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Ports & Rail 6 min read

Port of Savannah Announces $847M Infrastructure Expansion Phase III

The Georgia Ports Authority approved Phase III of the Garden City Terminal expansion, adding 1.2 million TEUs of annual throughput capacity and deepening the Savannah River channel to 47 feet — the deepest on the U.S. East Coast outside New York Harbor.

$847M Total Investment
+1.2M TEU Capacity Added
47 ft Channel Depth
Q2 '28 Projected Completion
Back to Freight News Ports & Rail · March 10, 2026

Georgia Ports Authority Approves Largest Capital Investment in Port History

On March 9, 2026, the Georgia Ports Authority Board of Directors unanimously approved Phase III of the Garden City Terminal expansion — a $847 million infrastructure program that represents the single largest capital investment in the port's history. The approval came after a 14-month environmental review and a $2.1 billion federal harbor deepening study submitted to Congress in January.

Phase III encompasses three interdependent components: the construction of two new container berths at the northern end of the Garden City Terminal, the installation of six additional ZPMC Neo-Panamax ship-to-shore cranes, and the completion of the Savannah Harbor Deepening Project's final reach, extending the navigable channel to 47 feet at mean low water.

When combined with Phase I and Phase II capacity already online, Savannah's total annual throughput will reach 7.8 million TEUs upon Phase III completion — making it the highest-capacity single container terminal in the Western Hemisphere.

Channel Deepening Details

The 47-foot channel depth is not incidental — it is the engineering centerpiece of Phase III. The current operational depth of 42 feet limits the largest Neo-Panamax vessels to partial loads when transiting the Savannah River. At 47 feet, vessels carrying 18,000 to 24,000 TEUs can call Savannah on full load, eliminating the partial-load penalty that has historically added $180–$240 per container in repositioning costs for beneficial cargo owners.

The deepening project involves removing approximately 8.2 million cubic yards of sediment from the river channel between the Atlantic ocean entrance and the Garden City Terminal berths. The dredge material will be deposited in the Tybee Island Disposal Area, with a secondary environmental reuse program converting sediment into coastal restoration substrate at Wassaw Sound.

Berth Construction and Crane Installation

The two new berths will be constructed on reclaimed land adjacent to the existing North Berth complex, adding 2,600 linear feet of berthing capacity. Each berth is designed to accommodate two post-Panamax vessels simultaneously with a 150-foot turning basin apron. The six new ZPMC cranes — each standing 295 feet above the rail line — will give the terminal a total crane fleet of 36, enabling 18 simultaneous crane operations on a single vessel call.

Construction of the berths begins in Q3 2026, with an aggressive 24-month construction timeline targeting a Q2 2028 commissioning. The crane procurement contract was awarded to ZPMC in February 2026, with a delivery schedule aligned to the berth completion date.

Economic and Competitive Context

Savannah is already the third-busiest container port in the United States and the fastest-growing major port on the East Coast. Phase III is designed to consolidate that position against competitive pressure from the Port of Baltimore — which is rebuilding after the Francis Scott Key Bridge collapse — and from East Coast port alliances angling for discretionary cargo currently routing through West Coast gateways.

The Georgia Ports Authority projects that Phase III capacity additions will generate $4.2 billion in annual economic impact and support 46,000 additional supply chain jobs in the Southeast by 2030. A significant share of that growth is expected to concentrate in the I-20/I-95 corridor connecting Savannah to Atlanta, Charlotte, and the Research Triangle.

Shipper Impact

Southeast shippers importing or exporting via ocean freight should re-evaluate their gateway strategies now — before Phase III capacity materializes. The 47-foot channel will enable direct vessel calls from Asia Pacific routes that currently transship through New York or Los Angeles, potentially reducing transit times by 4–7 days and ocean freight costs by 8–15% for discretionary cargo. Shippers currently routing through Baltimore should also monitor Savannah as a primary alternative given Baltimore's bridge reconstruction timeline.

What to Watch Next

The Phase III approval triggers a series of downstream decisions for drayage providers, inland freight brokers, and shippers: drayage rate structures from Savannah to Atlanta and Charlotte will shift as capacity grows, IMC providers serving the Crescent Corridor will need to expand container yard infrastructure, and warehousing capacity along the I-16 corridor will come under pressure as import volumes increase. Carolina Expressways will publish a lane-specific capacity analysis for Savannah-Atlanta, Savannah-Charlotte, and Savannah-Raleigh lanes in the next issue.

Sources: Georgia Ports Authority Board Resolution 2026-03-09; U.S. Army Corps of Engineers Savannah Harbor Deepening Study; ZPMC procurement announcement March 4, 2026; GPA Economic Impact Report Q1 2026.

How Does Savannah's Expansion Affect Your Lanes?

Our freight strategists can model the gateway impact of Phase III on your specific import or export lanes — no commitment required.