Savannah Chamber

46 Georgia Ports Authority The Georgia Ports Authority (GPA) is expected to have another record-breaking year in calendar 2018, reaching almost 4.4 million TEUs (20-foot equivalent container) and 36 million tons at America's fourth busiest port. The additional 312,000 TEUs handled in 2018 represent 8% growth as compared to 2017. During the past ten years, container volume has increased at a compound annual rate of 4.5%, more than double the U.S. average, making GPA's Savannah facilities America's fastest growing major port. Savannah's port was recently rated as North America's most highly connected port to worldwide markets by a major consulting firm in the industry. The exceptional competitive advantage of Savannah' ports did not happen serendipitously, but as a result of long-term strategic planning, business development, and investment in port facilities. These previous and ongoing efforts will continue to pay dividends in 2019 and additional growth in port activity can be expected. Significant investment in port facilities in Savannah and Georgia will continue to keep the GPA facilities among the most competitive in the country for years to come. GPA is planning to expand the capacity of the port from its current level of 5.5 million TEUs to 8 million TEUs by 2028. The ten-year plan represents a substantial $2.5 billion investment in Georgia's future economic growth and development. The state's political and business leadership view the GPA facilities as a state-level asset, one which generated $1 billion of investment and 4,741 new jobs in Georgia in the past year. Substantial investment in transportation infrastructure is intended to improve port efficiency and ease regional highway congestion. The $127 million Mason Mega Rail Terminal will double the port's rail capacity to 1 million container lifts by 2020 and push the port's competitive reach well into the Midwest. By bringing all rail switching onto the terminal, it will avoid the use of almost two dozen rail crossings for substantially improved vehicle traffic flow around port facilities and remove 100,000 trucks per year from local roads. Rail components of the project will come on-line in late 2019 with overall completion expected in 2020. The investment will allow the Garden City Terminal to serve double-stacked 10,000-foot long trains. The Georgia Network Initiative includes the development of inland port facilities to provide more and faster logistical solutions for port customers. The 42-acre Appalachian Regional Port opened in August 2018 with a capacity of 100,000 TEU lifts per year. GPA announced the development of Georgia's second inland port terminal in Hall County in northeastern Georgia. The 104-acre Hall County facility is expected to be completed in 2021 and have the capacity to handle 150,000 TEUs per year. Full funding of $101 million in FY19 from the federal government means work on the Savannah Harbor Expansion Project (SHEP) will continue on schedule during the year and remain on track for completion in 2021. Georgia has already fully contributed its share of the project, $287 million. SHEP is currently 50% complete. Dredging the outer harbor to a depth of 47 feet was completed in February 2018. This $135 million component of SHEP extends the outer harbor channel 7 miles, making its length about 18.5 miles from Fort Pulaski to the Atlantic Ocean point of entry. Tourism The leisure and hospitality sector, which includes accommodations, food services, arts, entertainment, and recreation, has been one of the fastest growing (about 4% annually) sectors since January 2010. It currently is the largest sector of the regional employment base, providing work for 27,000 people. Savannah's tourism industry performed as expected in 2018, with primary indicators of tourism up about 4%, similar to 2017 growth. In addition, airline passenger numbers increased 13% in 2018 as compared to 2017 in data through November. Accordingly, auto rental sales taxes increased 12%. As the region adds to its base of 14.1 million visitors, it appears that many are diversifying their experience beyond the usual and customary tours in the landmark historic district. Visitors on tours in the City of Savannah declined 3% in 2018, even as total visitation increased 3% and visitor spending increased 3.5%. Special interest tourism activities such as visiting historic places, seeing cultural attractions, and enjoying exceptional culinary experiences are in high demand among Savannah's leisure tourists compared to national averages. Further growth in exceptional culinary experiences should continue to support interest in Savannah as a "foodie" destination in 2019. Overall growth in the industry is expected to be on par with 2018 with some acceleration expected in 2020 as new product is delivered to the market with the completion of several large hotel and entertainment projects.

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