The Port of Savannah, home to the largest single container terminal facility in the western hemisphere, and the St Louis Regional Freightway have signed a deal to build a US$220 million rail facility to improve the regional and wider US supply chain.
According to a statement, the project will be part of a wider $3 billion effort from the Port of Savannah to increase its TEU capacity to 8 million by 2028.
To that end, the new rail facility will play a pivotal role as the St Louis region, which it will service, is a key import/export market to which containers can consistently be distributed at a lower cost for shippers.
A brand new Port Technology technical paper looked at the role of supercharged free ports and the evolution of logistics
It is expected to be completed at some point in 2020 and once it is, it will be the biggest on-terminal facility of its kind in North America.
It will, according to the St Louis Regional Freightway, improve efficiency and double terminal lift capacity to approximately 1 million containers per year.
Furthermore, the unit train capacity it will enable rail providers CSX and Norfolk Southern to deliver faster and more frequent rail service to Midwest markets.
John Trent, Senior Director of Strategic Operations and Safety at the Georgia Ports Authority, which owns and operates the Port of Savannah talked about the new rail service at the St Louis Regional Freightway Industry Forum.
“We offer a premium, lower cost option and, in addition, we provide that consistency,” said Trent. “We believe we have a viable solution to not only support existing business in the St. Louis region, but also to grow business in the St. Louis region.”