Getting into the flow: VC firm launches program for Savannah Logistics Technology Corridor

The Port of Savannah, warehouse and distribution centers, snaking rail lines and swirls of tractor-trailers all make up this region’s booming logistics industry. As home to the fastest growing port in the nation, Savannah is a vital cog in the global supply chain. And for years, local leaders have worked to ensure that its rise in the industrial market is as streamlined as possible. 

On Nov. 1, industry leaders unveiled another step in that direction. A set of 12 supply chain and logistics startups became the first cohort to join the Savannah business accelerator program, which is geared towards fixing supply chain issues with innovative tech solutions. 

Creative Coast director: Initiative seeks to make Savannah a logistics technology corridor

And:Logistics Technology Corridor looks to state for future growth

Heading the business accelerator program is Silicon Valley-based venture capital firm Plug and Play Tech Center, a corporate innovation platform that matches startups with corporations seeking a solution to issues or, as the firm calls it, “pain points”. 

According to the Plug and Play website, the firm has worked within more than 20 different industries, with over 50,000 startups and 500 corporate clients such as BMW, PayPal, and Shell. Startups under Plug and Play gain access to funding, mentors, industry conferences and their wide network of corporations. Meanwhile, corporate clients have access to a variety of startups that offer innovative tech solutions to their specific needs. 

In Savannah, the goal is to connect the cohort of supply chain and logistics startups to the fast-growing industry here to modernize and streamline port operations, whether that’s through a physical product, software or other tools.  

More:Poised for success as a tech corridor

Editorial: Tech corridor could grow workforce

The program also marks a significant step for the Savannah Logistics Innovation Center (SLIC), which was established in 2021 to make Savannah a leader in the logistics industry. Bringing tech businesses, especially startups, to galvanize innovation and entrepreneurship in the region, while boosting one of the most important industries in the local economy, has been years in the making. 

Lawmakers in the Georgia General Assembly established Savannah as one of two technology corridors in the state in 2018: Savannah as the Logistics Technology Corridor, and Augusta as the Cyber Technology Corridor. Those geographically defined areas offer a package of incentives to draw business, jobs and labor to the area. The business accelerator program now serves as a pipeline for those resources. 

Other partners involved with the program include the Savannah Economic Development Authority (SEDA) and local universities Georgia Southern University, Savannah State and Savanah Technical College. Academic resources will serve as expertise and provide research and students to assist these startups. 

Creating a suitable workforce for the industry is another critical part of Savannah’s success as a logistics technology corridor. Georgia Southern University is preparing to launch a master's level program in supply chain and logistics, according to Dr. Scott Ellis, chair and professor of logistics and supply chain management. 

With Plug and Play’s model, what’s created is essentially an “ecosystem where corporations, startups, and universities can collaborate on solving the biggest challenges of the maritime, trucking, rail, warehousing and storage industries,” said Program Manager Catherine Saunders. 

Previously:Besieged Savannah Port wrestling with high volume, backlog. But CEO sees relief coming

Demands on e-commerce skyrocketed with pandemic-induced buying, which simultaneously boosted business at the Savannah ports and strained operations. The increased demand for goods further exposed weaknesses within the supply chain. 

Last fall, when imports peaked, around 35 ships were anchored off Tybee Island, stacked with cargo that couldn’t be moved due to the backlog already occupying land space. More recently in July, the number of vessels at bay shot up to 45, though that is slowly trending downwards. 

What needs to improve is the data sharing between sectors like retailers, railroads, land operators and ocean carriers, said Griff Lynch, GPA executive director, during Thursday’s keynote. While the ports continue to expand land capacity to hold cargo (TEUs), keeping that cargo moving toward its destination is crucial as well. 

“Everyone’s in their silos … We know that technology has got to be a part of improving the supply chain,” said Lynch. 

Plug and Play hosted an expo along with the cohort launch on Nov. 3 Thursday’s expo. The event attracted 12 startups hailing from all across the globe and showcased possible solutions attacking various pain points in the chain. Among them was Splice, which offers a bevy of tools to increase interoperability within the logistics sector through software and tracking devices to minimize congestion at the ports. The company already has had several pilot programs with the GPA and Port City Logistics, according to CEO and co-founder Kevin Speers. 

Einride, also part of the cohort, is a climate-focused Swedish freight technology company and produces fleets of electric and autonomous vehicles. Established in 2016, Einride currently operates the largest electric fleet in Europe and already has vehicles on the ground in five states. Their autonomous, all-electric vehicles both reduce transportation costs and carbon emissions. The company will soon have 300 trucks with shipping company Maersk. 

Other companies are hoping to establish business partnerships in Savannah through this program. Ridendock produces a mobility tool that was engineered to allow warehouse workers to move safely and easily on the job and is less expensive than other warehouse mobility tools, according to CEO Sebastian Gomez Puerto.

“There are 90 million square feet of warehousing space in Savannah right now,” said Puerto, “In the next 3 to 5 years, it’s going to be No. 1 for warehousing in the country.”

Puerto said the company’s relocation to Savannah is contingent on being able to establish a pilot program here. Another company, Really Virtual, which onboards and trains forklift operators through virtual reality, announced they’d be relocating from Irvine, California to Savannah. 

A closer look at Plug and Play Savannah: https://www.plugandplaytechcenter.com/savannah/

“So what we're really trying to do is build out that ecosystem and more people around that, and bring in investment and opportunities on the technology side, as well as the spirit of entrepreneurship to the Savannah market,” said Bart Gobeil, SLIC Executive Director. 

Savannah has the industry and the potential workforce to create that ecosystem, but more needs to be done to engage the existing community, said Jesse Dillon, SEDA vice president of business development. Part of that is engaging with students earlier, she said, to spark that seed and let them know these pathways exist. 

“They’re looking at Los Angeles, New York, New Jersey and they’re looking at Savannah,” said Dillon, “We’re punching way above our weight class.”

Nancy Guan is the general assignment reporter covering Chatham County municipalities. Reach her at nguan@gannett.com or on Twitter @nancyguann.