At the Front Lines of the Global Transition

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Savannah Port Anticipates Panama Canal Expansion in New York Times

The nation's fourth largest container port is in Savannah. Traffic is growing fast. Photo/Keith Schneider

The nation’s fourth largest container port is in Savannah. Traffic is growing fast. Photo/Keith Schneider

SAVANNAH, Georgia — The business, art, and transactional legitimacy of reporting is to recognize that everything is connected. That’s especially true when your beat is global, your opportunity is unlimited, and your bank account is a like a hungry fledgling fish hawk.

Case in point: this article on the Savannah port’s increasing traffic which was posted today in the New York Times. Much of the port’s success is wrapped around its anticipation of the opening next year of the new and much larger locks at the Panama Canal. I reported that story and a number of others about Panama’s economy, and energy and water resources, for Circle of Blue earlier this year. That grouping of articles also included a piece from here that described the mismatch in U.S.infrastructure investment between port spending and spending for water supply and treatment.

I learned about the Savannah port’s expansion and its relationship to the Panama Canal expansion from an engineer in New York. The link was confirmed during the month I spent in Panama in January. It was only logical to visit Savannah as soon as I could, which was in mid-February.

I found that the business of marine transport here at the nation’s fourth largest container port is a study in visible statistics. Thirty-one ocean-going container vessels berth at the nearly 10,000-foot-long Garden City terminal each week. More than 8,000 trucks arrive and depart from the terminal daily. Garden City handled 3.34 million, 20-foot containers last year, over 10 percent more container cargo than in 2013, and a record.

There are other numbers that are just as vital to Garden City’s growing business, but not nearly so visible. Hidden behind the green curtain of Georgia pine forest that surrounds the terminal are 45.3 million square feet of logistics, storage, and distribution centers, according to the Georgia Ports Authority, the terminal’s owner and operator.

“The link between the terminal and the distribution centers is essential to our operations,” said Curtis J. Foltz, executive director of the Georgia Ports Authority. “Our competitiveness is based on efficiency and connectivity, making sure products don’t sit around. The real estate developments are a partnership that makes expanding trade here possible.”

Big Brands in Big Buildings
Owned, leased, or managed by some of the most recognizable brands in the country – Wal-Mart, Ikea, Home Depot, Target, and Pier 1 Imports – the immense buildings are essential links in the flow of farm, construction, and manufactured products streaming out or into the country through the Savannah River port, one of the country’s most modern maritime transport installations. Garden City’s traffic, which includes everything from containers of frozen Georgia chicken parts heading to Asia and stuffed doggie beds coming in from China, is about evenly divided between exports and imports.

The largest distribution center is the 2.5 million-square-foot facility owned by Schneider Logistics, a unit of the national trucking company. Wal-Mart operates a 2 million-square-foot center in Statesboro, 55 miles west.  Both are expansive enough to completely enclose two typical suburban shopping malls, or all the businesses in Savannah’s historic downtown, which lies just downstream.

There are sufficient numbers of large forested parcels near Savannah to build 35 million more square feet of distribution space. OA Logistics/JLA Home, a subsidiary of the privately-held, California-based E&E Company, announced plans in January to build a 1.1-million square-foot e-commerce fulfillment center near the port.

The Garden City terminal, according to the Georgia Department of Economic Development, also is influencing distribution center construction up to 250 miles away. Bed Bath & Beyond in 2014 opened a $50 million, 810,000-square-foot distribution center in Jefferson, northeast of Atlanta and 230 miles away. Wal-Mart is constructing a $102 million, 1.2 million-square-foot distribution facility in Union City, south of Atlanta and 250 miles from the Savannah port.
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World Water Day Ingredients Need Big Dash of Urgency

Soaring coal production in this Inner Mongolia mine, and in others, is pushing China's water reserves to the limit. Photo/Keith Schneider

Soaring coal production in this Inner Mongolia mine, and in others, is pushing China’s water reserves to the limit. Photo/Keith Schneider

From east to west, ever since the world began, there was water. Plentiful. Clean. Always available.

None of those descriptions apply to water today.  Though the condition of the world’s water is perilous, and job-producing opportunities for conservation and efficiency are abundant, water’s ranking on the list of public priorities and attention typically is not near the top.

It’s not for a lack of effort from the water wonks. In 1993, a year after international leaders met at the Earth Summit in Rio de Janeiro, the United Nations took a step to raise awareness of water’s place at the center of life by establishing World Water Day. The annual event, held March 22 and now in its 23rd year, comes on Sunday.

The United Nations, a big unwieldy institution, has fostered a bit more heed to the day’s activities. It breaks up the immense, unwieldy world of water into more approachable streams flanked by a shoreline of optimism.  World Water Day’s annual themes, as a result, are a catalogue of earnestness and hope.

In years past, World Water Day focused on women and water (1994), thirsty cities (1996), health (2001), disasters (2004), supply (2007), pollution and sanitation (2008), food security (2012), and energy (2014).

This year’s theme is sustainable development. “Water resources, and the range of services they provide, underpin poverty reduction, economic growth and environmental sustainability,” say U.N. organizers. “From food and energy security to human and environmental health, water contributes to improvements in social well-being and inclusive growth, affecting the livelihoods of billions.”

Coal mining in Meghalaya, a northeast India state, is so damaging to water that a high court shut down the industry nearly a year ago. Photo/Keith Schneider

Coal mining in Meghalaya, a northeast India state, is so damaging to water that a high court shut down the industry nearly a year ago. Photo/Keith Schneider

Does Earnest Work?
Good stuff. Necessary to talk about. But not fit for stirring widespread attention on Facebook, or going viral on YouTube. This is, after all, an era of short attention spans and fixation on inconsequential agitation or the absurd.

The world’s residents, capable as they are, don’t like serious. They like to be amused. Shrinking from challenges is a global phenomenon. That’s as true in China as it is in India or Peru or the United States.

With public attention diverted by the French president’s paramours, or Angelina Jolie’s marriage, the consequential work of engaging tough and abstract problems like water supply and water quality falls to whom? Global legislators imprisoned by partisanship and ideology? Agency engineers and regulators suffering with thin budgets?

It might be that water needs a great spokesperson. Until the last 150 years or so, water didn’t need its own spokesperson, like the way Michael Jordan sells Gatorade. Where is the Katy Perry of water? For that matter where is the Archbishop Tutu of water? Water certainly needs a more magnetic personality than Matt Damon, whose effort to highlight global sanitation and health is far less emphatic than his work as Jason Bourne.
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U.S. Ports Modernize While Water Supply and Quality Deteriorate

Georgia's Garden City Terminal near Savannah is the nation's fourth largest container port. Georgia and the federal government spent $758 million over the last decade to expand and modernize the port. Photo/Keith Schneider

Georgia’s Garden City Terminal near Savannah is the nation’s fourth largest container port. Georgia and the federal government spent $758 million over the last decade to expand and modernize the port. Photo/Keith Schneider

SAVANNAH, Ga. — There’s not much about water infrastructure that gets America’s lawmakers excited these days unless it’s a big coastal port.

The New York/New Jersey port, with a big assist from the federal government, is spending $1.3 billion to lift the 84-year-old Bayonne Bridge high enough to allow a new generation of super-sized cargo vessels to pass underneath. Charleston, S.C., with state and federal support, is spending $2 billion to deepen the harbor and expand port facilities. Miami has a project of comparable size to do the same thing.

Here in Savannah, where ocean-going ships have arrived and departed since the city was founded in 1733, Georgia and its Congressional delegation collaborated to direct $758 million over the last decade to expand and modernize the nation’s fourth largest container port. Over the next decade, say port executives, an additional $1.4 billion is in the port’s capital budget, including $706 million to deepen the harbor and the Savannah River.

In all, spending on capital improvements to U.S. ports has averaged $10 billion annually over the last decade, according to a 2014 study of infrastructure investment by PricewaterhouseCoopers. By 2025, U.S. port capital investments are projected to reach $20 billion annually, the study concludes.

In contrast, U.S. capital investments in water supply and wastewater treatment totaled around $2 billion annually over the last decade. By 2025, investments in water supply and treatment may reach $3 billion annually, says PricewaterhouseCoopers.

Uneven Funding
The mismatch in spending is reflected in two essential metrics that are clearly apparent in Savannah. The Garden City container terminal, with its new electric cranes, redesigned loading deck traffic patterns, and expanded intermodal train facilities, is a showcase marine import and export installation. The decade of investment in equipment and practices by Georgia and the federal government, which came in anticipation of handling more cargo from the expanded Panama Canal, has resulted in hundreds of new jobs at the terminal, and thousands more inside the 45 million square feet of logistics, storage, and distribution centers that surround the port.

In the meantime scant investment in water quality infrastructure has left the Savannah River dirtier than ever. The most recent EPA Toxics Release Inventory, for instance, finds that only two other rivers — the Ohio River and the New River in West Virginia — have more hazardous chemicals being poured into them than the Savannah River.
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Stanley Heckadon-Moreno is Panama’s Great Conservationist and Patriot

Stanley Heckadon-Moreno, one of Latin America’s most influential and successful conservationists, is a national leader in Panama's work to safeguard clean rivers and protect thousands of square miles of magnificent tropical forests. Photo/Keith Schneider

Stanley Heckadon-Moreno, one of Latin America’s most influential and successful conservationists, is a national leader in Panama’s work to safeguard clean rivers and protect thousands of square miles of magnificent tropical forests. Photo/Keith Schneider

COLON, Panama – Across the expanse of a half-century-long career as an ecologist, reformer, and skilled raconteur, Stanley Heckadon-Moreno saw his native Panama engulfed by one spasm of political transition after another.

A weak democracy and resentment of American ownership of the Panama Canal in the 1960s begat the corrupt military dictatorship of the 1980s. A damaging American invasion in 1989 gave rise to a decade of hardship and confusion in the 1990s.

Even the transfer of canal ownership to Panama on the last day of the 20th century, which initiated the most economically buoyant era in the country’s 112-year history, produced a bout of national vertigo. Uncertain at first, government and business leaders took time to prove to themselves and a doubting world that they harbor the skills to manage a 21st century democracy, and an essential maritime main street.

“For a long time, the bankers, the builders, the government administrators, they all reached one conclusion,” said Heckadon, who’s served since 2000 as a staff scientist and manager of the Smithsonian Tropical Research Institute’s Galeta Point Marine Laboratory, on the Caribbean entrance to the canal. “They said, ‘We don’t need no damn forests. It’s a waste. Trees? Forget the trees. We want development.’ Sea to sea along the Panama Canal. They wanted it to be like the Rhine River. One industry after the other.”

Yet through all of the political convulsions and government advocacy for new development, Heckadon persisted with a message of restraint and a knowing, personal approach that could be as tough as teak or as flexible as bamboo. Much of Panama’s public domain, and a good share of the nation’s land preservation and water conservation ethic can be traced to his work.
Panama’s Land and Water Steward

As one of Latin America’s most influential and successful conservationists Heckadon is directly responsible for safeguarding Panama’s largest rivers, and permanently protecting thousands of square miles of magnificent tropical forests. Indirectly, his considerable role in securing Panama’s natural wealth is steadily producing a durable — and largely non-polluting — new economy that is based on maritime transit, logistics, trade, banking, housing, and tourism.

“Stanley is the voice of environmental conscience for Panama,” said Matthew C. Larsen, director of the Smithsonian Tropical Research Institute. “His deep understanding of the human activities that affect the abundant natural resources of the nation have made him a highly respected and articulate source of information and perspective on how we can sustainably manage our landscapes.”

The 131,000-hectare (324,000-acre) Chagres National Park was established in 1985 to secure the headwaters of the Chagres River, the freshwater source for the Panama Canal and for most of Panama’s people. Photo/Keith Schneider

The 131,000-hectare (324,000-acre) Chagres National Park was established in 1985 to secure the headwaters of the Chagres River, the freshwater source for the Panama Canal and for most of Panama’s people. Photo/Keith Schneider


Heckadon’s Work Is Seen Everywhere

The 90-kilometer (56-mile) drive from Heckadon’s home in Panama City to his sun-splashed office at the marine laboratory crosses the 289,200-hectare (665,000-acre) Panama Canal watershed. The unmarked hills and green forests are the crowning achievements of his career and a showcase of Panama’s allegiance to its fresh water and tropical geography.

If each of the protected tracts of land that Heckadon established were graphically illustrated, say with bright flags planted in the forests and on the summits of the Canal Zone highlands, the route would be aflutter with color. Read More

Along Ohio River, Big Data Lifts Cincinnati

Reconstructing Fountain Square in 2005 was essential to Cincinnati's development following the race riot in 2001. Photo/Keith Schneider

Reconstructing Fountain Square in 2005 was essential to Cincinnati’s development following the race riot in 2001. Photo/Keith Schneider

CINCINNATI – This 226-year-old Ohio River city came unglued in early April 2001, when three nights of riots and a plunge in the number of residents and businesses followed the death of an unarmed black man shot by the police.

Fourteen years later Cincinnati is climbing to the top of the heap of American midsize cities in real estate construction — a surge in investment and new buildings fostered not only by the hard work of social activists and human rights leaders, but also by scores of business starts, job growth, wage increases, public-private partnerships, and transit development that folowed. The city’s population, 297,517 in 2013 according to the US Census Bureau, grew over 600 residents, the first increase since 1950, when Cincinnati’s population peaked at 504,000 residents.

Cincinnati’s resurgence, based in large part on the development of a new big data industry and marketing analytics, is evidence of two powerful and promising trends reshaping the United States in the 21st century. The first is the pace of job growth in American cities, which now is faster than in the suburbs. (See my articles here in the New York Times.) The second is the recovery of the Rust Belt, and especially the strength of cities in the Ohio River Valley. In today’s New York Times I report on Cincinnati’s rise as a center of what city leaders call “consumer science.”

One measure of Cincinnati’s new relevance is the $85 million, 338,000-square-foot, 12-story office building that Atlanta-based Carter is building to house General Electric’s new Global Operations Center. Construction is due to be completed in 2016 in The Banks, an 18-acre Ohio riverfront development located between the city’s baseball and football stadiums. The building and the district will be served by a station stop on the 3.6 mile, $148 million Cincinnati streetcar line, scheduled to open the same year.

GE’s Operations Center, one of five the company is developing globally, contains first floor retail, parking on the second floor, 10 stories of conference and office space, and houses up to 2,000 GE professionals, 1,400 of them new to Cincinnati. The installation serves big development and manufacturing centers that GE operates in the U.S., including lighting and aviation manufacturing sites in two Ohio cities.

The center is being built with the help of $101 million in city, county, and state tax and investment incentives.  In exchange GE committed to employ at least 1,800 people in Cincinnati over the next 18 years, earning a total payroll of $142 million annually to start, or an average of $79,000 a year.

“Cincinnati was chosen due to GE’s long-standing presence in the state and southwest Ohio,” said Dominic McMullan, a GE spokesman, “as well as a pool of local talent and skills required for the roles in the Global Operations Center. In addition, the state, county and city provided a competitive incentive package to GE.”

The 18-acre The Banks in Cincinnati connects center city to the Ohio River. Photo/Keith Schneider

The 18-acre The Banks in Cincinnati connects center city to the Ohio River. Photo/Keith Schneider

Big Data Urban Economics
Another big project that is competing with GE for attention, and illustrates the Queen City’s powerful embrace of new market opportunities, is the dunnhumby Centre just a few blocks away. The $140 million, nine-story, 285,000-square-foot office building opens in the spring and will make the corner of Fifth and Race one of downtown’s most prominent addresses again.

Rising from a parcel that for more than a decade was a city-owned surface parking lot, the new building sits atop 29,000 square feet of ground floor retail space and a six-level, 527,000-square-foot parking deck. It is a joint project of dunnhumbyUSA and the Cincinnati Center City Development Corporation, the city’s non-profit real estate development organization, known here as 3CDC. It houses the fast growing staff of a market analytics firm jointly owned by a small British-owned big data analysis company and The Kroger Company, the grocery store chain, which is based here.
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