Client: U.S. Army Corps of Engineers - Little Rock District
Completion Date: 01/01/2006
The Savannah Harbor Expansion Project Economic Analysis was completed in three phases. Phase I involved developing a comprehensive technical work plan for performing the navigation economic analysis. The work plan described the components of the analysis and what was required to complete them. The components included commodity forecasts, vessel fleet forecasts, National Economic Development (NED) benefits calculation, a multiport analysis, and a regional port analysis. Phase II was the actual development of the commodity and fleet forecasts in 10-year increments over the 50-year project life. Commodity forecasts are one of the major inputs to harbor improvement studies and have a direct effect on the NED benefits based on the growth and timing of future benefiting cargo volumes. Vessel fleet forecasts are analogous to commodity forecasts in that they project the number and size of vessels and related sailing drafts that are expected to call Savannah Harbor under without and with project conditions. Phase III included the development of the benefits calculation methodology and model, the multiport analysis, and the regional port analysis. The benefits calculation methodology and model were developed to calculate the NED benefits associated with the deepening of Savannah Harbor from 42 to 48 feet. The methodology and model captured the vessel transportation cost savings of this deepening for each one-foot interval of additional depth.
The development of the methodology and model incorporated the following steps:
Literature review of previous models/studies
Examination of data sets for model use
Tests of model logic flow chart
Tests of model for specific parameters
Development of draft model
Response to feedback from Corps Regional Integration Team on draft model
Incorporation of outcome of feedback into draft model
Development of working model
Tests to validate model
Training of Savannah District staff in use of the model and development of user training manual
The multiport analysis assessed the effects of with project condition on other ports and the effects of authorized projects at other ports on with and without project conditions at Savannah Harbor. This analysis was a systematic comparison of alternative transportation costs for cargoes that could use the project port or were handled at alternative ports.
The multiport analysis included the following steps:
Determine economic study area
Identify types and volumes of commodity flows
Project waterborne commerce
Determine vessel fleet composition and operation cost
Determine current costs of commodity movements
Determine current costs of alternative movements
Determine future costs of commodity movements
Determine use of harbor and channel with and without project
The regional port analysis was performed in response to project stakeholder concerns about the need for a study to address allocation of Federal funds for harbor improvements at a single regional port on the South Atlantic Coast rather than several ports. This study was done to determine if there were benefits or efficiencies in this approach from an economic and environmental standpoint. It required extensive interaction with the respective port authorities, shipping lines, resource agencies, economic development specialists, and local government authorities in order to develop a balanced view of the regional port concept. This resulted in a balanced view that clearly identified the issues and benefits associated with the regional port concept and a detailed presentation of the critical issues that supported or inhibited it.
The Regional Port Analysis included the following analyses and surveys of South Atlantic Coast ports:
Infrastructure surveys
Capacity analysis
Hub and spoke analysis
Environmental issues surveys
Institutional issues analysis
