Savannah Harbor Expansion Project The completion of the Savannah Harbor Expansion Project (SHEP) is the number one strategic priority for the Georgia Ports Authority and its valued customers and is critically important to economic growth in Georgia and the southeastern United States. This project will deepen the river from its current 42-foot depth to 47 feet at mean low water. The federal navigation channel in Savannah is utilized by more than 20 private businesses and associated terminals in addition to the Georgia Ports Authority terminals. The Port of Savannah ranks as the third largest container gateway in the nation, with approximately 45% of the United States population living within the Authority’s service region. As the largest container port in the Southeast, the Port of Savannah is responsible for moving nearly 10.0% of the U.S. overseas containerized cargo. The volume to be handled by the Authority is projected to increase by more than 106% from FY2021 to FY2030. While cargo has grown, so has the size of the ships. The Authority proposed in 1996 to deepen the Savannah River to handle these larger container vessels more efficiently. With the completion of the Panama Canal improvements in 2016, now even larger container vessels are calling the U.S. East Coast with increased efficiencies and reduced costs for the American consumer. In May 2021, the CMA CGM vessel Marco Polo called on the Port of Savannah. At a capacity of over 16,000 twenty-foot equivalent container units, the Marco Polo is the largest ship ever to call on the U.S. East Coast. Currently, approximately 80% of the containerized cargo vessels that call on the Port of Savannah are unable to load to their maximum design draft and call at any tide. SHEP received the last of all required federal and state regulatory approvals in 2013. On June 10, 2014, the Water Resources Reform and Development Act of 2014 was signed into law, thereby allowing the U.S. Army Corps of Engineers to proceed to construction on the project. Today, dredging on the entrance channel is complete along with several other components of the project including acquisition of property for wetlands mitigation, payment for a striped bass stocking program, the removal of the CSS Georgia from the channel and the initial dike-raising for the project. Contracts for other project features have been awarded. Among the features under construction are the oxygen injection systems and a freshwater diversion structure. The final dredging contract was awarded in November 2019 with completion scheduled in early 2022. While the authorized cost of the SHEP was estimated at $706 million in 2014, a mandated update resulted in an increased cost due to the awards of several contracts at higher than estimated amounts and increased expenses and price levels effected by the length of time for the project. The new cost of $1.019 billion was authorized by Congress as part of America’s Water Infrastructure Act of 2018. The economics analysis was also updated resulting in an increased benefit-to-cost ratio of 7.3 to 1, one of the highest of any deep draft navigation project for the Corps of Engineers across the nation. Mason Mega Rail In addition to SHEP, the Georgia Ports Authority’s expansion plans include the development of significant rail infrastructure known as the Mason Mega Rail that plans to increase rail capacity from 500,000 to over 1 million rail lifts. Since March of 2018 the project has experienced significant progress including the completion of multiple bridge structures, civil infrastructure development and the commissioning of five (5) of the ten (10) rail mounted gantry cranes that will operate in the yard. While Norfolk Southern and CSX have occupied the west rail bundle of nine (9) working tracks, the second set of nine (9) working tracks that make up the east bundle experienced significant progress with expected completion in November 2021. At that time, both railroads will be able to operate in the complete eighteen (18) track facility along with six (6) of the ten (10) rail mounted gantry cranes in operation. All ten (10) rail mounted cranes are expected to be in operation in the summer of 2022. When fully completed in 2022, the facility will be the largest on-port rail terminal in North America and provide a new supply chain option directly to America’s Midwest. The Mason Mega Rail, specifically designed to efficiently handle 10,000-foot unit trains by both major rail carriers, will have 18 working tracks, a lift capacity of over 1 million containers per year and nearly 180,000 feet of track. Shippers in major markets from Memphis to St. Louis and Chicago to Cincinnati will experience greater efficiencies and reduced transit times to and from Savannah's growing intermodal hub. In many instances, cargo will avoid rail hub layovers, pick up a full day, and in turn open new markets and opportunities for shippers. iv
