Case Study: Port of Savannah Expansion – Public-Private Partnership Delivery Challenges (2016)
Project Overview
• Name: Port of Savannah Expansion Project
• Location: Savannah, Georgia
• Year: 2016
• Project Size: $973 million
• Scope: Expansion of container terminal using a Public-Private Partnership (P3) delivery model
• Lead Agencies/Contractors: Georgia Ports Authority, Private Consortium
Category of the Issue, Problem, or Challenge
• Project Delivery Method
• Public-Private Partnership (P3)
Summary of the Issue, Problem, or Challenge
During construction, conflicts emerged over scope definition and risk allocation, causing delays and increased costs. Inexperience with P3 contractual complexities and coordination among multiple stakeholders contributed to project challenges.
Root Cause Analysis
- Ambiguous contractual provisions regarding scope and risk sharing.
- Limited prior P3 project experience among some stakeholders.
- Ineffective governance structures for multi-party coordination.
- Insufficient stakeholder engagement early in construction.
Impacts Due to the Issue, Problem, or Challenge
• Construction delays of approximately 5 months.
• Cost overruns of $25 million.
• Erosion of trust between public agency and private partners.
Corrective Actions Taken
- Revised contracts to clarify scope and risk responsibilities.
- Created joint governance committees for improved decision-making.
- Conducted P3-focused training workshops for all stakeholders.
- Enhanced early and ongoing stakeholder engagement practices.
Lessons Learned
- Clear contractual language is crucial for P3 success.
- Effective governance is needed for multi-stakeholder projects.
- Training reduces risks linked to novel delivery models.
- Early stakeholder communication prevents misunderstandings.
Audit & Prevention: Project Control Questions to Ask on Future Projects to Help Control the Situation
- Are scope and risk responsibilities clearly defined?
- Is governance structured to facilitate coordination?
- Are stakeholders adequately trained on P3 delivery?
- Are engagement and communication plans in place early?