6 Mar 2002 Economic Working Group Meeting Report

Meeting of the EWG of the SEG took place on March 6,2002 @ 2pm in the offices of Lockwood-Greene Engineering/Savannah, GA. The meeting was called to order at 2:14pm. Those in attendance were as follows:

Agenda items were agreed upon and were as follows:
                 I)Natural Resources Forum Update
                II)Finish Discussion of Fleet Proj.WP

  (I) Dave Kyler(absent from meeting today) wrote a letter to the USACE on behalf of his organization and EWG that  moves forward with interest on the NR Forum. It asks for any assistance available from the USACE. Terry Stratton distributed documents//Draft Report on Improving  Environmental Benefits Analysis to EWG attendees as   background material. He stated that he has had some  inquiries by possible participants showing interest. Judy Jennings stated that the LWV of Savannah/Chatham
was approached to co-sponsor this proposed forum at  there meeting of 3/4/2002. They were interested and will monitor progress toward final details of this forum. Judy Jennings also asked if anyone thought that GPA  would be a co-sponsor? Morgan Rees was unsure and stated that this question had not been raised yet among GPA. Once the USACE responds to Dave Kyler's letter, GPA
  might have a preliminary answer. He felt that GPA would participate in some function. Continuing scope and details of this proposed forum would be determined at a later date.

  (II) Examine "K" - POST PANAMAX VESSEL DEPLOYMENT
  Discussion ensued by all participants....Where are these  large vessels to be deployed? Majority of these vessels  look to be deployed in the Trans-Pacific/Asia-Europe routes with some small % trickling down to the SE USA ports(including Savannah). It was noted that NY/NJ is deepening to 50 feet depth and Norfolk is already at 50  feet depth. Most of these vessels are at a 47.5 draft.   Morgan Rees will ask the IWR through the USACE to obtain additional data on current specifications of ships on order. It was noted, at this time, that to examine fleet rotation and to further understand how deployment is taking shape, this additional data will be needed.  EWG agreed that this examine item will be revisited when Savannah Fleet Projections are done.

       Examine "L" - POTENTIAL FOR MEGA-SHIPS
  EWG agreed to revisit..."What a mega-ship is..?" and to find out how others have handled this item; when the Savannah Fleet Projections are final.

       Examine "M" - METHODOLOGY FROM OAKLAND FEASIBILITY REPORT IS APPLICABLE TO SAVANNAH
  Changes to the Savannah Report (per Booz Allen  -  Pacific/Asian routes to Savannah only) were due to incremental changes in fleet percentages. (Small depth boat percentages will make up smaller percentages of fleet as depths go up..). EWG will continue to examine this item.

Discussion of WP/ "MultiPort Analysis"

Morgan Rees stated that development of this white paper was based on the assumptions from the feasibility report. Another element has been added that is not  reflected - per SELC - "Possibility that one regional port will be needed?"   " Improvement at one port and not any other port." and "Which port?"

(A) Assumption : COSTS AT COMPETING PORTS ARE COMPARABLE

This will be reevaluated at a later date.

(B) Assumption : COMPETITIVE POSITION DEPENDS ON QUALITY AND FREQUENCY OF SERVICE

This will be reevaluated at a later date.

C/ Assumption : COMPETITION FACTORS

This item will be looked at in the regional multiport analysis.

  (1) SHIPS THROUGH OTHER PORTS
  Items "a" thru "g" were not discussed at this time.

  (2) PORT CAPACITY
  It was noted that port capacity will be reevaluated within the new multiport analysis.

  (d) "COMPETITIVE HINTERLAND MARKETS DO NOT CHANGE"
  EWG agreed to accept the 1998 US Trade/Hinterland market study that showed change will not change Savannah hinterland market to any degree noticeable.

  (e) "LAND DISTANCE LESS THAN 500 MILES IS TRANSPORTED BY TRUCK"
  EWG agreed with this assumption.

  (f) "LAND DISTANCE GREATER THAN 500 MILES IS TRANSPORTED BY RAIL"
  EWG agreed with this assumption.

  (g) " ATLANTA AND MEMPHIS ARE GOOD SAMPLE  DESTINATION CITIES"
  EWG agreed with this assumption.


  (h) " ALL COMPETITIVE PORT INFRASTRUCTURE WILL KEEP PACE WITH NEEDS"
  EWG agreed with this assumption. Will Berson might send additional comments/concerns that would amend final statement.

  (I) " USE OF A 4000 TEU VESSEL FOR THE PORT ANALYSIS"
  It is noted here that a 6000 TEU vessel will be used.

 
  The meeting was adjourned at 5:20pm and that a tentative date was set for the next meeting. That date is Wednesday, April 17, 2002 @ 1PM.

  Respectfully Submitted,

  John T. Shelby, LWV of Savannah/Chatham