THE PORT OF VIRGINIA:

Transcription

1 THE PORT OF VIRGINIA: A CATALYST FOR COMMERCE JOHN F. REINHART CEO AND EXECUTIVE DIRECTOR August 23, 2016 Stewards of Tomorrow 1

2 OUR TERMINALS VIRGINIA INLAND PORT RICHMOND MARINE TERMINAL NEWPORT NEWS MARINE TERMINAL VIRGINIA INTERNATIONAL GATEWAY NORFOLK INTERNATIONAL TERMINALS PORTSMOUTH MARINE TERMINAL Stewards of Tomorrow 2

3 HOW WE MOVED THE CARGO: FY million 20-Foot Equivalent Units (TEUs) 35% 62% 3% + 9.7% +-1.4% % 2.5% growth over FY 2015 Stewards of Tomorrow 3

4 WE ARE A CATALYST FOR COMMERCE. Stewards of Tomorrow 4

5 FY 2013 ECONOMIC IMPACTS OF VIRGINIA S MARITIME INDUSTRY 79,000,000 TONS OF CARGO MOVED 530,800 JOBS IN VIRGINIA $88.4 BILLION IN SPENDING 10.1% OF VA GSP Source: Economic Impacts of Virginia s Maritime Industry, 2013, Raymond A. Mason School of Business, William & Mary Stewards of Tomorrow 5

6 CY 2016 ECONOMIC DEVELOPMENT TOTALS 29 Business Announcements New Expansion Stewards of Tomorrow 6

7 CY 2016 ECONOMIC DEVELOPMENT TOTALS Developed more than 2.5 million sq. ft. of space Invested more than $664 million Created 3,090 jobs Stewards of Tomorrow 7

8 ECONOMIC DEVELOPMENT OBJECTIVE Grow port-related economic development activity within primary and discretionary markets over the next five years. Stewards of Tomorrow 8

9 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. Stewards of Tomorrow 9

10 INVESTING IN THE FUTURE Stewards of Tomorrow 10

11 Stewards of Tomorrow 11

12 ON-TERMINAL INFRASTRUCTURE PROJECTS Stewards of Tomorrow 12

13 NIT NORTH GATE EXPANSION 26 new truck gates Ties into new I-564 connector $31 million investment June 2017 completion Stewards of Tomorrow 13

14 NIT SOUTH EXPANSION Increase designed capacity by 400,000 containers (46%) 2017: first stacks complete 2019: all 30 stacks complete $350 million investment Stewards of Tomorrow 14

15 POTENTIAL ECONOMIC IMPACT OF NIT SOUTH IMPROVEMENTS $100,000,000 ANNUAL REVENUE 120,000 JOBS ACROSS VIRGINIA $16 BILLION IN SPENDING $462 MILLION STATE AND LOCAL TAXES Source: Economic Impacts of Virginia s Maritime Industry, 2013, Raymond A. Mason School of Business, William & Mary Stewards of Tomorrow 15

16 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 Stewards of Tomorrow 16

17 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 Stewards of Tomorrow 17

18 OUTSIDE THE GATES Stewards of Tomorrow 18

19 OVER $4 BILLION BEING INVESTED Stewards of Tomorrow 19

20 SHIFTING TRADE TRENDS Stewards of Tomorrow 20

21 SHIFTING TRADE TRENDS Stewards of Tomorrow 21

22 Stewards of Tomorrow 22

23 BOXSHIP EVOLUTION: REGINA MAERSK 7,400 TEU Stewards of Tomorrow 23

24 BOXSHIP EVOLUTION: CMA CGM BENJAMIN FRANKLIN 18,000 TEU Stewards of Tomorrow 24

25 A NEW EAST COAST ERA HAS BEGUN JULY 10, 2016 MOL BENEFACTOR 10,000 TEU Stewards of Tomorrow 25

26 GETTING BIG SHIP READY Stewards of Tomorrow 26

27 GETTING BIG SHIP READY Stewards of Tomorrow 27

28 EAST COAST PORT DEPTHS Jacksonville, NC 40 Wilmington, NC Savannah, GA Charleston, SC 42 Ports of NY/NJ Baltimore, MD The Port of Virginia The Port of Virginia - AUTHORIZED 4,500 TEU ,500 TEU 12,500+ TEU Stewards of Tomorrow 28

29 EAST COAST PORTS ANOTHER LOOK Deep channels Intermodal connections to population centers Unobstructed water access Expansion capability CIEE permits Application for 55 deep channel Stewards of Tomorrow 29

30 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 Stewards of Tomorrow 30

31 SERVING THE INLAND MARKETS Stewards of Tomorrow 31

32 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 Stewards of Tomorrow 32

33 QUICK ACCESS BY RAIL Stewards of Tomorrow 33

34 DOUBLE STACK TO THE MIDWEST Norfolk Southern CSX Stewards of Tomorrow 34

35 MEETING THE NEEDS OF GLOBAL COMMERCE Stewards of Tomorrow 35

36 ICE CERTIFICATION Stewards of Tomorrow 36

37 PROPOSED FTZ EXPANSION Stewards of Tomorrow 37

38 POSITIONING VIRGINIA AS A FIRST IN, LAST OUT DESTINATION Stewards of Tomorrow 38

39 WE HAVE A CLEAR PATH FORWARD. Stewards of Tomorrow 39

40 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 Stewards of Tomorrow 40

41 10 YEARS NIT II, VIG II complete Craney Island cells being built Total POV capacity: >3 million containers Capacity to handle 42% of volume moved by rail Stewards of Tomorrow 41

42 20 YEARS AND BEYOND Craney Island Phase I & II Total POV capacity: 5.5 million containers Capacity to handle 45% of volume moved by rail Craney Island capacity when complete: 2.87 million containers Stewards of Tomorrow 42

43 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 Stewards of Tomorrow 43

44 WE ARE VIRGINIA S GLOBAL GATEWAY. Stewards of Tomorrow 44

45 ACCESSIBILITY FORTITUDE HELPFULNESS Thank you INNOVATION MINDFULNESS SUSTAINABILITY Stewards of Tomorrow 45