Georgia Ports Authority Annual Report FY19

Georgia's Ports Deliver Prosperity

Governor Brian P. Kemp Georgia

Because of the Peach State's world-class infrastructure, including the third busiest U.S. gateway for containerized trade, the nation's largest autoport, and its No. 1 airport for passenger traffic, businesses around the world have Georgia on their mind.
Working with state and local economic development teams, the Georgia Ports Authority delivers prosperity -- not only for communities across Georgia, but also for a growing portion of the country.
My administration is focused on making Georgia not only the best state in the nation to do business -- as it has been ranked for seven years -- but also the best state to operate a small business, with real opportunity for rural Georgians to find meaningful work.

Across the state, the Georgia Department of Economic Development won projects bringing 29,000 jobs and $7.4 billion in investment in FY2019. More than 40 percent of the jobs and 68 percent of the investment came from portrelated industries. That's a testament to the superior connectivity offered by the deepwater ports of Savannah and Brunswick.
Port business supports 439,000 jobs across the state in industries such as farming, advanced manufacturing, logistics and retail. Hardworking Georgians in each of the state's 159 counties benefit from maritime trade.
By continuing to invest in workforce development, prioritizing innovative solutions, and maintaining a welcoming business climate, we will ensure Georgia's best days are ahead.

GPA ANNUAL REPORT FY19

The Evergreen Triton, with a capacity of 15,300 twenty-foot equivalent container units, departs the Port of Savannah. Lower costs per container slot on Super PostPanamax vessels reduce overall transportation expenses.

Savannah, Brunswick Strengthen Global Competitiveness

William D. McKnight Chairman of the Board

The deepwater ports of Savannah and Brunswick enable expansion of existing business, lure new investment, sustain and bring new jobs to our state.
As the central hub joining international ocean shipping routes to an efficient road and rail network, our ports expedite cargo to important inland markets, and ensure the state of Georgia's competitiveness on the global stage.
The scale of the Georgia Ports Authority's impact on economic development can be measured by the nearly 440,000 jobs it supports across the state -- a number that grows annually. The Authority's impact may also be judged by the $106 billion in port-related commerce each year. GPA terminals are a key factor in Georgia's ranking as the top state in which to do business.
Solid support from our new and existing customers has made the Port of Savannah the

fastest growing port in the nation over the past ten years. Led by our autoport at the Port of Brunswick, Georgia is now the nation's second busiest hub for the import-export of vehicles and heavy machinery.
With the proven foundation of Georgia's supply chain infrastructure and GPAs track record of success, we are confident our ports' economic impact will continue to grow.
The expansion of our facilities in both Savannah and Brunswick, and the soon-coming completion of the Savannah Harbor deepening are setting the stage for a new era in which GPA will move more cargo and serve a larger crosssection of the nation.
The Georgia Ports Authority board, through its 10-year initiative, has planned investments to take us into 2030. Through further expansions in equipment and infrastructure, Georgia's ports will stay ahead of the curve, and the competition.

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At 1,200 acres, the Port of Savannah features the largest single-operator terminal in North America. Garden City Terminal offers greater flexibility and capacity, with 158 rubber-tired gantry cranes, and 50 truck gate lanes.

Griff Lynch Executive Director

Building the Ports of the Future

Thanks to the diligent work of GPA employees, the International Longshoremen's Association, stevedores, shipping lines, and our partners in trucking and rail, the Georgia Ports Authority is laying the foundation for our deepwater ports to support the needs of our valued customers well into the future.
Infrastructure investment is a vital facet of our mission to accommodate growing trade, empower entrepreneurs and strengthen industries.
The Savannah Harbor deepening is on track for completion in 2021; six new ship-to-shore cranes will come online in 2020, and the Authority has added 12 new rubber-tired gantry at the Port of Savannah for a fleet of 158 RTGs.
The Mason Mega Rail project will soon double rail lift capacity to 2 million twenty-foot equivalent container units per year. This massive rail expansion will enable the Port of Savannah

to capture additional market territory through direct service to the Midwest.
In Brunswick, we have completed construction of a 40-acre dockside parcel dedicated to auto processing at Colonel's Island Terminal. With this new space now open for operations, GPA is ready to take on substantial new auto business. No other U.S. auto port has as much room to grow with customer needs. At 532 acres in use and another 400 acres permitted for development, Colonel's Island is the nation's single largest auto port.
By preparing for the next evolution of global trade, the GPA is able to capitalize on favorable circumstances as they arise.
This Fiscal Year 2019 Annual Report offers an in-depth review of GPA's performance in the previous year and plans for a future of continued prosperity.

GPA ANNUAL REPORT FY19

Three new ship-to-shore cranes arrive at the Port of Savannah, bringing its fleet to 33, more than any other single terminal in the U.S.

PERFORMANCE

GPA Moves Record Cargo in FY2019

The Georgia Ports Authority achieved a recordbreaking performance in Fiscal Year 2019.
Among the highlights were strong growth in containers, total tonnage and cargo moved by rail. At an all-time high 4.5 million TEUs, the Port of Savannah grew its containerized trade by 7.3 percent, or 305,000 TEUs.
Counting containerized trade, breakbulk and bulk cargoes, 37.5 million tons crossed all GPA docks in FY2019, another record.

The Port of Savannah also reached 507,000 containers moved by rail for the first time in FY2019, up 73,202 lifts, or 17 percent compared to the previous year.
In automobiles and heavy machinery, the Authority moved a combined 650,000 units of Roll-on/Roll-off cargo, for an increase of 3.5 percent or 21,700 additional vehicles compared to FY2018.

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PORT OF SAVANNAH

GPA Doubling Savannah's Container Capacity

Infrastructure improvements in FY2019:
Construction on GPA's Mason Mega Rail Terminal has crossed the midway point, with Phase I scheduled to open by the spring of 2020. When Phase II opens in late 2020, the project will double the Port of Savannah's rail lift capacity to 2 million TEUs per year. Savannah's greater rail capacity will enable more efficient service to cities ranging from Memphis to St. Louis, Chicago and Cincinnati.
The Georgia Ports Authority received 12 new Rubber-Tired Gantry cranes for a total of 158 RTGs more than any other single container terminal in North America.
GPA opened the Appalachian Regional Port, its first inland terminal. The facility is located in an industrial belt, including the production and export of carpet and flooring, automobiles and tires.

To better handle the growing business coming to the state of Georgia, the GPA has outlined an ambitious infrastructure plan to bring the Port of Savannah's annual capacity to 11 million TEUs, doubling the current capacity of 5.5 million TEUs per year.
The Authority is adding four new container rows, increasing annual capacity by approximately 400,000 twenty-foot equivalent container units. The new container yard space will be complete by April 2020.
In 2020, Garden City Terminal will commission six additional ship-to-shore cranes, bringing its fleet to 36, more than any other terminal in North America. GPA plans continual upgrades to its crane fleet, which will include 21 cranes with a lift height of 170 feet by 2027.

Within three years, the GPA plans a berth realignment to allow docking for more 14,000TEU vessels on the downriver end of Garden City Terminal. By 2026, the additional cranes and revamped dock space will allow the Port of Savannah to simultaneously serve six 14,000TEU vessels and one 5,000-TEU ship.
These, along with other improvements to Garden City Terminal, will increase capacity there to 8.5 million TEUs per year.
The GPA also plans to expand beyond its 1,200-acre footprint at Garden City Terminal to establish a new container port on Hutchinson Island, across the Savannah River channel.
The 200-acre Georgia site sits directly across from Ocean Terminal in Savannah. It will have an annual capacity of 2.5 million TEUs.

GPA ANNUAL REPORT FY19

INTERMODAL RAIL

Mason Mega Rail Expanding Savannah's Service Area to U.S. Midwest

Along with greater volumes handled in the Port of Savannah's vessel operations, the Authority expects demand for rail service to continue its steady increase. That's why the GPA is conducting a $220 million expansion of its rail infrastructure at Garden City Terminal.
The Mason Mega Rail project will deliver the largest on-dock intermodal rail facility for a port authority in North America, doubling the Port of Savannah's rail capacity to 2 million twentyfoot equivalent container units. Phase I opens in Fall 2020.
Expanded rail infrastructure at Savannah's Garden City Terminal will allow for direct rail

service to major Southeast and Midwestern markets. With 37 weekly container ship services and the most Neo-Panamax vessel calls in the South Atlantic, the Port of Savannah has the cargo capacity to quickly load 10,000-foot unit trains.
The Port of Savannah is already the South Atlantic region's busiest intermodal gateway, handling 38 trains per week of import and export cargo. The expansion will add 97,000 feet of new rail at Garden City Terminal, for a total of nearly 180,000 feet. It will increase the number of working tracks from 8 to 18.

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A dredge works the center of the Savannah River channel adjacent to River Street in Savannah. After the deepening, the river will be as deep as 54 feet at high tide.

SHEP

Harbor Expansion Sees Major Progress

The Savannah Harbor Expansion Project has seen significant progress, and is now nearing completion. The project will deepen the Port of Savannah's shipping channel from 42 to 47 feet at low tide (54 feet at high tide).
On Sept. 30, 2019, the U.S. Army Corps of Engineers announced the start of deepening for the inner portion of the Savannah harbor. This initiates the final construction phase of the 20year effort to deepen the nation's third busiest container gateway.

With the 2021 completion of the inner harbor, the U.S. economy will see a net benefit of $282 million per year in reduced shipping costs. A deeper harbor will allow larger cargo vessels to call on Savannah with a longer tide window and heavier loads. By better accommodating today's larger, more efficient vessels, the Savannah Harbor Expansion Project will yield $7.30 in benefits for every $1 spent on construction.

GPA ANNUAL REPORT FY19

APPALACHIAN REGIONAL PORT

Inland Terminal Spurs Development

The Appalachian Regional Port, GPA's first inland terminal, extends the efficiencies of Georgia's superior port operations to new areas.
GPA established the ARP with a goal of encouraging economic development in a Tier 1 county by providing efficient rail access. The effort is now paying off.
Drawn by the cost-effective service available at the ARP, GE Appliances announced in June 2019 a $32 million southern logistics center just a halfmile from the inland rail facility. The appliance maker will bring 100 new jobs to Murray County.

"With the opening of the Appalachian Regional Port in Murray County in August of 2018, we are anticipating more opportunities such as this," said Murray County Sole Commissioner Greg Hogan. "The quality of jobs and investment this project is bringing to our community is just the beginning of a long corporate citizenship we want to achieve in Murray County."
Target markets for the ARP include North Georgia, Northeast Alabama, Tennessee and Kentucky.

Appalachian Regional Port benefits:
CSX service on a direct, 388-mile rail route to/from Garden City Terminal.
Easy access to Interstate 75 and U.S. 411.
Each round-trip container moved via the ARP offsets 710 truck miles on Georgia highways.
Cuts transportation costs through the efficiency of rail, by which hundreds of containers can be moved at once. Additionally, once a manufacturer has emptied a container of cargo, that container may be returned to the inland port, rather than having to haul it back to the coast. This also increases empty container availability for exports.

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Georgia Gov. Brian Kemp visited Garden City Terminal to announce the decision by Plastic Express to begin exporting plastic resins out of the Port of Savannah, instantly making the company one of the port's largest export customers.

NEW EXPORTS

Two Resin Exporters Choose Savannah

The Port of Savannah has solidified its role as a hub for the export of plastic resins, with two major announcements by resin packaging plants expanding or establishing new operations in the Savannah market.
In April, California-based Plastic Express announced plans to create 166 jobs and invest $172 million in a new 1 million squarefoot Savannah location. The company began operations in the new facility in October, handling its first shipment of resin pellets. Plastic Express expects to move approximately 50,000 TEUs per year via the Port of Savannah.
Additionally, A&R Logistics has selected Savannah Gateway Industrial Hub (SGIH) in Effingham County, Ga., as the site for its new global export facility. A&R Logistics' Export

Division will also be headquartered in Savannah to support global supply chain development for the chemical industry. The company plans to start operations in a 1 million square-foot warehouse by the winter of 2020, handling another 50,000 TEUs of export goods.
A&R Logistics launched its initial export packaging and warehousing operation in Savannah in a leased facility in July 2018.
"We are excited to welcome the expansion of resin handling infrastructure in our market, as it will bring significant new export volumes to our container trade," said GPA Executive Director Griff Lynch. "The growing output of refineries in Texas, Louisiana, Pennsylvania and Canada will require alternate export capacity, and the Port of Savannah stands ready to serve that need."

GPA ANNUAL REPORT FY19

PORT OF BRUNSWICK

Brunswick Expanding to Take on More Roll-on/Roll-off Cargo

In Fiscal Year 2019, the Port of Brunswick handled 614,000 units of Roll-on/Roll-off cargo, an increase of 4 percent, or more than 23,000 units.
Brunswick's proximity to dealerships and auto manufacturers, combined with its ability to reach important inland markets via CSX and Norfolk Southern, makes it an ideal hub for vehicle processing. Service from nine ocean carriers means Brunswick has the global connections to efficiently move exports and imports.
GPA has increased capacity at Colonel's Island Terminal to take on new cargo from existing customers and to lay the groundwork to win additional automakers. Over the past four years, GPA developed 230 acres of leasable space on terminal, for a previous total of 532.
Another 40 dockside acres were added to

the Colonel's Island Ro/Ro operation in 2019. The development increases the car storage area by approximately 6,000 spaces, and provides a staging area for high and heavy equipment.
GPA has also added a second access road between the docks and the island's south side. This provides a more direct route to existing auto processing lots and new development on the south end of the terminal.
The dockside expansion increases the terminal rail capacity from 99 to 135 rail cars. In FY2019, more than 110,000 vehicles were transported to inland markets from Brunswick by rail.
Colonel's Island has another 400 acres permitted for development on its south side, for potential total capacity of 1.5 million vehicles per year.

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FINANCIALS

As of June 30, 2019, 2018, and 2017
Condensed Statements of Net Position
(in Thousands)


Assets
Current Assets Capital Assets Other Long-Term Assets
Total Assets Deferred Outflows of Resources
Liabilities
Current Liabilities Other Non-Current Liabilities
Total Liabilities Deferred Inflows of Resources
Net Position
Net Investment in Capital Assets Unrestricted
Total Net Position

FY2019 _______
$490,727 1,310,360
31,244 _______ $1,832,331 _______ $29,728
$71,619 89,652 _______ _$_16_1_,_2_7_1 $4,622
$1,310,360 385,806 _______
$1,696,166 _______

FY2018 _______
$429,292 1,141,563 27,169 _______
$1,598,024 _______ $31,746
$49,509 74,772
_______ $_1_2_4_,_2_8_1
$6,653
$1,141,563 357,273 _______
$1,498,836 _______

FY2017 _______
$270,395 1,094,902
104,257 _______ $1,469,554 _______ $52,202
$57,353 92,617
_______ $_14__9_,9_7_0_
$3,887
$1,068,045 299,854 _______
$1,367,899 _______

GPA ANNUAL REPORT FY19

FINANCIALS

For the Fiscal Years Ended June 30, 2019, 2018, and 2017
Condensed Statements of Revenues, Expenses and Changes in Net Position
(in Thousands)


Operating Revenues Operating Expenses
Operating Income
Non-Operating Income (Expense) Capital Contributions Repaid to the State of Georgia Capital Contributions Extraordinary Item Change In Net Position
Condensed Statements of Cash Flows
Cash Flows from Operating Activities Cash Flows from Investing Activities Cash Flows from Non-Capital Financing Activities Cash Flows from Capital and Related Financing Activities Net Increase in Cash and Cash Equivalents Balances Beginning of the Year Balances End of the Year

FY2019 _______
$473,619 325,548 _______ 148,071
35,306 (7,198)
21,151 -
_______ $197,330
$225,290 5,496
(2,390) (192,728)
_______ 35,668
365,038 _______ $4_0_0__,7_0_6_

FY2018 _______
$426,382 291,963 _______ 134,419
(3,668) (4,735)
4,921 -
_______ $130,937
$203,615 86,759 (2,417)
(137,362) _______ 150,595 214,443 _______ $3_6__5_,0_3_8_

FY2017 _______
$372,983 259,687 _______ 113,296
(3,518) (4,508)
9,911 (850) _______ $114,331
$133,632 (397)
(2,270) (102,445)
_______ 28,520 185,923
_______ $_2_14__,4_4_3_

GPA ANNUAL REPORT FY19

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