For years, Savannah, Ga.'s ports weren't much more than a backdrop to the city's quaint historic district. That came to an end in 1994 when Doug J. Marchand, a hard-charging executive director, arrived from the Port of Galveston. In short order, he transformed the Georgia Ports Authority from a sleepy riverfront curiosity to a major contender among U.S. seaport terminals. This phenomenon has his counterparts in Hampton Roads nervous.

Marchand jump-started an aggressive marketing plan envisioned by port officials a few years earlier. Pushing Savannah's central location in the Southeast, he facilitated major port expansions to improve cost efficiencies and snare more traffic. Even more important, he recognized critical new customers in the form of distribution centers for mass marketers such as California Cartage / Kmart and Wal-Mart. "Quite simply, we have developed sensible plans and invested hundreds of millions of dollars to improve conditions and facilitate trade," says Marchand.

Marchand's drive is paying off so well that his counterparts up in Virginia regard Savannah as their number one worry as they proceed with their own massive expansions. Savannah's imports have shot up every year for the past decade. Georgia ports will handle more than 1.1 million standard containers this year, only slightly shy of what Hampton Roads projects it will ship.

Like Hampton Roads, Savannah and its sister ports' future thrive on expansion. Construction has begun on an eighth berth at Savannah's terminal that will add an additional 1,700 feet of space to the terminal's existing 7,726 linear feet of present berthing. Efforts to deepen the Savannah River from 42 feet to 48 feet will continue, and the nearby Port of Brunswick will benefit from a new bridge with a higher and wider span.

Savannah is also closing in on Charleston, its arch rival. While, the Port of Charleston is the busiest container port along the Southeast and ranks fourth nationwide, Savannah recently moved into sixth place. Savannah's ports are surrounded by land both across the river and down its coastline in Brunswick. The city's favorable location near major highways and railways plus tax goodies are attracting national retailers such as Wal-Mart, The Home Depot, Dollar Tree, Dollar General, Michael's, and most recently, Pier 1 Imports. They have located modern distribution centers within minutes of the gates of Savannah's port facilities. Presently, 12 major retailers occupy more than 8.8 million square feet in nearby facilities.

But Charleston's growth is constrained by space limitations. While Savannah's ports are located nearly 12 miles inland - down a narrow and winding river - Charleston sits on the wings of a fragile historic district that offers no room to expand. Locating inland is the only alternative for growth and efforts to expand on the Cooper River side of Daniel Island are meeting strong environmental objections. "The challenge before us is clear. We must meet the business and economic needs of our state while addressing local quality of life concerns. To achieve this, a compromise has emerged for a much smaller port expansion project," says Bernard S. Groseclose, president and chief executive officer for the South Carolina Ports Authority.
Hampton Roads does have a few things over Savannah, however. It offers better access to the Midwest and boasts of nearly double the number of shipping lines. But as shrewd executives like Marchand have shown, Savannah is after exactly the same markets that the Virginians are. If they don't watch out, the Georgians will eat their lunch.

Return to Virginia Business - May 2002