10/7/2014

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Presentation for the Illinois Farm Bureau

August 31, 2014

PORT OF GALVESTON

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PORT OF GALVESTON

Bolivar Roads Anchorage Area

Gulf of Mexico

Pelican Island

BolivarPeninsula

PORT OF GALVESTON

View Looking West From Pier 15

Bridge to Pelican Island

Galveston Causeway

Gulf Copper Drydock& Rig Repair

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PORT OF GALVESTON

View Looking East from Gulf Sulfur Services Terminal

Gulf of Mexico

Pier 41

Pier 39-40

Pier 37

PORT OF GALVESTON

Pier 39-40

Ro-Ro and Wind Energy Cargo

Cruise Terminals

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TOTAL ECONOMIC IMPACT

PORT OF GALVESTON

• 12,878 Texas jobs are in some way related to the port

• Of the 12,878 jobs held by Texas residents:

• 3,042 jobs are directly generated by activities at the public and private marine terminals

• 3,329 jobs (induced jobs) are supported by the local purchases of the 3,042 individuals directly generated by port activity

•. An additional 3,479 indirect jobs were generated due to $289.8 million of purchases in the local and regional economy by firms providing direct cargo handling and vessel services.

• An additional 3,029 Texas jobs are related to cargo imported and exported via the public and private marine terminals. These jobs are with local and state steel fabrication companies, firms using and producing break bulk cargo and dry and liquid bulk cargo moving via the Port of Galveston.

* 2011 Martin and Associates Economic Study

TOTAL ECONOMIC IMPACT

PORT OF GALVESTON

• In 2011, Marine Cargo activity at the public and private marine terminals and cruise activity at the Port of Galveston generated $3.1 billion of economic activity in the State of Texas

• A total of $52.6 million in direct, induced and indirect state and local tax revenue was generated by cargo and cruise maritime activity at the public and private terminals within the Port of Galveston and along the Galveston Ship Channel

• In addition, $24.5 million of state and local taxes were created due to the economic activity of the related users of the cargo moving via the public and private marine terminals. The total impact of the related port users is $77.1 million

* 2011 Martin and Associates Economic Study

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ECONOMIC IMPACT - CRUISE

PORT OF GALVESTON

• Second fastest growing cruise port in 2012, fourth busiest in the U.S., seventh busiestcruise homeport in the world

• In 2012, Texas saw $1.24 billion in direct spending, accounting for 6.3% of the cruiseindustry’s overall spending nationwide. The state ranks third in economic impact amongstates from the U.S. cruise industry

• In 2013, 1.2 million cruise passengers visited Galveston

• The cruise industry employed almost 20,000 residents, contributing nearly $1.1 billionin total income

• Cruise activity generated $42.3 million in passengers on shore spending (Park BoardStudy)

• Cruise-related spending at the Port of Galveston totaled $11.4 million, includingparking, ship fees, water, porter, security, and utilities services. Cruise passengers’spending on shore accommodations tallied $13.5 million. (Park Board Study)

STATISTICAL INFORMATION

PORT OF GALVESTON

ANNUAL TONNAGE: 7.83 Million Tons (average since 2006)

CARGO TYPES (Import and Export) :

Bulk Grains - Exports

Bulk Fertilizers - Imports

Bulk Liquids - Imports, Exports and Domestic Transfers / Terminal Ops

Ro-Ro Cargo / High & Heavy / Ag and Construction / New and Used Vehicles – I & E

Military Cargo and Household Goods – Imports and some Exports

Refrigerated Fruit and Produce - Imports

General Cargo / Liner Board / Steel / Wind Energy / Project Cargo – I & E

Refrigerated and Miscellaneous Containers – Imports and some Exports

Livestock - Exports

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STATISTICAL INFORMATION

PORT OF GALVESTON

Total 2014 

Operating Revenue 

$26.9M

Dockage           $5.9M

Rentals            $3.4M

Passengers $5.2M

Wharfage $2.9M

Parking                   $4.7M       

Ship Service Revenues $3.2M

Rail & Switching $0.7M

Security Cost Recovery  $0.6M

All Other $0.3M

CRUISE INDUSTRY

PORT OF GALVESTON

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CRUISE NEWS

PORT OF GALVESTON

4th Busiest cruise port in the United States

Year Round Home Port to:Carnival Cruise Lines’ Carnival MagicCarnival Cruise Lines’ Carnival TriumphCarnival Cruise Lines’ Carnival Freedom (Commencing February 2015)Royal Caribbean International’s Navigator of the Seas**and in 2015 “Navigator” will be replaced by Liberty of the Seas, a larger ship

Seasonal Home Port to:Disney Cruise Line’s Disney Wonder *

(September 2013 to January 2014 and November 2015 thru December 2015 )

Galveston Ships will carry over 1.2 million passengers annually from Texas

• * New in 2013, Replacing Disney Magic• ** New in 2013, Replacing Mariner of the Seas

Pier 15

PORT OF GALVESTON

10/7/2014

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ADM Export Grain ElevatorPier 30-32

PORT OF GALVESTON

CHS, Inc. Fertilizer Terminal – Pier 35 / 36

PORT OF GALVESTON

10/7/2014

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PORT OF GALVESTON

CHS, Inc. Fertilizer Terminal – Pier 35 / 36

PORT OF GALVESTON

10/7/2014

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Livestock Carrier at Pier 34 Terminal

Wind Energy Cargo Rail Storage Yard

Grain Ship Loading at Pier 31

Cattle Chute – Used Containers

PORT OF GALVESTON

Livestock Carrier at Pier 34 Terminal

Livestock Exports from the Midwest

PORT OF GALVESTON

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Livestock Carrier at Pier 34 Terminal

PORT OF GALVESTON

BNSF Railway Company Manifest Yard – Galveston, TexasWind Blade Unit Train for Delivery to Pier 34 Terminal

September 2013

View Looking West From 51st Street Viaduct

PORT OF GALVESTON

10/7/2014

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Port of Galveston – September 2013Pier 32-34 Project Cargo & Wind Energy Terminal

CHS, Inc. Fertilizer Terminal at Pier 35 at Upper Left

Plant 14 ‐ Livestock

North  = Up

Pier 34CHS, Inc.

PORT OF GALVESTON

Port of Galveston – Pier 30-34 Near-Dock Project Cargo – Wind Energy Rail Storage Track

Constructed in First Quarter 2012

ADM Export Grain Elevator

Pier 30

Pier 32

PORT OF GALVESTON

10/7/2014

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Port of Galveston – Pier 30-34Near-Dock Project Cargo – Wind Energy Rail Storage Track

Constructed in First Quarter 2012

ADM Export Grain Elevator

Pier 30

PORT OF GALVESTON

PORT INFRASTRUCTURE CHALLENGES

PORT OF GALVESTON

10/7/2014

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West End Slips to be Filled-InNote Condition of Piers and Bulkheads

Pier 35

Pier 37

Pier 39 >

CHS, Inc. CHS, Inc.

PORT OF GALVESTON

DEVELOPMENT PROJECTS

PORT OF GALVESTON

• East End (Pier 12/14 and Pier 14/15) Slip Closure and Terminal Expansion – Engineering Company Selection by July 2014

• West End Development (Future Slip Closures)

• Pelican Island 100 Acres – Cargo Terminal Development alongGalveston Channel–2,560 Linear Feet of Deep Water Frontage–45 Ft.

• Pelican Island 185 Acres – Northeast Corner of Pelican Island onDeep Water (45 Feet – Adjacent to Texas City Ship Channel)

Request for Interest (RFI) went out last year with RFIresponses due to the Port of Galveston by August 16, 2013

RFI Included New Pelican Island Roadway and Rail Bridges to Connect with Road and Rail Infrastructure on Galveston Island

10/7/2014

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EAST END SLIP CLOSURES (before)

PORT OF GALVESTON

Pier 15

Pier 12 Pier 13-14

14th Street Gate

EAST END SLIP CLOSURES (after)

PORT OF GALVESTON

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Port of GalvestonAerial View from West End – October 2009

PORT OF GALVESTON

Port of GalvestonAerial View from West End – April 2012

PORT OF GALVESTON

10/7/2014

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Port of Galveston West EndSlips to be Filled-In to Create Additional Upland Terminal Space

Pier 41 Pier 39/40 Pier 37

Ro-Ro Cargo Staging

Pier 35

Pelican Island

PORT OF GALVESTON

PELICAN ISLAND

PORT OF GALVESTON

185 Acres

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Pelican Island BridgeFuture Economic Development

PORT OF GALVESTON

Port of Galveston and the PANAMA CANALCurrent Impact

PORT OF GALVESTON

• Port of Galveston currently handles 3 – 5 Ro-Ro calls per monthinbound from the Far East via the Panama Canal where the Port ofGalveston is first Port of Discharge. Cargo is primarily constructionand agricultural equipment.

• Monthly Ro-Ro service from Galveston to Oceania, Australia and New Zealand via the Panama Canal. Cargo is mostly mining and agricultural equipment.

• Some export grain cargoes westbound via Panama Canal.

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Port of Galveston and the PANAMA CANALPossible Impact from Expansion

PORT OF GALVESTON

• Port of Galveston currently has authorized depth of 45 feet

• Deeper draft in the Panama Canal should provide opportunities for more export grain cargoes westbound via Panama Canal due to ability to load to 44 feet, deeper than current Panama Canal draft of 39 feet 06 inches. Should provide for more competitive freight rates to some markets in Asia.

• Deeper draft in the Panama Canal should provide opportunities for direct export of liquid bulk products from Pelican Island Storage Terminals, Inc. in larger vessels. That cargo now trans-ships around Cape of Good Hope via Caribbean terminals after loading to smaller ships in Galveston.

INFORMATION

PORT OF GALVESTON

PORT OF GALVESTON123 Rosenberg Avenue, 8th FloorGalveston TX 77550

Mailing Address: P.O. Box 328, Galveston, Texas 77553

Ph: 409-765-9321Fax: 409-766-6171

VISIT US: WWW.PORTOFGALVESTON.COM

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