Issue link: http://savannah.uberflip.com/i/1489710
32 Looking forward, investment of another $4.5 billion is planned during the next 12 years, including development of a 200-acre container handling facility on Hutchinson Island with capacity of 2.7 million TEUs. By 2030, capacity is expected to be 10 million TEUs, surpassing that of the New York/New Jersey port. By 2050, GPA's planned capacity is more than 20 million TEUs, and would exceed that of the country's current leading port in Los Angeles/Long Beach. Continued investment in transportation infrastructure will improve port efficiency and ease regional highway congestion. The Mason Mega Rail, a $218 million investment, is now fully operational with 18 working tracks. The expansion increases efficiency and capacity by more than 30 percent, doubles rail lift capacity to 1 million TEUs per year and allows GPA to expand cost-efficient service into the Midwest. The project removes almost two dozen rail crossings to substantially improve vehicle traffic flow around port facilities while also removing 150,000 trucks per year from local roads. Additionally, a partnership between GPA and GDOT to construct a $26 million connector has been approved and is 11 percent complete. Upon completion by 2026, the project will provide direct interstate access for commercial truck traffic from the port. Lastly, the billion-dollar Savannah Harbor Expansion Project (SHEP) was completed in March 2022. The project added an additional five feet of depth to the shipping channel, enabling 16,000+ TEU vessels to carry heavier volumes into the port at low tide. The project is estimated to generate more than $291 million in annual benefits to the nation with a return of $7.70 for each dollar invested. Tourism The leisure and hospitality sector, which includes accommodations, food services, arts, entertainment, and recreation, has historically been one of the fastest growing (about 3.5% annually) sectors since the post- recession employment low in 2010. The sector provides employment for nearly 27,000 workers, making it the second largest employment sector in the regional economy. By late 2022, employment in the leisure and hospitality sector completed its remarkable recovery to jump 3% above its pre-pandemic level. After losing nearly 50% of its employment base, the recovery in 2022 was supported by covid-fatigued would-be travelers who just plain got tired of "staycations." While the anticipated U.S. recession of 2023 is expected to put a crimp in travel-related expenditures, Savannah is poised to benefit as a drive-to destination while locations more dependent on air-travel for visitors are more likely to experience the crunch of tighter household spending in a weakened national economy. The sector's forecast is encouraging for 2023 and the longer term. At the western end of the Savannah riverfront district, the $500 million Plant Riverside District project has added an important component to the visitor experience in Savannah. At the other end of River Street, two new projects will continue the development growth. Eastern Wharf brings the Thompson Hotel, a 170-room boutique-style property, as well as an additional smaller hotel and new retail and restaurant/nightlife options. The $350 million "River Street East" development will also add three hotels with 480 rooms and a seven-story parking garage will open between 2024 and 2026. In addition, Left Lane Hospitality acquired the Manger Building in downtown Savannah for redevelopment into a 230-room five-star hotel. Left Lane also acquired the Mansion on Forsyth with plans to renovate and expand with 23 new pool-suit suites in the mix along with a re-imaged restaurant. The recovery in the tourism and hospitality industry is important in its own right for workers directly employed in the sector, but the increasing number of visitors is also an important source of customers, revenue, and jobs in regional retailers, restaurants, specialty gift shops, tourism-related manufacturers, and other service providers. The importance of the tourism industry in contributing to the diversity and richness of offerings in these sectors available to local residents is easily overlooked, but critical, especially in a regional market the size of Savannah MSA.