Dive Brief:
- The Port of Brunswick and ocean carrier Zim are offering a short-sea service from Georgia to Mexico, according to a press release emailed Wednesday.
- The new service, called the Gold Star, is a “key option for automotive manufacturers looking for a fast, secure link when shipping into the U.S. via manufacturing sites in Mexico,” said Bruce Kuzma, VP of trade development for ocean carrier and non-container sales at the Georgia Ports Authority
- To further support the growth in auto and machinery volumes, the port has been investing in additional infrastructure. This includes a 122-acre roll-on/roll-off cargo storage space and expanding its auto and machinery processing space across five new buildings.
Dive Insight:
The Georgia Ports Authority — primarily at the Port of Brunswick — has seen an increase in cargo volumes in the month of September.
In September, the Colonel’s Island Terminal handled 70,645 units of roll-on/roll-off cargo, showing a 61% year-over-year increase according to a Nov. 2 press release. This was due to a sharp increase of auto and machinery volumes, a sign of recovery from a pandemic-related shortage of computer chips that had stymied auto production.
The Southeast port is using a two-pillar strategy in a move to scale operations by focusing all roll-on/roll-off cargo in the Port of Brunswick and all container cargo in the Port of Savannah, GPA Chairman Kent Fountain said in the press release.
Besides the Gold Star service offered by Zim, CMA CGM has also recently started a new short-sea service carrying vehicles from Mexico to the Southeastern port.
Besides nearshoring efforts in Mexico driving auto growth, Georgia is also seeing an influx of investments from auto manufacturers and battery makers like Hyundai and LG Energy and SK Battery America. Hyundai and LG Energy announced a $2 billion battery cell plant, and SK Battery spent $2.6 billion on two battery manufacturing facilities in Jackson County, Georgia, since 2019
Railroads have also been looking to expand their network offerings between Mexico and the U.S.
This week, J.B. Hunt, BNSF and Grupo México Transportes announced plans to offer shippers a new U.S.-Mexico intermodal service, starting Jan. 1. Union Pacific also launched a domestic intermodal service between Mexico and the Southeastern U.S., according to an Oct. 2 announcement.
