The Expansion of the Port of Savannah and its Effect on the Cargo Industry

cargo container ship approaching Port of Savannah, Georgia

In recent American shipping industry news, St. Louis has been chosen for a new rail connection with the Port of Savannah, a major U.S. seaport. The Port of Savannah is investing $3 billion into a joint partnership with the St. Louis Regional Freightway to improve the movement of goods to the Midwest.

With the expansion of the Savannah harbor, containerized cargo capacity is predicted to increase from 5 million to 8 million TEUs (20-foot equivalent units) by 2028, while the cost of intermodal freight transportation will drastically decrease, reducing the cost of container shipments by $300 to $400 when shipped from Savannah instead of the West Coast.

This progress is also due to the construction of a new rail terminal in Savannah’s shipping harbor, the Mason Mega Rail Terminal, which is projected to double terminal rail life capacity to 1 million containers per year. The Georgia Port Authority is contributing $92 million to help fund the new rail terminal.

With new infrastructure in place, the harbor will allow retailers and manufacturers to easily distribute goods between the Midwest and the country’s perimeter, all while cutting costs.

Prime Real Estate for the Shipping Industry

Matt Freix, Regional Vice President for DNJ International Services, claims St. Louis has everything shipping and freight forwarding companies need for easy, cost-effective transportation. The city is positioned in the middle of the country near four interstate highways and remains the country’s third largest rail hub. By partnering with the Port of Savannah, St. Louis can also support a larger volume of containers and goods.

The Effect on the Cargo Industry

The Port of Savannah’s expansion plan and partnership with St. Louis will support both existing and new business in the St. Louis region, and the development of new infrastructure will enable rail providers to offer faster rail services to the Midwest, a hub for intermodal freight transportation. More freight forwarders and shippers may decide to transport goods through the East Coast port instead of Western ones to cut costs and improve their business’ bottom line.

Improved freight and shipping capabilities create the potential for stronger relationships between national and global supply chains. The Port of Savannah is increasing its imports and exports and will continue to do so with the new developments set in place by the Georgia Port Authority and St. Louis Regional Freightway.

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