Following the announcement of a joint venture to increase efficiency at the Port of Savannah, the White House now appears to be posturing for credit.
A recent announcement by Ports America, Ceres Marine Terminals, and SSA Atlantic indicates the three outfits reached an agreement to consolidate container terminal, truck gate, and stevedoring services as “Gateway Terminals LLC.” The announcement was issued during the first week of November and hailed as a proactive solution to avoid the historic bottlenecks plaguing the Port of Long Beach and Port of Los Angeles.
“The benefits of this joint venture company for the Port of Savannah and its customers include integrated operations across all berths, providing the ability to turn more ships and move more cargo,” said Georgia Ports Authority Executive Director Griff Lynch reportedly said. “I would like to give a special thanks to the local leaders of the three-member stevedoring operations, Mark Montgomery, Craig Mygatt, and Mark Knudsen, for doing a great job in structuring this exciting new organization and partnering with GPA as we expand our operations in Savannah.”
The move was reportedly orchestrated by newly-tapped Gateway Terminal president Kevin Price, who currently serves as CEO of Virginia International Terminals. He will reportedly take over Gateway Terminals on Dec. 1.
“I am very excited to be asked to lead our new, coordinated efforts,” Price reportedly said. “I also want to thank the Virginia Port Authority, Virginia International Terminals, and the local International Longshoremen’s Association for three wonderful years.”
On the heels of the announcement, the Biden Administration again offered what appeared to be a Washington, D.C., solution after the fact. The White House stated it would stave off a bottleneck by shuffling $8 million for additional container yards. The administration made a similar announcement that the overrun West Coast ports would operate around the clock. That announcement came after the Port of Long Beach had already extended its hours.
“With this policy change, the Georgia Port Authority will be able to reallocate more than $8 million to convert existing inland facilities into five pop-up container yards in both Georgia and North Carolina,” a White House announcement reportedly states. “Under the plan, the Port of Savannah will transfer containers via rail and truck further inland so that they can be closer to their final destination, which will make available valuable real estate closer to the port. The effort will free up more dock space and speed goods flow in and out of the Port of Savannah, which leads the nation in containerized agricultural exports.”
The Georgia Ports Authority had already approved expedited infrastructure projects that would add upwards of 1.2 million container space — 20-foot equivalent units (TEUs) — by July 2022 and handling space for 4.6 million TEUs by 2025. The proactive measures taken by industry leaders in Georgia and the surrounding area are expected to prevent unnecessary consumer goods shortages.
There is no driver shortage at the Port in Savannah. The situation at hand results in a lack of critical infrastructure to keep drivers moving. There is a shortage of RTG’s, empty handlers, and perfunctory ILA clerks to process the drivers and keep cargo moving. Automating the ports upon entry and exit would alleviate the unnecessary congestion caused by human error and defective work ethic. I’m no rocket scientist, just a dumb driver trying to make a living.