Perspective on the Port of Virginia
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Transcript of Perspective on the Port of Virginia
Perspectives on The Port of Virginia
Mr. John Reinhart CEO, Executive Director Virginia Port Authority
July 18, 2014
AGENDA
Overview of the Port Performance
Economic Engine Looking Forward
Conclusion/Questions
3
Mission of The Virginia Port Authority
• Foster and Stimulate the Commerce of the Port
• Eastern Seaboard Gateway for the Global Import and Export of Freight throughout the World
• Secure Necessary Improvements of Navigable Tidal
Waters • Perform any Act or Function that may be useful in
Developing, Improving, or Increasing Commerce
The Port of Virginia is within a day’s drive of two-thirds of the U.S.
population
5
Statewide Footprint
6
Optimizing Our Port Facilities
NIT NNMT
Future CIMT
PMT
APM Terminals
7
55 foot Channel
45 ft.
8
APM Terminals Virginia Leased and operated by the Port of Virginia
Phase 1 – Sept. 2007 Total Acreage: 231
Pier Length: 3,205 ft. Depth: 55 ft. Cranes: 8
Capacity: 1 Million TEUs CSX and NS Served
9
Norfolk International Terminals
Total acreage: 567 Wharf: 7,300 feet Depth: 50 feet Cranes: 14 that can reach 22-26 containers across Rail service via NS
10
Newport News Marine Terminal
Total acreage: 143 Cargo berths: 3,480 feet Breakbulk rail service via CSX
11
Portsmouth Marine Terminal
Total acreage: 287 Rail service with CSX; also Norfolk Southern via Norfolk and Portsmouth Belt Line.
12
Port of Richmond Terminal Land acreage: 121 Wharf: 1,600 feet Rail service via CSX; NS via local switch Barge service with NIT and APMT
13
Virginia Inland Port Five-day-a-week rail service between VIP and the Port of Virginia marine terminals
Within 1 mile of Interstate 66 and within 5 miles of Interstate 81
14
Record Fiscal 2014
• The Port of Virginia set a new mark for TEU volume in fiscal 2014
• More than 2.3 million TEUs in the twelve months that closed June 30
• Increase of 6.5% over FY2013 • Eclipsed the previous fiscal year record by
140,476 TEUs Rail Containers 8.9% VIP Containers 11.9% General Cargo 8.6% Container Tonnage 8.7% Breakbulk 3.5%
15 Source: Terminal Operator CY2013
Over 2.2 million TEUs moving over the Port in 2013 were transported by:
Intermodal Gateway
4% Barges
34% Rail
62% Trucks
16
• Port capacity and productivity is often measured in TEUs
• TEU stands for “Twenty Foot Equivalent Unit”
• Originally containers were 20’ long
• Today, most cargo is moved in 40’ containers
20’
One 20’ container = 1 TEU 40’
One 40’ container = 2 TEU
TEU – What Is It?
53’
Typical over the road truck
Wilmington NC -8.0%
New York/ New Jersey
3.4%
Savannah 8.2%
Baltimore 5.4%
Charleston 8.7%
Port of Virginia 8.2%
-10%
-5%
0%
5%
10%
15%
- 1 2 3 4 5 6 7
2014
vs
2013
Gro
wth
Major USEC Ports Growth
Growth: Jan-May 2014 vs. 2013; Size: CY 2014 Total TEUs
Wilmington NC New York/New Jersey Savannah Baltimore Charleston Port of Virginia
↑58K TEUs
↑72K TEUs
↑100K TEUs
↑15K TEUs
↑74K TEUs
↓9K TEUs
Source: AAPA and Port Authorities Prepared by VPA, Business Analysis and Strategy
18
Growth Track
Both CSX and Norfolk Southern are upgrading their rail network in order to send double-stack trains from east coast ports like Virginia to the mid-west.
NS CSX
ROANOKE
19
2013 Top Trading Partners
EXPORT IMPORT China China Brazil Germany
Germany India Belgium Brazil
India Italy Netherlands Vietnam
United Kingdom Netherlands Japan Spain
Saudi Arabia Indonesia Indonesia Belgium
Source: PIERS
20
2013 Top Commodities
EXPORT IMPORT Paper & Paperboard, incl. waste Furniture
Wood Pulp Auto Parts Soybeans & Products Tobacco
Logs & Lumber Woodenware Pet & Animal Feeds Granite
Grains & Flour Products Non Alcoholic Beverages Grocery Products Paper & Paperboard, incl. waste
Mixed Metal Scrap Plastic Products Poultry Rubber, Natural Meat Metalware
Source: PIERS
21
2013 Top Customers
EXPORT IMPORT MeadWestvaco Walmart Domtar Paper Target
Lansing Trade Group Lumber Liquidators Archer Daniels Midland Co Red Bull North America
International Paper Home Depot Weyerhaeuser Company QVC
America Chung Nam Cost Plus Fornazor International Michelin Tire E I DuPont de Nemours Ford Motor Company
Scoular Company Lowes
Source: PIERS
22
Grains and Cereals, 27%
Wood, 26% Meat, 9%
Animal Feed, 8%
Misc. Food, 8%
Other Agricultural
Products, 22%
Port of Virginia Top Agricultural Commodities Containerized Agricultural Exports; CY 2013
Source: PIERS, Loaded TEUs
Soybeans & Products, #4
16,953
Grains & Flour Products, #8
10,530
Wood Pulp, #2 9,234
Field Seeds & Bulbs 5,092
Woodenware 4,514
Others
Export Commodities with Significant Gains via Port of Virginia CY 2013 vs CY 2012
Source: PIERS
(2013, Rank in Top Export TEUs
TEUs
TEUs
TEUs
TEUs
24
Economic Engine
25
Economic Impacts
• The Port of Virginia is an economic engine
for the Commonwealth
– 343,000 port and port-related jobs statewide
– $41 billion in business revenues
– $1.2 billion in state and local taxes
• Increased port growth results in more jobs
and revenues for the Commonwealth
Source: 2006 Economic Impact Study by William & Mary Mason School of Business
26
Selected Distribution Facilities Using The Port of Virginia
27
2013 Announcements
28
CY 2013 Totals
Total Announcements: 42 Total Square Feet: Over 4.6 million Total Jobs Created: Over 4,099 Total Investment: Over $1.2 billion
29
Virginia Port Tax Credits
• Port Volume Increase Tax Credit (Code of Virginia Section 58.1-439.12.10): $50 per TEU to Virginia manufacturing-related entities, agricultural entities or
mineral or gas entities that have increased cargo volume through public or private port facilities by 5% in a single year over a base year cargo volume.
• Barge and Rail Usage Tax Credit (Code of Virginia Section 58.1-439.12:09): $25 per TEU or 16 tons of noncontainerized cargo for the usage of barge/rail to
move cargo that originates or terminates at public or private port facilities in Virginia.
• International Trade Facility Tax Credit (Code of Virginia Section 58.1-429.12:06):
Tax credit equal to $3,500 for qualified full-time employees hired by Virginia shippers OR 2% of the qualified capital investment that results from moving 10% more cargo through a Virginia Port Authority- operated cargo facility.
30
Port of Virginia Economic & Infrastructure Development Zone – Cash Grant
If a company:
• Locates or expands a facility in proximity to Port of Virginia facilities
• Creates at least 25 new, permanent full-time positions
• Is involved in maritime commerce or exports or imports manufactured goods through the Port of Virginia (does not have to be the cargo owner)
Payout Formula:
25 – 49 new jobs: $1,000 per job 50 – 74 new jobs: $1,500 per job 75 – 99 new jobs: $2,000 per job 100 + new jobs: $3,000 per job
To receive the money:
• Company must agree in an MOU with the Virginia Port Authority to maintain the new jobs for at least 3 years or repay the grant money
31
Alternative Site Framework (ASF)
32
• $5.25 billion capital investment program to modernize and improve the Panama Canal
• $190 million channel deepening
project began in 2002 • $1.6 million project to redesign
a third set of locks
• Project delayed until 2015/2016
Expansion of the Panama Canal
33
Panama Canal Expansion - New Locks Will Accommodate Post-Panamax Vessels
180’
160’ 106’
110’
Existing Locks Post-Panamax Locks
13 containers wide
18 containers wide
Max. vessel size = 4500 TEUs Max. vessel size = 12500 TEUs
2.8X current capacity
34
Suez Canal
Mediterranean Sea Port Said
Lake Timsah
Bitter Lakes
Suez Sinai Peninsula
Overall length: 120 miles Width: 590ft / 622ft Max. permissible draft: 62ft
The canal is sea level, no locks.
35
Suez Canal
Panama Canal
Via Panama Canal
Distance: 11,021 nautical miles
Via Suez Canal
Distance: 11,705 nautical miles
Panama Canal vs. Suez Canal
Hong Kong, China Port of Virginia
Suez Canal
36
Ideally Situated Population Centers and 2040 Cargo Forecasts
Less than 6,600 TEUs 6.601 - 33,000 TEUs
33,001 - 88,000 TEUs
88,001 - 198,000 TEUs
198,001 - 440,000 TEUs
37
Four Priorities
Excellence in Operations Fiscal Responsibility Sustainable Growth Living Our Values
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The Future . . .
NIT NNMT
Future CIMT
PMT
APM Terminals
39
Craney Island Marine Terminal
Phase 1 – June 2025 Total Acreage: 220 Pier Length: 3000 ft. .
Cranes: 6 Capacity: 1.5M TEUs Cost: $1.2B
Thank you