Page Siplon is the Executive Director of the Georgia Center of Innovation for Logistics. The document discusses logistics in Georgia, including:
1) Georgia has over 11,000 logistics providers and over 1 million logistics jobs.
2) The Port of Savannah is one of the fastest growing ports in the U.S. and handles over 2.9 million containers annually.
3) Future growth projections estimate a doubling of freight demand in Georgia by 2050 due to population growth and increased e-commerce/online shopping. This will require significant infrastructure investments.
7. 10% of TOTAL sales revenue
for any company goes to “logistics”
9% Transportation
22% Warehousing
49%
Inventory Carried
20%
Customer Service
8. $700.0 M
$600.0 M
Investment
$500.0 M $432.0 M
$400.0 M
$304.0 M
$300.0 M
$163.5 M $142.7 M $165.2 M
$200.0 M $125.1 M
$100.0 M
$.0 M
12,000
10,462
Employment 10,000
8,000
6,000
2,364 2,631 2,604 4,000
1,574 983 1,442 2,000
0
60
46 50
50 Project Count 41
40 32 29 30
30
20 16
10
0
2006 2007 2008 2009 2010 2011 2012
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And so is every State…
Georgia has many “Unfair Advantages”
• Roads: Nationally top-ranked highway system
• Rail: Most extensive network in South East
• Air: World’s busiest passenger airport, #10 for cargo
• Services: 90% of top 25 3PL’s operate out of GA
• Technology: National core for technology providers
• Seaports: Fastest growing and 4th largest in USA
11. THE ECONOMIC IMPACT OF
GEORGIA’S DEEPWATER PORTS
STATEWIDE
• 352,146 full & part-time jobs
• $66.9 billion in sales
• $32.4 billion in gross state product
• $18.5 billion in income
• $2.5 billion in state & local taxes
Source: Terry College of Business, University of Georgia, FY2011
11
12. PORT OF SAVANNAH THROUGHPUT
TWENTY-FOOT EQUIVALENT CONTAINER UNIT (TEU) VOLUME, 10 FISCAL-YEAR HISTORY
2.98 Million TEUs
A New Record
3,000
2,500
(in thousands)
TEUs
2,000
1,500
1,000
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Source: GPA Mktg. (loads & empties)
13. PORT OF SAVANNAH CONTAINER GROWTH
10 FISCAL YEAR HISTORY COMPARED TO NATIONAL AVERAGE
↑2.3 %
Savannah accounts for ↑8.6%
↑21.2%
13.7% of the nation's TEU ↑8.6%
growth since 2002
↓11.7%
↑14.8%
(Base year FY2002)
Growth Index
↑12.3%
↑12.3%
↑29.2% ↑5.8%
↑4.2%
↑5.1% ↑8.5% ↑1.4%
↑8.6 ↓13.1% ↑3.2%
↑8.7%
↑10%
↑9.6%
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Port of Savannah
SOURCE: GPA Mktg (loaded only)
National Average
14. TOP 10 U.S. PORTS
10-YEAR COMPOUND ANNUAL GROWTH RATES (CY2002 TO 2011)
Los Angeles 4.4%
Long Beach 3.1%
NY/NJ 5.2%
Savannah 10.6%
Oakland 3.6%
Seattle 4.5%
Virginia 3.9%
Houston 5.8%
Tacoma 1.2%
Charleston -1.0%
-2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0%
Percentage Growth
Source: AAPA
15. FY2012 TOP 10 U.S. EXPORT PORTS
BY CONTAINERIZED TONNAGE
1. Los Angeles 17.18
2. Savannah 13.27 54% Export/46% Import
3. Long Beach 12.08
4. Houston 10.87
5. New York 9.48
6. Oakland 7.81
7. Seattle 6.42
Savannah ships 11.6% of
8. Norfolk 6.25 U.S. export tons
9. Charleston
5.25
10. Tacoma
4.14
Millions of Tons
Source: U.S. Dept. of Commerce, Census Bureau, Foreign Trade Division
28. The explosion of multi-channel delivery and the use
of “online platforms” including e-commerce, smart-
phone based sales (m-commerce), and the
emergence of s-commerce tools leveraging
Facebook, Twitter and other social media outlets are
changing the way we need to look at “logistics”.
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Today, 91% of all purchases are
made at a physical store, but expected
to fade to only 76% over the next 5 years.
E-commerce will grow to $280 billion
in total sales by 2015 and $2.7 trillion by
2025 representing a full 30% of all retail sales.
30% of growth was attributed to the
5.5 million consumers who shopped online
for the first time in 2010.
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Source: Logistics Viewpoints
Source: IDC Retail Insights
the top ten Facebook brands added
115 MILLION FANS in 2010
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Late 2010, Proctor & Gamble began selling
Pampers directly through Facebook…
31,913 fans/month
1,000 orders/day
Source: Logistics Viewpoints
Source: IDC Retail Insights
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medium triple-
shot, half-caff,
no whip
mocha…
extra hot.
Consumers Expect
Personalization
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Wal-Mart now
offers over 1,000 customizable items online
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Wal-Mart now
offers over 1,000 customizable items online
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Their NikeID co-creation
platform generates over…
$100M/year
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Consumer Responsiveness: 1958
Lag Time for Significant Changes in Store Demand
to Cascade Across the Extended Supply Chain?
6 Months
Typical Out of Stocks at the Retail Shelf?
8-10% Source: Logistics Viewpoints
Source: Logistics Viewpoints
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Consumer Responsiveness: Today
Lag Time for Significant Changes in Store Demand
to Cascade Across the Extended Supply Chain?
3-6 Weeks
Typical Out of Stocks at the Retail Shelf?
Still 8-10% Source: Logistics Viewpoints
FASTER,
BETTER,
CHEAPER ?
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Rise in E-Commerce and Mobile Technology
Is Fueling Complexity and Opportunity in
LOGISTICS:
Increasing need for fulfillment operations and
regionalized distribution hubs
Continued growth in outsourcing logistics
operations to 3PL’s that can ADD value
Increased demand and frequency for small
package delivery
Shortage of capable and well-rounded
supply chain management talent
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Value Added Logistics Services Will
Continue to Grow in Demand
The 3PL Industry is expected to grow to $141 Billion in
gross revenue in 2011
From 2009-2010 the increase in 3PL net revenues was
4.7x the rate of U.S. GDP growth
77% of the Fortune 500 and all of the Fortune 100 use
at least one 3PL. (Walmart = 32)
90% of the Top-25 3PL’s operate out of GA
50. Cargo Origin = CHINA
Cargo Destination = ATLANTA
ALL WATER
ROUTES
TO E.C.
LAND
BRIDGE
FROM W.C.
51. Actual Market Share by Route 2009-2011
ALL WATER
ROUTES
TO E.C.
LAND
BRIDGE
FROM W.C.
52. Major Port Depths
60
58
56
Feet at MLW
54
52
50
48
46
44
42
40
Source: U.S. Army Corps of Engineers, Dec. 2010
53. SHEP TIMELINE
Reconnaissance Study
Feasibility Study
Tier I EIS & Feasibility
Report Issued
WRDA
Authorization
1996 1997 1998 1999
Tier I
1996 – Reconnaissance Study Completed
1998 – Feasibility Study Completed
1999 – WRDA Authorization requires a “Tier II” EIS
and GRR
54. SHEP TIMELINE
Draft Tier II EIS/GRR Released
Reconnaissance Study
& Public Comment
Feasibility Study Final Tier II EIS Released
Tier I EIS & Feasibility & Public Review
Report Issued
Final Chief’s Report
WRDA & Agency Approval
Authorization Released
64 Individual Studies
1996 1997 1998 1999 11/10 4/12 8/12
Tier II
2011 – Tier II EIS/GRR Completed – 64 individual studies
2012 – SHEP Plan Finalized and Approved
$5.50 of benefits for every $1.00 in project cost
$181M in state funds approved*
$600,000 in President’s FY12 Budget
55. SHEP TIMELINE
Draft Tier II EIS/GRR Record of
Reconnaissance Study Released & Public Decision
Comment
Feasibility Study Final Tier II EIS Released Begin
Tier I EIS & Feasibility & Public Review Construction
Report Issued
Final Chief’s Target
WRDA Report & Agency Completion
Authorization Approval Released
64 Individual Studies
1996 1997 1998 1999 11/10 4/12 8/12 Fall 2013 2016
2012
What Happens Next?
Record of Decision – Fall 2012
Construction Begins –2013
Target Completion – Late 2016
60. - Regulatory environment
- Market access
LOCAL ASSETS - Labor relations
- Container/bulk port access
CRITICAL IMPORTANCE
- Business climate
- Highway access
- Air cargo and passenger access
- Telecommunications
- Rail access
MINIMAL IMPORTANCE
- University presence and quality
- Workforce availability/quality
- Logistics service providers
NON-COMPETITIVE VERY COMPETITIVE - Utility services
- Quality of life
- Cost of living
- Weather/Climate
Source:
61. LOCAL COST FACTORS
- State Incentives
CRITICAL IMPORTANCE
- Local Incentives
- Electrical power
- National Logistics costs
- Regional logistics costs
- Property taxes
MINIMAL IMPORTANCE
- Construction costs
- Corporate income taxes
- Workforce wages
NON-COMPETITIVE VERY COMPETITIVE
Source:
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INDUSTRY INFRASTRUCTURE
VOLUME CAPACITY
VELOCITY CAPABILITY
VISIBILITY CONNECTIVITY
Opportunity is missed by most because
it is dressed in overalls and looks like work.
- Thomas Edison
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Thinking Globally, Acting Locally…
Annual Georgia Logistics Summit:
Over 1,600 attended from 28 states and 7 nations in 2012; 85% from private industry
MARCH 19 – 20, 2013
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