Container throughput reflects 1.33 million TEU compared to the 1.24 million TEU handled in 2009 – a 6.7% increase. The port has also announced that every other sector of cargo handled experienced growth.

China is the most important destination for iron ore shipments and although there was a slight downturn in the April, on a year-on-year basis, total shipments to China were up 5.6% while iron ore shipments to the rest of the world rose 8.2%. In April, iron ore shipments to Japan totalled 2.3m tonnes, closely followed by South Korea with 2.2m tonnes.

A joint war committee comprising underwriters from the Lloyd’s Market Association and International Underwriting Association on 8 January expanded large parts of northern Indian Ocean as a conflict zone, the eastern border of which extends to the west coast of India. This has raised insurance costs of cargo reaching or going out of the country’s western ports. India’s exporters and importers will also have to bear higher costs for transporting goods because of restricted availability of ships as many fleet owners may avoid using this route instead of paying higher premium, according to T.V. Shanbhag, group adviser to India’s biggest ship-broking firm, Mumbai-based Transocean Shipping Agency Pvt Ltd.

“Considering that there have been no (pirate) attacks reported for the last two months within 500 nautical miles (926km) from the Indian coast, after the Indian Navy has taken remedial measures, it is imperative that the eastern boundary of the war zone be reduced to an appropriate longitude,” M.M. Saggi, nautical adviser to the government of India, said in a 11 May statement to the maritime safety committee of the International Maritime Organization, a copy of which has reviewed by Mint. If the regulator reacts favourably to India’s request, the insurers’ committee is likely to follow suit and lower or do away with the risk premium.

The menace of Somali pirates operating out of the northern coast of Africa pushed insurers to declare the area a war zone in January 2009, which was then extended eastwards as the pirates deployed long-range ships to attack and hold vessels for ransom. India has also advocated a need for an anti-piracy force led by United Nations troops that would patrol the sea off the Somalian coast and other affected regions. “If blue berets have been accepted and utilised in enforcing peace on land, we see no reason why blue berets for blue waters should not be an acceptable concept,” Saggi said. “An UN-led naval force would provide a more equitable, efficient and better coordinated protection to all ships, notwithstanding their flag, nationality of the seafarers or cargo distribution.”

The project will result in a 3.1 mile, four-lane extension of the parkway built to the east of its interchange with I-95. It will extend south directly to Bourne Avenue near the port’s gate and become the main truck route between the port and I-95, relieving traffic and enhancing safety on crowded State Route 21 in the Port Wentworth area.

“This is an investment in infrastructure that is crucial not just for the port, but for the entire economy of Georgia,” said Governor Nathan Deal. “This roadway will help in the prompt delivery of valuable cargo to and from every corner of Georgia and, in turn, preserve and create jobs in our logistics and transportation industries. Even in austere times such as these, certain projects merit being pursued. This is one of them.”

The Georgia General Assembly last year authorised selling up to USD100 million in State General Obligation (GO) bonds to fund the project. The Ports Board of Directors and the State Transportation Board have both voiced support for the bond sale and the Transportation Board last month approved a proposal to include USD91 million in DeLoach Connector financing in a planned June GO bond sale. Deal and the Georgia State Finance and Investment Commission support the June sale.
“This won’t be the biggest or the most expensive project Georgia DOT has ever undertaken,” Transportation Board Chairman Rudy Bowen said, “but it may be the most important since the interstate system was built 50 years ago.”

Ports Authority Executive Director Curtis Foltz agreed. “The new Jimmy DeLoach Parkway Extension will further strengthen the Port of Savannah’s position as a gateway for commerce to the Southeast. It will give Georgia the ability to move cargo seamlessly from the state’s plants, distributors and warehouses directly to our docks and back. We greatly appreciate the support of Gov. Deal, the Georgia DOT and the GPA Board; they have worked together as a team to make this project a reality and in turn improve Georgia’s long-term competitiveness,” he said.

Georgia DOT tentatively plans to award a design-build contract for the project late this year. Right of way acquisition would then begin, with construction starting in 2013 and the roadway completed and opened in 2015. State motor fuel tax revenues would be used to retire the bond debt.