Port of Savannah reported a cargo volume decline in January as demand continued to soften, although it cited exports as a "bright spot" for the gateway in the first month of 2023.
In a statement, Georgia Ports Authority (GPA) said total cargo dipped 55,000 TEUs or 11.5% compared to January 2022.
"The decrease was fueled in part by reduced orders in retail and manufacturing, resulting in import loads softening by 39,850 TEUs, or 16%," GPA said, adding that the export of empty containers via Savannah also declined 34,650 TEUs on reduced demand for Asian goods served by the empty boxes.
Loaded container exports up 21%
The Port of Savannah's loaded container exports, meanwhile, grew 21% in January as it considered US exports "a bright spot for GPA last month."
GPA noted that "the [US'] busiest port for US goods handled 110,305 twenty-foot equivalent container units of exports, an increase of 19,419 TEUs."
Griff Lynch, executive director of the GPA, noted that despite the decline in volumes, the port still "achieved particularly robust growth" in January in export trade lanes to Europe and the Mediterranean.
Compared to pre-pandemic numbers, the Port of Savannah’s January trade of 421,714 TEUs in total cargo showed an 11.7% improvement over January 2020, in which GPA handled 377,671 TEUs.
GPA noted that weather also played a role, delaying six vessels slated to call Savannah from late January to the next month.
Infrastructure investments
Joel Wooten, GPA Board chairman, said the Authority is using the current reduction in traffic to make significant progress on infrastructure projects that will be needed as demand returns.
"Being prepared to take advantage of opportunities as they arise requires steady leadership and an eye toward long-term trends," Wooten said.
"Our board's commitment to constant infrastructure improvement, even during downtimes, means our customers have a ready partner in growth when they need to expand their Georgia operations," he added.
Among these is a project to allow Garden City Terminal Berth 1 to serve larger vessels is now 80% complete.
GPA said the first four of eight massive cranes slated to work Berth 1 arrived on February 9.
"When Berth 1 improvements are finished in July, the port will be able to simultaneously serve four vessels capable of carrying 16,000+ TEUs, as well as three additional ships. The enhanced berth will add 1.5 million TEUs of annual berth capacity," the Authority said, adding that the improvements will provide faster vessel service and better accommodate the big ships calling on Savannah.
Adjacent to the Port of Savannah's main container terminal, the Garden City Terminal West project will deliver another 90 acres of new storage, supported by 15 electric rubber-tired gantry cranes.
GPA said now 20% complete, the project will add 1 million TEUs of annual capacity, coming online in phases in 2023 and 2024.
Along with a new cross-dock facility and renovations to Ocean Terminal, the projects will increase the Port of Savannah's annual capacity from 6 million to 7.5 million TEUs in 2023 and to 9 million TEUs by 2025.
