Logistics Boom in Georgia

“We continue to see record-setting growth in our logistics infrastructure,” says Sandy Lake, director of logistics at the Georgia Center of Innovation, part of the state’s Department of Economic Development. “Georgia’s outstanding ports, railroads, highways and airports are a key factor that enables businesses to thrive here at home and in the global market.”

A study of Georgia’s logistics industry published last June by the Selig Center for Economic Growth calls this industry “a substantial and dependable source of jobs, economic activity and growth.” In 2023, the transportation and logistics industry employed nearly 293,000 people in the state, or one in every 16 jobs, while supporting another 578,300 jobs, or one out of every nine jobs.

The logistics industry’s operations generated a total economic impact of $107 billion in 2023 or nearly double its impact in 2010 ($54 billion). In addition, the industry generated $3 billion in tax revenue for the state and another $3 billion in tax revenue for local governments in 2023.

Record-Breaking Export Growth

Lake points specifically to the positive economic impact of export growth: “2024 was the fourth consecutive year of record-breaking growth in exports,” she says. “The Port of Savannah, which is the largest single-terminal container port in the country, has positioned itself to handle the increase in volume within its current footprint so they can grow in response to demand.”

Central Hub: The Port of Brunswick has direct access to Interstate 95 and proximity to Southeastern manufacturing plants. Photo credit: Georgia Ports Authority

Meanwhile, the Port of Brunswick is now the number one roll-on/roll-off (Ro-Ro) cargo port in the country. “This is due largely to the port’s direct access to I-95 and proximity to Southeastern manufacturing plants,” says Lake. Thererfore, it has become a central hub for domestic and export vehicle operations.

Cold storage and e-commerce fulfillment are two other areas of logistics that are seeing growth. For example, PermaCold Logistics broke ground on a new $60 million, 30,000-pallet cold storage facility in McIntosh County near the Port of Brunswick last summer. “Businesses like this are coming to Georgia largely because of our robust logistics network,” says Lake.

“Georgia’s outstanding ports, railroads, highways and airports are a key factor that enables businesses to thrive here at home and in the global market.” – Sandy Lake, director of logistics, Georgia Center of Innovation at the Department of Economic Development

In addition, Amazon made more investments in Georgia last year to increase their sorting, cross-stocking and distribution facilities. Amazon has approximately 20 fulfillment, sortation and distribution centers in Georgia. “They’re building on the success they’ve had in our state,” says Lake.

Logistics and AI

It’s not surprising that artificial intelligence is having a big impact on logistics in the state. “There are a lot of moving parts involved in logistics, which makes it a good fit for AI,” says Brandon Powell, founder and CEO of Atlanta-based HatchWorks AI, which helps companies effectively harness AI for business transformation. “AI is perfect for things like demand forecasting, inventory positioning and supply chain management.”

Improving Efficiency: Brandon Powell, founder and CEO of Atlanta-based HatchWorks AI. Photo credit: Brandon Clifton

In warehouses, AI is being used to forecast labor and space needs and create dynamic schedules. “It can analyze many different variables in seconds and make recommendations about the most efficient use of labor,” says Powell. In the same way, AI can help logistics companies predict how many employees they need to hire based on past turnover trends and future demand.

One AI application Powell really likes involves using cameras in warehouses to detect things like what kinds of trucks are arriving, where they’re arriving and at what time, and what kinds of pallets are being loaded and unloaded. “The video is run through AI which can identify what’s on the pallet and the quantity instead of a human having to do this,” he explains.

Artificial intelligence is also being used for dynamic routing. “AI is really good at scheduling, routing and dispatch,” says Powell. For example, consider a cable TV company with hundreds of trucks that visit thousands of homes every day. “AI can plan the drivers’ routes much more efficiently than humans can,” says Powell, comparing it to how Uber uses AI to determine the best car to pick up each passenger.

In addition, AI is being used for predictive maintenance on vehicle fleets. “Predictive maintenance has long been popular in the manufacturing space, but now it’s moving over into fleet management on the logistics side,” says Powell. “Fewer vehicle breakdowns equal more reliable freight delivery.”

Syfan Logistics, a third-party logistics company in Gainesville that transports hundreds of loads every week, is using AI to quantify carriers. “AI helps facilitate the matching of loads to carriers,” says cofounder and Executive Vice President Steve Syfan. “It provides a lot of checks on carriers to ensure that they meet our criteria. Not just can they move goods from point A to point B. But can they do it on the day the customer wants, and can they do it safely?”

The company is also using AI and GPS together to track driver activity. “One of the biggest complaints we get from drivers, and I understand it, is that we keep calling them,” says Syfan. “AI tells us where drivers are, if they’ve stopped and for how long, and how they’re tracking on time. It results in better and more accurate communication with drivers without having to talk to them, which increases safety.”

Transcontinental Railroad

One of the biggest logistics developments in Georgia over the past year was the proposed 2027 merger of the Union Pacific Corporation and Norfolk Southern Corporation to create the nation’s first transcontinental railroad. According to Norfolk Southern President and CEO Mark George, the combined company will deliver faster, more comprehensive freight service to U.S. shippers.

Moving Freight: Norfolk Southern President and CEO Mark George. Photo credit: Contributed

“Today, freight moving between the Midwest and the Southeast often requires multiple handoffs among carriers,” says George. “Each handoff adds time, cost and complexity. A unified transcontinental network will eliminate those friction points and help shippers move goods more reliably. This will give businesses across Georgia direct access further west with a faster, more streamlined supply chain.”

“There’s just not enough money out there to pay for all the new bridges and lanes of traffic needed to accommodate this. That’s why rail needs to be a part of the answer, especially intermodal trains. This helps keep more trucks off the road, which reduces road wear and tear.” – Ben J. Tarbutton III, president, Sandersville Railroad Company

On the downside, the merger would mean job losses at the Atlanta-based headquarters. According to the merger application, of the 2,063 management positions in Atlanta, about a quarter will be relocated to Omaha, and a quarter will be cut, leaving around 980 Atlanta-based employees in the merged company. In addition, at least 270 train dispatchers and several hundred clerical workers would be relocated to Nebraska.

Georgia has long been one of Norfolk Southern’s strongest public sector partners, says George, working with the railway to modernize freight corridors, improve safety and support infrastructure. “We’ve also worked closely with the Georgia Ports Authority and communities statewide on strategic infrastructure like the Blue Ridge Connector in Gainesville,” says George. “When it opens, 18,000 feet of new working track will connect Northeast Georgia directly to the Port of Savannah.”

George cites other new Norfolk Southern infrastructure improvements in Georgia: construction of nearly 25,000 feet of siding in McDonough-Locust Grove, the longest in the state; enhancements at the Austell Intermodal Terminal to support growing international trade flows; expansion of the Macon terminal to improve rail resiliency across South Georgia; and modernizing Howell Wye, a high-traffic junction in Atlanta, to unlock new capacity.

Intermodal Trains: Ben J. Tarbutton III, president of Sandersville Railroad Company. Photo credit: Contributed

Norfolk Southern has invested more than $1 billion in Georgia since 2021, including nearly $200 million annually in infrastructure, George says. “These are long-term, generational investments that improve safety, service and fluidity and enhance Georgia’s logistics competitiveness,” he says.

Georgia is slated to receive a $65 million grant from the Federal Railroad Administration to fund rail improvement projects. “We are working closely with the FRA and Georgia Department of Transportation [GDOT] to align federal freight rail priorities with Georgia’s long-term logistics needs,” says George. “Once awards and scopes are finalized, we will integrate them into our long-term capital and service plans.”

GDOT projects that freight movement will nearly double in Georgia over the next quarter-century. “There’s just not enough money out there to pay for all the new bridges and lanes of traffic needed to accommodate this,” says Ben J. Tarbutton III, the president of Sandersville Railroad Company. “That’s why rail needs to be a part of the answer, especially intermodal trains. This helps keep more trucks off the road, which reduces road wear and tear.”

Drone Deliveries

For local deliveries, drones are flipping the logistics and economics of e-commerce on its head. “The traditional economics of e-commerce are based on maximizing large baskets,” says Heather Rivera, chief business officer at Wing, a leading residential drone delivery company that is a subsidiary of Alphabet. “But there’s a lot of growth and opportunity in micrologistics. Drone delivery is specifically engineered to solve consumers’ small-basket needs, enabling retailers to offer a wider range of delivery options to customers.”

Wing has partnered with Walmart to offer drone delivery service of a wide range of products including grocery items, household goods and over-the-counter medicine. The service launched in the metro area in December and is offered by eight stores, with more to come. Items can be delivered in as fast as 30 minutes. The express delivery time by car is at least double that. Walmart says drone delivery is free for Walmart+ members for a limited time and $19.99 per delivery for non-members.

Drones require just a small area to land that’s clear of bushes, trees and other overhead obstacles. The average flight time to the customer’s home is typically less than five minutes and items can be delivered within a half-hour of ordering. Great Value eggs, ground beef, fresh tomatoes and avocados, and Lunchables are some of the most popular items for drone delivery, says Rivera.

“Consumers today expect convenience and speed more than ever before, with urban last-mile delivery demand expected to grow by 78% by 2030,” says Rivera. “They value receiving last-minute essentials in as little as 15 minutes, not hours or days. Meanwhile, businesses like Walmart benefit from faster delivery times, lower costs, broader customer reach and greater convenience. It all adds up to improved customer satisfaction.”

Speedy Service: Wing, a residential drone delivery company, has partnered with Walmart to transport groceries, household goods and medicine to customers, above and below.

By integrating Wing’s technology into their supply chains, businesses can offload some small-parcel deliveries to drones. “This frees up traditional delivery resources for larger, more difficult and more profitable deliveries,” says Rivera.

Leaders in logistics are meeting at the Georgia Logistics Summit on April 17 at the Cobb Galleria in Atlanta. “One of the topics will be how we can continue to advance the interconnectivity between road, rail, air and ocean,” says Lake. “I’m looking forward to an exciting conversation about what a more advanced, connected logistics ecosystem looks like for our state.”