More funding approved for Savannah harbor deepening
The Senate on Monday passed the first funding bill for the 2019 fiscal year, which included a provision that would ensure additional money for deep draft navigation projects, including the Savannah Harbor Expansion Project.
The provision, which was introduced by U.S. Sen. David Perdue, R-Ga., and co-sponsored by U.S. Sen. Johnny Isakson, R-Ga., ensures at least $100 million of the Army Corps’ unobligated construction account funding will go to navigation projects.
The fiscal year ends Sept. 30 and with the passage on Monday, Perdue said Congress had moved one step closer to funding the government on time.
“… East Coast ports are not deep enough to accommodate fully loaded Post Panamax ships, and this puts our country at a competitive disadvantage in the global trade market. Prioritizing these port projects will help keep us on pace with other trade competitors like China and generate a significant economic return when they are completed,” he said.
“…There is still much more work to be done. President Trump was clear when he said he will not sign another last-minute omnibus spending bill again. This is a good start, and I stand ready to work around the clock to get the results the American people sent us here to deliver.”
The exact amount of funding for SHEP won’t be known until the Army Corps and Office of Management and Budget releases its fiscal year 2019 civil works plan, which is typically during the latter part of the year.
Griff Lynch, executive director of the Georgia Port Authority, applauded the funding on Tuesday.
"On behalf of the GPA, I would like to thank Sens. Johnny Isakson and David Perdue, as well as the entire Georgia Delegation for their work on behalf of the Savannah Harbor deepening, which has crossed the halfway point in construction," he said.
"This funding will keep the project on track for a timely, cost-effective completion."
The additional funding comes on the heels of the release of the U.S. Army Corps of Engineers 2018 fiscal year work plan earlier this month, which included $35 million in additional funds for SHEP.
Previously, the Trump administration had allocated $50 million for SHEP in the president's fiscal year 2018 budget request. Coupled with the Army Corps' updated plan, the total for the fiscal year 2018 is now $85 million, which keeps the project on track.
The federal commitment for the project is to pay 75 percent of the $973 million cost. The state of Georgia has already contributed about $266 million for the project and the 2019 budget includes $35 million more.
The U.S. Army Corps of Engineers has said the project needs roughly $80 million to $100 million per year for a construction period of five years. If the project is only funded at $50 million per year, it would add five years to the project and cost $56 million more due to inflation.
Dredging for the project, which began in 2015, will deepen the harbor from its current 42 feet to 47 feet. The depth will allow large ships that are coming through the Panama Canal. While some of these Neo-Panamax ships already call on the port of Savannah, they are not loaded to capacity.
The outer harbor dredging was completed in late February and marked the halfway point for the project. The deepening of the inner harbor should be complete by late 2021.
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