PRESENTATION TITLE 2016 STATE Subtitle Goes OF Here THE PORT A look back. A path forward. March 23, 2016 Stewards of Tomorrow 1
WE HANDLED MORE VOLUME THAN EVER BEFORE. Stewards of Tomorrow 2
TOTAL POV VOLUME: FY 2015 FYTD 2016 140,000 120,000 100,000 80,000 60,000 40,000 20,000 Gate Volume Containers The new normal We are regularly handling more than 117,000 containers (200,000 TEUs) every month. Rail Volume - Jul-14 Aug-14Sep-14 Oct-14Nov-14Dec-14 Jan-15 Feb-15Mar-15Apr-15May-15Jun-15 Jul-15 Aug-15Sep-15 Oct-15Nov-15Dec-15 Jan-16 Feb-16 Stewards of Tomorrow 3
HOW WE MOVED THE CARGO: FY 2015 2.5 million 20-Foot Equivalent Units (TEUs) + 4.2% + 12% + 10.9% 9% growth over FY 2014 Stewards of Tomorrow 4
WE CONTINUE TO HANDLE MORE TYPES OF CARGO. Stewards of Tomorrow 5
MORE SERVICES TO OFFER CUSTOMERS In 2015, we handled nearly 50,000 vehicle units a 77% increase over 2014. Stewards of Tomorrow 6
WE BECAME MORE EFFICIENT AT SERVING OUR CUSTOMERS. Stewards of Tomorrow 7
POV GATE TURN TIMES: FY2015 FYTD2016 140,000 120,000 Gate Transactions 100,000 80,000 60,000 40,000 20,000 - Jul 2014 We have addressed the congestion issues of early 2015. We still have opportunities to improve our efficiency. Aug 2014 Sep 2014 Oct 2014 Nov 2014 Dec 2014 Jan 2015 Feb 2015 Mar 2015 Apr 2015 May 2015 Gate Volume Average Traditional Turn Time Average Expanded Turn Time Jun 2015 Jul 2015 Aug 2015 Sep 2015 Oct 2015 Nov 2015 Dec 2015 Jan 2016 Feb 2016 140 120 100 80 60 40 20 - Gate Turn Time in Minutes Stewards of Tomorrow 8
WE CONTINUE TO KEEP SAFETY THE HIGHEST PRIORITY. Stewards of Tomorrow 9
5 4 3 2 1 0 3.77 3.18 2.54 2.51 2.32 FY12 FY13 FY14 FY15 FY16 YTD (Feb) OSHA LWD Rate for VIT Industry Average 3.5 for 2014 Our 2016 TSIP Program is catching people doing something right and improving our safety levels. Stewards of Tomorrow 10
WE CONTINUE TO STRENGTHEN SECURITY THROUGH PARTNERSHIPS AND TRAINING. TERMINAL SAFETY INFRACTION POLICY (TSIP) CATCHING PEOPLE DOING SOMETHING RIGHT Stewards of Tomorrow 11
Stewards of Tomorrow 12
WE CONTINUE TO BE GOOD STEWARDS OF OUR FINANCES. Stewards of Tomorrow 13
OPERATING INCOME: FY 2009 FYTD 2016 $500 $450 $400 $350 $300 $250 $200 $208.62 $209.26 $287.73 $310.64 $352.33 $396.67 $458.00 $258.30 $150 $100 $50 $0 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FYTD 2016 FY 2009 and FY 2010 do not include APM statistics. Operating Revenue Compound Annual Growth Rate 2011 2014 = 11.3% Stewards of Tomorrow 14
OPERATING RESULTS: FY 2009 FYTD 2016 $20.00 $15.00 $13.60 $10.00 $5.00 $0.00 -$5.00 -$10.00 -$15.00 -$20.00 -$25.00 -$6.30 -$11.20 -$15.51 -$16.56 -$18.51 -$20.49 -$20.05 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FYTD 2016 Stewards of Tomorrow 15
WE REINVESTED IN EQUIPMENT, TECHNOLOGY AND PEOPLE. Stewards of Tomorrow 16
Stewards of Tomorrow 17
Stewards of Tomorrow 18
NEARLY $15 MILLION IN IMPROVEMENTS AT RICHMOND MARINE TERMINAL MOBILE HARBOR CRANE IMAGE Stewards of Tomorrow 19
WE ARE A CATALYST FOR COMMERCE. Stewards of Tomorrow 20
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 Martiime Industry, 2013, Raymond A. Mason School of Business, William & Mary Stewards of Tomorrow 21
CY 2015 ECONOMIC DEVELOPMENT TOTALS Stewards of Tomorrow 22
CY 2015 ECONOMIC DEVELOPMENT TOTALS Stewards of Tomorrow 23
CY 2015 ECONOMIC DEVELOPMENT TOTALS Stewards of Tomorrow 24
CY 2015 ECONOMIC DEVELOPMENT TOTALS Stewards of Tomorrow 25
CY 2016 ECONOMIC DEVELOPMENT TOTALS Stewards of Tomorrow 26
TOP RICHMOND MARINE TERMINAL CUSTOMERS WestRock Archer Daniels Midland Company Weyerhaeuser Company Scoular Company E I DuPont de Nemours Universal Leaf Tobacco Company Honeywell International Defense Commissary Agency Evergreen Enterprises Hewlett Packard Luck Stone Precept Medical Phillip Morris/Altria Open Plan Systems Stewards of Tomorrow 27
PROPOSED FTZ EXPANSION Stewards of Tomorrow 28
WE FACED CHALLENGES. TOGETHER. Stewards of Tomorrow 29
Stewards of Tomorrow 30
WE WORK AS A TEAM WITH PARTNERS, CUSTOMERS AND STAKEHOLDERS. Stewards of Tomorrow 31
ILA Richmond TPO P3 Office Richmond Task Force Port Community VMA Many Players One Goal: A safe, sustainable and successful Commonwealth economy. Environmental Organizations Governments Barge Partners Rail Partners USCG and USN Stewards of Tomorrow 32
WE ARE STEWARDS OF THE ENVIRONMENT AND OUR COMMUNITIES. Stewards of Tomorrow 33
Sustainability is about taking the long view. It s a comprehensive approach to business that ensures ours is an asset that will provide for generations to come. Thank you Stewards of Tomorrow 34
Stewards of Tomorrow 35
$1,000,000 PROVIDED TO OUR COMMUNITIES AID TO LOCAL PORTS PROGRAM Stewards of Tomorrow 36
Stewards of Tomorrow 37
WE DELIVER VIRGINIA S BOUNTY TO THE WORLD. Stewards of Tomorrow 38
GROWTH OUTSIDE THE US Stewards of Tomorrow 39
FY 2015 TOP TRADING PARTNERS EXPORT IMPORT China China Germany Germany Belgium India Netherlands Italy Brazil Brazil India Vietnam United Kingdom Netherlands Indonesia Indonesia Japan Spain Saudi Arabia Belgium Stewards of Tomorrow 40
VA AG EXPORTS: LARGEST GAINS OVER PAST FIVE YEARS Commodity Group TEU Growth: 2010 2015 Grains, Soybeans Starches, and Animal Feed 48,669 Logs/Lumber and Articles of Wood 22,168 Edible Vegetables, Fruits and Nuts 5,908 Poultry and Meats 1,703 Dairy, Fats and Oils 1,355 Stewards of Tomorrow 41
Stewards of Tomorrow 42
WE ARE PART OF A RAPIDLY CHANGING INDUSTRY. Stewards of Tomorrow 43
INDUSTRY HOT TOPICS/ISSUES A lack of investment Shifts in trade patterns Increasing ship sizes The ability to serve discretionary markets To remain competitive, ports have to be able to move cargo swiftly, safely, and sustainably. Stewards of Tomorrow 44
MAJOR US EAST COAST PORTS COMPARISONS Thousands of TEUs 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 +599,417 TEUs +10.4% Select USEC Ports TEU Volumes CY 2014-2015 +391,379 TEUs +11.7% +156,232 TEUs +6.5% +181,218 TEUs +10.1% In 2014, The Port of Virginia grew the least of all Major East Coast ports. +70,175 TEUs +9.1% +11,526 TEUs +4.1% NY/NJ Savannah Port of Virginia Charleston Baltimore Wilmington, CY 2014 CY 2015 NC Stewards of Tomorrow 45
SHIFTING TRADE TRENDS Stewards of Tomorrow 46
Stewards of Tomorrow 47
BOXSHIP EVOLUTION: 1996-2016 1996 REGINA MAERSK 7,400 TEU Stewards of Tomorrow 48
BOXSHIP EVOLUTION: 1996-2016 2016 CMA CGM BENJAMIN FRANKLIN 18,000 TEU Stewards of Tomorrow 49
GETTING BIG SHIP READY Stewards of Tomorrow 50
DEEPER, WIDER, SAFER. Jun 2015: Cost-Sharing Agreement Signed Dec 2015: Alt Milestone met Jan 2017: Selected Plan and Econ Dev Plans identified Aug 2017: Agency Decision June 2018: Chief s Report Issued Stewards of Tomorrow 51
QUICK ACCESS BY RAIL Stewards of Tomorrow 52
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 53
WE ARE BEGINNING THE PORT OF VIRGINIA S NEXT CHAPTER. Stewards of Tomorrow 54
RICHMOND MARINE TERMINAL New 40-year lease with City of Richmond New $4.2M mobile harbor crane $600,000 in rail improvements 10 ocean carriers offering bills of lading Container on barge service 64 Express Stewards of Tomorrow 55
VOLUME GROWTH AT RMT 15000 10000 5000 6,699 7,415 6,446 4,821 4,775 3,205 3,241 +55% +39% 14,114 9,596 +47% 0 Import Export Total FY 2013 FY 2014 FY 2015 Stewards of Tomorrow 56
VIP RAIL EXPANSION PROJECT Submitting for TIGER Grant funding Expansion to the existing five working tracks Increased throughput at POV ports in conjunction with the expansion and optimization of NIT and VIG ultimately leads to increased freight being moved via rail. Stewards of Tomorrow 57
NORFOLK INTERNATIONAL TERMINALS (NIT) 820,000 Container Capacity Served by NS 50 depth 14 STS Cranes Stewards of Tomorrow 58
NORTH GATE CONSTRUCTION Stewards of Tomorrow 59
Stewards of Tomorrow 60
PHASE 1 NIT SOUTH CONVERSION $350 million investment Increase capacity by 400,000 containers 2017: first stacks complete 2019: all 30 stacks complete Stewards of Tomorrow 61
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 62
VIG II CONCEPT $320 million Increase designed capacity to 1.2 million containers Expanded rail operation New equipment Extended berth Stewards of Tomorrow 63
VIRGINIA INTERNATIONAL GATEWAY Stewards of Tomorrow 64
WE HAVE A CLEAR PATH FORWARD. Stewards of Tomorrow 65
5 YEARS NIT Phase I, VIG II projects complete Total POV capacity: 2.95 million containers Capacity to handle 36% of volume moved by rail Stewards of Tomorrow 66
10 YEARS NIT II, VIG II complete Craney Island cells being built Total POV capacity: 3.5 million containers Capacity to handle 42% of volume moved by rail Stewards of Tomorrow 67
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 68
WE ARE VIRGINIA S GLOBAL GATEWAY. Stewards of Tomorrow 69
THE PIECES ARE IN PLACE The foundation is set. We will stay aligned and guided by our values. We will continue to work closely with our partners and stakeholders. We will continue to build capacity and momentum. We will continue to be a catalyst for commerce. Stewards of Tomorrow 70
WE ARE THE STEWARDS OF TOMORROW. Stewards of Tomorrow 71
ACCESSIBILITY FORTITUDE HELPFULNESS INNOVATION MINDFULNESS SUSTAINABILITY Stewards of Tomorrow 72