Reefer

However, as part of the Container Berth 2 upgrade project, GPA has purchased 300 new refrigerated cargo racks, which were custom designed by consulting engineers, Moffat & Nichols, and built locally by Collins Construction Services.

“We specified that the new plugs match our existing ones to ensure site wide uniformity, while the electrical gear had to meet a performance specification based on load/demand requirements. The project was advertised on the open market, and we awarded the contract to the lowest bidder,” says Jamie McCurry, general manager external affairs for GPA.

In all, four bids were received, which the port authority says resulted in both good choice and competitive prices. Specifications were performance based. Interestingly, no Chinese general contractor bid.

No formal life cycle analysis was done to compare diesel and electric power, but electric plugs were preferred since they require less maintenance and generate lower operating cost than simply relying on a diesel generator.

To provide sufficient diesel generators to power 336 slots would have cost more than the electrical infrastructure for the racks. Furthermore, diesel generators have a working life of two to four years before significant maintenance is required. In contrast, electrical equipment has a nominal lifespan of 15 years, with supporting electrical infrastructure being good for up to 25 years.

There is also an obvious environmental bonus when opting for electric power.

“We evaluated both racks and chassis-mounted reefers, essentially comparing the cost of the racks against the value of the land needed for the chassis configuration. In either case, the land would have been valuable as container storage yard, so the reduced area of the racks represented sufficient savings to yield an ROI of about 3 years for the racks when looked at in comparison with a chassis-mounted configuration,” says Mr McCurry.

The reefer market in Savannah has hit historic highs over the last 15-18 months, with exports jumping from 10,300 teu in the 3rd quarter of 2006 to 20,400 teu in the first quarter of 2008, while imports increased from 3,500 teu to over 4,700 teu. Total 2008 reefer traffic is estimated to reach 100,000 teu.

Boosting reefer box trade in the short term is the weakened US dollar, although the Russian government has mooted possible restrictions on US poultry, which could have dramatic negative effects on exports.

The two largest frozen poultry exporters from the US – Pilgrim’s Pride and AJC Foods – are also reportedly seeking ways to reduce transport costs, which could mean a move out of reefer containers and into more traditional break bulk shipments.

“Besides poultry, which forms 94% of our total export reefer trade, fresh chilled grapefruit exports have produced moderate increases over the last two seasons thanks to crops in Central Florida being free of hurricane damage; these now account for 5% of the business,” says Mr McCurry.