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Featured | Industrial/Manufacturing | Markets | People

Davis & Floyd’s Marion Bull Discusses Emerging Port Logistics and Industrial Growth Trends

by GroundBreak Carolinas on June 9, 2024

In an exclusive interview with GroundBreak Carolinas, Marion Bull—Director of Business Development at Davis & Floyd—discusses the company’s role in emerging port logistics and industrial growth trends. With a focus on the strategic importance of ports like Charleston and Savannah, Bull sheds light on how regional shifts in manufacturing and infrastructure needs are redefining the landscape of American industry and global trade networks. Bull is based in Davis & Floyd’s Charleston office.

What strategic trends are currently influencing industrial growth towards port markets like Charleston and Savannah?

“We’re seeing a significant shift in industrial growth gravitating towards Southeast US port markets, particularly Charleston and Savannah. This is driven by shifts in the origin of consumer goods imports from China to Southeast Asia and India; top US importers diversifying their supply chains within the US; a strong population shift to the Sun Belt; and heavy capital investments by those ports to boost port capacity. Add to that expansion of next-gen manufacturing in the Southeast and you have a healthy demand signal long-cycle. There are ups and downs of course—it’s hard to go vertical right now on new spec buildings and the seasonal drop in US imports was stronger than expected, dampening need for new warehouse space—but we do believe these are durable trends favoring Southeast ports.”

How have recent global events, like the pandemic, highlighted the need for alternative gateways and ports?

“The pandemic highlighted the vulnerability of relying on a limited number of entry points. We learned the hard way that having alternative gateways is crucial for maintaining supply chain resilience. This realization is shaping our strategic planning and encouraging the expansion of infrastructure at ports like Charleston and Savannah. And don’t forget, both Georgia Ports and SC Ports continue to build inland port facilities in their respective states. So, North Georgia and Greenville/Spartanburg, SC, are now ‘near port’ markets.”

Can you elaborate on the significant investments being made in Charleston and Savannah ports?

“US port capacity is constrained and rigid. Most top US ports are very limited in their ability to physically expand. South Carolina Ports and Georgia Ports are the exceptions. Both are investing heavily in new capacity. Georgia reports a $4.5 billion, 10-year CAPEX plan for marine terminals, roads, and rail. SC had a 10-year, $3 billion CAPEX plan before announcing the purchase of a shuttered paper mill that will be converted to a container terminal, expansion of I-526, raising of the Don Holt Bridge, and deepening of the shipping channel to North Charleston. All those announcements were made in Q2/2024. An increase in physical port capacity is what developers and tenants are looking for. South Carolina and Georgia ports are delivering.

What are the unique challenges faced by developers of port-dependent facilities? How is Davis & Floyd positioned to meet their needs?

“One critical factor in the business of building port-related product is the need to build it speculatively without a tenant. It’s not unusual for large tenants to study for years where their next distribution center will be. But once they decide, they move fast. They want the deal done in 90 days—way too fast to have someone build from scratch. So, the developer is absorbing all the risk. In that case, they need to have great partnerships in place to be sure their numbers, timelines, and operating metrics are rock solid.

What role does Davis & Floyd play in the early stages of industrial and port development projects?

“We’re often one of the first partners involved in new developments. We work alongside developers, real estate brokers, and economic development allies to identify optimal sites. We offer critical insights into realistic development timelines, permitting environments, and due diligence necessary for project success. The low-hanging fruit of near-port sites has long since been picked. Developers and owners need the assistance of a good engineer to work through some of the challenges. Our early involvement ensures that they have the critical intel they need to avoid unanticipated pitfalls and to bring their projects to completion on schedule and on budget.”

What unique value does Davis & Floyd offer to those looking to develop near ports?

“We have seven decades of industrial experience in this market, and we are vertically integrated, so a client has one relationship for a dozen engineering disciplines—environmental, civil, structural, transportation, water resources, landscape architecture, surveying, and others. Clients also benefit from having two special subject-matter experts on the D|F team. Richard Kizer has 28 years of experience working with Santee Cooper, a public power-generating utility. Access to power is a critical issue in almost every significant economic development project these days. I have 30 years of experience in the port business, all of it in the commercial sector recruiting port-dependent clients. We’re not engineers, but we can offer unique insights on port and power matters.

With such a long history in the engineering industry, how does Davis & Floyd maintain its competitive edge?

“It starts with visionary leadership. There is a continuity of leadership and culture here that I believe benefits our clients. We know who we are. We do exceptional work. We’re committed to innovation and responsiveness. Since our inception in 1954, we’ve continuously adapted and expanded our services to meet the evolving needs of the most demanding clients in the region. We have a broad historical portfolio across disciplines including manufacturing, distribution, public services, aerospace, transportation, and more. Our ability to tackle high-pressure challenges and deliver exceptional results has kept us at the forefront of the industry. We do so much more than roads and bridges. We look forward to being a major player in the growth that our region will see in the coming years.”

Davis & Floyd is a leading engineering, planning, and landscape architecture firm with six offices in South Carolina: Beaufort, Charleston, Columbia, Florence, Greenville,  and Greenwood, SC. To learn more about Davis & Floyd or connect with Marion Bull, please contact him at mbull@davisfloyd.com.

Topics: Featured, Industrial/Manufacturing, Markets, People
Davis & Floyd

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