital Contributions ............................ ...... ................................................ 22,273

.................................................................................. .......21,312 .....................................

. . ........... 11,378

Change In Net Assets .... ..................................

......... .......... 50,875 ...........

....39,093 ............

................................................... 27,644

Condensed Statements of Cash Flows

Cash Flows from Operating Activities ... ... .. ........................................... 53,545 ................... .. ........................................................28,114 . .............................................................................................. 48,999

Cash Flows from Investing Activities .........

.............. 586 ...................

.. ..........................................3 0 3

......................... ................................1,108

Cash Flows from Non-Capital Financing Activities ......

... (1,721) ................... ..............................

...................,...............(2,405) ...........................

................ (3,570)

Cash Flows from Capital and Related Financing Activ ities ........... (38,161) ............................................................................... ................ (25,047) ..........

................................ ........................... ( 56.311)

Net Increase (Decrease) in Cash and Cash Equ ivalents...................... 14,249

.............................................................................965 . ................................................................................... ... (9,774)

Balances - Beginning of the Year ....

................ 24 ,015

... ............... ....... ......... ........2 3,0 5 0

..............................................................................32,824

Balances - End of the Year ............................................................ ... $38,264

............$24,0 15

........ $23,050

To request a c opy of the Georgia Ports Authoritys full financial report as aua'ited by Mauldin & Jenkins, LLC, p1e0se visit gaports,com,

Celebrating 60 Years of lntem ation.:,:I Commerce

23

GPA By The Numbers

About the Port of Savannah
One of the top five container ports in the United Sta tes and recognized worldwide as a m aj or cargo hub
Customer advantages include: Asian transit times as low as 22 days. nine-day express service to/f rom Europe, immediate access to 195 and 116 and <1n on-termi nal lntermodal Container Transfer Facility ( ICTF)
Served by two Class I rail providers (CSX, NS)
Longest contig uous dock In the U.S. (7,726 linear feet)
Garden City Terminal is the largest sing le common-user termina l or1 the East and Gulf Coasts
About the Port of Brunswick
A key U.S. South Atlan tic g ate way providing a competi tive p ortf olio of ocean carrier services
Mayor's Point Terminal Secured, dedicated breakbulk facility specializir1g in t he rapid efficient handling of forest and solid wood products.
Twenty-two acre facility features 1.750 linear feet of berthing, 355.000 square feet of in-transit space, 2,000 feet of covered rail siding and 7.9 acres of open versatile storage.
Supports the export of Georgia's valuable forest products.
Colonel 's Island Terminal The world's largest auto carrier. WWL. calls Brunswick it s South Atlantic Load Center.
GPA has paved 345 acres on the north side and has 1,00 0 ava ilable acres for future development on the south side of Colonel's Island.
Georg ia Depart ment of Transportation is const ruct ing an $8.6-million overpass on Hig hw3y 17 t hus permitt ing a direct connection from the no rth to t he south sides of the island. Tl1is improvement will open t he south sid e for development - to be com pleted by December 2006.

Economic Impacts of Georgia's Deepwater Ports
275,968 jobs or seven percent of Georgia's total jobs $3.5.4 billion in sales $10.8 billion in income $1.4 billion in state/loca l taxes

Port of Savannah

FY2005

FY2004

Contamer.... ...................13,241.762 tons.........,............,.11,782,97~ tons

Bulk .

........923,383 tons ............................935,821 tons

Breakbulk .........................1.837,182 tons ........................1.366,481 tons

Total Tonnage ..... .....16,002,327 t ons................... ..14,085,276 tons

Tot ,:,I TEUs................ .....1,761.098 TELJs .

......1.572,587 TELJs

Port of Brunswick

FY200S

FY2004

Bulk .............................. .....1.259,507 ton< ..._ .................1.J43.334 tons

Breakbulk ........................1.035.479 tons ............................941.881 tons

Total Tonnage ...............2.295.001 tons,. ...................2.286.376 tons

Auto/MachiMry ..............326,051 un,ts ....... .....-. 321,g21 units

Georgia Ports Aut hority FY2005

FY2004

Container ...................... 13,241,777 t ons

11.784.135 tons

Bulk ..

............ 2.250,281 tons

2.335.757 tons

Breakbulk ........................2,872.661 I OnL ...........,..........2,308,362 tens

Totol Tonnage ...........18.364.719 tons.........

..16.428.2511 tons

Tot al TEUs ....................1,761,102 TEUs....

...... 1.572,734 TEUs

The Economic Impact o r Georgia's Dee,,water Ports on C,orgl~'s
Economy conducted by Terry College of Business, The University
of Georgi a, 2003

TRADE LANES BY TEl!Js
Nort h East Asi a 460, 969 South East Asia 68,155 f"-~--~'--'
North Europe 34,654 Indian Subcontinent 28,552
Middl<, East 15,599
Oceania 11,069 West Coast South America 6,109
East ern Europe 5,238
North Ea' st Asia 297,641 North Europe 73,755
f"-- - - -~ Mediterranean 61,03'8
1 -- - -~
Middle East 36,673
Other 30,668 Indi an Subcontinent 16,265 East Coast South America 15,372
Africa 14 ,974
West Coast Sol/th America 11,753

24

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Georgia Ports - Authority

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