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Manufacturing Stacking &
Georgia. Curtis J. Foltz, execu-
tive director of the Georgia Ports
Authority, has said publicly he sees
no need to work with South Carolina
beyond developing their joint inter-
est in a planned container terminal
eight miles from the entrance to the
Savannah River in Jasper County,
S.C. The project would effectively
create a third regional port and allow
dredging to a 50-foot depth, deeper
than either Charleston, at 45 feet,
or Savannah, at 42 feet. The deeper
water would accommodate the large
vessels expected to dominate global
sea trade. N
cent of Seattle and Tacoma’s combined
volumes. If Drewry’s numbers are accurate, it’s succeeding; since 2004, Prince
Rupert’s TEU annual compound growth
rate has stood at 6 percent. During that
time, Seattle and Tacoma’s annual growth
rate has been flat to slightly down. The
ports’ proposal is as much a response to
the competition from Prince Rupert as
the challenges posed by bigger ships and
liner alliances, Drewry says.
Some ports may not see the need for
deeper cooperation than what is currently allowed under the industry’s limited
antitrust immunity. The adjacent ports of
Los Angeles and Long Beach, the nation’s
two busiest, compete against each other
for business while already cooperating on
infrastructure, environmental, security,
and regional planning issues, according
to Art Wong, a spokesman for the Port
of Long Beach. For example, the ports
are collaborating on a project that would
create a freight-only lane for trucks on
an 18-mile portion of the I-710 freeway
between the two facilities.
Wong said leaders of both cities have
weighed a merger’s pros and cons for
almost as long as the ports have been
around. However, they could never decide
which entity would control a majority of
seats on a governing board, he said. In
1925, Los Angeles voted for a plan to
consolidate the ports, only to have Long
Beach veto the plan. “The idea of merging
the ports … isn’t gaining much traction,”
Wong said. “[It] never has.”
James I. Newsome III, president and
CEO of the South Carolina State Ports
Authority, said regionally co-located ports
“need to seriously evaluate the impact of
the mega-alliances and whether it makes
sense to forge closer commercial cooper-
ation as a response.” Newsome said that
U.S. ports must generate adequate returns
on their investments to prepare for the
megacontainerships. Ship alliances, by
contrast, are designed to reduce costs
across the supply chain, putting their
mandate at odds with that of the ports,
Newsome said.
Newsome has forecast greater cooperation in future years between the Port
of Charleston and the Port of Savannah,
107 miles to the south in neighboring
