Georgia Ports Authority

In many ways, the past 12 months have been a year of two halves for U.S. ports. 2009 should, in many respects, mirror the latter part of 2008 with the likelihood of a few more bumps to be navigated. For several years, the bigger U.S. container ports have seen compounded annual growth rates hovering between 6 and 9 percent. With fourth-quarter 2008 throughput showing the scars of a weakened global economy, no single TEU is any less important than another. In fact, every TEU kept, or gained, is even more precious. Economic forecasts optimistically indicate that by mid-2010 we should experience a rise in throughput levels as the U.S. economy, in particular, is forecast to strengthen. With confidence, there is light at the end of the tunnel, but for the next 18 months, the single largest priority for U.S. ports is to take care of existing business, while creating opportunities for growth. From an East Coast perspective, the plan of attack should be no different today than it was six years ago when a greater share of traditional West Coast volume began shifting to the East Coast. From an operational standpoint, those ports that can finance and expand capacity should move forth with those plans. In addition, the necessary harbor and land-side infrastructure improvements should receive equal attention to properly prepare for the larger vessels and greater volumes that will traverse our ports as the Panama Canal expansion is completed and the Suez Canal grows in importance. From a sales and marketing perspective, the focus remains on identifying long-term opportunities, as well as on taking care of our core customers. Beyond China, the Indian subcontinent and Southeast Asia will receive greater attention from ocean carriers and U.S. ports as their importance to the supply chain grows and more emphasis internally is placed on improving their infrastructure capabilities.