FY2020 ANNUAL REPORT

Georgia's Best Days Ahead

Over the past year, our nation has faced un-

precedented challenges that have impacted

our daily lives and our economy. We've had

to rethink how we handle the logistics of

healthcare, retail, manufacturing -- and the

global trade that supports these endeavors.

Through it all, our ports have remained

steady, keeping cargo moving, attracting

investment, and building market share.

As the one of nation's top gateways, the

Port of Savannah provides the cost-effective

Brian P. Kemp Georgia Governor

connections our farmers need to compete globally. Our ports are key to the success of advanced manufacturing in the Peach State,

supporting production and connections

with customers around the world.

In the first half of 2020, the Savannah port became the nation's busiest

container port for U.S. exports, thanks to the producers and manufacturers

who choose to locate in Georgia. Despite these unprecedented times, the

fundamentals of Georgia's economy remain strong, thanks to pro-business

policies, a world-class workforce and unmatched logistics network.

From auto production to cyber security, to farming, flooring and more --

businesses from across the country and around the world have Georgia on

their mind.

My administration remains focused on providing real opportunity for

hardworking Georgians, and with great partners like the Georgia Ports Au-

thority on our side, I know our best days are ahead.

Savannah, Brunswick See Unprecedented Growth During Pandemic

The deepwater ports of Savannah and

Brunswick are vital economic engines for

the state of Georgia. The ports enable the

expansion of existing business, lure new

investment, sustain and bring new jobs to

our state.

The year started with a pandemic of un-

certain impact on our economy and interna-

tional cargo volumes. Under the leadership

of Governor Brian Kemp, the state of Geor-

gia was able to navigate the pandemic and

keep our port and state open for business. This enabled GPA to support nearly
500,000 jobs across the state, a number

William D. McKnight Chairman

which continues to grow annually. We were

also able to grow the economic impact to

$122 billion in port-related commerce.

Through solid support from new and existing customers, Savannah re-

mains the nation's fastest growing container port, a distinction held for the

past 10 years. Our auto port in Brunswick has grown to the second busiest

hub for the import-export of vehicles and heavy machinery.

This growth was achieved due to the great leadership of the GPA team

and by working through the pandemic using an "isolate and operate"

philosophy. This kept our GPA employees and our partners at the ILA safe.

The Board at the GPA implemented our 10-year initiative in 2020, preparing

the ports for the tremendous growth we have seen during the pandemic.

We will update this plan along with the completion of the Savannah Harbor

deepening project to set the stage for a new era in growth.

For a virtual tour of our ports, click here to see firsthand how the GPA is

continuing to make Georgia the best state in which to do business.

Global Trade a Marathon, Not a Sprint

Georgia's diverse industry, tremendous

agricultural production and central

location within the U.S. Southeast helped

the volumes crossing GPA's docks to

hold steady in Fiscal Year 2020, a year of

pandemic-related challenges.

Even during unsettling times, shippers

know they can build reliable networks

based on Georgia Ports' efficient terminal

operations. With the most container ship

services in the South Atlantic, on-terminal

Griff Lynch Executive Director

rail and direct interstate access, Savannah connects cargo owners to the world without the port congestion that can mean supply

chain uncertainty.

To be ready for future demand, the Port of Savannah is making steady

progress on the Mason Mega Rail Terminal. Phase I is complete, with nine

working tracks and three rail-mounted gantry cranes. Phase II will open in

2021. Garden City Terminal also received six additional ship-to-shore cranes

in Fiscal Year 2020, bringing its fleet to 34 the most of any single terminal

in the nation. Along with dock improvements at Garden City, GPA's growing

crane fleet will allow Savannah to serve four 15,000-TEU vessels, plus three

other ships, simultaneously by 2023.

In Brunswick, we now have three dedicated Ro/Ro berths. A fourth is in the

planning stages to provide increased speed and flexibility in auto processing.

While Georgia's deepwater terminals met many challenges in 2020, the

long-term outlook remains positive as GPA focuses on the fundamentals of

serving our customers.

1945

1945: The Georgia Ports Authority (GPA) is created by an act of the Georgia legislature.

Georgia Ports: Building a Solid Foundation for Growth

On March 9, 1945, the world was still at war. In Europe, American forces were getting set to cross the Rhine River and invade Germany. In the Pacific, U.S. Marines were engaged in an epic struggle at Iwo Jima.
Back home, Georgia Gov. Ellis Arnall signed legislation creating the Georgia Ports Authority. The measure established a three-member authority board: One from Savannah; one from Brunswick; and one at-large. It also authorized $15 million for harbor developments.
City leaders praised its passage. "As the port goes, so goes Savannah," said Frank W. Spencer, a prominent port advocate. "Savannah is in a commercial and competitive position with such ports as New Orleans and Mobile for trade which must come through the Panama Canal."
A period of growth and expansion followed.

In 1948, the GPA purchased what had been the U.S. Army's Savannah Quartermaster Depot, a 407-acre tract in Garden City. It became the first GPA terminal. A decade later, the GPA purchased the Ocean Steamship Terminal from the Central of Georgia Railway. Located on 200 acres just west of the Talmadge Bridge, it dated back to the 1870s, and once handled ship traffic, as well as passenger and freight service for four railroads.
The state also pitched in. In 1956, Brunswick and Bainbridge were designated as state ports. In 1961, $16 million in expansion funds were approved. A year later, improvements were made at both Ocean Terminal and Garden City Terminal, and the GPA purchased Colonel's Island in Brunswick for $1.1 million. By 1970, Savannah was the sixth busiest port in the nation. Over the next half-century, Georgia's ports advanced in deliberate, yet dramatic, fashion

to the forefront of American seagoing trade. Garden City Terminal is now the third-busiest gate-
way for containerized cargo in the United States. The GPA boasts the largest single-terminal
container port in North America with service from two Class I railroads -- Norfolk Southern and CSX. It is also served by the largest concentration of import distribution centers on the East Coast and offers immediate access to two major interstates -- I-16 and I-95.
Ocean Terminal, until 2020 a facility largely dedicated breakbulk and Ro/Ro cargo, is now taking on more container trade to make way for berth improvements at Garden City Terminal. It also handles a wide variety of freight, including forest products, steel, automobiles, farm equipment and heavy-lift cargoes.

1958

1960: State docks at Brunswick dedicated.
1960

1948

1948: GPA acquired land on the Savannah River in Garden City, creating Garden City Terminal to handle bulk and general cargoes and, later, containerized cargo.

1958: Ocean Terminal is purchased from the Central of Georgia Railway. It will later become a Roll-on/Roll-off terminal, handling primarily automobiles and heavy equipment.

Purchase of Savannah Quartermaster Depot Paved Way for Future

The price was right. The state, acting on behalf of the Georgia Ports Authority, purchased the sprawling Savannah Quartermaster Depot for $808,100 in 1948. One newspaper labeled it "the best bargain ever offered to the people of Georgia."
The facts backed that up. During World War II, the depot covered 435 acres, employed some 2,200 military and civilian workers, shipped out 1 billion pounds of food, clothing, equipment and medical supplies in 1943 alone, and was lined with rows of enormous warehouses. It boasted 2.5 million square feet of covered storage, and 1.8 million square feet of open storage.
Other wartime facilities included a new 27,000-square-foot administration building, fire station, infirmary and 90-acre "Victory garden." On its land side, the depot handled 1,600 railroad cars monthly through the lines of the Savannah & Atlan-

ta Railroad. On its Savannah River side, two motor patrol boats guarded a half-mile-long waterfront. The depot's wartime accomplishments served as a symbol of America's drive to become the "arsenal of democracy."
All this had been constructed on the old grounds of Rae's Hall Plantation, a well-known, colonial-era tract some three miles upriver from the city. In 1916, the Savannah Warehouse and Compress Co. secured the property for $150,000, and then erected one of the "largest and best equipped" cotton warehouses in the world. In 1929, the Southeastern Compress and Warehouse of Atlanta assumed control of the operation.
As it ramped up the war effort, the U.S. government purchased the acreage in 1942. The depot was deemed surplus government property after the war ended, and placed under the control of the War

Assets Administration. Through several months in 1948, the GPA and Savannah City Council worked together to facilitate its purchase.
"Our primary purpose is to try to secure this property as a state port for Savannah," Authority Chairman Frank O. Wahlstrom said at a Sept. 22, 1948, city council meeting. "We believe that through this method the state of Georgia can quickly and economically establish its first state port in Savannah."
After more meetings, and with the assistance of Gov. Herman Talmadge, the $808,100 transaction went through on Dec. 15, 1948, the deadline set by the War Assets Administration. The depot was quickly renamed the Garden City Terminal.

Ocean Terminal's Roots Go Back Nearly 150 Years

It all started in 1872. The Central of Georgia Railway Co. purchased six steamships and launched the Ocean Steamship Company as a subsidiary. The railway served as an east-west connection to the cotton fields of Georgia and Alabama. The steamship company sailed a north-south passage to Northern markets and mills.
The steamship operation was centered at Vale Royal Plantation. Just upriver from Savannah City Hall, it dated back to the colonial era, and its fields were filled with docks, warehouses and a riverfront terminal. Success followed quickly.
In its annual report for 1875-1876, the Steamship Company posted a profit of $50,268. "This result is regarded quite as favorable as could be expected," the official report stated. That trend continued into the 1880s. Sailing north, the steamships carried passengers in cabins, and jammed cotton, naval stores

(resin and turpentine), and seasonal fruits and vegetables into its holds.
By 1912, Savannah was positioned as the second-largest cotton port in the world, trailing only Liverpool. Ocean Steamship, and the city's other lines, transported more than 2 million bales. But rough seas were ahead.
The boll weevil, a minuscule beetle some 16 millimeters long, devastated the cotton industry in the 1920s. Production plummeted as acreage fell. To add to Ocean Steamship's woes, a concurrent increase in highway construction, and the use of private automobiles and trucks, further reduced its revenue.
Hard times continued through the Great Depression. Then, World War II devastated Ocean Steamship. It started the conflict with six ships, and ended with none. Two were sunk by German U-Boats. The

others were requisitioned for wartime purposes and could not be restored to civilian operations.
Ocean Steamship's post-war blues continued until Nov. 21, 1958, when the GPA officially purchased its terminal and docks for $2.8 million.
Today, the GPA's Ocean Terminal has transformed the old Ocean Steamship property into a worldclass facility, one that specializes in breakbulk commodities. Fourteen steamship lines stop there. Two Class I railroads handle cargo from Ocean Terminal. Trucks can reach two interstates in just minutes from there.
And, with the Authority's current plans for the terminal, it is taking on a broad new mission, handling more containers during the renovation of Garden City Terminal's Berth 1.

1965: The first containerized cargo crossed GPA docks.

1992: Harbor widened at Port of Savannah to 500 feet.

1980s

1965
1980s: The sale of $42 million worth of bonds begins a five-year expansion program for GPA

1992

Brunswick's `Romantic Harbor' Commissioned in 1960

It was a powerful statement. "I feel that we have a dual mission in operating our ports. One is to maintain Georgia's lead in out-pulling other Southeastern ports," Georgia Gov. Ernest Vandiver said on Aug. 25, 1960. "The second, and equally important, is to regain a great bulk of the markets lost to other countries. ... The door is there, inviting and profitable, but it has not been pushed wide open."
Vandiver made those remarks while he was in Brunswick for the dedication of the new, $2 million Georgia Ports Authority Docks -- an important step in the ongoing planning and development that has helped keep the trade door open for the state since then. Vandiver's vision was clear. He cited the impact of the Georgia ports on every county in the state, and added that the ports are "powerfully and smoothly speeding the transition to a healthy, well-balanced economy."

Besides its new 500-foot docks, the GPA positioned a new transit shed, warehouse, railroad tracks and secure cranes, along with supporting facilities and cargo handling equipment, on a 30-acre tract that was deeded to the state by the city of Brunswick and Glynn County. To illuminate all this, the state put together a two-day celebration.
The guest list was lengthy. The Savannah delegation included Mayor Malcolm Maclean and state representatives Frank S. Cheatham and Norman McGee. The Brunswick delegation was headed by Mayor Millard Copeland and Glynn County Commission Chairman James D. Gould. Hundreds of others made an appearance, including leaders in government, commerce, transportation and industry, and high-ranking U.S. military officers.
The menu was likewise expansive. Dinner at The Cloister the night before. Breakfast at the King and

Prince that morning. And, to cap it off, a "delightful" ship-side luncheon that afternoon for some 1,500 people.
Amid the ceremonies, the U.S. Lines freighter Southstar was tied up at the GPA docks, taking on 1,100 bales of chemical cellulose from the Rayonier plant at Jesup, and 700 tons of rosin from the Hercules plant at Brunswick.
The overall theme for this new era, Vandiver emphasized, was "seaports ... ships ... soil ... and smokestacks." Speaking specifically about Glynn County, the governor added that "the Southeast is trailing your shipping surge ... and the world is waiting for more of mankind's goods sailing out from this romantic harbor."

2000: The Port of Savannah reaches the 1 million TEU mark for the first time in a single year.
2000

2020: Port of Savannah serves its first 15,000-TEU vessel, the CMA CGM Brazil.

2020

Port of Savannah
GPA Sets Tonnage Record for FY2020
The Port of Savannah handled 4.44 million twenty-foot equivalent container units in Fiscal Year 2020, down less than 1 percent compared to the previous year. Despite COVID-19 disruptions, total tons crossing all GPA docks reached a record 37.77 million, up 0.6 percent, or 223,000 tons, compared to FY2019. Container tons grew 2 percent (560,440 tons) to reach 33.5 million tons for the year, another record.
Cargo volume reductions related to COVID-19 were offset by the strength of export markets and record volumes earlier in the year. The year's betterthan-expected performance is the result of excellent teamwork among state leaders, GPA team members, and the Authority's partners in the International Longshoremen's Association, shipping lines, stevedores, trucking and rail.

Infrastructure
Savannah Preparing to Serve Four 15,000-TEU Ships Simultaneously
GPA has begun a project to straighten a bend in the docks at Garden City Terminal to better accommodate vessels in the 15,000+ TEU range.
On the downriver end, at Berth 1, the Authority will demolish the existing berth. The project will rebuild that portion of dock to align Berth 1 with adjacent berths. It will also deepen the slip adjacent to the dock to 47 feet at low tide.
The renovation, estimated at $173 million, is aimed at optimizing the productivity of Savannah's waterfront infrastructure. The realigned Berth 1 will allow the GPA to handle four 15,000-TEU vessels and three additional ships simultaneously.
The project is expected to be complete by early to mid-2023, but GPA has made a commitment not to disrupt vessel service at the Port of Savannah. Smaller container ships calling on Savannah will be served at Ocean Terminal while the new Berth 1 is under construction at Garden City.
The Port of Savannah is making the infrastructure improvements because ocean carriers are moving to much larger vessels for increased efficiency.

First Half of Mega Rail Working Tracks Commissioned
As of this writing, the Port of Savannah's Mason Mega Rail project is 75 percent complete and already improving the flow and efficiency of rail cargo at Garden City Terminal.
The first nine working tracks on the expanded rail yard are now operational. The second set of nine tracks will be commissioned by the end of 2021. Today, the GPA is capable of receiving and building 10,000-foot trains less than a mile from the docks, on the largest on-terminal rail facility of any port in the U.S.
Upon completion, the 85-acre Mason Mega Rail Terminal will double the Port of Savannah's rail lift capacity to 2 million TEUs per year, adding 97,000 feet of new rail track at Garden City Terminal, for a total of 34 miles of on-terminal track.
Ten rail-mounted gantry cranes will each span nine tracks for improved efficiency moving containers from trains to on-terminal jockey trucks. Combined with higher volumes from ultra-large vessels, the Port of Savannah has the capacity to build unit trains for direct service to inland markets along a Mid-American Arc spanning from Memphis, to St. Louis, Chicago and the Ohio River Valley. Statewide, the Mason Mega Rail project will take 200,000 trucks a year off the road.

Savannah Harbor Expansion Project
Harbor Deepening in Home Stretch
After 20 years in development, the Savannah Harbor Expansion Project is is nearly 80 percent complete. With full federal funding approved, the U.S. Army Corps of Engineers is now focused on the final portion, deepening the Savannah River Channel to 47 feet at low tide (54 feet, high tide).
The Outer Harbor, from the mouth of the river out to the end of the shipping channel, has been deepened to 49 feet at low tide.
The Savannah Harbor Expansion Project is one of the most important civil works and economic development projects in Georgia and the nation. By allowing 15,000+ TEU vessels to transit the river without having to wait for high tide, and enabling them to deliver and take on heavier loads, the project will save customers time and money.
These benefits are important for American farms and factories, because cost-effective port services make U.S. goods more competitive overseas.

Ocean Terminal
Ocean Terminal to Take on Greater Container Trade
GPA is expanding container capabilities at Ocean Terminal to handle Panamax-sized vessels serving mainly Latin American trade lanes.
Two new mobile harbor cranes have been added at the docks at Ocean Terminal to offload cargo from vessels carrying up to 4,800 TEUs. A new mooring point called a dolphin will allow Ocean Terminal to dock longer ships. The Authority has also made modifications at Berth 18 to allow for truck access and a new container stacking area. Six new rubber-tired gantry cranes have been commissioned at Ocean Terminal for use at the container yard.
Other improvements include refrigerated container plug-ins, and a new truck gate at Louisville Road offering direct access to the highway linking the terminal to Interstates 16 and 95.
Anticipated annual container capacity at Ocean Terminal is 210,000 TEUs.

Port of Brunswick
Colonel's Island Moves More Than 500,000 Ro/Ro Units
In Fiscal Year 2020, the Port of Brunswick handled more than 565,400 units of cars, trucks and heavy equipment, making Colonel's Island Terminal the nation's second busiest gateway for the import-export of Roll-on/ Roll-off cargo.
In order to support greater efficiency in the global Ro/Ro trade, the U.S. Army Corps of Engineers has granted GPA a permit to add a fourth berth to serve Ro/Ro vessels at Colonel's Island. Currently in the engineering phase, the fourth berth will help to support the expansion of auto processing onto 400-plus acres on the south side of the island that are permitted for development.
In the meantime, GPA has renovated Berth 2 at Colonel's Island, which formerly handled bulk cargo, to better serve Ro/Ro vessels. The Port of Brunswick's auto port currently features a total of three full-time Ro/Ro berths, and two on-terminal auto processors, which serve 20 automakers and nine steamship lines.
Forty new dockside acres added to Brunswick's Ro/Ro operation in 2019 increase car storage by 6,000 spaces and provide a 9-acre staging area for high and heavy equipment. The expansion also adds 14,100 feet of track to the Ro/Ro operation, allowing this strategic gateway to expand service in markets across the American Midwest and beyond the Mississippi River.

Northwest Georgia
Appalachian Regional Port Sees Cargo Boom
In Northwest Georgia, the Appalachian Regional Port handled more than three and a half times the cargo in FY2020 than it did in the previous fiscal year, moving 27,132 boxes, up 19,610. As more customers learn the value the ARP brings to their operations, the facility continues to gain traction and build momentum. GPA forecasts business there to continue growing.
In response to the increased business, the Authority has added six new container storage bays at the ARP, totaling 390 TEU slots to handle additional demand at the inland terminal. The added bays increase annual capacity by 25,000 TEUs.
The ARP provides an alternative to an all-truck dray to and from the Port of Savannah for target markets in Georgia, Alabama, Tennessee and Kentucky. Each roundtrip container offsets 710 truck miles on Georgia highways. The ARP also offers an efficient solution to challenges related to hours of service for truck drivers. GE Appliances now operates its $32 million Southern Logistics Center in Murray County, just two miles from the inland terminal. Additionally, Huali Floors, a manufacturer of resilient flooring, is establishing its first U.S. headquarters and manufacturing facility in Murray County.

Economic Impact
Georgia's Ports Among Strongest Economic Engines
Driving business, employment opportunities
Georgia's ports support 496,719 full- and part-time jobs across the state, according to a study released by the Selig Center for Economic Growth at the University of Georgia's Terry College of Business.
The latest figure is based on Fiscal Year 2019 impacts, and represents an increase of 57,500 jobs (up 13 percent) compared to the previous report covering FY2017. Georgia ports now account for 10 percent of total state employment. Personal income derived from port-supported jobs totaled $29 billion statewide in FY2019. Port activity accounted for 11 percent of Georgia's total sales, reaching $122 billion.
Maritime trade amounts to $51 billion in state gross domestic product, or 8 percent of Georgia's total GDP. Business conducted through the ports resulted in $6.1 billion in federal taxes, and $3.4 billion in state and local taxes.

Financials
As of June 30, 2020, 2019, and 2018
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

FY2020 _______
$434,837 1,460,779
23,032 _______ $1,918,648 _______ $53,264
$41,579 94,943 _______ $_1_3_6_,5_2_2_ $2,605
$1,460,779 372,006 _______
$1,832,785 _______

FY2019 _______
$490,727 1,310,360
31,244 _______ $1,832,331 _______ $29,728
$71,619 89,652 _______ _$_1_6_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 _______

Financials

For the Fiscal Years Ended June 30, 2020, 2019, and 2018
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 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

FY2020 _______
$481,728 343,323 _______ $138,405
(2,088) (5,472)
5,774 _______ $136,619
$180,640 3,264
(5,216) (207,896)
_______ (29,208) 400,706 _______ $371,498 _______

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 _______ $400,706 _______

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 _______ $365,038 _______

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