A US Army Corp of Engineers report says, the environmental effects of deepening the Savannah harbor can be offset.

That long-awaited statement released Tuesday is a major milestone in the decades-long effort to dredge the Port of Savannah, an economic engine for the state and region.

Corp project manager Jason O'Kane says the Environment Impact Statement details the project's natural costs.

"They would effect fish species, endangered species, possibly the aquifer, marsh, cultural resources," O'Kane says. "And there's a mitigation plan for each one of these effects."

A Georgia Conservancy official says, he's still studying the massive document.

Environmental groups and the public will be able to comment on the Corp's report before federal agencies consider final approval.

State officials say, harbor deepening is critical if Savannah - the nation's fourth-busiest port - is to remain competitive to a new breed of larger ships.

The head of the Georgia Ports Authority, Curtis Foltz, says he expects final approval to come next year.

"We're confortable and very pleased with where the Corp is on it," Foltz says. "We're confident they've done all the due diligence necessary to ensure that this project is a great project for long-term commerce in the eastern half of the US."

Georgia Ports officials want to deepen the harbor in time for the Panama Canal deepening in 2014.

They've already acknowledged that they won't be ready by 2014 because of the delayed regulatory approval.

But they say, it shouldn't affect Georgia business as long as the project is significantly underway in 2014.

Tags: Georgia, economy, Army Corps of Engineers, Port of Savannah, harbor deepening