Road construction continues in South Georgia. This includes four-lane projects for State Route 133 and U.S. 84.
“While the primary focus of TFA is to address deferred maintenance of critical infrastructure, the funds resulting from the Transportation Funding Act also enable us to leverage federal funds to address major mobility improvement projects that will help reduce congestion across the entire state transportation network. These projects will help to significantly improve mobility for the growing freight and logistics industry.” Commissioner Russell R. McMurry, P.E., Georgia DOT
With almost 18,000 miles of interstate roads and state routes, it is no surprise that Georgia has the 10th largest transportation network in the U.S.
For 100 years, the Georgia Department of Transportation has overseen the construction and maintenance of the state’s roads and bridges, and interstate highways. Georgia DOT provides planning and financial support for other modes of transportation, including rail, transit, general aviation, and bicycle and pedestrian programs. The department is also involved in waterways, including the Savannah and Brunswick ports and intracoastal waterway.
On an economic forefront, the Georgia DOT is focused on providing a strategic approach to transportation investments that accommodate freight growth and logistics.
As described in the Governor’s Task Force on Freight and Logistics final report (2010-2050), Georgia’s logistics industry accounts for up to 18 percent of the state’s gross state product and includes 5,000 companies providing logistics services and employing more than 110,000 workers.
Georgia’s logistics industry is part of an even bigger economic picture, with more than 30,000 businesses relying on logistics companies to facilitate the movement of goods through a supply chain, which represents more than 700,000 people and generates over a half trillion dollars of annual revenue.
According to the Georgia Center of Innovation for Logistics, shippers in every industry sector depend on Georgia’s roadways to transport more than $620 billion in cargo (40 million tons of freight) each year.
The Transportation Funding Act (TFA) of 2015, which is also referred to as House Bill 170, generates sustained annual revenue to specifically fund transportation routine infrastructure maintenance and capital improvements.
According to the Georgia DOT, plans are underway to advance 11 major mobility improvement projects across the state during the next 10 years that will yield a considerable reduction in congestion along key freight and mobility corridors.
Russell R. McMurry, Commissioner, Georgia Dept. of Transportation
“While the primary focus of TFA is to address deferred maintenance of critical infrastructure, the funds resulting from the Transportation Funding Act also enable us to leverage federal funds to address major mobility improvement projects that will help reduce congestion across the entire state transportation network,” Georgia DOT Commissioner Russell R. McMurry, P.E. said. “These projects will help to significantly improve mobility for the growing freight and logistics industry.”
South Georgia’s Gateway
In South Georgia, HB 170 has already infused millions of dollars for bridge repairs and road improvements, and these projects have assisted the state and local governments in meeting transportation needs that have been delayed due to funding issues. Projects scheduled in the near future, which will be funded through HB 170 and federal allocations, include construction of four-lane bridges on I-75 at exits 2, 11, 22, and 29 and a lane extension at exit 2 to improve vehicle access, especially for commercial trucks. Within the city of Valdosta, Jerry Jones will gain a lane extension from Baytree Road to Oak Street.
“We immediately think about truck traffic on some of these interchanges, but it is also about tourism. We want Georgia’s roads to be the safest in the country, not just for commercial traffic but also for residents and all the tourists that pass through our state.” Tim Golden, State Transportation Board
Tim Golden, State Transportation Board
Tim Golden, State Transportation Board member, is excited to see all the orange barrels lining the roads in South Georgia because it means funds from House Bill 170 are hard at work.
“House Bill 170 provides the Georgia Department of Transportation with sustainable funds to be used for bridges and road improvements, which frees up federal funds to be used in other capacities,” said Golden, who represents 24 counties in the 8th Congressional District. “It is also assisting local governments with projects like bridge replacements and repairs, resurfacing, and safety improvements on existing roadways.”
Georgia’s interstate roads and state routes also help support a booming $58.9 billion tourism industry.
“We immediately think about truck traffic on some of these interchanges, but it is also about tourism,” said Golden, who served as a state senator and a representative for 24 years. “We want Georgia’s roads to be the safest in the country, not just for commercial traffic but also for residents and all the tourists that pass through our state.”
The roadways are not just for commercial traffic. They also impact Georgia’s more than 10 million residents.
“Transportation affects every aspect of life,” said Chad Hartley, Georgia Department of Transportation District 4 engineer. “Going to the hospital, school, work, visitors passing through the state, moving cargo and goods, and basically daily life is impacted by transportation.”
Hartley said District 4 manages the overall transportation network of federal and state roads within 31 counties in South Georgia.
U.S. 84, which extends across the southern part of Georgia from Alabama to I-95, is a project that has been in development for several years and will now receive funds from House Bill 170 for completion.
“The U.S. 84 four-lane project is being constructed in three projects from Homerville to Waycross,” Hartley said. “The completion is expected in 2019 and will positively impact truck traffic coming from the ports of Savannah and Brunswick going across the state.”
Having the U.S. 84 project completed by 2019 is an important economic factor due to the Port of Savannah’s harbor expansion, which is also scheduled to be finished that year.
As the nation’s fastest growing and fourth-busiest container port, the Port of Savannah handles more than three million 20-foot equivalent container units per year for more than 21,000 U.S. businesses.
“Containers moving in and out of the Savannah and Brunswick ports are going north and south along I-95, or east and west on I-16 or U.S. 84 or 82, which runs through our district,” Hartley said. “Once the Port of Savannah’s harbor expansion project is completed, I think you will see more businesses that are importing and exporting materials want to locate in South Georgia. You will also see businesses that want to locate near an interstate, a rail hub, or port because it’s about the hauling distance.”
The Jimmy DeLoach Connector, completed in May, is the final link between I-95—one of the country’s busiest interstates—and the Port of Savannah. The Connector offers numerous benefits for freight movement, driver safety, and economic advantages. Moving freight between port facilities in the Savannah area is critical to the local, state, and regional economy. The Connector will improve travel time from the port to I-95 and accommodate the increasing truck traffic entering and exiting the port.
“The new Jimmy DeLoach Connector is a strategic mobility investment that will yield enormous benefits for the state,” McMurry said. “It will dramatically reduce truck traffic and improve safety on Augusta Highway. Further, it is projected to yield a benefit-cost ratio of 8:1 for Georgia taxpayers.”
Another important four-lane project currently under construction in District 4 is State Route 133, which runs southeast to northwest connecting Valdosta, Moultrie, and Albany and intersecting with I-75. Funding for the project is part of the Governor’s Road Improvement Program (GRIP), which is a system of 19 economic development highways that when completed will connect 95 percent of Georgia’s cities with populations of at least 2,500 to the Interstate Highway System and 98 percent of Georgia’s population within 20 miles of a four-lane road.
“State Route 133 is important because of its economic impact,” said Hartley. “It is a state priority under GRIP to get those roads that are two-lane to four-lane to help move products and goods. Trucks traveling on Highway 133 are moving a lot of agricultural products, and there is a short shelf life. The truckers have to get the products to the consumer quickly. Also, having a four-lane highway allows for larger trucks to move through this area.”
Located equal distance between Atlanta and Orlando, Valdosta-Lowndes County also sits on I-75 (north and south), along with easy access to I-10 (east and west) and major state highways. Proximity to the Port of Savannah, Port of Brunswick, and Port of Jacksonville is an important part of the region’s logistics network. Another mode of transportation is rail service provided by Norfolk Southern and CSX railroads.
“Our prime location, along with a strong logistics and supply chain network, provides a competitive advantage in helping businesses move their products quickly,” said Andrea Schruijer, executive director of the Valdosta-Lowndes County Development Authority. “Having two rail lines running through Lowndes County is beneficial to our industries, but what is more important is that both lines have rail capacity.”
Lowndes County is home to three major distribution centers: Lowe’s Regional Distribution Center, Home Depot Regional Distribution Center, and Dillard’s Distribution Center.
“Knowing that we have infrastructure that has the capacity to expand puts us in a good position to work with logistics companies and attract those companies to Lowndes County,” said Lowndes County Commission Chairman Bill Slaughter. “What is extremely important about our area is that we are very sensitive to the issues of infrastructure like water, sewer, roads, and those sorts of things. We don’t want to get into a position where we are ignoring our infrastructure and then when growth comes we are trying to play catch-up.”
Don’t tell business leaders in Douglas-Coffee County that you have to be located on an interstate to build a thriving logistics industry. Thirty years ago, Walmart decided to add a distribution center in South Central Georgia that now has 900 employees. Since the Walmart Distribution Center opened, others have followed, including Premium Waters and Spectrum Distribution.
According to Andrea Taylor, executive director of the Douglas-Coffee County Economic Development Authority, the geographical location of Douglas-Coffee County, along with its strong infrastructure, makes it appealing to distribution industries.
“We market Douglas-Coffee County as a central location that has access to major state highways with direct connections to four interstates (I-75, I-95, I-16, and I-20), as well as the Port of Savannah,” said Taylor. “The expansion of the port will offer future growth and have a positive impact on distribution increase in our area. In addition to the port, rail is a major factor for distribution centers locating to our community.”
Outsource Logistics co-owners Lee Smith and Paul Everett operate warehousing facilities in Savannah, Tifton, and Valdosta.
Just-In-Time Delivery
Convenient access to major interstates, Class I railroads, and proximity to ports in Savannah and Brunswick helps provide South Georgia with a robust logistics industry.
Transporting raw materials or finished products from point A to B is just part of the logistics process. Warehousing is another part of the equation.
Paul Everett, co-owner of Outsource Logistics, explains that customers require warehouse space as a holding location until they are ready for the raw material to be sent to the manufacturer for processing or when the finished product is ready to be shipped to the customer.
“We store the raw materials and the customer schedules the production. When the customer is ready, we provide the raw materials to their dock just in time, so they don’t have to store materials and operate a massive warehousing facility,” Everett said. “The manufacturer then produces the product, packages it, and places it on a pallet for pick up. The majority of the time the finished product will come back to our warehouse until it is ready to go to the distributor.”
With more than 950,000 square feet of warehouse space located in Valdosta, Tifton, and Savannah, Outsource Logistics, a third-party logistics (3PL) provider, serves the logistics and fulfillment demands for clients locally and globally.
“We do warehousing and distribution for clients locally, throughout the U.S., and globally,” said Everett. “The majority of our customers are in the agricultural chemical production space. We are located in the heart of farming country, and agricultural chemicals and products make up a large portion of what we store, distribute, and transport, although we also handle retail, food products, and pretty much anything other than frozen goods.”
Everett explains that having two locations directly on I-75 (Valdosta and Tifton) and one at the Port of Savannah near I-95, along with easy access to U.S. 84 and 82 and I-10, helps provide the perfect logistics network.
“South Georgia is a hidden gem. Logistically, if you look on the map, we are 230 miles north of Orlando and 230 miles south of Atlanta,” Everett explains. “We are in the middle of two major population centers. When manufacturers think of warehousing they automatically think of Atlanta, but our real estate is more readily available and more cost-effective, and we don’t have the traffic congestion of the larger cities.”
Everett said the Valdosta-Tifton corridor is located as far north as possible to still service the entire state of Florida the next day, plus seven Southeastern states within 24 hours.
“Logistically, South Georgia is the best location for servicing the entire Southeastern part of the U.S.,” Everett said. “We are also positioned with both freight and rail to assist Savannah and Brunswick in getting products out of the port as quickly as possible.”
Logistics Manpower
Throughout Georgia, technical colleges and university system schools continue to develop programs to educate the next generation of logistics workers.
In Lowndes County, industry leaders have expressed the need for postsecondary programs designed especially for the logistics and supply chain management degrees.
“One thing we know, the need for logistics workers is not going away,” said Mike Jerome, general manager at Lowe’s Regional Distribution Center in Valdosta. “Where some career fields may shrink and fade away, we will always need logistics. There will always be a need to move products from one place to another, and the need for faster service continues to grow.”
Jerome said there is a constant demand for individuals with skills in operations and transportation management and logistics planning.
“The main thing we are looking for in any job function is leadership skills,” Jerome said. “Next we look for knowledge and skills in transportation, demand planning, information technology, warehouse management, maintenance, human resources, and other administrative functions that all support operation.”
Wiregrass Georgia Technical College (WGTC) currently offers a logistics specialist technical certificate as part of the business management degree program or as an individual certificate of credit.
“The combination of courses cover introduction to logistics, purchasing, materials management, and product lifecycle management,” said Jacquelyn Veuleman, associate dean of the Department of Arts, Sciences, Business, and Technology at WGTC. “The reason Wiregrass has been looking to begin a logistics program for over a year is watching Georgia grow into a national leader in the logistics industry.”
Future workforce needs include professionally trained logistics workers in a variety of career fields.
“Our community’s future needs will rely heavily on reliable and efficient logistics and supply chain organizations,” she said. “WGTC’s mission is to deliver personnel competent and qualified to answer the need.”
As part of ongoing discussions with industry and community leaders, Valdosta State University (VSU) started offering a minor in logistics and supply chain management this year.
Dr. Ed Walker, professor and head of the Department of Management and Healthcare Administration at VSU, said the minor will complement basic business skills, including accounting, economics, finance, marketing, and management.
Within the minor program, students will gain an understanding of basic company operations, supply chain concepts, the importance of quality to the customer and company, channels through which materials and information flow, relationship among the links of supply chain, and basics of material movement.
“Students will gain an understanding of what they need to know to work with a company like Home Depot or Lowe’s,” Walker said. “Graduates will be able to hit the ground running and perform at a higher level more quickly.”
Walker said the next step is to develop a major within supply chain management that would consist of a set of core business classes, much like those within the Bachelor of Business Administration; a set of general supply chain management courses; and a choice of concentration areas such as quality, transaction law, or accounting.