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Economist starting to worry about Savannah's economy
TomaMichael
Michael Toma - photo by Photo provided / Coastal Courier
SAVANNAH -- A regional economist is worried about where the Coastal Empire's economy is heading.
"The overall picture for the fourth quarter was deceptively strong," said Michael Toma, director of Armstrong State University's Center for Regional Analysis. "While the top level numbers look good, there was marked deterioration in the underlying data as the quarter progressed. At this time, early data available for the first quarter of the year suggests continued weakening."
The center's Coastal Empire Economic Monitor for the fourth quarter of 2007 was just put out. It is now available at www.econ.armstrong.edu/cra/monitor.htm.
The report presents quarterly economic trends and short-term economic forecasts for Savannah's Metropolitan Statistical Area.
While Liberty and Long counties are technically outside of the Savannah's MSA, it does influence business here.
Data for the fourth quarter of 2007 showed that the economy of Coastal Empire continued to grow. However, much of that growth occurred in October, with clear signs of a cumulative weakening of the economy in the last two months of 2007, Toma said.
The Monitor's leading and coincident indexes offer readers an informational tool that can be used to adjust to changes in regional demand conditions. The signals provided by the indicators may be used to control inventory, optimize staffing, adjust marketing or pricing strategies, forecast revenue, or capitalize on other opportunities in the regional economy.
"The forecasting index is sending a stronger signal about upcoming economic conditions that will be more challenging. The leading index plummeted by the largest amount in one quarter since 1990. Expectations for annualized growth in the regional economy have been adjusted downward to within 1.25 to 1.75 percent for the next six to nine months," Toma said.
Buddy Clay, revenue director for Savannah, uses the Economic Monitor to help him understand the economic trends affecting city revenue.
"The data in the Economic Monitor helps us understand some of the fluctuations in tax revenue for the city," Clay said. "Based on the data we see in the report, we will make adjustments to the revenue forecasts for the remaining of the year."
The quarterly report measures the heartbeat of the area economy, based on the analysis of economic data from the U.S. Census Bureau, the U.S. Department of Labor's Bureau of Labor Statistics, the city of Savannah, Georgia Power, and the three counties in the area's MSA; Chatham, Bryan, and Effingham. The report presents a short-term forecast of the region's economic activity in the next six to nine months.
The Economic Monitor is available free by electronic mail. To subscribe, email Emonitor@mail.armstrong.edu. Write "subscribe" in the subject line or body of the email.
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GPA grows trade, market share
Intermodal volume up 20 percent
port photo
Rubber tired gantry cranes handle cargo at the Chatham Intermodal Container Transfer Facility at the Port of Savannah. The Georgia Ports Authority's Mason Mega Rail project will double rail lift capacity to 1 million containers per year by 2020 - photo by Provided

The Georgia Ports Authority achieved 14 percent growth in March container volumes, moving 355,208 20-foot equivalent unit (TEU) containers.

From July 2017 to March, TEU container trade grew by 9 percent, or 255,786 additional units for a total of 3.08 million, a new record for Savannah.

"Savannah's continued strength is a reflection of our customers' commitment, Georgia's leadership, and the many dedicated service providers, GPA employees and ILA members who come together every day to achieve great things," said GPA Executive Director Griff Lynch. "March marked our 17th consecutive month of business expansion thanks, in part, to a strong economy and growing market share."

Intermodal rail volumes jumped by 20 percent in March and 15.4 percent for the fiscal year to date, for a total of 318,454 containers handled over nine months – another record for the GPA.

"As the numbers show, our rail cargo is growing at a faster pace than our overall trade," GPA Chairman Jimmy Allgood said. "This is important because rail is playing a key role in our responsible growth strategy. We anticipate our rail infrastructure investments to take 250,000 trucks off the road each year by 2020."

The GPA recently broke ground on its Mason Mega Rail Terminal, on which the Port of Savannah will build 10,000-foot unit trains within its own footprint. From the expanded rail infrastructure at Garden City Terminal, Class I rail providers CSX and Norfolk Southern will provide direct rail service to major Southeast and Midwestern markets from Memphis to St. Louis, Chicago to Cincinnati.

An added benefit is that the Mason Mega Rail project will move all rail switching on terminal – improving vehicle traffic flow around the port.

In August, the GPA will open its Appalachian Regional Port in Murray County. Located in an industrial belt, including the production and export of carpet and flooring, automobiles and tires, the ARP will provide an alternative to all-truck transit to Northwest Georgia.

Each round-trip container moved via the Appalachian Regional Port will offset 710 truck miles on Georgia highways.

March was also a strong month for roll-on/roll-off auto and machinery units at the Port of Brunswick and Ocean Terminal in Savannah. Colonel's Island Terminal in Brunswick handled 66,144 cars, trucks and tractors, while Ocean Terminal added 4,050, for a total 70,194, a 17.2 percent increase.

"The global economy is thriving and our volumes are following suit," Lynch said. "As existing accounts grow their footprint in the expanding auto facility in Brunswick, Georgia's competitive logistical advantages are drawing additional business across all of our docks."

Lynch noted that for the fiscal year to date, Mayor's Point breakbulk terminal in Brunswick grew by 44 percent (34,515 tons) to reach 112,728 tons of forest products. At East River Terminal, bulk cargo expanded by 34 percent July-March (189,918 tons) for a total of 750,384 tons.

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