a catalyst for commerce - wm.edu

Stewards of Tomorrow 1

THE PORT OF VIRGINIA: A CATALYST FOR COMMERCE

JOHN F. REINHART

CEO AND EXECUTIVE DIRECTOR

August 23, 2016


OUR TERMINALS

VIRGINIA

INLAND PORT

RICHMOND

MARINE TERMINAL

VIRGINIA

INTERNATIONAL

GATEWAY

PORTSMOUTH

MARINE TERMINAL

NEWPORT NEWS

MARINE TERMINAL

NORFOLK

INTERNATIONAL

TERMINALS


HOW WE MOVED THE CARGO: FY 2016

2.57 million 20-Foot Equivalent Units (TEUs)

2.5% growth over FY 2015

+ 9.7% + 15.8% +-1.4%

35% 62% 3%


WE ARE A

CATALYST FOR COMMERCE.


FY 2013 ECONOMIC IMPACTS OF

VIRGINIA’S MARITIME INDUSTRY

$88.4 BILLION

Source: Economic Impacts of Virginia’s Maritime Industry, 2013, Raymond A. Mason School of Business, William & Mary

530,800

10.1%

79,000,000 TONS OF CARGO MOVED

JOBS IN VIRGINIA

IN SPENDING OF VA GSP


CY 2016 ECONOMIC DEVELOPMENT TOTALS

29 Business

Announcements

New

Expansion


CY 2016 ECONOMIC DEVELOPMENT TOTALS

Developed more than

2.5 million sq. ft. of space

Invested more

than $664 million

Created

3,090 jobs


ECONOMIC DEVELOPMENT OBJECTIVE

Grow port-related

economic development

activity within primary and

discretionary markets

over the next five years.


INDUSTRY ISSUES

• Infrastructure (land & water)

• Shifts in trade patterns

• Increasing ship sizes

• Discretionary market services

• Politically safe business locations

To remain competitive, ports have

to be able to move cargo swiftly,

safely, and sustainably – inside

AND outside the gates.


INVESTING IN THE FUTURE


ON-TERMINAL

INFRASTRUCTURE

PROJECTS


NIT NORTH GATE EXPANSION

• 26 new truck gates

• Ties into new I-564

connector

• $31 million investment

• June 2017 completion


NIT SOUTH EXPANSION

• Increase designed capacity

by 400,000 containers (46%)

• 2017: first stacks complete

• 2019: all 30 stacks complete

• $350 million investment


POTENTIAL ECONOMIC IMPACT

OF NIT SOUTH IMPROVEMENTS

$16 BILLION

Source: Economic Impacts of Virginia’s Maritime Industry, 2013, Raymond A. Mason School of Business, William & Mary

120,000

$462 MILLION

$100,000,000 ANNUAL REVENUE

JOBS ACROSS VIRGINIA

IN SPENDING STATE AND LOCAL TAXES


ADDITIONAL INVESTMENTS

• RMT: rail track enhancement

and terminal upgrades

• VIP: Expanded rail capacity

• PMT: Wharf and Rail Loop

• NNMT: new equipment,

warehouse improvements,

berth dredging


VIRGINIA INTERNATIONAL GATEWAY

• 650,000 Container Capacity

• Served by NS and CSX

• 55’ depth

• 8 STS Cranes

Phase II

• Increases designed capacity to 1.2 million

containers

• Expanded Rail Operation

• Extended Berth

• 4 new STS Cranes


OUTSIDE THE GATES


OVER $4 BILLION BEING INVESTED


SHIFTING TRADE TRENDS


BOXSHIP EVOLUTION: 1996-2016

1996

REGINA MAERSK

7,400 TEU


BOXSHIP EVOLUTION: 1996-2016

2016

CMA CGM BENJAMIN FRANKLIN

18,000 TEU


A NEW EAST COAST ERA HAS BEGUN

JULY 10, 2016

MOL BENEFACTOR

10,000 TEU


GETTING BIG SHIP READY


EAST COAST PORT DEPTHS

Ports of NY/NJ

Savannah, GA

Charleston, SC

40’

42’

45’

50’

4,500

TEU

8,500 TEU

12,500+ TEU Baltimore, MD

Jacksonville, NC

Wilmington, NC

55’

The Port of Virginia

The Port of Virginia -

AUTHORIZED


EAST COAST PORTS – ANOTHER LOOK

• Deep channels

• Intermodal connections to

population centers

• Unobstructed water access

• Expansion capability

• CIEE permits

• Application for 55’ deep channel


DEEPER, WIDER, SAFER.

• Jun 2015: Cost-Sharing

Agreement Signed

• Dec 2015: Alternatives

Milestone met

• Jan 2017: Selected Plan and

Econ Dev Plans identified

• Aug 2017: Agency Decision

• Mar 2018: Civil Works Review

Board Approval


SERVING THE INLAND MARKETS


MARKET SIZE/PORT POSITIONING

Our location and primary

market size positions us

perfectly to serve the

American Heartland.

Source: Colliers, population categories defined by R K Johns


QUICK ACCESS BY RAIL


DOUBLE STACK TO THE MIDWEST

Norfolk Southern CSX


MEETING THE NEEDS OF

GLOBAL COMMERCE


ICE CERTIFICATION


PROPOSED FTZ EXPANSION


POSITIONING VIRGINIA AS A

FIRST IN, LAST OUT DESTINATION


WE HAVE A CLEAR

PATH FORWARD.


5 YEARS

• NIT Phase I, VIG II

projects complete

• Total POV capacity:

>2.6 million containers

• Capacity to handle 40%

of volume moved by rail


10 YEARS

• NIT II, VIG II complete

• Craney Island cells being built


>3 million containers

• Capacity to handle 42% of

volume moved by rail


20 YEARS – AND BEYOND • Craney Island Phase I & II


5.5 million containers

• Capacity to handle 45% of

volume moved by rail

• Craney Island capacity

when complete:

2.87 million containers


THE PIECES ARE IN PLACE

• Strategic location

• Water depth

• Lack of height restrictions

• Plan for capacity and throughput

• Rail & road infrastructure

• Business-friendly (ICE, FTZ, Politically)

• First In, Last Out Ready


WE ARE VIRGINIA’S GLOBAL GATEWAY.


Thank you

ACCESSIBILITY

FORTITUDE

HELPFULNESS

INNOVATION

MINDFULNESS

SUSTAINABILITY

a catalyst for commerce - wm.edu

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