May 28, 2014
www.gfb.org
Vol. 32 No. 21
CONGRESS PASSES WRRDA, FREES FUNDING FOR SAVANNAH PORT PROJECT Work on the Savannah Harbor Expansion Project (SHEP) is closer to moving forward after Congress approved funding as a part of the Water Resources Reform and Development Act (WRRDA). The House passed the WRRDA in a 412-4 vote on May 20, and the Senate passed it with a 91-7 vote on May 22. All members of Georgia’s delegation voted for the bill with the exception of Rep. Paul Broun (R-10th District) and Hank Johnson (D-4th District), who did not vote. “We’re pleased Congress approved this bill so we can now move forward with the improvements at the Port of Savannah,” said GFB President Zippy Duvall. “Exports provide a key revenue stream for Georgia farmers as well as supporting hundreds of thousands of jobs. This was an important step toward securing future economic benefits the port provides not only to our farmers but to the entire Southeast.” The project, which includes deepening the Savannah Harbor from 42 to 47 feet and extending the entrance to the channel by seven miles, will allow the port to accommodate larger ships that will use the Panama Canal after its expansion is completed. SHEP is projected to cost $687 million and will be funded through a project partnership agreement (PPA) between the state of Georgia and the federal government. The PPA would define how costs of the project will be shared between the state and federal governments. Georgia has set aside $266 million, and the WRRDA includes $421 million in federal funding for SHEP. According to a Georgia Ports Authority press release, a binding PPA is expected within 90 days after the president signs the bill into law. Once the PPA takes effect, accelerated use of Georgia’s portion of the funding will be allowed. The accommodation of larger ships will significantly reduce shipping costs for goods traveling through the Port of Savannah. A U.S. Army Corps of Engineers study indicates private companies will save $174 million a year in shipping costs. The Port of Savannah is North America’s largest single container terminal and handles 13.27 million tons of cargo per year, making it the second-busiest U.S. port behind the Port of Los Angeles. U.S. produced food, wood pulp and fabrics (including raw cotton) made up 38 percent of exported commodities leaving the country through the Port of Savannah in 2013. Food products were the top export commodity group, accounting for 16 percent of the Savannah exports. According to the USA Poultry & Egg Export Council, 2013 Georgia broiler exports were valued at $685 million.