Tom Swinson of the Georgia Ports Authority in Savannah says that the FTZ designation is a big reason why so many corporations have established major operations at either the airport or seaport in Southeast Georgia.
        In 2003, Pier I Imports opened its new Savannah import distribution center at the seaport. The 780,000-sq.-ft. (72,462-sq.-m.), 60-acre (24.3-hectare) project represents a $30-million capital investment and employs more than 150 workers.
        Also during 2003, Hugo Boss opened a 165,000-sq.-ft. (15,328-sq.-m.) distribution center in the area, representing $15 million in new investment and creating 125 new jobs. Plus, a 40,000-sq.-ft. (3,716-sq.-m.), on-dock, cold-storage facility was reopened in 2003 for use by Savannah Portside Refrigeration. The company is expected to import 12 million pounds of beef, duty-free, this year.
        "The Foreign-Trade Zone designation, which was extended to the seaport in Savannah just a few years ago, was a big reason we were able to secure a major distribution center for Kmart as well," Swinson said.
        By having the FTZ designation at both the airport and seaport, Savannah-based companies are able to import goods duty-free and conduct other money-saving operations in the area.
        The purpose of the U.S. FTZ program is to stimulate economic growth and development in the country. In an expanding global economy, there is increased competition among countries for capital investment and workers. The FTZ program promotes American competitiveness by incentivizing companies to maintain and expand their operations in the U.S.
        The FTZ program also benefits communities by preserving American jobs they would otherwise lose to other nations. That's why the number of FTZs in America has grown from less than 50 in 1979 to 252 today.
        As a result, more than $200 billion in merchandise is received every year at FTZs in the U.S. And many U.S. ports are expanding to take advantage of this program.
        Major port expansion projects are under way today in Florida, Washington, Texas, Georgia, Alabama, New York-New Jersey, South Carolina, Virginia, Louisiana and California – just to name a few.
        Such projects are expected to grow in numbers as the pace of foreign trade accelerates. According to a recent survey of international trade experts, foreign direct investment is expected to rise sharply in 2004 following three consecutive years of decline.
        The survey conducted by UNCTAD in Geneva and Corporate Location Magazine in London showed that 77 percent of the experts predict an increase in global FDI flow this year and next, and that number jumps to 81 percent when looking at 2006-2007.
        The top three investment spots for the next four years will be China, India and the U.S., say the trade experts. Thailand ranks fourth, followed by Poland, the Czech Republic, Mexico, Malaysia, the United Kingdom, Singapore and South Korea.
        Karl P. Sauvant, director of UNCTAD's Investment Division, says, "One clear message emerging from the survey is that countries will intensify their efforts to attract FDI in response to the increased competition worldwide for projects."
        That trend is sure to mean one thing: increased business for FTZs.