AAPA Port Property Management & Pricing Seminar

Port Expansion Capacity Strategies

Ron Popham, Sr. Director, Maritime Division

Port of San Diego

October 24, 2006

AAPA Port Property Management & Pricing Seminar

Port Expansion Capacity Strategies

Ron Popham, Sr. Director, Maritime Division

Port of San Diego

October 24, 2006

• Established in 1957; 96 acres, 8 berths

• Late 80’s early 90’s: Low tonnage

• 1997 Pressures to redevelop

– Cruise Terminal

– Movie Studio

– Stadium

• Established in 1957; 96 acres, 8 berths

• Late 80’s early 90’s: Low tonnage

• 1997 Pressures to redevelop

– Cruise Terminal

– Movie Studio

– Stadium

Tenth Avenue Marine Terminal HistoryTenth Avenue Marine Terminal History

Tenth Avenue Marine Terminal HistoryTenth Avenue Marine Terminal History

• Established in 1957; 96 acres, 8 berths

• Late 80’s early 90’s: Low tonnage

• 1997 Pressures to redevelop

– Cruise Terminal

– Movie Studio

– Stadium

• Established in 1957; 96 acres, 8 berths

• Late 80’s early 90’s: Low tonnage

• 1997 Pressures to redevelop

– Cruise Terminal

– Movie Studio

– Stadium

View Corridors

FuelStorage Facility

Petco Park

Convention CenterParkingStructure

Cruise Ship Terminal

Hotel

Convention Center Expansion

ParkingStructure

Football Stadium

Park/Open Space

Park

/Ope

n Spa

ce

SurfaceParking

Cal. Regulatory FrameworkSupports Port Uses

Cal. Regulatory FrameworkSupports Port Uses

Port Actof 1962Port Actof 1962 Public Trust

DoctrinePublic Trust

Doctrine

CaliforniaCoastal ActCalifornia

Coastal Act

Establish a Long-term VisionEstablish a Long-term Vision

Port’s Maritime Master PlanSet a Vision

Port’s Maritime Master PlanSet a Vision

• Adoption of Maritime Master Plan – 1999

– Grow cruise business at B Street and Broadway Piers

– Focus on Lumber and Autos at NCMT and consolidate

“deep-draft” cargoes at TAMT

– Begin “market-based”, phased introduction of

container operations at TAMT

• Adoption of Maritime Master Plan – 1999

– Grow cruise business at B Street and Broadway Piers

– Focus on Lumber and Autos at NCMT and consolidate

“deep-draft” cargoes at TAMT

– Begin “market-based”, phased introduction of

container operations at TAMT

Port Vision & Mission

Port Vision & Mission

Our Vision is:

Our Mission is:

To Foster a World Class Port through Excellence in Public Service

To balance regional Economic Benefits, Recreational Opportunities, Environmental Stewardship and Public Safety while protecting Tidelands Trust resources on behalf of the citizens of California

Port Strategic Goals

Port Strategic Goals

Port Strategic Goals

Port Strategic Goals

• Optimize the Port’s positive economic impact to the Region

• Improve the environmental conditions of the Tidelands Trust Resources

• Enhance safety and security of the Tidelands

• Increase the Port’s responsiveness to community needs

• Enhance organizational performance• Maintain the Port’s financial stability

• Optimize the Port’s positive economic impact to the Region

• Improve the environmental conditions of the Tidelands Trust Resources

• Enhance safety and security of the Tidelands

• Increase the Port’s responsiveness to community needs

• Enhance organizational performance• Maintain the Port’s financial stability

. . . Take Actions Consistent with Long-term Vision

. . . Take Actions Consistent with Long-term Vision

• Approved Environmental Documents for Container

Development – 2000

• Approved $25M Dole Container Terminal – 2001

• Adopted COMPASS Strategic Plan – 2002

• Approved TAMT 42’ Dredging Project – 2003

• Approved Environmental Documents for Container

Development – 2000

• Approved $25M Dole Container Terminal – 2001

• Adopted COMPASS Strategic Plan – 2002

• Approved TAMT 42’ Dredging Project – 2003

. . . meanwhile

Foster Long-term Commitments . . .

. . . meanwhile

Foster Long-term Commitments . . .

Cement (2026)NewsprintShort-term since mid-70’s

Sand Soda Ash (2028)

TENTH AVENUE MARINE TERMINALLong-term Commitments

TENTH AVENUE MARINE TERMINALLong-term Commitments

Bananas (2022)

AvocadosOranges(2010)Jet/Bunker/Diesel

Fuel (2015)

. . . meanwhile

Continue Proactive Marketing . . .

. . . meanwhile

Continue Proactive Marketing . . .

Key MarketsUSA-Latin America

Key MarketsUSA-Latin America

Cnt Exports to Latin America

• TV Sets• Paper Prods• Fabrics• FAK

Non-Cnt Export to Latin America

• Coke• Petroleum• Grains• Sulfur• Oil well supplies

Cnt Exports to Latin America

• TV Sets• Paper Prods• Fabrics• FAK

Non-Cnt Export to Latin America

• Coke• Petroleum• Grains• Sulfur• Oil well supplies

Cnt Imports fr Latin America

• Bananas• Fresh Fruits• Ceramic Tiles• Granite Slabs• Plastic Products

Non-Cnt Imports fr Latin America

• Fresh Fruits• Sand/Aggregates• Steel• Fuel• Crude

Cnt Imports fr Latin America

• Bananas• Fresh Fruits• Ceramic Tiles• Granite Slabs• Plastic Products

Non-Cnt Imports fr Latin America

• Fresh Fruits• Sand/Aggregates• Steel• Fuel• Crude

USA-Asia MarketUSA-Asia MarketNon-Cnt Imports fr Asia• Cement• Automobiles• Steel Pipe• Crude Oil• Steel Slabs• Project Cargo• Yachts

Non-Cnt Imports fr Asia• Cement• Automobiles• Steel Pipe• Crude Oil• Steel Slabs• Project Cargo• Yachts

Cnt Imports fr Asia• Furniture• Gen Merchandise• Computer Prods• Toys• Auto Parts

Cnt Imports fr Asia• Furniture• Gen Merchandise• Computer Prods• Toys• Auto Parts

Non-Cnt Exports to Asia• Coke• Scrap Metal • Calcined Coke• Fuel Oil• Black Oil

Non-Cnt Exports to Asia• Coke• Scrap Metal • Calcined Coke• Fuel Oil• Black Oil

Cnt Exports to Asia• Waste Paper• Hay• Oranges• Cotton• Scrap Metal

Cnt Exports to Asia• Waste Paper• Hay• Oranges• Cotton• Scrap Metal

USA-Europe Market

USA-Europe Market

Piers FY2002

Cnt Exports to EU• Cotton• Nuts• Diatomaceous Earth• Auto Parts• Animal Feed

Cnt Exports to EU• Cotton• Nuts• Diatomaceous Earth• Auto Parts• Animal Feed

Non-Cnt Exports to EU• Erobor• Octoborate• Petcoke• Frozen Chicken• Borax

Non-Cnt Exports to EU• Erobor• Octoborate• Petcoke• Frozen Chicken• Borax

Cnt Imports fr EU• Ceramic Tiles• Beer• Furniture• Marble• Auto Parts

Cnt Imports fr EU• Ceramic Tiles• Beer• Furniture• Marble• Auto Parts

Non-Cnt Imports fr EU• Steel Slabs• Steel Coil• Fertilizer• Gas Oil• Prime Steel• Wire Rod• Project Cargo• Yachts

Non-Cnt Imports fr EU• Steel Slabs• Steel Coil• Fertilizer• Gas Oil• Prime Steel• Wire Rod• Project Cargo• Yachts

ResultsResults

. . . meanwhile Resolve Community Concerns and Expand infrastructure. . .

. . . meanwhile Resolve Community Concerns and Expand infrastructure. . .

Community Concern: Increased trucks

Community ConcernsCommunity Concerns

BARRIO LOGAN ISSUES

• Volume of trucks

• Diesel emissions

• Community safety

STOP TRUCK TRAFFIC GROWTH

BARRIO LOGAN ISSUES

• Volume of trucks

• Diesel emissions

• Community safety

STOP TRUCK TRAFFIC GROWTH

WORKING WATERFRONT ISSUES

• Adequate freeway access

• Meeting cargo growth

• Expanding jobs

• Operating safety

• Who to talk to?

NEED CESAR CHAVEZ PKWY

WORKING WATERFRONT ISSUES

• Adequate freeway access

• Meeting cargo growth

• Expanding jobs

• Operating safety

• Who to talk to?

NEED CESAR CHAVEZ PKWY

Two sides rarely spoke

Marine Terminal Community Committee established to resolve neighbor concernsMarine Terminal Community Committee established to resolve neighbor concerns

Inner City Business Association

Mercado Apartments

SDRS San Diego Refrigerated Services

United African American Ministerial Action Council

King/Chavez Academy of Excellence

Local Residents

• Toured facilities

• Held Meetings

• Discussed issues– Residents revealed desire for

more waterfront jobs

• Developed strategies

• Toured facilities

• Held Meetings

• Discussed issues– Residents revealed desire for

more waterfront jobs

• Developed strategies

MTCC SuccessesMTCC Successes

Freeway Access Program ($194 M)Freeway Access Program ($194 M)

Working waterfrontBarrio Logan

community servicescommunity services

residentialresidential

Current freeway access

New freeway access program

Enhancing InfrastructureEnhancing Infrastructure

Enhancing InfrastructureEnhancing InfrastructureDredging TAMT to

42’ ($4M)

NCMT Balloon Track ($26M by BNSF)

NCMT Wharf Extension ($25M)

Communicate the results of your Long-term Vision

Communicate the results of your Long-term Vision

2003 Economic Impacts2003 Economic Impacts

Jobs Economic Impacts

Cruise 1,616 $248 million

Cargo 2,350 $262 million

Total 3,966 $510 million

Jobs Economic Impacts

Cruise 1,616 $248 million

Cargo 2,350 $262 million

Total 3,966 $510 million

ILWUFull Time Equivalent Units (FTEs)

0.0

50.0

100.0

150.0

200.0

250.0

300.0

1995 1996 1997 1998 1999 2000 2001 2002 2003

Year

FTEs Cruise

NCMTTAM T

Source: Pacific Maritime Association 2003 Annual Report

15% AAGR* Growth

*AAGR=Average Annual Growth Rate

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

FY 1

995

FY 1

996

FY 1

997

FY 1

998

FY 1

999

FY 2

000

FY 2

001

FY 2

002

FY 2

003

FY 2

004

FY 2

005

FY 2

006

Metric Tons(in Millions)

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

FY 1

995

FY 1

996

FY 1

997

FY 1

998

FY 1

999

FY 2

000

FY 2

001

FY 2

002

FY 2

003

FY 2

004

FY 2

005

FY 2

006

Metric Tons(in Millions)

1.51.8 1.7

2.32.0

2.6

3.0

3.5

2.1

1.5

1.11.0

Results of Port of San Diego Expansion Strategies

Results of Port of San Diego Expansion Strategies

Questions?Questions?

Distances from Marine Terminal to I-5/805 MergeDistances from Marine Terminal to I-5/805 Merge

19.6 miles

18.0 miles